All led by an energy network, in collaboration with project partners, the successful projects are a mix of:
- discovery feasibility studies
- alpha proof of concept
- beta real world demonstrator
Unlocking energy system flexibility
We talk about how heating is responsible for nearly a quarter of UK carbon emissions, however, space cooling demand is expected to increase with rising temperatures due to climate change.
Energy efficiency and the use of passive cooling strategies will be key for managing future energy consumption and emissions.
This will be looked at in the ‘Cooldown’ project.
Faster network development
We have four projects that are looking at novel methods to increase electrical capacity from existing assets or support faster and more efficient connection methods, including the use of digital innovations:
- Collaborate
- Dynamic, Data Driven Asset Rating (3DAR)
- Design for Live Line Technology Acceleration (DELLTA)
- Fast Track
Embedding resilience
As part of a whole system network transition to net zero, two projects are looking at cost-effective pathways to decarbonisation and alternate uses of gas infrastructure:
- Knapton H2 Storage for hydrogen to power (H2P)
- Gas Network Evolution Simulator (GNES)
Accelerating net zero energy networks
Electrical losses directly impact customer bills and can cause serious safety incidents.
In cycle three we have two projects developing solutions to reduce electrical losses, including those that are a result of theft:
- Foundation Source Model (FoSMo)
- Innovating Losses Analysis and Detection (I-LAD)
High-energy demand point integration
The electricity network is under growing pressure due to ageing infrastructure, rising electrification, and the integration of intermittent renewable energy sources.
We need to develop scalable approaches to ensure we have the capacity needed to integrate the rise of large demands.
This will be looked at in the ‘Non-Data Centres Large Demand Mapping’ project.
Consumer centric grid solutions
How can we use novel technology and processes to deliver grid expansion in ways that enhance public support and deliver wider local and environmental benefits?
Tools and relatable engagement on environmental and societal benefits is critical to building public trust.
This will be looked at in the ‘AI opportunities for consumer centric engagement’ project.
Green gas
The UK has significant potential to produce and use low-carbon gases such as biomethane and Bio-SNG (synthetic natural gas).
These gases provide a crucial opportunity to reduce emissions while enhancing energy security, particularly in hard-to-decarbonise sectors such as heat, industry, and transport.
This will be looked at in two projects:
- Green Gas Access
- RemO2val
See the ‘Further information’ section for more information on all the projects, including SIF funding award, lead networks and project partners.
See the published funding direction on the Ofgem website.
Listening to stakeholder feedback
Jodie Giles, Deputy Director, Ofgem Strategic Innovation Fund at Innovate UK, said:
Congratulations to all the successful cycle three projects, we are looking forward to supporting them as they develop. Included in these are the first discovery phase projects responding to round five challenges.
For round five, we listened to feedback from all our stakeholders to set more specific, longer-term challenges, setting seven challenge areas which will run for two years.
We are working closely with all our funded projects to ensure learning is shared and impact is realised. As we approach RIIO3, the next price control period, we are really looking forward to working even more closely with projects to achieve faster deployment and benefit realisation.
Cycle four is now open, this will be the last opportunity for Beta ready projects to apply against round three challenges.
As ever we are hoping for game changing, real world demonstrator applications that will help us to achieve our aim; to develop high quality, transformational projects that accelerate delivery of net zero, at lowest cost to the customers who use and pay for the energy networks.”
Showcasing bold innovation
Marzia Zafar, Deputy Director for Energy Systems Management and Security at Ofgem, said:
These projects showcase the kind of bold innovation that will be essential to modernising Britain’s energy networks.
By supporting these initiatives through the Strategic Innovation Fund, Ofgem is helping to unlock system flexibility, accelerate infrastructure delivery, and ensure consumers remain central to the energy transition.
I look forward to seeing the impact these projects will have on building a more efficient, resilient, and future-ready energy system.
Further information
Ofgem SIF: cycle three beta, summary of projects approved
Round three, challenge three: unlocking energy system flexibility to accelerate electrification of heat
Cooldown
Cooldown will explore if space cooling can be harnessed for flexibility through trials of space cooling demand response across both commercial and residential archetypes.
It aims to better understand customer behaviour and build the evidence base to support demand response model roll out.
It will also develop a space cooling forecasting tool for distribution network operators to feed into network planning, which will reduce reinforcement requirements and optimise value for consumers.
SIF funding award: £4,901,162
Lead network type: electricity distribution
Project partners:
- Electricity North West (lead)
- Oaktree power
- Guidehouse Europe
- Ricardo-AEA
- Equiwatt
- Impact research
- National Grid electricity distribution
- UCL Consultants
Ofgem SIF: cycle three alpha, summary of projects approved
Round four, challenge one: faster network development
Dynamic data driven asset rating (3DAR)
3DAR will develop a digital tool to help electricity networks unlock extra capacity from overhead lines by using weather and data insights.
The tool will speed up new connections and reducing the need for costly upgrades.
SIF funding award: £499,780
Lead network type: electricity distribution
Project partners:
- Scottish Hydro Electric Power (lead)
- Imperial College London
- SIA Partners
Design for Live Line echnology Acceleration (DELLTA)
DELLTA will explore how live-line working (maintaining high-voltage lines without switching them off) could cut outages, reduce costs and make the electricity network more resilient as it expands for net zero.
SIF funding award: £458,121
Lead network type: electricity transmission
Project partners:
- National Grid (lead)
- Frazer-Nash Consultancy
- The University of Manchester
Fast Track
An artificial intelligence (AI) solution, analysing network capacity, existing load, connection data, and external drivers, Fast Track provides a consolidated view of future demand.
This supports system planners in making informed decisions on investments, access products and interventions to accelerate delivery and optimise capacity use.
SIF funding award: £499,498
Lead network type: electricity distribution
Project partners:
- Southern Electric (lead)
- Faculty Science
Round four, challenge three: embedding resilience
Gas Network Evolution Simulator (GNES)
GNES is a web-based tool that uses agent based modelling to simulate and test scenarios on how people, policies and infrastructure interact in the gas transition.
It will help networks and policymakers explore fair, cost-effective decarbonisation paths and understand regional and household impacts of a policy decision.
SIF funding award: £438,726
Lead network type: gas distribution
Project partners:
- Northern Gas Networks (lead)
- Southern Gas Networks
- Centre for Energy Equality
- Cadent Gas
- National Grid Electricity System Operator
- Lane Clark & Peacock
Round four, challenge four: accelerating towards net zero energy networks
Innovation Losses Analysis and Detection (I-LAD)
I-LAD will address non-technical losses (NTLs) in electricity distribution, such as those resulting from theft, unknown unmetered supplies or metering inaccuracies.
This will be done through an AI-driven platform for smart detection and identification of the losses, as well as developing a trusted decision making and governance structure for effective interventions to reduce NTLs.
SIF funding award: £499,312
Lead network type: electricity distribution
Project partners:
- Southern Electric (lead)
- ScottishPower Energy Retail
- Frontier Economics
- Electricity North West
- CGI IT UK
Ofgem SIF: cycle three discovery, summary of projects approved
Round four, challenge one: faster network development
Collaborate
Collaborate will analyse data, engage with stakeholders, and learn from existing schemes to enable utility companies and highway authorities to better coordinate roadworks to reduce disruption, carbon emissions and costs.
SIF funding award: £143,682
Lead network type: gas distribution
Project partners:
- Cadent Gas (lead)
- National Grid
- EA Technology
Round four, challenge three: embedding resilience
Knapton H2 Storage for H2P
This project will explore medium and large-scale hydrogen storage options to support Centrica’s H2P project at Knapton.
It will:
- support repurposing energy assets
- enable flexible hydrogen use for industrial decarbonisation
- scale infrastructure to enhance resilience for the proposed East Coast Hydrogen network in North Yorkshire
SIF funding award: £149,701
Lead network type: gas distribution
Project partners:
- Northern Gas Networks (lead)
- The University of Edinburgh
- British Geological Survey
- Centrica storage
- Gravitricity
- Third Energy Onshore
Round four, challenge four: accelerating towards net zero energy networks
Foundation Source Model (FoSMo)
FoSMo proposes a collaborative, deep learning-based computer vision model for network asset management, aiming to reduce costs, improve reliability and enhance predictive capabilities across all Great Britain electricity networks.
SIF funding award: £125,606
Lead network type: electricity transmission
Project partners:
- National Grid (lead)
- Dscience
Round five, challenge three: high-energy demand point integration
Non-Data Centres Large Demand Mapping
This project will develop a tool to forecast non-data centre large demand locations and timing and proposes using gas-to-power solutions.
It will address long grid connection delays for high energy demand sites in the UK, enabling faster access to power.
SIF funding award: £148,462
Lead network type: gas distribution
Project partners:
- Southern Gas Networks (lead)
- White Space Strategy
Round five, challenge four: consumer centric grid solutions
AI opportunities for consumer centric engagement
This project aims to develop scalable, AI-driven public engagement tools like multilingual chatbots and gamified education to build trust, reduce opposition and accelerate net zero energy infrastructure delivery.
SIF funding award: £149,837
Lead network type: gas transmission
Project partners:
- National Gas (lead)
- Centre for Energy Equality
- National Grid
- PA Consulting services
Round five, challenge six: green gas
Green Gas Access
Green Gas Access will enhance the management (injection control, asset utilisation, supplier onboarding) of green gas across UK distribution networks by enabling real-time operations, dynamic modelling and coordinated technology deployment.
SIF funding award: £147,705
Lead network type: gas distribution
Project partners:
- Southern Gas Networks (lead)
- DNV Services UK
RemO2val
RemO2val will evaluate the technical and economic feasibility of using advanced catalytic and adsorption technologies, alongside corrosion inhibitors, to reduce oxygen levels in biomethane.
SIF funding award: £132,309
Lead network type: gas transmission
Project partners:
- National Gas (lead)
- HyGear BV
- Premtech
- Frontline Integrity
- Underground Energy Storage Operators