Innovators across the UK will have greater opportunity to apply or re-apply to the Strategic Innovation Fund, thanks to a new process recently announced by Ofgem. Feedback from stakeholders is driving the revisions to the SIF process, increasing funding opportunities and making it more flexible. Here’s what you need to know.
What is the Strategic Innovation Fund?
The Strategic Innovation Fund (SIF) is a key initiative designed to drive forward network innovation that supports the UK’s ambition to achieve net zero emissions. Managed collaboratively by Ofgem and Innovate UK, the fund seeks to align with other public innovation funding bodies to ensure that efforts across the energy sector are coordinated, ultimately benefiting network consumers and the broader society.
Through the SIF, gas and electricity network and system operators can partner with businesses, academic institutions, and other stakeholders to form consortia. These consortia are encouraged to develop and propose cutting-edge solutions to the critical challenges faced by the UK’s energy networks. Successful proposals can then compete for funding through a rigorous and competitive application process.
The funding for the Strategic Innovation Fund is sourced directly from energy consumers’ bills. Therefore, it is imperative that any projects financed through this fund deliver tangible, positive benefits to consumers. This ensures that the investments not only support the transition to a low-carbon future but also provide value to those who ultimately bear the cost.
How will these changes impact the SIF?
The new changes implemented by Ofgem will affect three areas:
- More application windows – rather than a single application window for each phase annually, there will be three each year for all phases which include Discovery, Alpha and Beta
- Introducing flexible start dates and duration – project teams can decide which phase to apply to depending on progress. The new approach allows project teams to decide their own start date to suit the project and their resources. Projects will also be able to deliver within a flexible window of time
- Projects will be able to move through their life cycles faster – the shortest route from a successful Discovery to Beta phase can now be completed in 23 months, saving up to eight months compared to the previous process
“Great British Innovation has led to some of the greatest transformations in history such as the Agricultural, Industrial, and more recently Digital revolutions,” said Marzia Zafar, Deputy Director Strategy – Energy Systems Management & Security at Ofgem.
“We need this innovative spirit more than ever if we are to meet our ambition for clean energy. What these changes mean is that great innovation will be funded and rewarded seamlessly – just bring us your ideas.”