More than £36.7 million has been awarded to 25 projects aimed at decarbonising Great Britain’s energy networks, following the latest funding round of the Ofgem Strategic Innovation Fund. The funding supports a mix of large-scale demonstration projects and early-stage proof-of-concept initiatives designed to modernise the energy system and support the UK’s 2050 net zero target.
The Strategic Innovation Fund is backed by Ofgem and delivered in partnership with Innovate UK. It brings together energy network companies, technology providers, researchers and other partners to test new approaches that could reshape how electricity and gas networks operate as demand changes and low-carbon technologies scale up.
According to Ofgem, the current energy system needs significant upgrades to handle growing electricity demand, increased renewable generation and the electrification of heat and transport. The projects funded through the scheme are intended to help address these pressures while keeping energy affordable and reliable for consumers.
The portfolio of projects covers a wide range of themes, including grid expansion, digitalisation, network planning, and improving access to energy-related technologies for households that face higher barriers to participation. Several initiatives also focus on nature-based approaches and social outcomes alongside technical change.
As part of cycle four of the programme, five large-scale beta demonstrator projects received £31.6 million. These projects are expected to progress towards commercial use or deployment on energy networks.
One of the funded beta projects is REVISE, led by SSEN Transmission. The project will combine high-resolution weather data with advanced system modelling to develop a more accurate approach to overhead line rating. The aim is to help network operators better understand real-time capacity on transmission lines as weather patterns become more variable.
UK Power Networks is leading SNUG, a project that seeks to create new commercial models that enable social landlords to take part in flexibility markets. By allowing landlords to adjust demand in response to network conditions, the project is exploring ways to reduce costs and ease pressure on local networks.
Southern Electric Power Distribution is leading Nature4Networks, which will examine how nature-based solutions can be used at scale within energy infrastructure. The project will look at funding models and planning approaches that allow natural features to be embedded into network development.
SSEN Distribution is working with multiple partners on Pathways to 2050, a project focused on low-voltage networks. The initiative aims to create a consumer-centred approach to forecasting demand growth and prioritising investment, as electric vehicles, heat pumps and other technologies increase electricity use at local level.
Another beta project, Wayl-Ease, is being developed by UK Power Networks and its delivery partners. It will launch a digital platform designed to simplify wayleave agreements, using artificial intelligence and geospatial mapping to speed up negotiations needed for network upgrades.
Alongside the beta demonstrators, seven alpha projects received £3.3 million. These smaller initiatives are intended to test ideas at proof-of-concept stage and assess whether they are suitable for further development.
Northern Powergrid is leading VOLT, which will examine how microgrids can support industrial and commercial sites in reducing emissions. The project will develop and test approaches for using local energy systems to support decarbonisation.
UK Power Networks is also behind SHARED, which will explore low-cost hydrogen production and storage as a way to improve resilience for rural communities that experience poorer service levels. The project will assess how hydrogen could support energy supply in these areas.
ODIN, a collaboration between SSEN Distribution and Ross Robotics, will focus on capturing and analysing live data to detect early signs of wear on network assets. The aim is to reduce outages and improve reliability by identifying problems before failures occur.
Future Fleet, led by UK Power Networks and its partners, will look at how network and logistics operators can plan for freight electrification at scale. The project will develop a framework to support affordable and grid-compatible charging for electric freight vehicles.
Another alpha project, HVDC Wind Connect, brings together SSEN, Carbon Trust Advisory and WindGrid. It will demonstrate new meshed high-voltage direct current systems to support the integration of offshore wind into the energy system.
Wales & West Utilities is leading a project titled Hydrogen-Enhanced Biomethane for Energy System Resilience. The initiative will test how hydrogen can be used to convert additional carbon dioxide into biomethane, increasing output and supporting network balancing.
Northern Powergrid is also involved in Power Wheels, which will explore how flexibility from Motability’s electric vehicle fleet could be used at scale. The project will assess smart and bidirectional charging to create a virtual power plant, with a focus on protecting households that rely on medical equipment during outages.
Jodie Giles, Deputy Director for the Ofgem Strategic Innovation Fund at Innovate UK, said: “This significant investment in energy network innovation will help us deliver a world leading energy system that underpins a better future. The projects we fund today will deliver a cleaner, more affordable energy system that critically enables us to address climate change.”
Marzia Zafar, Deputy Director for Digitalisation and Innovation at Ofgem, added: “Ofgem is committed to creating clear pathways for innovation across the energy sector, supporting projects that will accelerate progress towards net zero, strengthen GB’s energy independence, and deliver a stable energy system. The innovation on show with these latest SIF projects is hugely exciting and has the potential to help deliver these goals.
“I’m looking forward to watching them develop and seeing the value they can bring for consumers.”
The Strategic Innovation Fund forms part of Ofgem’s wider approach to supporting change across gas and electricity networks as the UK transitions to a low-carbon energy system. Further details about the programme and the funded projects are available through Ofgem and Innovate UK.
