📋 Tender Overview
9 June 2026 UKRI has announced 18 successful projects in cycle five of the OFGEM SIF have secured a total of PS22.9 million in funding.
Early-stage solutions
This is the fifth round of winners under Ofgem Strategic Innovation Fund (SIF).
SIF is a programme delivered in partnership between Innovate UK and the energy regulator, Ofgem to drive the transformation of the UKs energy networks.
Cycle five includes:
eight discovery projects (PS1 million)
seven alpha projects (PS3.2 million)
three beta projects (PS18.7 million)
Discovery feasibility studies explore early-stage solutions to the energy sectors most pressing challenges.
Cycle five projects cover multiple challenge areas.
From how networks plan for uncertainty created by renewable generation and shifting demand, to accelerating grid access for large loads, such as data centres, through flexible demand approaches.
Discovery projects include:
Robotics Integration for Sustainable Energy (RISE): led by Scottish and Southern Electricity Distribution, which will use robotics to enable faster, safer working practices, more efficient operations, and minimise customer disruption
Green Molecule Project: led by Southern Gas, to develop new routes to decarbonise the gas network through synthetic methane production and inter-seasonal energy storage
Promising ideas
Alpha proof-of-concept projects test promising ideas in more depth.
Two of the projects in this cycle have progressed straight to Alpha after receiving support from other innovation funding schemes.
UK Power Networks lead on Neighbourhood Watts, developing a scalable, community-led model for local energy balancing designed to cut bills, support networks and widen participation in low-carbon energy systems.
Led by National Grid, Automating Marine Plant Ecosystem Restoration for Energy Supply (AMPERES) will test robotic seagrass planting as a way to make marine habitat restoration safer, lower cost and more scalable as offshore grid infrastructure expands.
Large-scale demonstration
At the large-scale demonstration stage, beta projects take innovation closer to market readiness and commercial deployment.
They include Fractal Flow, collaborative multi energy network project led by Northern Powergrid. It will develop a near-real-time digital twin intended to improve coordination and situational awareness across control rooms.
And two projects led by the National Energy System Operator (NESO):
Network Security in a Quantum Future (NSiaQF): developing tools to map emerging quantum-related cyber risks to energy assets
FastPress: a decision-support tool for long-term planning, operation and repurposing of the British gas transmission network, which was progressed straight to beta, building on earlier backing from another innovation funding scheme
Low-carbon energy system
All these successful projects underline the SIFs pivotal role in supporting ambitious projects that will help transition Britains gas and electricity networks as we move towards a low-carbon energy system.
Oversight, facilitation and transparency
Jodie Giles, Deputy Director, Ofgem Strategic Innovation Fund at Innovate UK, said:
Firstly, congratulations to the successful project teams.
We are at a critical point for the SIF and wider energy innovation landscape as we transition to the new RIIO-3 price control period.
As these projects progress the new SIF programmatic approach will ensure they are supported through our Innovation Delivery Groups (IDGs). Designed to provide a collaborative community of projects in a specific innovation challenge area, IDGs will facilitate shared learning, support with tackling barriers and monitor progress against challenge outcomes.
The oversight, facilitation and transparency the SIF programme provides is vital in helping us demonstrate value for consumers, address climate change and support UK businesses to grow and scale.
Bold, scalable solutions
Marzia Zafar, Deputy Director for Digitalisation and Innovation at Ofgem, said:
This latest SIF investment marks an important step in accelerating the pace of innovation needed to transform our energy system. As we move into the RIIO-3 period, it is essential that we continue to back bold, scalable solutions that can deliver tangible benefits for consumers and support the transition to net zero.
The SIF plays a critical role in bringing together industry, academia and innovators to tackle some of the most complex challenges facing the sector. Through a more coordinated, programmatic approach we are strengthening collaboration, enabling shared learning and ensuring that projects are supported to maximise their impact.
By maintaining this focus on delivery, transparency and collaboration, we can ensure that innovation moves beyond demonstration and into real-world deployment - helping to build a more resilient, efficient and decarbonised energy system for the future.
Further information
Ofgem SIF: Cycle five beta, summary of projects approved
Round five, challenge five: Enhanced system visibility and control
Fractal Flow
Fractal Flow is a near-real-time digital twin that will improve visibility and coordination across NESO and Distribution System Operators, to improve control room decision making, coordination and situational awareness.
SIF funding award: PS7,947,286
Lead network type: electricity distribution
Project partners:
Northern Powergrid Northeast (lead)
Electralink
Electricity North West
Fraser Nash Consultancy
National Grid Electricity Distribution
NESO
Oaktree Power
Southern Electric Power Distribution
SP Energy Networks Distribution
UK Power Networks (operations)
NSiaQF
NSiaQF develops tools to map quantum threats to UK energy system assets and prioritise mitigations, strengthening energy network resilience against emerging quantum-enabled cyberattacks.
SIF funding award: PS6,191,000
Lead network type: independent system operator and planner
Project partners:
NESO (lead)
Cambridge Consultants
National Gas Transmission
SP
