Ofgem has recently unveiled a new approach to the Strategic Innovation Fund (SIF) that aims to propel progress towards achieving net zero emissions by 2030. This initiative is set to revolutionize the funding process for innovators, providing greater opportunities to secure funding swiftly.
The SIF projects are designed to drive the transition to cleaner, renewable energy sources, ultimately putting an end to soaring energy costs, excessive carbon emissions, and energy insecurity. By embracing cutting-edge technologies, such as smart meters and flexible energy solutions, these projects are paving the way for a more sustainable energy future.
Following extensive consultations with stakeholders, Ofgem has announced key changes to the SIF application process. These modifications are geared towards enhancing flexibility and increasing the number of opportunities for innovators to access funding.
In July 2023, Ofgem allocated over £95 million to support ten groundbreaking projects under the SIF scheme. These projects encompass a wide range of innovations, including technologies that enable more efficient energy use, AI systems for predicting energy network risks, and circuit breakers to enhance the integration of offshore wind power into the grid.
Marzia Zafar, Deputy Director of Energy Systems Management at Ofgem, emphasized the importance of fostering innovation in the energy sector. She highlighted the need for advancements in energy storage, smart devices, and digital solutions to optimize the energy system’s performance effectively.
Working in collaboration with Innovate UK, the SIF leverages the expertise of both UK and international innovators to drive progress in the energy sector. By aligning with other public innovation funding initiatives, the fund aims to benefit energy consumers and enhance the overall efficiency of the energy network.
Jodie Giles, Programme Director of the Strategic Innovation Fund at Innovate UK, emphasized the fund’s role in accelerating the transition to net zero. The introduction of streamlined application processes is expected to expedite the delivery of innovative solutions that will propel the energy transition forward with greater efficiency and flexibility.
Supported by the RIIO 2 price controls, the SIF serves as a crucial funding mechanism for various energy companies, including the Electricity System Operator and gas distribution entities. By nurturing collaboration and innovation, the fund is poised to play a pivotal role in driving the UK towards its clean energy aspirations.
