Ofgem innovation fund puts £16.2m into data, quantum and EV charging projects

Sixteen projects have secured £16.2m in the sixth cycle of Ofgem's Strategic Innovation Fund (SIF), including a shared transmission data framework and two quantum-inspired computing studies for network modelling and outage planning.

The awards, announced by UK Research and Innovation (UKRI) on 8 October, cover discovery, alpha and beta phase projects and five Innovation Charter projects. UKRI said the cycle includes the first projects starting to address some of the new SIF challenges published by Ofgem.

Marzia Zafar, Deputy Director of Digitalisation and Innovation at Ofgem, said: "This cycle also marks the start of a more coordinated approach to innovation through the new Innovation Delivery Groups and Innovation Charters."

The data projects

Routing and Planning through Interoperable Data (RAPID), led by Scottish Hydro Electric Transmission, received £453,988. Innovate UK said the project will develop a shared transmission data interoperability framework to streamline routing, planning and consent, supporting the challenge two ambition of delivering infrastructure 50% faster and 20% cheaper by 2035.

Two projects apply quantum-inspired computing to network problems. A National Gas Transmission-led alpha project, with £616,558 of funding, will develop a quantum-inspired optimisation approach to improve gas network outage planning. QUIPS, a discovery project led by Scottish Hydro Electric Power Distribution with the University of Strathclyde, received £134,889 to use quantum-inspired computing for power system modelling and optimisation.

DISPATCH, led by National Grid Electricity Distribution with EA Technology and the Centre for Energy Equality, received £181,366 to investigate how data centres can be sited to provide low-temperature waste heat while using network capacity more efficiently, according to Innovate UK.

Roaming MPANs, led by Southern Electric Power Distribution, received £166,092. Innovate UK said the project will link household electricity accounts securely to public electric vehicle chargers so drivers can use their home account, smart tariffs and rates.

SOS Racer, with £167,822, will assess how distributed demand-side flexibility can strengthen electricity security of supply and inform resilience, planning and market frameworks.

The larger awards

The biggest award of the cycle went to Net Zero Terrace, a beta project led by Electricity North West aimed at decarbonising terraced homes, which received £7,188,365. Electricity North West announced the project as a SIF discovery study on 15 May 2023, aiming to decarbonise an entire terraced street using a smart local energy system.

DELLTA, led by National Grid Electricity Transmission, received £4,947,031 to explore live working techniques for high voltage assets so networks can be maintained without outages. Its partners are the University of Manchester, University of Liverpool, Fraser-Nash Consultancy, Scottish Hydro Electric Transmission, Allied Insulators and Budapest University of Technology and Economics.

Other awards include £622,691 for Grounds for Change, led by Scottish Hydro Electric Power Distribution, on scaling low voltage service replacement upgrades; £594,862 for Green Gas Access, led by Southern Gas Networks, to unlock more biomethane for Great Britain's gas networks; and £198,237 for BFIIT, a Northern Powergrid-led discovery project on multi-vector energy planning for Bradford.

Project	SIF award (£)
Net Zero Terrace	7,188,365
DELLTA	4,947,031
Grounds for Change	622,691
Quantum optimisation	616,558
Green Gas Access	594,862
RAPID	453,988
DISPATCH	181,366
Roaming MPANs	166,092

The challenges

Ofgem published its five SIF innovation challenges on 13 May 2026. They were recommended by the Energy Networks Innovation Taskforce and endorsed by the regulator.

Challenge one targets major new strategic industrial sites being energised and operational within six months by 2033. Challenge two targets 50% faster, 20% cheaper network build and maintenance by 2035. Challenge three targets instant plug-and-play connections of domestic energy devices and appliances by 2032. Challenge four targets near-zero interruptions through autonomous reconfiguring and islanding of any section of the network by 2038, and challenge five targets autonomous local balancing and optimisation of networks at every level by 2034.

Jodie Giles, Deputy Director Ofgem Strategic Innovation Fund at Innovate UK, said: "In this round we aren't just funding projects, but a new operating model that is changing the culture of energy network innovation."

The fund

The SIF was set up in 2021 as a five-year, £450m programme, according to Innovate UK Business Connect, and Ofgem has allocated a further £500m for the RIIO-3 price control period from April 2026 to March 2031. UKRI said Innovate UK manages the fund as Ofgem's delivery partner and that it is funded by energy consumers through the price cap mechanism.

Discovery phase projects are feasibility studies lasting up to five months with up to £200,000 of funding. Innovate UK Business Connect said successful discovery applicants will be invited to apply for the alpha phase.

What happens next

Each of the five challenges will be supported by an Innovation Delivery Group drawn from energy networks, decision-makers and subject-matter experts. Each group has received discovery phase funding to develop an innovation charter. The challenge one charter, led by Southern Electric Power Distribution, received £199,412, and the challenge five charter, led by National Grid Electricity Distribution with Regen SW, NESO and DR Energy Futures, received £199,861.

The innovation charters are due to be published in January 2027.