Ofgem releases £16m for network-led projects

Ofgem has awarded 36 network-led projects a combined £16 million through its Strategic Innovation Fund (SIF).

The projects are broadly split into four categories: supporting a just energy transition, preparing for a net zero power system, improving energy system resilience and robustness and accelerating decarbonisation of major energy demands.

The 36 projects have been advanced to the second round of the SIF process, having been whittled down from 53 projects which were shortlisted during the first round of the scheme.

Each project has been allocated up to £500,000 to develop their concept further.

Upon completion of the current phase, projects will compete for third phase funding to produce demonstrator prototypes. The projects are aiming to go onto commercial development and could be implemented operationally in energy networks as early as the mid-2020s.

The SIF is a five-year scheme which was launched in 2021 and it is designed to fund innovative projects by gas and electricity networks which contribute to net zero, while delivering net benefits to their customers. It is expected to invest £450 million by 2026.

Marzia Zafar, deputy director of digitalization and innovation at Ofgem, said: “Innovative solutions that deliver resilience, reliability and affordability at pace are essential in achieving Great Britain’s target of clean power by 2035.

“This latest funding round will help innovators develop their ideas further and deliver the transformative technologies needed to drive forward the energy transition at least cost to consumers.”

Three projects led by SSEN Transmission are among the 36 schemes to be advanced to the next phase.

They include one project designed to deliver a virtual, real-time, alert and control system that can monitor and mitigate different types of oscillation events experienced on GB networks.

A second project involves creating an impact planning tool that provides a dynamic overview of all future connection requests to SSEN Transmission’s Network

And the third SSEN-led project will bring together the expertise of SSEN Transmission, SSEN Distribution, Icebreaker One, IBM, and Plantir to improve the way detailed meteorological data and models are used in the design and decision-making of electricity assets, through innovative uses of the data and predictive modelling techniques.

Alan Ritchie, innovation manager at SSEN Transmission said: “Our three projects advancing into the Alpha phase will help us gain a deeper understanding of what our future network could look like.

“The projects aim to develop tools and data processes that will help us to stabilise the network, visualise connection requests, and predict the impact of weather events and climate change, all of which will help us plan better for a net zero network.”

Another of the funded projects, led by Southern Gas Networks, will establish the Hy-Fair Fairer Warmth Hub as a central environment equipped with specialised tools and customised guidance to empower community champions, individuals, and small businesses.

Stuart Sherlock, innovation governance and performance manager at Southern Gas Network, said: “Our project is more than just addressing challenges; it’s about transforming lives and communities. We’re excited because, through the Fairer Warmth Hub, we’re not only providing vital support but also establishing an innovative framework that will be replicable nationwide.

“With streamlined access to resources, financial support, and community engagement tools, we’re paving the way for a fair energy transition that empowers everyone, especially those in vulnerable situations, and small businesses, to embrace sustainable heating solutions and low carbon technologies.”