The Strategic Innovation Fund (SIF) aims to help transform gas and electricity networks for a low-carbon future. It funds projects that could speed up the transition to net zero at the lowest cost to the consumer as part of the RIIO-2 price controls.

After launching in 2021, we expect to invest £450 million by 2028. The fund aims to make the UK the best country for energy businesses to grow and scale. 

Ofgem’s Innovation Hub partners with Innovate UK to deliver the programme.

What we want to achieve

The SIF funds projects that will speed up the transition to net zero.

For energy consumers, SIF projects:

  • reduce costs and increase value for money
  • create innovative products and services
  • provide energy security

For businesses, SIF projects:

  • finance growth and scalability
  • help with collaboration
  • encourage more investment

SIF projects will make our energy systems more resilient and robust. This will help us achieve our net zero targets faster.

Who can apply

To receive funding, applicants must have an energy licence. 

This includes:

  • electricity transmission and distribution companies
  • gas transmission and distribution companies
  • Distribution Network Operators
  • the Electricity System Operator

You can also partner with a licence holder to apply for funding.

Innovation partners could include:

  • consultancies
  • universities
  • large and small businesses
  • think tanks
  • independent innovators

Funding for partnerships

In a partnership, the funds go to the licence holder. We call this the Funding Party.

Innovation partners can use more of the funds than their network partner as they do more of the project work.

Get help finding an innovation partner

Innovate UK runs activities to help innovators find network partners.

Register for events and see recordings on the Innovate UK events page.

Innovators seeking a network partner can also engage with energy sector bodies, such as:

To find more information, see EIC’s UK Energy Innovation Support Resources page.

Eligibility criteria

SIF funding is for transformative, strategic projects that explore new ideas. You will need to show that your project is innovative.

To be eligible for funding, your project must:

  • address our innovation challenges
  • clearly identify the potential benefit to consumers
  • involve network innovation
  • help create competitive markets
  • be innovative, new or risky
  • have a range of stakeholders involved
  • provide value for money and be costed competitively
  • be well planned and achievable

For more information on the eligibility criteria, download the SIF governance document.

How to apply

Apply online via the Innovation Funding Service. 

If applying as a partnership, the energy licence holder must submit the application.

When you can apply

You can apply for funding for any stage of your project, including discovery, alpha and beta.

You can apply during the following times:

 

SIF updates

See the latest SIF updates in the publications and updates section at the end of the page.

You can also sign up for the Innovate UK newsletter.

Downloads and resources

To learn more about previous SIF projects:

To learn more about network innovation, see:

Publications and updates