Key Features
Organisations can apply for a share of up to £30 million exclusive of VAT, for collaborative Discovery Phase Projects that meet the Innovation Challenges. This funding is from the Ofgem Strategic Innovation Fund.
Programme: Innovate UK
Award: Share of up to £30 million
Opens: 21st Sep 2026
Closes: 21st Oct 2026
Innovate UK alongside Ofgem are offering a share of up to £30 million (exclusive of VAT) for collaborative Discovery Phase Projects that meet the Innovation Challenges.
Discovery is the first phase of a four phase competition.
The aim of this competition is to deliver net zero at the lowest cost to consumers and support innovative businesses to grow and scale. Each Innovation Challenge has different aims and you must select which challenge your project is working on:
Projects can include the following Specific themes: Innovation Challenge focus, Cost reduction, Customer outcomes, Economic growth and Decarbonisation.
To be eligible for this award, projects must have a total eligible Strategic Innovation Fund requested funding of no more than £200,000 with a minimum of 10% total Project costs as a compulsory contribution from private funds. Projects must start after 1st January 2027 and end by 31st May 2027 and be completed in a five month window.
The award has been designed to be provided on a no subsidy basis, as described in the Subsidy Control Act 2022.
Project Partners: There are no specific Project Partner requirements in addition to the lead network licensee. You are encouraged to have other Project Partners, and these can include a variety of third party innovators such as: start-ups, academics, other licenced energy network companies. The Project Direction will only be awarded to a single legal entity.
Non-funded partners: Projects can include organisations that do not claim any funding for their wok on the project. Any costs will be covered from their own resources and can include UK, EU and other non-UK organisations. Non-UK partners are permitted to carry out project work from within their home counties so long as results are exploited outside the UK.
Previous applications: Ofgem will not award funding if you have failed to comply with the eligibility criteria set out in Chapter 3 of the SIF Governance document. If you are resubmitting a previously unsuccessful SIF Project, you must contact Innovate UK and Ofgem for approval as soon as possible prior to resubmission
Ofgem will not fund Projects that do not meet the requirements of the SIF Governance Document.
Ofgem has a total SIF funding of up to £30 million allocated to the Discovery Phase across the seven challenges.
Matched contributions that exceed the 10% mandatory minimum contribution will be assessed as delivering greater value for money. Projects must also consider the suitability of sourcing additional private or public funding where it may be unsuitable for consumer bill payers to finance assets or other equipment and resources.
The total funding available for the competition can change. The funders have the right to:
Ofgem reserve the right to make the final decision as to which Projects are funded.
At the end of Discovery Phase all milestones detailed in the Project Direction must be fulfilled. The successful organisation will be invited to submit an application into the Alpha phase and a further assessment will take place.
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