Projects must always start on the first of the month, even if this is a non-working day and this must be stated within your application. You must not start your project until your Project Direction has been received and approved. Your Project start date will be reflected in your Project Direction if you are successful.

You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.

Lead organisation

To lead a Discovery Phase Project, you must be an Ofgem licensed electricity or gas distribution network, transmission operator, or Electricity System Operator (ESO).

Project partners

Each Discovery Phase Round 4 Challenge has specific project partner requirements in addition to the lead network licensee. The eligibility requirements for the Discovery Phase Challenges are different for each Challenge theme:

Challenge 1: Faster network development partner requirements:

Theme 1: there are no specific partner requirements

Theme 2: you must partner with organisations with proven experience in developing and trialling regional energy models

Challenge 2: Greater heat flexibility partner requirements:

Theme 1: there are no specific partner requirements

Challenge 3: Embedding resilience partner requirements:

Theme 1: must involve a consumer representative group relevant to rural energy development

Theme 2: there are no specific partner requirements

Challenge 4: Accelerating towards net zero energy networks partner requirements:

Theme 1: there are no specific partner requirements

You are encouraged to have other Project Partners in addition to the mandatory requirements listed above. Your Project Partners can include a variety of third-party innovators such as:

• start-ups
• SMEs
• suppliers
• academics
• independent researchers
• disruptors
• other licenced energy network companies

This list is not intended to be exhaustive.

The Project Direction will be awarded to a single legal entity only.

If successful, the Project Direction will be awarded only to the lead network (Funding Party). Project Partners must be responsible for at least one deliverable in the Discovery Phase.

Ofgem are looking for proposals that involve all the necessary stakeholders relevant to the proposed innovation. We particularly encourage Projects working with suitable SME technology developers and growth companies.

Each Project Partner organisation must be invited into the Innovation Funding Service (IFS) by the lead to collaborate on a Project. Once Project Partners have accepted the invitation, they will be asked to login or to create an account in IFS. They are responsible for entering their own project costs in the application.

To be an eligible collaboration, the lead and at least one other organisation must apply for funding when entering their costs into the application.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Ofgem to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Previous Applications

Ofgem will not award funding if you have failed to comply with the eligibility criteria set out in Chapter 2 of the SIF Governance document.

In line with paragraph 5.8 in the SIF Governance Document, Projects submitted under previous rounds of the SIF are eligible to request permission to reapply into SIF Round 4 Innovation Challenges.

This is on the condition that your Project:

• meets the Round 4 Innovation Challenge scope, eligibility, and partner requirements
• acknowledges the focus of the Innovation Challenges’ changes with each round of the SIF
• meets with the requirement set out in the Innovation Challenge it is applying to, rather than a previous round’s Innovation Challenge

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. You must email Innovate UK at SIF_Ofgem@iuk.ukri.org and copy in Ofgem at network.innovation@ofgem.gov.uk.

You must provide an explanation as to how the Project has materially changed since it was last submitted and how the Project aligns with the current Innovation Challenge.

Ofgem is the decision maker on the SIF. It is at Ofgem’s discretion (on a case by case basis) whether Projects have materially changed since a Project was last submitted and are eligible to reapply.

Funding Costs

A total SIF funding of up to £30 million exclusive of VAT is allocated to the Discovery Phase across the four challenges.

Matched contributions that exceed the 10% mandatory minimum contribution will be assessed as delivering greater value for money. Your Project 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.

If you are unsure whether your Project or parts of your Project are eligible for funding in this competition, you must contact us by email to SIF_Ofgem@iuk.ukri.org at least five working days before the competition closes. We will decide whether to approve your request.

The total funding available for the competition can change. The funders have the right to:

• adjust the provisional funding allocations between the phases
• apply a ‘portfolio’ approach based on technology, geography, innovation, markets, and participants

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.