Image accompanying GrantTree's blog about the Ofgem Strategic Innovation Fund Round 5. The image shows a person holding a tablet displaying blueprints for power lines.

Ofgem Strategic Innovation Fund Round 5

Ofgem is about to launch the latest round of its Strategic Innovation Fund, a three-phase grant competition targeting solutions that will help to deliver net-zero energy to consumers.

The first phase, Discovery, opens on 26 January, closes on 25 February and offers up to £150,000 in grant funding.

The next two phases, Alpha (live testing) and Beta (large-scale demonstration), will open at a later date. Together, the three phases are designed to take a technology from early-stage exploration through to commercialisation.

This competition is only open to collaborative applications, meaning you will need to apply and undertake your project with one or more partners.

Below, I’ve explained each of these competitions in more detail, including who’s eligible and what kind of projects they support.

To find out if you’re eligible, book your free, no-commitment Eligibility and Competitiveness Assessment. In just 30 minutes, I’ll tell you:

  • Whether you’re a strong candidate for this competition
  • Other grants you may be eligible for
  • What other sources of funding we can help you secure

Book your free, no-commitment assessment.

Who is Eligible?

Projects

To apply for round 5 of Ofgem’s Strategic Innovation Fund, you must be working on an innovation that can benefit Great Britain’s network infrastructure, consumers, operation and utilisation. Your proposal must address:
  • Users and their context
  • Constraints affecting the problem or wider context
  • Opportunities for improvement
  • Environmental impacts
In addition, you must:
  • Complete your project within the five months from 1 May 2026 to 30 September 2026
  • Have a total grant request of no more than £150,000
  • Fund at least 10% of the project costs from private funds

Organisations and Consortia

Your consortium – the group of organisations you are planning to deliver your project with – must be led by an Ofgem-licensed: 

  • Gas distribution network
  • Gas transmission
  • Electricity transmission
  • Electricity distribution
  • Electricity system operator (ESO)
What other partners you’re allowed to include in your consortium depends on which of the competition’s seven challenge areas you are looking to address.

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Challenge Areas and Project Partners

To apply for Ofgem’s Strategic Innovation Fund Round 5, you must address one of seven challenge areas. I have listed them below alongside the types of project partners you need to include to apply for each one and the themes they’re made up of.

Challenge 1: Advanced energy transmission and networks

  • Theme 1: A research organisation or industry partner with experience in power electronics for grid applications
  • Theme 2: A research institution or industry partner with expertise in superconducting technologies
  • Theme 3: A research organisation or technology provider in wireless power systems

Challenge 2: Dynamic modelling

  • Theme 1: A research institution or technology provider with expertise in real-time network modelling, forecasting and optimisation
  • Theme 2: Organisations with capability in dynamic modelling, network control or automation for resource coordination

Challenge 3: High energy demand point integration

  • Theme 1: A research institution or industry partner with expertise in energy forecasting, demand modelling, and load profiling
  • Theme 2: A research institution or technology provider in demand side response and grid flexibility
  • Theme 3: A policy expert, regulatory specialist, or network planner with experience in grid connection processes and infrastructure planning

Challenge 4: Consumer-centric grid expansion

  • Theme 1: Consumer representative organisation
  • Theme 2: Consumer representative organisation

Challenge 5: Enhanced system visibility and control

  • Theme 1: A research institution, technology provider, or grid analytics specialist with expertise in real-time monitoring, AI-driven diagnostics, and grid automation
  • Theme 2: A research institution, control room specialist, or automation solution provider with expertise in digital twins and operator decision support tools for complex environments

Challenge 6: Green gas

  • Theme 1: A research institution, technology provider, or infrastructure specialist with expertise in gas blending, pressure management, and grid adaptation
  • Theme 2: A research institution, flexibility solutions expert, or control system developer specialising in real-time forecasting, injection control, and balancing strategies
  • Theme 3: A research organisation or technology developer with expertise in gas compression, storage, and injection management

Challenge 7: Whole system optimisation

  • Theme 1: No partner requirements
  • Theme 2: A technology provider or Research institution specialising in cross-sector energy modelling

Ofgem also suggests applying with other types of project partners beyond those listed above, including startups, SMEs, academics, researchers and suppliers.

How to Apply for Ofgem’s Strategic Innovation Fund

Applications must be led by your project lead.  The application has three sections:

  • Project details – this section is not scored but covers a range of important background about your project, such as who will be delivering it and what challenge it is trying to solve
  • Application questions – this section is made up of 16 questions, most of which are scored. This is where you’ll want to dedicate most of your time.
  • Finances – This is where you list your project costs. Each organisation in your consortium must complete this section.
Your application will be reviewed by three independent assessors. Their marks will be combined to give you a final score that’ll decide whether or not you win funding in this phase and can progress to the more generous Alpha and Beta stages of the competition.

In all likelihood, at least one of your assessors won’t be an expert in energy network technology, so make sure you adjust your answers accordingly. 

Other Relevant Competitions

Not sure if you’re eligible for Ofgem’s Strategic Innovation Fund? Here are some other competitions you might be suitable for.

How GrantTree Can Help

Ofgem’s Strategic Innovation Fund presents a fantastic opportunity to secure funding for energy infrastructure-related R&D. Moreover, to apply for the Alpha phase, which is likely to be far more lucrative, you will need to win funding in the Discovery phase.

GrantTree can help. Calling on 15 years’ experience winning grants for UK innovators, we will make sure you put forward the strongest possible application, showcasing the true potential of your technology and the strength of your project team. 

We offer a wide range of services, from comprehensive reviews of an application you’ve written yourself to assembling your proposal from the ground up.

To learn more about how GrantTree can help you, just get in touch.