Funding competition Ofgem Round 3: Call for Ideas

This Call for Ideas is delivered in partnership with Ofgem. Future funding may be available from the Ofgem Strategic Innovation Fund. The fund aims to deliver net zero at lowest cost to consumers and support innovative businesses to grow and scale.

This competition is now closed.

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Competition sections

Description

Text update 21 June 2023: we have changed the final submission date to 21 August 2023.

This Call for Ideas forms part of a programme delivered with the Office of Gas and Electricity Markets (Ofgem) in partnership with Innovate UK. This alignment enhances the programme’s ability to contribute to Government’s net zero objectives, while allowing it to remain dynamic, flexible and joined up with Government, industry and consumers.

Ideas which advance through this process and develop into a project proposal led by an Energy Network, may be offered the opportunity to seek funding from the Ofgem Strategic Innovation Fund (SIF). The fund aims to deliver net zero at the lowest cost to consumers and support innovative businesses to grow and scale.

The Strategic Innovation Fund (SIF) programme is investing up to £450 million in network innovation over the next 5 years. SIF is positioned to respond to industry obstacles and represents a major investment in the pace of innovation in the sector. SIF is funded by energy consumers through the price cap mechanism.

The vision of the SIF is to:

  • support Ofgem in facilitating the UK’s transition to net zero, at lowest cost to the consumer
  • position the UK as the ‘Silicon Valley’ of energy

Ofgem undertakes a four stage process to foster innovation and tackle issues facing the sector:

  1. Challenge Setting.
  2. Ideation.
  3. Incubation.
  4. Acceleration.

The ideation phase focuses on enabling the most ambitious and targeted ideas to reach the networks and be pitched as potential solutions for meeting the innovation challenges. These ideas should align with the innovation challenges which have been developed with industry and key stakeholders through the challenge setting process.

The Challenges for this round are:

  • Challenge 1: Whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout
  • Challenge 2: Novel technical and market approaches to deliver an equitable and secure net zero power system
  • Challenge 3: Unlocking energy system flexibility to accelerate electrification of heat
  • Challenge 4: Enabling power-to-gas (P2G) to provide system flexibility and energy network optimisation

This Call for Ideas is for potential solutions to these challenges which may develop into projects funded by the Strategic Innovation Fund (SIF) Round 3. It offers innovators a chance to submit project ideas which are reviewed in a quick, easy and transparent manner. As part of the review process, you may be invited to pitch your idea to the Energy Networks. The Energy Networks will choose potential ideas to take forward and innovators to partner with.

The SIF programme funding opportunities are delivered over different phases:

  1. Discovery Phase: projects must last up to three months and have a total requested funding of no more than £150,000, exclusive of VAT.
  2. Alpha Phase: projects must last up to six months and have a total requested funding of no more than £500,000, exclusive of VAT.
  3. Beta Phase: projects must last up to five years and have a total requested funding of no more than £10 million, exclusive of VAT. Total costs and funding requests of more than this may be considered on a case by case basis.

Any adoption and implementation of a solution from these funding opportunities would be subject to a separate, possibly competitive, procurement exercise.

Submitted proposals for this Call for ideas, will be sent for consideration at 11am UK time on the following dates:

  • 27 June 2023 - First submission
  • 26 July 2023 – Second submission
  • 21 August 2023 - Final submission date

Proposals submitted after 11am on the first two dates will be sent for consideration on the final date.

Funding type

Thirdparty

Project size

There is no funding available for this Call for Ideas.

Who can apply

Your submitted proposal must:

  • intend to carry out its project work in Great Britain (England, Scotland or Wales)
  • intend to exploit the results from or in Great Britain
  • outline network customer benefits
  • include a unique selling proposition
  • detail the types of Networks you wish to be involved with
  • highlight which challenge and theme your idea addresses

The future funded opportunities for SIF Round 3 have different phases:

  1. Discovery Phase: projects must last up to three months and have a total requested funding of no more than £150,000, exclusive of VAT
  2. Alpha Phase: projects must last up to six months and have a total requested funding of no more than £500,000, exclusive of VAT
  3. Beta Phase: projects must last up to five years and have a total requested funding of no more than £10 million, exclusive of VAT, total costs and funding requests of more than this may be considered on a case by case basis

A minimum of 10% compulsory contribution is also expected at each stage.

Due to current Government trade restrictions, any commercial, business development or supply chain activity with any Russian or Belarusian entity as partner or subcontractor must be scrutinised in detail by Ofgem ahead of their funding decisions. This includes any goods or services originating from a Russian or Belarusian source.

Any applications that are viewed as involving Russian or Belarusian entities, goods or services, which includes parent companies, may be at risk of funding approval and additional delays. Where potential concerns are identified the lead energy network applicants will need to work with the relevant Government bodies to ensure the ongoing protection of critical national infrastructure.

This Call for Ideas is open to sole innovators and to organisations of all types and sizes. This includes UK registered businesses of any size, research organisations, and research and technology organisations.

To secure future funding from SIF, you will be required to partner with an Energy Network who will lead an application into one of the SIF challenge competitions.

Previous applications

You can submit proposals which have been submitted into previous rounds of the SIF funding opportunities where you can show it meets the challenges for Round 3.

To avoid duplication, you must not submit proposals which have already been shared directly with the Energy Networks, through the Energy Network Association’s (ENA) Smarter Networks portal.

Subsidy control (and State aid where applicable)

Ofgem SIF funding is not subject to subsidy control.

Funding

A total of up to £450 million exclusive of VAT is allocated to the Strategic Innovation Fund (SIF) until 2026.

This opportunity is a Call for Ideas and does not guarantee a proposal will be taken forward. There is no funding available for this Call for Ideas.

The total funding available for the funded phases of the SIF competitions can change. Ofgem has the right to:

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

The Energy Networks reserve the right to make the final decisions as to which proposals are taken forward to apply for funding in the SIF competitions.

For the funded phases of the SIF competitions, Ofgem reserve the right to make the final decision as to which projects are funded.

Your proposal

The Strategic Innovation Fund (SIF) aims to deliver net zero at lowest cost to consumers and support innovative businesses to grow and scale.

This includes decarbonising gas and electric energy distribution, transmission networks and benefit to the consumer. SIF projects should help shape the future of the gas and electricity networks and succeed commercially where possible.

SIF funded projects must aim to reduce costs for consumers and carbon emissions, while improving access to revenues and markets. This will also incentivise the creation of new products, processes and services, linking into the themes for each challenge.

The Challenges for SIF Round 3 are:

  • Challenge 1: Whole system network planning and utilisation to facilitate faster and cheaper network transformation, and asset rollout
  • Challenge 2: Novel technical and market approaches to deliver an equitable and secure net zero power system
  • Challenge 3: Unlocking energy system flexibility to accelerate electrification of heat
  • Challenge 4: Enabling Power-to-gas (P2G) to provide system flexibility and energy network optimisation

Within each challenge there are specific themes. Your proposal must meet one of these themes for your selected challenge.

Challenge 1 themes:

  • Digital simulation and advanced modelling techniques to facilitate whole system network planning and development
  • Leveraging data, digital tools, and novel commercial arrangements to maximise existing network capacity
  • Reducing network connection times through use of demand and supply side flexibility
  • Supporting consumers to make cost effective decarbonisation choices co-ordinated with wider local area or regional plans

Challenge 2 themes:

  • Novel market and technical approaches to cost effectively minimise renewable energy curtailment
  • Leveraging disruptive computing technologies for improving system visibility, performance, and cyber-security.
  • Effectively managing peak demand and stability through increased flexibility including over longer time periods (multi-day and seasonal).
  • Enabling disadvantaged consumer segments to participate in flexibility markets and benefit from novel low carbon technologies, to make more cost-effective choices for low carbon technologies

Challenge 3 themes:

  • Improving local heat supply and demand analysis and coordination to support energy network planning
  • Improving the value and capture of system benefits from heat flexibility
  • Effectively managing peak demand and stability through increased flexibility including over longer periods (multi-day and seasonal)
  • Equitable approaches to reinforcement costs driven by heat electrification including via improving visibility of constraints

Challenge 4 themes:

  • Optimising electrolyser deployment and operation to unlock whole system value
  • Commercial and technical innovation to secure system benefits from hydrogen storage deployments

This Call for Ideas is open to proposals for any social, regulatory, market, legal or technical innovation that aligns with the challenges and related themes identified and is within the remit of the Energy Networks. Proposals can be related to a product, process or service.

Portfolio approach

The Energy Networks will decide which proposals they want to take forward. They may want to explore a variety of projects across different technologies, markets, technological maturities and research categories, which will inform future partnerships.

Projects we will not fund

This programme will not fund projects that do not meet the Eligibility Criteria outlined in the SIF Governance document.

31 May 2023
Online briefing: watch the recording
1 June 2023
Competition opens
27 June 2023
First submission date
27 July 2023
Second submission date
21 August 2023
Final submission date
21 August 2023 11:00am
Competition closes

Before you start

You must read the guidance for submitting your proposal on the Innovation Funding Service before you start.

Before submitting, it is your responsibility to make sure:

  • that all the information provided in the application form is correct
  • your proposal meets the eligibility and scope criteria for this call, and the Ofgem Challenge Document
  • all sections of the application are marked as complete

What we ask you

The application is split into 2 sections:

1. Project details.

2. Proposal Overview.

Accessibility and inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes providing support, in the form of reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us. Watch the video on how we are making our application process more accessible and inclusive for everyone.

You must contact us as early as possible in the application process by emailing support@iuk.ukri.org or calling 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

Pitching

An initial review of your proposal will be undertaken by an Innovate UK panel to ensure the proposal is eligible within the scope of SIF.

If your proposal is eligible, we will contact you to ask if you would like to be invited to attend an online pitching session. You must give a presentation of your idea to Energy Networks at the pitching session.

Being invited to pitch your idea does not guarantee your proposal being taken forward or a future partnership with an Energy Network.

Further guidance will be provided in the invitation email, including the date and time for your presentation.

As a minimum, by the deadline stated in the invitation email, you must send:

  • a list of who will attend the presentation
  • your presentation slides

Pitch

After your presentation the Energy Networks will spend a short time asking questions. You will be expected to answer based on the information you provided in your written proposal and presentation.

After your Pitch

The Energy Networks review your idea and inform Innovate UK of their decision. Innovate UK will notify you whether your idea has been selected for progression or not by email. Where possible you will receive feedback on your idea.

Due to the expected volume of ideas the Energy Networks may not be in a position to inform Innovate UK of their decision until closer to the open date of funded SIF competitions.

1. Project details

This section provides background for your proposal.

Application team

You can decide which people from your organisation will work with you on your proposal, if applicable, and invite those people to help complete the application form.

Application details

Give your proposal’s title.

You must add a start date of 1 September 2023 and a duration of 3 months in order to complete this section.

This does not affect the review of your idea.

Summary of your idea

Describe your idea briefly and be clear about what makes it innovative.

Your answer can be up to 200 words long.

2. Application questions

An initial review of your proposal will be undertaken by an Innovate UK panel to ensure the proposal is within the scope of SIF.

You must answer all questions. Your answer to each question can be up to 200 words long. Do not include any website addresses (URLs) in your answers except where we have explicitly requested a link to a video.

Question 1. Previous sharing

Have you previously shared this proposal with the Energy Networks?

Select:

  • Yes
  • No

To avoid duplication, proposals which have already been shared directly with the Energy Networks will not be eligible for review and will not be invited to pitch.

Question 2. Background to your organisation

Provide a brief history of your organisation.

This is used to understand why you are uniquely qualified to pursue this idea.

Question 3. Challenge

Select from the list the challenge your proposal most relates to:

  • Challenge 1: Whole system network planning and utilisation to facilitate faster and cheaper network transformation, and asset rollout
  • Challenge 2: Novel technical and market approaches to deliver an equitable and secure net zero power system
  • Challenge 3: Unlocking energy system flexibility to accelerate electrification of heat
  • Challenge 4: Enabling power-to-gas (P2G) to provide system flexibility and energy network optimisation

Question 4. Challenge theme

Select from the list the single theme your proposal most relates to.

Challenge 1 themes:

  • Digital simulation and advanced modelling techniques to facilitate whole system network planning and development
  • Leveraging data, digital tools, and novel commercial arrangements to maximise existing network capacity
  • Reducing network connection times through use of demand and supply side flexibility
  • Supporting consumers to make cost effective decarbonisation choices co-ordinated with wider local area or regional plans

Challenge 2 themes:

  • Novel market and technical approaches to cost effectively minimise renewable energy curtailment
  • Leveraging disruptive computing technologies for improving system visibility, performance, and cyber-security.
  • Effectively managing peak demand and stability through increased flexibility including over longer time periods [multi-day and seasonal].
  • Enabling disadvantaged consumer segments to participate in flexibility markets and benefit from novel low carbon technologies, to make more cost-effective choices for low carbon technologies

Challenge 3 themes:

  • Improving local heat supply and demand analysis and coordination to support energy network planning
  • Improving the value and capture of system benefits from heat flexibility
  • Effectively managing peak demand and stability through increased flexibility including over longer periods (multi-day and seasonal)
  • Equitable approaches to reinforcement costs driven by heat electrification including via improving visibility of constraints

Challenge 4 themes:

  • Optimising electrolyser deployment and operation to unlock whole system value
  • Commercial and technical innovation to secure system benefits from hydrogen storage deployments

For further information on the themes visit the SIF Round 3 Challenge document.

Question 5. Type of Innovation

Select the type of innovation that best describes your proposal:

  • a specific piece of new equipment, including monitoring, control and communications systems and software.
  • a specific piece of new technology, including analysis and modelling systems or software, in relation to which the Method is unproven.
  • a new methodology, including the identification of specific new procedures or techniques used to identify, select, process, and analyse information.
  • a specific novel arrangement or application of existing gas transportation, electricity transmission or electricity distribution equipment, technology or methodology.
  • a specific novel operational practice directly related to the operation of the Gas Transportation System, electricity transmission or electricity distribution in Great Britain (England, Scotland or Wales).
  • a specific novel commercial arrangement

Question 6. Problem Statement

What is the business need, technological challenge or market opportunity behind your innovation?

Provide a description of the problem you have identified, within the context of the challenge and theme you are addressing.

Question 7. Proposed Solution

What is your proposed solution and where will the focus of your innovation be?

Provide a brief description of your proposed solution, including relevant technical details.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF, up to 1 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 8. Proposal Benefits

How would your solution benefit the Energy Networks’ users?

Provide a description of the potential benefits, for example, for consumers or environmental.

Question 9. Partner Aspirations

What type of Energy Network would you like to partner with, for example a gas distribution network or electricity transmission network?

Are there any other organisations which you would like to be introduced to and why?

Question 10. Other Relevant Information

Provide any additional information you would like the Energy Networks to be aware of, such as relevant skills and experience.

Question 11. Optional Video Pitch

You can provide a short video pitch to support your proposal.

If you do not upload a video, you must add ‘No video’ as your text answer to this question.

If you choose to upload a video, your text answer to this question must be the link to your video and any passwords to allow access to it.

Your optional video must be no longer than 60 seconds and you must:

  • introduce yourself and your organisation
  • summarise the problem you are addressing
  • summarise your idea in providing a solution
  • outline your capabilities in delivering your idea
  • outline the benefits it will bring to consumers

You must upload your video to YouTube and ensure your video is ‘unlisted’ in the privacy settings. You can find more information on how to create an unlisted video on YouTube.

If we are unable to view your video or it is not hosted on YouTube, it cannot be considered as part of your proposal. The video must remain available until 30 September 2023.

If you are having problems uploading your video to YouTube, you must contact support@iuk.ukri.org at least 10 working days before your chosen submission date or the final submission date when the Call for Ideas closes.

Background and further information

Ofgem recognises that innovation will continue to play a crucial role in delivering best value to energy consumers. Innovation will prepare the regulated energy network companies to deliver net zero greenhouse gas emissions at lowest cost to consumers, while maintaining world-class levels of system reliability and customer service, and ensuring no consumer is left behind.

The Strategic Innovation Fund (SIF) has been introduced under the regulated price control mechanism for the Electricity System Operator, Electricity Transmission, Gas Transmission, Gas Distribution and Electricity Distribution sectors. The SIF seeks to support energy network innovation that contributes to the achievement of Net Zero, while delivering real net benefits to network consumers and supporting innovative businesses to grow and scale. It is delivered in partnership with UKRI, who will work with other funders of innovation so that activities appropriately funded by network consumers are coordinated with activities delivered through other funding providers.

Strategic Innovation Fund competitions will continue to be developed in collaboration with input from the energy networks, innovators, Government, and wider industry. Competitions will focus on innovation for the most pressing challenges facing the sector. The requirements for energy networks and other organisations that wish to participate in the SIF are outlined in the SIF Governance Document.

Potential benefits to consumers as defined by Ofgem can be:

  • cost savings
  • delivering new products, processes, and services
  • improving products, processes, and services
  • enhancing their wellbeing
  • helping consumers access new or existing markets or revenue streams more easily, for example increasing the share of renewable generators contributing to energy markets, or providing granular information services on locational network capacity

This Call for Ideas forms part of the ideation and incubation phases of the SIF.

The Ideation phase focusses on generating new products and projects that will answer and target the innovation challenges. Part of ideation includes ideation workshops, held in conjunction with the call for ideas. These are intended to enable innovators and energy networks to gain sight of what the SIF can investigate, work up ideas and engage with other energy networks to input proposals to SIF for potential funding.

Incubation is the driver for the development of ideas and partnerships which can forge the ideas into powerful innovation projects, products and services. This drives the best and most relevant ideas from innovators to the networks for consideration and supports the development of impactful consortiums by match making in line with partnership requirements.

To secure future funding from SIF, you will be required to partner with an Energy Network who will lead an application into one of the SIF challenge competitions.

Data sharing

This opportunity is jointly operated by Innovate UK, on behalf of Ofgem, and in coordination with the Department for Energy Security and Net Zero (DESNZ), the Energy Networks Association (ENA) and the Energy Innovation Centre (EIC) (each an “agency”).

Any relevant information submitted and produced during the application process concerning your proposal can be shared by one agency with the other, for its individual storage, processing and use.

This means that any information given to or generated by Innovate UK in respect of your application form may be passed on to Ofgem, DESNZ, ENA, EIC and vice versa. This would include, but is not restricted to:

  • the information stated on the application form, including the personal details of all applicants
  • any feedback on the proposal

Innovate UK, Ofgem, DESNZ, ENA, and EIC are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, Ofgem, DESNZ, ENA, and EIC will be data controllers for personal data submitted during the application process.

Innovate UK’s Privacy Policy is accessible here.

Innovate UK, as part of this opportunity will contact you to ask if you would like to be invited to attend an online pitching session, where we will engage with the Energy Networks. Innovate UK will share details of your proposal as included in your application questions. Only information relevant to your proposal will be shared with the Energy Networks. No personal data will be shared at this stage.

If eligible to pitch, the Energy Networks will review your idea and inform Innovate UK of their decision. Innovate UK will notify you whether your idea has been selected for progression with the Energy Networks or not by email. At this stage we will seek your permission before sharing your personal contact details to facilitate a formal introduction to the Energy Networks. The Energy Networks will be directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. 

Innovate UK complies with the requirements of GDPR, and is committed to upholding the data protection principles, and protecting your information. The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Next steps

If you are successful in progressing to the next stage with an Energy Network, you may be required to enter into commercial contracts including intellectual property (IP) arrangements. The default arrangements for IP are detailed in the SIF governance document

Being invited to a pitching session or having an introduction to the Energy Networks does not guarantee future SIF funding.

Contact us

If you have any questions about the scope requirements of this competition, email SIF_Ofgem@iuk.ukri.org
If you need more information about how to apply on the innovation funding service (IFS) or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

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