The UK’s energy regulator Ofgem has announced that it will make changes to the Strategic Innovation Fund (SIF) to streamline the process of gaining funding.
The SIF is a collaboration between Ofgem and Innovate UK and provides funding to energy projects trying to speed the transition to clean energy through grid developments. The fund was launched in 2021 and is expected to invest £450 million by 2026.
Ofgem has announced that it will now open three application windows each year instead of the current single window. Additionally, the regulator will now allow projects to apply to any one of the three development phases depending on the project’s progress, rather than having to start at the earliest stage, and projects will now be able to move through the SIF process in as little as 23 months, eight months less than the current fastest times.
In March, 44 projects were awarded a collective £8.5 million for projects seeking to boost heat pump uptake, develop hydrogen production and bolster grid flexibility.
Marzia Zafar, deputy director of strategy – energy systems management & security at Ofgem, said: “In the past few decades, the energy system has already begun to move from its old way of thinking and doing to adopting new technologies like smart meters and new arrangements to create flexibility in the energy system.
“There is still more that needs to be done, we need longer duration energy storage and seasonal storage. We need households to have smart devices that automatically flex when the system sends signals. We need nuclear, CCUS (Carbon Capture Utilisation and Storage), offshore wind, onshore wind and digital solutions that can use machine learning to run the energy system efficiently and visibly.
“Great British Innovation has led to some of the greatest transformations in history such as the Agricultural, Industrial, and more recently digital revolutions. We need this innovative spirit more than ever if we are to meet our ambition for clean energy. What these changes mean is that great innovation will be funded and rewarded seamlessly – just bring us your ideas,” Zafar said.
Jodie Giles, strategic innovation fund programme director at Innovate UK, said: “As we strive towards net zero, we are continuously improving how we support innovation. The launch of the enhancements to the application process for the Strategic Innovation Fund will increase the frequency of application cycles and streamline our processes. With these improvements we aim to accelerate the delivery of transformative solutions and drive forward the energy transition with greater efficiency and flexibility.”
