Ofgem Round 3 Discovery Phase

Your Project must:

• have total eligible Strategic Innovation Fund (SIF) requested funding of no more than £150,000, exclusive of VAT
• provide a minimum of 10% of total Project costs as a compulsory contribution from alternative funds
• start by 1 March 2024
• end by 31 May 2024
• last up to 3 months

The aims of Innovation Challenge 1: Whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout are to:

• improve coordination, modelling and planning capability across networks to support holistic and timely system development
• accelerate connection times for renewables or demand sites to meet 2030 target
• support prioritisation of flexible assets in connection queues to increase network headroom and reduce time for viable assets to secure connection
• improve availability of information to consumers to support more cost effective and diverse decarbonisation choices

You must select the primary Strategic Innovation Fund (SIF) Innovation Challenge focus theme that your project is targeting.

For Challenge 1, the themes are:

• Theme 1: digital simulation and advanced modelling techniques to facilitate whole system network planning and development
• Theme 2: leveraging data, digital tools, and novel commercial arrangements to maximise existing network capacity
• Theme 3: reducing network connection times through use of demand and supply side flexibility
• Theme 4: supporting consumers in making cost-effective decarbonisation choices coordinated with wider local area or regional plans

Click here for more details on the scope of challenge 1.

The aims of Innovation Challenge 2: Novel technical, process and market approaches to deliver an equitable and secure net zero power system are to:

• reduce at GWh scale the amount of renewable energy curtailed annually, at a cost lower than current constraint payments
• demonstrate greater use of machine learning, artificial intelligence and quantum computing to increase responsiveness, system visibility, and resilience
• use innovation to improve processes needed for managing and operating a net zero power system
• reduce the whole system cost of intermittent renewable integration
• reduce use of fossil fuel plants to provide system flexibility and balancing services
• increase the number of consumers across segments (regional, spatial, income, and other key socio-demographic indicators) participating in markets and reducing their unit cost of energy

You must select the primary Strategic Innovation Fund (SIF) Innovation Challenge focus theme that your project is targeting.

For Challenge 2, the themes are:

• Theme 1: novel market and technical approaches to cost effectively minimise renewable energy curtailment
• Theme 2: leveraging disruptive computing technologies for improving system visibility, performance, and cyber-security
• Theme 3: effectively managing peak demand and stability through increased flexibility including over longer time periods (multi-day and seasonal)
• Theme 4: enabling disadvantaged consumer segments to participate in flexibility markets and benefit from novel low carbon technologies

Click here for more details on the scope of challenge 2.

The aims of Innovation Challenge 3: Unlocking energy system flexibility to accelerate electrification of heat are to:

• increase participation of thermal flexibility in DSO and ESO markets
• reduce time to integrate heat decarbonisation in network planning
• reduce heat led peak demand through flexibility
• increase use of renewable power for electrified heat through flexibility
• deliver evidence to support policy and charging mechanisms to enable more equitable sharing of reinforcement costs

You must select the primary Strategic Innovation Fund (SIF) Innovation Challenge focus theme that your project is targeting.

For Challenge 3, the themes are:

• Theme 1: improving local heat supply and demand analysis and coordination to support energy network planning
• Theme 2: improving the value and capture of system benefits from heat flexibility
• Theme 3: effectively managing peak demand and stability through increased flexibility including over longer periods (multi-day and seasonal)
• Theme 4: equitable approaches to reinforcements costs driven by heat electrification including via improving visibility of constraints

Click here for more details on the scope of challenge 3.

The aims of Innovation Challenge 4: Enabling power-to-gas (P2G) to provide system flexibility and energy network optimisation are to:

• demonstrate electrolyser and similar technologies’ capability for providing system services
• increase electrolyser participation in flexibility services
• increase consideration of system aspects such as constraints management when siting electrolysers
• improve understanding of business models and technical design for long duration hydrogen storage to provide system service

You must select the primary Strategic Innovation Fund (SIF) Innovation Challenge focus theme that your project is targeting.

For Challenge 4, the themes are:

• Theme 1: optimising electrolyser deployment and operation to unlock whole system value
• Theme 2: commercial and technical innovation to secure system benefits from hydrogen storage deployments

Click here for more details on the scope of challenge 4.

An online briefing was held on 5th September: a link to the recording will be added here when available.

If you would like help to find a project partner, please contact Innovate UK KTN’s Energy and Infrastructure team.