In May 2026, Ofgem and Innovate UK announced five ambitious innovation challenges under the Strategic Innovation Fund (SIF) for the RII0-3 price control period. The RII0-3 is Ofgem’s regulatory period that runs from April 2026 to 31 March 2031 to ensure networks can operate efficiently and deliver net zero goals. The Strategic Innovation Fund was launched in 2021 and delivered in partnership between Ofgem and Innovate UK accelerate the UK energy sector's transition to net zero.
The Five Innovation Challenges
The challenges were recommended by the Energy Networks Innovation Taskforce and endorsed by Ofgem. The five priority areas include:
Industrial and business connection acceleration – enabling major new strategic industrial sites to be energised and operational within six months by 2033.
Faster build and maintenance – achieving 50% faster, 20% cheaper network build and maintenance by 2035.
Instant use domestic energy devices – enabling instant, plug-and-play connections of domestic energy devices and appliances by 2032.
Eliminating energy outages – delivering near-zero interruptions via autonomous reconfiguring and islanding of any section of the network by 2038.
Decentralised system balancing – deliver products and services to prove the viability of autonomous local balancing and optimisation of networks at every level by 2034.
The fund invested £450 million during the RIIO-2 price control period and will invest a further £500 million through RIIO-3.
The SIF operates through a structured, three-phase process: Discovery Phase (short feasibility studies of two to three months), Alpha Phase (deeper development and testing), and Beta Phase (live demonstrations and preparation for commercial roll-out). Discovery Phase grants offer up to £150,000, with only licensed energy network companies able to lead bids, though projects often include innovators, technology developers, and academics as partners.
Current Application Round: Cycle 6
The current application round, Cycle 6, is open from 26 May to 25 June 2026. Projects must align with the innovation challenges outlined above and fall within specific development stages:
Round 4 innovation challenges: beta stage
Round 5 innovation challenges: discovery, alpha, or beta stage
Previous Project Success
Since 2021, the Strategic Innovation Fund has supported over 234 projects, demonstrating its significant impact across the UK energy sector. The programme has catalysed innovation by bringing together network operators, technology developers, research institutions, and start-ups to tackle critical challenges in the transition to net zero.
In March 2024, Ofgem and Innovate UK announced £5.8 million in funding for 44 discovery phase projects under round 3 alone. These projects showcase the breadth of innovation the fund supports, from novel hydrogen storage solutions to consumer-focused flexibility services.
Securing the Right Talent
Successfully delivering these innovation projects requires highly skilled professionals across engineering, technology, project management, regulatory affairs, and commercial development.
If your organisation is preparing to respond to the Strategic Innovation Fund challenges and needs support building a team with the technical depth and strategic capability to deliver transformational energy innovation, Mint Selection specialises in connecting energy companies with exceptional talent. Contact us to discuss your resourcing requirements hello@mintselection.com