£36.7 million to deliver net zero energy networks for consumers

Friday 06 Feb 2026 @ 11:20
Innovate UK

Twenty-five projects have been successful in securing funding in cycle four of the Ofgem Strategic Innovation Fund, delivered by Innovate UK.

The funding has been awarded to:

five beta projects (£31.6 million)
seven alpha projects (£3.3 million)
13 discovery projects (£1.8 million)

Successful beta demonstrators

Alongside the successful discovery and alpha projects, five large scale beta demonstrators were funded in cycle four.

These multi-million-pound real-world projects aim to turn their innovative solutions into new products and services that will be integrated into the daily operations of Britain’s energy networks.

Whole system network planning

Scottish and Southern Electricity Networks’ (SSEN) Revisiting and Evaluating Environmental Inputs on Line Ratings (REVISE), will deliver a new Energy Networks Association Technical Recommendation, replacing current outdated methodology.

With renewable generation expanding at unprecedented speed, transmission networks are increasingly constrained by system capacity.

REVISE combines high-resolution weather topographic data with advanced system-modelling techniques and physical validation to ensure a more accurate, future-ready approach to overhead line rating.

Process and market approaches

The Smarter Network UpGrades (SNUG) project, is looking at how energy efficiency retrofits represent an opportunity for disadvantaged households to participate in the energy transition.

SNUG, led by UK Power Networks, will develop novel commercial models and coordinated market approaches to enable social landlords to participate in flexibility markets through bespoke contractual frameworks.

Energy efficiency will optimise electricity network use in constrained areas in preparation for heat pump roll out in efficient homes rather than poorly insulated ones to:

incentivise use of energy efficiency
unlock consumer benefits
facilitate flexibility participation of ‘hard-to-reach’ customers at scale

Grid expansion delivery

Three more betas are addressing how we can use novel technology and processes to deliver grid expansion in ways that enhance public support and deliver wider local and environmental benefits.

Nature4Networks

Led by SSEN, Nature4Networks is pioneering real-world demonstrators that prove Nature-based-Solutions (NbS) can meet engineering needs while delivering climate resilience, biodiversity gains, and community benefits.

With growing momentum and regulatory support, the next phase will trial scalable NbS on live assets, develop funding models, and embed nature into infrastructure planning.

By leveraging utility-owned land and aligning with stakeholders, from regulators to local authorities, this initiative will also explore how coordinated, landscape-scale investments can unlock shared value.

Pathways to 2050

Another SSEN-led innovation project, Pathways to 2050, is creating a new, consumer-centric approach to planning and delivering low-voltage network upgrades, to support a just and efficient transition.

Using existing datasets, digital models and automated ‘scorecards’ for every substation, Pathways to 2050 will forecast demand growth, prioritise investment and cluster works for efficiency.

Local Pathways Plans will show when and where upgrades or flexibility is needed, helping communities:

understand and shape decisions
speed up EV and heat-pump connections
cut costs
ensure every consumer can decarbonise fairly

Wayl-Ease

Gaining consent from landowners to install, maintain, and upgrade the network is essential for network operators. Current complexities in securing consents can mean significant delays in vital work.

By creating a novel, data-led process allowing landowners to self-serve, UK Power Network’s Wayl-Ease, will create a digital platform that simplifies wayleave agreements using artificial intelligence (AI) and geospatial mapping.

By facilitating improved planning, faster network transformation and more informed customers, Wayl-Ease will support timely infrastructure expansion aligned with local priorities.

Cycle four projects

These projects are just a sample of the transformational innovation funded in cycle four. See the further information section for the full list including partners and funding.

Cleaner, more affordable energy system

Jodie Giles, Deputy Director of Ofgem Strategic Innovation Fund at Innovate UK, said:

This significant investment in energy network innovation will help us deliver a world-leading energy system that underpins a better future. The projects we fund today will deliver a cleaner, more affordable energy system that critically enables us to address climate change.

Many of the projects we fund include small and medium enterprises (SMEs) whose growth supports the UK economy. These collaborations with large network companies will deliver jobs and help the massive societal shifts in how we use and generate energy for our homes, businesses, industry, and transport.

Ultimately, it’s about our future, and putting the people who use and pay for our energy system right at the centre. Customers are at the forefront of our funding decisions, and all SIF projects must benefit energy bill payers long term.

Progress towards net zero

Marzia Zafar, Deputy Director for Digitalisation and Innovation at Ofgem, said:

Ofgem is committed to creating clear pathways for innovation across the energy sector, supporting projects that will accelerate progress towards net zero, strengthen GB’s energy independence, and deliver a stable energy system.

The innovation on show with these latest SIF projects is hugely exciting and has the potential to help deliver these goals. I’m looking forward to watching them develop and seeing the value they can bring for consumers.

Further information

Ofgem SIF: Cycle four beta, summary of projects approved

Round three, challenge one: Whole system network planning and utilisation to facilitate faster and cheaper network transformation and asset rollout

Revisiting and Evaluating Environmental Inputs on Line Ratings (REVISE)

Combining high-resolution weather topographic data with advanced system-modelling techniques and physical validation, to deliver a new Energy Networks Association Technical Recommendation.

Ensuring a more accurate, future-ready approach to overhead line rating.

SIF Funding award: £5,892,440

Lead network type: Electricity transmission

Project partners:

Scottish and Southern Electricity Networks (lead)
National Electricity System Operator
Met Office
University Of Strathclyde
National Grid Electricity Transmission
Energyline
SP Transmission

Round three, challenge two: Novel technical, process and market approaches to deliver an equitable and secure net zero power system

Smarter Network UpGrades (SNUG)

Developing novel commercial models and coordinated market approaches to enable Social Landlords to participate in flexibility markets through bespoke contractual frameworks.

SIF Funding award: £4,435,203

Lead network type: Electricity distribution

Project partners:

UK Power Networks (lead)
University of Strathclyde
Northern Powergrid (Northeast)
Centre For Sustainable Energy
Sia Partners UK

Round five, challenge four: Consumer-centric grid expansion

Nature4Networks

Next phase trials of scalable nature-based-solutions (NbS) on live assets, to develop funding models, and embed nature into infrastructure planning.

Unlocking shared value, delivering climate resilience, biodiversity gains, and community benefits.

SIF Funding award: £7,892,388

Lead network type: Electricity distribution

Project partners:

Scottish and Southern Electricity Networks (lead)
Frontier Economics
Gutteridge Haskins & Davey
Great Yellow
Guidehouse Europe
James Hutton

Pathways to 2050

Creating a new consumer-centric approach to planning and delivering low-voltage network upgrades.

Using existing datasets, digital models and automated ‘scorecards’ for every substation, to forecast demand growth, prioritise investment and cluster works for efficiency.

SIF Funding award: £9,935,676

Lead network type: Electricity distribution

Project partners:

Scottish and Southern Electricity Networks (lead)
Faculty Science
Low Carbon Hub IPS
James Hutton
Energy Systems Catapult
Sia Partners UK
Industrial And Financial Systems, IFS UK
NFU Scotland

Wayl-Ease

Gaining consent from landowners to install, maintain, and upgrade the network is essential for network operators.

Wayl-Ease proposes to create a digital platform that simplifies wayleave agreements using AI and geospatial mapping.

SIF Funding award: £3,481,350

Lead network type: Electricity distribution

Project partners:

UK Power Networks (lead)
Digital Catapult Services
Community Energy South
Tata Consultancy Services

Ofgem SIF: Cycle four alpha, summary of projects approved

Round four, challenge one: Faster network development

VOLT

Working to develop and validate how multi-vector microgrids can help industrial and commercial sites decarbonise, improve resilience, and provide flexibility.

Delivering scalable microgrid blueprints and operational processes aligned with national and regional strategies.

SIF Funding award: £496,123

Lead network type: Electricity distribution

Project partners:

Northern Powergrid (Lead)
EDF Energy R&D UK Centre
Wales & West Utilities
Lane Clark & Peacock
Pulsant
Newcastle University
Northern Gas Networks

Round four, challenge three: Embedding resilience

Smart Hydrogen and Resilient Energy Decarbonisation (SHARED)

Exploring the potential of low-cost hydrogen production and storage as a solution to improve the resilience of worst served customer communities.

The project will assess how effective this approach could be and identify the specific needs of rural communities.

SIF Funding award: £499,526

Lead network type: Electricity distribution

Project partners:

UK Power Networks (lead)
Frazer-Nash Consultancy
The First Element Group

Round four, challenge four: Accelerating towards net zero energy networks

Optimisation and Diagnostics for Innovative Networks (ODIN)

Capturing and analysing live operational data to detect early signs of wear, thermal imbalance, and performance loss.

Enabling predictive, data-driven maintenance to minimise outages, extend asset life, and enhance overall network reliability.

SIF Funding award: £455,450

Lead network type: Electricity transmission

Project partners:

Scottish and Southern Electricity Networks (lead)
Ross Robotics

Round five, challenge three: High-energy demand point integration

Future Fleet

Developing a geospatially informed framework combining fleet archetypes, smart energy schemes, and innovative business models.

Providing networks and logistics operators with actionable strategies for scalable, affordable, and grid-friendly freight electrification.

SIF Funding award: £499,815

Lead network type: Electricity distribution

Project partners:

UK Power Networks (lead)
Voltempo Group
Maritime Transport
Energy Systems Catapult
Baringa Partners
Voltloader

Round five, challenge four: Consumer-centric grid expansion

HVDC Wind Connect

Integrating offshore wind into the energy system by developing and demonstrating novel ‘rigid’ and ‘hybrid’ meshed HVDC systems.

Addressing key technical challenges including system control and protection strategies, modular offshore platform designs, and dynamic rating approaches for cables.

SIF Funding award: £499,961

Lead network type: Electricity transmission

Project partners:

Scottish and Southern Electricity Networks (lead)
Carbon Trust Advisory
WindGrid

Power wheels

Looking at harnessing over 10 GW of flexibility from Motability’s growing electric vehicle fleet.

Exploring smart charging and bidirectional charging to create a virtual power plant and safeguard households reliant on medical equipment during outages.

SIF Funding award: £490,330

Lead network type: Electricity distribution

Project partners: