Ofgem and Innovate UK have today announced five new challenge areas for future innovation funding under the Strategic Innovation Fund (SIF), which opens for applications on 26th May 2026.
The SIF supports innovation in the UK energy sector for the trial or launch of new products, services or business models. The scheme is a key driver of innovation in the sector, offering funding for the development of products and services that deliver tangible customer benefits and unlock growth opportunities, while helping consumers benefit from the net zero transition.
Five innovation challenges, recommended by the Energy Networks Innovation Taskforce and endorsed by Ofgem, set out the core priorities for the coming five-year RIIO-3 price control period. The challenges announced today have been co-designed by partners across industry with customers at their heart, and they are:
Energy network companies will work with energy innovators to bid for funding from the SIF based on these challenges. The set of innovation challenges were formally announced at the SIF’s Annual Innovation Meeting (AIM) in Westminster this morning.
Marzia Zafar, SRO for the Strategic Innovation Fund at Ofgem, said: “I am delighted to endorse these Challenges on behalf of Ofgem. These Challenges matter because they represent the entire sector raising the bar. They signal clearly the collective ambition of senior leaders to work together to deliver a more resilient, more flexible and more consumer-focused energy system.
“Meeting these Innovation Challenges will improve consumers’ lives and move us closer to a net-zero energy system with genuine growth potential – in short, it will help us drive towards an energy infrastructure that is fit for the future.”
Laura Sandys CBE, Chair of Energy Networks Innovation Taskforce, said: “These five highly ambitious challenges have been co-designed by over 150 organisations, with customers of the energy sector playing a significant role and should mark a fundamental change in how we shape and more importantly deploy network innovation at scale across the energy sector.
“Meeting these challenges will reduce costs, unlock economic growth, and deliver a Net Zero energy system that meets the real needs of its users.”
Jodie Giles, Deputy Director of SIF, Innovate UK, said: “Thank you to everyone involved in helping set these challenges. The work starts here to build communities of practice around each challenge where coordination and cross sector collaboration is the norm.
“This is about realising the value of innovation by achieving impact through deployment, to improve lives, grow businesses, and address climate change. We can’t wait to see creative and transformational innovation emerge in response to these challenges.”
Energy Systems Catapult has supported Ofgem and Innovate UK to deliver the Energy Networks Innovation Taskforce. The Catapult delivered technical support, whole system capabilities and stakeholder engagement to ensure that the Taskforce’s recommended Innovation Challenges have the greatest possible impact.
Guy Newey, CEO of Energy Systems Catapult, said: “This is about innovators. It’s about connecting the amazing engines of creativity and resourcefulness that we have in the UK with the biggest problems that the energy sector faces – so that radically different organisations can work together to build a better system.
“Energy Systems Catapult are honoured to have supported the delivery of the Taskforce, and to have contributed our perspectives to the development of these Innovation Challenges. We’re impatient to see how the sector will pick these up and run with them.”
Delivered in partnership with Innovate UK, the SIF is funded by Ofgem and taps into the best of UK and international innovation while aligning with other public innovation funding for the benefit of energy network users and consumers. Launched in 2021, the fund invested £450 million during the RIIO-2 price control period, with a further £500 million to be invested through RIIO-3.
About the Strategic Innovation Fund (SIF)
Delivered in partnership with Innovate UK, the Strategic Innovation Fund (SIF) is funded by Ofgem and supports energy network innovation to accelerate the transition to a cleaner, more secure and more affordable energy system.
Launched in 2021, the fund invested £450 million during the RIIO‑2 price control period, with a further £500 million to be invested through RIIO‑3. The SIF backs practical innovation that improves system resilience, speeds up network delivery, lowers long‑term costs for consumers and supports the delivery of net zero
How to apply
Details about who can apply, and when, are available on Innovate UK’s Ofgem Strategic Innovation Fund page.
On the Innovate UK page, you will also find details of:
You can find more information about who can apply in the SIF governance.
About Energy Systems Catapult
Energy Systems Catapult is an independent research and technology organisation. The Catapult’s mission is to accelerate clean energy innovation.
Launched in 2015 by Innovate UK, the Catapult has built a team of more than 250 people, with a range of technical, engineering, consumer, commercial, incubation, digital, and policy expertise. The Catapult draws on sector-leading test facilities, modelling tools, and data collected from its back catalogue of more than 500 research projects.
The Catapult uses that ‘whole energy’ system capability to support innovative companies – small and large – to test, trial and scale new products and services. Impact comes when those innovators attract new customers, new investment, and new grants so they can thrive in the future energy system.
Based in Birmingham, Energy Systems Catapult is part of a network of nine world-leading technology and innovation centres, established by Innovate UK. The Catapult Network fosters collaboration between industry, government, research organisations, academia, and many others to transform great ideas into valuable products and services.