Ofgem Strategic Innovation Fund Round 5 Discovery closes 21 October

Ofgem Strategic Innovation Fund Round 5 Discovery closes 21 October

21 September 2026 — Round 5 of the Ofgem Strategic Innovation Fund (SIF) opened its Discovery phase on 21 September 2026 and closes at 11am UK time on 21 October 2026. Innovate UK runs the competition with the Office of Gas and Electricity Markets (Ofgem). The fund is paid for through customer energy bills. Its stated aim is net zero at lowest cost to consumers and helping innovative businesses grow. Up to £30 million, excluding VAT, is available across Discovery projects.

Who can lead and who can join

Only an Ofgem-licensed gas distribution network, gas transmission operator, electricity transmission or distribution network, or the National Energy System Operator (NESO) can lead a project. Every project must have at least one other organisation as a partner. This is the route in for software, analytics and engineering firms. Each challenge names the kind of partner it wants. Examples include:

• power electronics, superconducting or wireless power expertise (advanced transmission and networks);
• real-time network modelling, forecasting and optimisation (dynamic modelling);
• demand forecasting, load profiling, demand-side response, and grid connection planning (high energy demand points);
• real-time monitoring, AI-driven diagnostics, grid automation, digital twins and operator decision support (system visibility and control);
• consumer representative organisations (consumer-centric grid expansion).

The other two challenges are green gas and whole-system optimisation.

Project rules

• Requested SIF funding of no more than £200,000, excluding VAT.
• At least 10% of total project costs must come from private funds.
• The project must start after 1 January 2027, end by 31 May 2027 and fit a five-month window, beginning on the first of a month.
• Applicants are notified on 17 November 2026, and Project Directions are issued from 1 January 2027.
• The award is designed as a no-subsidy award under the Subsidy Control Act 2022.
• Collaborative applications only. An out-of-scope application cannot be transferred to another challenge.

Discovery is the first of four phases: Discovery, Alpha, Beta and Deployment. Only Discovery winners are invited to Alpha. The brief notes that adopting any solution afterwards would be a separate procurement, which may be competitive. Winning a SIF project is not a supply contract.

Two Discovery listings appear on Find a grant and Innovate UK with the same dates and funding: "Round 5 Discovery C7" and "Discovery C7". Check with the lead network which one your project is entering.

Who is affected

Energy-data, grid-analytics, forecasting, digital-twin, automation and power-electronics companies, and consumer bodies, that could partner with a GB network company.

What to do

• Contact the innovation teams of the network licensees now. The lead submits the application, and three weeks is short.
• Match your offer to one named challenge and theme.
• Budget for the 10% private contribution and a delivery window from January to May 2027.
• Plan beyond Discovery: the brief asks projects to show a route through live testing, demonstration and deployment.

Sources

• Find a grant (GOV.UK): Ofgem Strategic Innovation Fund Round 5 Discovery C7 — 21 September 2026
• Innovate UK (Innovation Funding Service): Ofgem Strategic Innovation Fund Round 5 Discovery C7 — 21 September 2026