Strategic Innovation Fund: Cycle 2 projects funding decisions
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Strategic Innovation Fund (SIF)
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The Strategic Innovation Fund (SIF) is a funding mechanism within the RIIO-2 network price control for the Electricity System Operator, Electricity Transmission and Electricity Distribution, Gas Transmission and Gas Distribution sectors.
Working in partnership with Innovate UK, Ofgem aims to find and fund ambitious, innovative projects with the potential to accelerate the transition to net zero. These projects should help shape the future of the gas and electricity networks and succeed commercially where possible.
The fourth round of SIF Innovation Challenges opened to fund applications in September 2024.
We identified 4 Innovation Challenges:
- Faster network development
- Greater heat flexibility
- Embedding resilience
- Accelerating towards net zero energy networks
Cycle 2 ran from 27 January 2025 to 26 February 2025. The decision on funding Cycle 2 Discovery projects was published on 29 April 2025. The decision on Cycle 2 Alpha and Beta projects was published on 28 May 2025.
Main document
[Cycle 2 Innovation Challenges: Discovery Phase Funding Decision and Summary of Recommendations from Expert Assessors [PDF, 536.48KB]
[Cycle 2 Innovation Challenges: Alpha and Beta Phases Funding Decision and Summary of Recommendations from Expert Assessors [PDF, 357.44KB]
Subsidiary documents
[Project Directions Cycle 2 Discovery Projects [ZIP, 2.05MB]
[Project Directions for Cycle 2 Alpha and Beta Projects [ZIP, 1.08MB]
[Summary of SIF Funding Direction [PDF, 292.58KB]
](https://www.ofgem.gov.uk/sites/default/files/2025-05/Cycle-2-SIF-Funding-Direction.pdf)
[Funding Return Direction [PDF, 333.89KB]
](https://www.ofgem.gov.uk/sites/default/files/2025-05/Funding-Return-Direction.pdf)
[B-Linepack+ - Project Direction Change Request [PDF, 225.74KB]
Related links
Strategic Innovation Fund (SIF)