Ofgem has announced £16.2 million in funding for 16 innovative projects aimed at modernising Britain’s energy networks, improving infrastructure and supporting the transition towards a more sustainable energy system.
The investment forms part of the sixth round of the Strategic Innovation Fund (SIF), delivered in partnership with Innovate UK, and will support projects tackling some of the energy sector’s biggest challenges, including infrastructure delays, network reliability, green gas and electric vehicle charging.
What Will the Funding Support?
The funding will support a range of projects designed to make energy networks more efficient, flexible and resilient.
One initiative, known as RAPID (Routing and Planning through Interoperable Data), aims to improve how electricity transmission infrastructure is planned and delivered. By creating a shared framework for network data, the project could help reduce delays, duplication and costs, supporting the wider ambition to deliver infrastructure 50% faster and 20% cheaper by 2035.
Another project, DISPATCH, will explore how data centres could make better use of existing network capacity while supplying waste heat to local heating networks. Further initiatives will investigate simpler EV charging, improved network monitoring and technologies designed to reduce the likelihood and impact of power outages.
Supporting the UK's Changing Energy Needs
As electricity demand grows and the UK continues its transition towards cleaner energy, modernising existing infrastructure is becoming increasingly important.
Grid connection delays remain a significant challenge, with some businesses and developments facing wait times of several years to secure a connection. These delays can hold up new projects, increase costs and make it harder for organisations to expand or adopt cleaner energy technologies.
The investment aims to address some of these challenges by improving network capacity, streamlining infrastructure planning and supporting more efficient management of electricity demand. However, many of the funded projects remain in development, meaning their wider benefits will depend on successful testing and implementation.
Strengthening Accountability for Energy Projects
Alongside the new investment, Ofgem has launched a consultation proposing stricter requirements for energy network projects, with the aim of improving accountability and protecting consumers.
The proposals relate to £63.5 million in funding for seven electricity system restoration projects managed by SP Energy Networks, including backup generators, battery upgrades and improvements to network resilience.
Under the proposed changes, Ofgem could recover funding if projects are not completed or fail to meet the required standards, helping ensure investment delivers the intended improvements to Britain’s energy infrastructure.
The projects will be supported by Innovation Delivery Groups, bringing together energy network operators and industry experts to help turn promising ideas into practical solutions.
These groups will also develop longer-term innovation plans, expected in January 2027, to guide future investment and track progress. While the £16.2 million funding represents an initial step, it highlights the growing focus on building a more efficient, resilient and future-ready energy network capable of meeting Britain’s changing energy requirements.
