Strategic Innovation Fund: Cycle 2 projects funding decisions
Summary
Ofgem decisions on Strategic Innovation Fund Cycle 2 project funding. SIF is the larger-scale innovation funding mechanism alongside NIA.
Why it matters
Confirms which Cycle 2 projects receive SIF funding. Determines what innovation work network companies and partners can pursue. Cost-stack impact through allowed revenue.
Areas affected
Memo
Strategic Innovation Fund: Cycle 2 projects funding decisions | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Strategic Innovation Fund: Cycle 2 projects funding decisions Publication type: Decision Publication date: 29 April 2025 Last updated: 11 November 2025 Topic: Innovation Subtopic: Strategic Innovation Fund Print this page Related links Strategic Innovation Fund (SIF) Share the page Share on Facebook Share on Twitter Share on LinkedIn 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] Funding Return Direction [PDF, 333.89KB] B-Linepack+ - Project Direction Change Request [PDF, 225.74KB] Print this page Related links Strategic Innovation Fund (SIF) Share the page Share on Facebook Share on Twitter Share on LinkedIn Close