Watch the launch of the Strategic Innovation Fund (SIF) from Ofgem and Innovate UK. The SIF is seeking ambitious, innovative projects to help accelerate the transition to Net Zero. Applications for this first phase must come though energy network operators but the SIF offers opportunities for other businesses with innovative solutions for the energy networks who are expected to play an important role as partners.

1. www.ktn-uk.org
Jenni McDonnell MBE
Thermal energy systems lead, KTN
Strategic Innovation Fund Launch
7th September 2021

2. Housekeeping
• You will be muted during the event so please use the Q&A box on the Zoom
menu at the bottom of your screen to ask questions about the scope and
competition process.
• Introduce yourselves on Zoom using the Chat box, network virtually.
• The event is being recorded and you will be sent a link to the recording along
with the slides after the event to share with colleagues.
• Network briefing event on 8th September with David Richardson, Innovate
UK. It is important that the Networks attend

3. Agenda
10.30 Welcome, Jenni McDonnell MBE, KTN
10.33 Introduction to the Strategic Innovation Fund, Matt Hastings, Innovate UK
10.40 Competition scope, David Richardson, Innovate UK
10.50 Net Zero Innovation Portfolio, Sally Fenton, BEIS
10.55 The Energy Networks, Chris Coonick, Innovate UK
• David Hardman, Innovation Analyst, National Grid Gas Transmission
• Richard Hynes-Cooper, Head of Innovation, Northern Gas Networks
• Andrew Urquhart, Head of Whole System, SSEN Transmission
• Geoff Down, Innovation Manager, National Grid ESO
11.20 Connecting the networks, David Richardson, Innovate UK
11.23 Energy Network Association, Dan Clarke
11.30 Energy Innovation Centre, Matthieu Michel
11.37 Competition process, Thomas Poole, Innovate UK
11.45 Q&A
12.00 Close

4. The Future. Faster
As a network partner of Innovate UK
KTN combines expertise across the technology
economy with the ability to cross boundaries.
Connecting with KTN can lead to potential
collaborations, horizon-expanding events and
innovation insights relevant to your needs.

5. ©KTN All rights reserved | www.ktn-uk.org
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Please get in touch

6. Ofgem Strategic Innovation Fund
Matt Hastings
Deputy Director, Innovate UK

7. What is the Strategic Innovation Fund
1) Paid for by consumers on their energy bills
1) £450m available over the next five years
1) Designed to help energy network users and consumers
1) A new type of innovation competition process

8. Strategic Objectives
Ofgem and Innovate UK are collaborating to:
1) Deliver a net zero energy system at lowest
costs to consumers
1) Position the UK as the ‘Silicon Valley’ of
energy systems
We are interested in big bold, ambitious ideas which
will deliver net zero at scale.

9. What is Innovate UK’s role?
We are to help:
1) Consumers (to realise the dividends from their
investment)
1) Network companies and SOs (to secure the best ideas)
1) Innovators (to collaborate with networks to deliver
projects)
1) OFGEM (to deliver the SIF and develop the strategy)
1) Government and other public funders (to align SIF
with other innovation funding)

10. Strategic Alignment Agile ‘Challenges’ Commercialisation
Network Roll Out
Investor Expert Panel
International route to market
(networks, utilities, investors)
Utilities Expert Panel
Align energy innovation
funding across government,
UKRI and Ofgem
Discovery Projects
2 months / £150k
Alpha Projects
6 months / £500k
Beta Projects
c.4 yrs / c. £30m+
2) HEAT
4) MOBILTY
3) DIGITAL
1) WHOLE SYSTEMS
Bring in the best businesses
and academics from across
energy and other sectors
How does the Strategic Innovation Fund work?

11. Key Dates
1)Discovery phase open to applications: 31 August
1)Discovery applications close: 17 November
1)Discovery projects start: March 2022
1)Discovery projects end: April 2022
1)Alpha applications open: May 2022
1)Alpha applications close: May 2022
1)Alpha project start: August 2022
1)Alpha projects end: Jan 2023

12. Ofgem Strategic Innovation
Fund: Overview of challenges
David Richardson
Head of Innovation, Innovate UK

13. Common scope across all four SIF challenges
Applications must be led and submitted by a regulated;
• Gas distribution network
• Gas transmission network
• Electricity transmission network
• The electricity system operator (ESO)
Electricity distribution networks cannot lead SIF projects
until the ED2 price control in 2023. But they can
participate in SIF projects as partners.
SIF projects are delivered across 3
phases:
• Discovery: 2 months, up to £150k
• Alpha: 6 months, up to £500k
• Beta: multi year, £500k and
upwards
SIF projects must demonstrate benefits across:
• Financial cost reductions
• Carbon emissions reductions
• Improved access to revenues for users of network services, or the creation of new revenue
streams
• Number of products, processes, and services launched which are new to the market within Great
Britain.
Please familiarise yourself with the SIF Governance Document

14. Data and digitalisation
Minimum partner requirements:
• A licensed energy network
• researchers or private sector or organisations with
technical capabilities in data and digital technologies
• the relevant data owners and processors
https://indd.adobe.com/view/a63848a7-4cc1-4856-8e8f-4517669a6bbd

15. Data and digitalisation
Applications to the Data and digitalisation challenge should consider all the
points listed here, but as a minimum you must directly address at least one as the
primary focus of the proposed project:
• more transparent and effective pricing and allocation of reinforcement costs in relation to
new connections
• how you will work in the open and utilise open-source approaches wherever appropriate
• publication of searchable metadata of datasets produced through the project
• enterprise and business processes to facilitate the flow of data within and between
organisations
• enabling consumers to use their data to engage in energy system innovation whilst
maintaining privacy and security
• how interconnected assets can help network customers and consumers to interact with and
support the energy networks
• how to improve the visibility of infrastructure and assets, for instance new digital
infrastructure or novel uses of sensor and communications technologies
• the interoperability of software platforms and data with other infrastructure sectors
• how novel uses of data and digital platforms can significantly improve network planning,
modelling, and forecasting capabilities

16. Zero emission transport

17. Zero emission transport
Minimum partner requirements:
• A mobility technology or infrastructure
provider (for example EV charge point
providers, port authorities or network rail)
Challenge scope
Applications to the Zero emission transport challenge should consider all the
points listed here, but as a minimum you must directly address at least one as
the primary focus of the proposed project:
• how the project will directly support the growth of zero emission transport
options
• how to maximise the opportunities that electric vehicles create to deliver a
smarter energy system, whilst ensuring that energy networks are prepared
for accelerating uptake
• how energy networks can support integrated multi-model transport services
in local areas
• energy supply requirements for long haul aviation, shipping, or rail

18. Heat

19. Heat
Challenge scope
Applications to the Heat challenge should consider all the points listed here, but
as a minimum you must directly address at least one as the primary focus of
the proposed project:
• using smart approaches to manage large-scale electrified heat deployment in
a local area, reducing the need for network reinforcement
• using smart meters with heat pumps to optimise usage and energy system
flexibility
• the commercial and investment case for financing heating technologies
alongside energy network innovation
• working with partners on how deployment of low carbon heating solutions can
be better coordinated to minimise gas and electricity network constraints at
lowest economic cost
Minimum partner requirements:
• A heat technology or infrastructure provider
(for example heat network providers, heat
pump manufacturers, or a waste-to-energy site
developer)

20. Whole system integration
Credit: Energy Systems Catapult

21. Whole system integration
Applications to the Whole system integration challenge should consider all the
points listed here, but as a minimum you must directly address at least two as the
primary focus of the proposed project:
• current and future needs for energy provision for heat, power, and transport
• coordinating energy transmission, distribution and system operation across gas and
electricity
• complementary and competing priorities between local, national, and international energy
systems
• evaluating the costs and opportunities of repurposing or decommissioning existing
infrastructure or assets
• assessment of the costs of potential energy demand reduction activities against alternative
interventions
• utilisation of data and development of new approaches which harness greater value from
data across organisations
• future policy and regulatory conditions as well as market designs, which support whole
systems approaches for example integrated network planning and whole system operation
Minimum partner requirements:
• A licensed energy network
• An energy generator, energy supplier, or
consumer group

22. Whole system integration
Your project should also consider as a primary focus, novel approaches to
infrastructure investment, such as:
• maximising efficiency in large scale network and system investments by taking
systems view across generation and demand side changes linked to
decarbonisation
• coordinating approaches to siting assets to deliver more efficient capital
investment on the system
• determining the economic investment required for network resilience and
reliability through and beyond the energy transition
Minimum partner requirements:
• A licensed energy network
• An energy generator, energy supplier, or
consumer group

23. Unleashing Innovation:
NET
ZERO
INNOVATION
PORTFOLIO
Sally Fenton
Head, Built Innovation
Science and Innovation for Climate and Energy

24. PM’s 10 Point Plan
Point 10: Green Finance and Innovation
• Unleashing innovation and developing new sources of finance are
fundamental for further developing the green technologies for net
zero.
• To accelerate the commercialisation of innovative low-carbon
technologies, systems and processes in the power, buildings, and
industrial sectors, we will launch the £1 billion Net Zero
Innovation Portfolio.
• The portfolio will focus on ten priority areas that correspond with
this Ten Point Plan, including: future offshore wind; nuclear
advanced modular reactors; energy storage and flexibility;
bioenergy; hydrogen; homes; direct air capture and advanced
CCUS; industrial fuel switching; and disruptive technologies such
as artificial intelligence for energy.

25. Policy context
BEIS’s 4 policy priorities: • Innovation Strategy
• Creating confidence for increased business
investment in R&D and innovation.
• Increasing investment in innovative companies
• Net Zero Strategy:
• Setting out vision for transitioning to a net zero
economy across key sectors
• Making the most of new growth and
employment opportunities across the UK as we
build back better in our economic recovery from
COVID-19
• Continuing the UK’s strong record in
decarbonising whilst growing our economy

26. • Taking a whole systems approach
• Which technologies, business
models and consumer innovation
most needed for future Net Zero
ambitions?
2021-25
NZIP Approach

27. NZIP Priority Areas
Hydrogen
H2
Greenhouse gas
removal
CO2 Advanced
CCUS
Bioenergy
Industry
Objective: To support domestic
supply of bioenergy and options
for use in a net zero energy
system
Objective: To develop
innovation fuel switching
technologies, and energy
efficiency
Objective: To support novel
carbon capture technologies
Objective: Design &
demonstrate Direct Air Capture
(DAC) and other forms of GGR
Objective: To support novel
production & use of clean
hydrogen
Advanced
Nuclear Fund
Future
Offshore Wind
Disruptive
technologies
Buildings
Energy Storage
& Flexibility
Objective: To support design &
development of Small Modular
(SMR) & Advanced Modular
Reactors
Objective: Technologies and
materials to drive future offshore
wind
Objective: To support the growth of
renewable electricity in the future
energy system
Objective: Innovation to support
decarbonising our homes and
buildings
Objective: Grants, incubation and
venture capital funding to support
the best new ideas

28. Further Information on NZIP
• For more information on NZIP and to apply for future funding
opportunities, please visit:
https://www.gov.uk/government/collections/net-zero-
innovation-portfolio
• For any queries on NZIP, please contact: NZIP@beis.gov.uk

29. Tour of the Energy
Networks
Panel presentation
Christine Coonick
Programme Manager, Innovate UK

30. The UK Energy System
Transmission
Distribution
Electricity Gas

31. Welcome panelists
• David Hardman, Innovation Analyst, National Grid Gas Transmission
• Richard Hynes-Cooper, Head of Innovation, Northern Gas Networks
• Andrew Urquhart, Head of Whole System, SSEN Transmission
• Geoff Down, Innovation Manager, National Grid ESO

32. 32
National Grid
© National Grid Gas 2020
David Hardman
Innovation Analyst, National Grid Gas
Transmission

33. Role of Gas in the UK
7,600km high-pressure pipe
94 bar maximum pressure on
the network
24 compressor stations
504 above-ground
installations
8 connected distribution
networks
Gas Demand in the UK today:
Power
Generation
Domestic
Use
Industrial &
Commercial
39%
38%
23%
881TWh
of energy is delivered
by the NTS
85%
households are using
gas for heat
22m
gas customers
across the UK

34. 34
National Grid
Maintain, Repair,
Decommission & Replace
Design for remanufacture
Asset integrity
Asset strategies and
investment strategies
Safety and risk analysis
Robotics & automation
GQ measurement
Leak detection and
monitoring
Measurement & sensing
Predictive maintenance
Data analytics and AI/ML
Cyber security and
infrastructure
AR/VR for training and
maintenance
IOT & wearables
Smart Networks
Novel Material development
and application
Manufacture – AM, Casting,
forming etc….
Material repair techniques
Smart materials
Gas Operations
Forecasting tools
Market modelling and
customer engagement
Innovation Culture &
Stakeholder engagement
Net Zero
Future Grid, HPDG – Heat Hydrogen, Cross Industry Collaboration, Carbon Capture
BAU
Asset Development
for Risk Mitigation
Automation &
Measurement
Digital Systems &
Simulation
Materials &
Processing
Business Process
& Management
Asset Development
for Risk Mitigation
Automation &
Measurement
Digital Systems &
Simulation
Materials &
Processing
Business Process
& Management
Overview
Innovation Technology Themes

35. An ambitious programme to
build a hydrogen test facility
from decommissioned assets
at DNV’s facility in Cumbria to
demonstrate the National
Transmission System (NTS)
can transport hydrogen.
DNV Engineering
Research &
Development Centre –
Spadeadam, Cumbria

36. 36
National Grid

37. 37
National Grid
You can find out more across our website and social media
or email us at: @nationalgrid.com
© National Grid Gas 2020

38. Strategic Innovation Fund
Richard Hynes-Cooper
Head of Innovation- Northern Gas Networks
7th September 2021

39. Northern Gas Networks
We are Northern Gas Networks (NGN), the gas
distributor for the North of England.
We keep 2.7 million homes and businesses cooking
on gas, through our vast underground pipe network.
We are committed to providing a safe, reliable and
great value service to our customers and
stakeholders, while developing new forms of energy,
such as hydrogen, to support a greener future.
Innovation underpins everything we do - whether we
are replacing pipes, fixing leaks, developing low
carbon energy solutions or supporting our most
vulnerable customers.

40. The Energy Systems Transition
Strategic Innovation Fund
Our innovation approach is designed to support the UK’s transition to a low carbon economy, by
developing pioneering projects around hydrogen as a replacement fuel for natural gas.
H21 - We’ve proven that the UK’s existing gas networks can be converted to transport hydrogen to
homes and businesses – providing a clean and sustainable fuel for the future.
We remain extremely active in this area, with a raft of new projects that are examining the fine detail of
hydrogen conversion – covering everything from hydrogen storage and
generation to the development of a domestic hydrogen detector/alarm.
We are carrying out everyday gas network operations and procedures, with 100% hydrogen, to
understand any changes that we might need to make to our day-to-day activities.
Gas Goes Green (ENA) - Innovate, challenge, question, and assist with identifying potential risks,
barriers mitigations and opportunities.
Whole Systems
Data and
Digitalisation
Zero Emission
Transport
Heat
SIF

41. Our areas of focus
Strategic Innovation focus
Collaboration with EIC, industry energy production and application, consumer groups and academia:
• InTEGReL and the CEV- we’re breaking down traditional barriers between gas, electricity and transport
sectors to use their assets in order to deliver a more secure, affordable, low carbon energy system.
• IoT, the smart network and Open Energy data – Digital IoT roadmap sets out our priorities in the digital
space for to enable improve the use of ‘open’ data, reduce customer disruption and enable the smart
networks of the future.
• Decarbonisation requires new ways of working, new systems, and solutions to support an affordable,
customer-focused transition.
• Heat- Hydrogen’s potential role in a UK future energy mix has taken huge steps forward over the
last 12 months. Research on the practical steps to hydrogen conversion stepping-stones for what the
country needs for a safe conversion and how this will affect customers.
Whole Systems
Data and
Digitalisation
Zero Emission
Transport
Heat
SIF

42. Strategic Innovation Fund Launch
Transmission Owners
Andrew Urquhart
Head of Whole System, SSEN Transmission

43. 43
Transmission Owner

44. 44
Delivering Net Zero
• Enabling renewable generation
• OFSW, ONSW, solar, marine, biomass . . .
• Decarbonising demand
• EV, heat pumps, hydrogen

45. 45
Delivering Net Zero
• Codes and standards
• Integration of digital/cyber
• Maintaining network reliability and resilience
• Sustainable materials
CONNECTION AND
USE OF SYSTEM CODE
(CUSC)
GRID CODE
(GC)
THE SYSTEM
OPERATOR AND
TRANSMISSION
OWNER CODE (STC)

46. Thanks for listening

47. SIF - A view from the
ESO
Geoff Down
Innovation Manager, National
Grid ESO

48. The role of the ESO: the drivers of change
48

49. A quick reflection of where we have come from
49
Data: Dukes and FES

50. Innovation Strategy Priority Areas
50

51. Further Information and Questions
Website: https://www.nationalgrideso.com/future-energy/innovation
Email: box.SO.innovation@nationalgrid.com

52. Ofgem Strategic Innovation
Fund: Overview of challenges
David Richardson
Head of Innovation, Innovate UK

53. The energy network innovation ecosystem
Energy
Innovators
Academia
Other
sector
innovators
Infrastructure
owners
Public bodies
(local authorities
and others)

54. Connecting with the Energy Networks
Enquiry
type How would I describe our readiness? Routes for engagement
1
I have a well defined project proposal, but need to
understand if it fits competition requirements
and/or connect with the networks
2 Our main focus is not energy network innovation,
but we are interested in working in the sector.
3 I have an energy network innovation idea which
needs further development and I’d like to build
relationships with the networks
4 I have a well developed energy network innovation
idea which might not be suitable for current SIF
challenges
5 I don’t have a project idea but I believe we have
specialist capabilities that might be needed by
energy networks.
Register for the mailing list, to be kept up to date with SIF by emailing - Ofgem_SIF@Innovateuk.ukri.org

55. Connecting with the energy networks
Contact Ofgem_SIF@Innovateuk.ukri.org
https://ktn-uk.org/energy/ for resources and contact
Submit and innovation idea via the https://smarter.energynetworks.org/
Visit and sign up to the Energy Launchpad service-
https://es.catapult.org.uk/service-platforms/energy-launchpad/
Register and submit a proposal through the Energy Innovation
Centre - https://innovate.ukeic.com/eic-innovator-support-2

56. What role will ENA play in the SIF?
Introducing the Smarter Network Portal (SNP)
56
07 September 2021
Dan Clarke, ENA Head of Innovation

57. Introduction to ENA
The voice of the networks
• 29 million electricity customers
• 21.5 million gas customers
• 180,000 miles of gas network
• 519,304 miles of electricity network
Areas we support the Networks
• Integrating Low Carbon Technologies
• Transition to Hydrogen programme
• Data and Digitalisation
• Safety, health and environment
• Governance of Engineering codes
And many more… 57
Electricity Distribution Electricity Transmission
Gas Distribution Gas Transmission

58. What role does ENA play in Network Innovation?
Facilitate a collaborative forum between Networks
Govern the Energy Network Innovation Process (ENIP)
and the CEP Procurement Framework
Operate the Smarter Networks Portal, which primarily:
1) enables innovators to submit ideas for consideration by Networks
2) disseminates learnings from Network Innovation projects
58
Regular
whole system
meetings
Discuss and
formulate
ideas
Collaborate
on projects
Share best
practice
Avoid
duplication

59. Smarter Networks Portal (SNP)
Contains information on over 2,000 live and
completed projects
Holds information on multiple funding mechanisms
including SIF
Account holders (free) receive weekly project
progress updates on their interest areas
59
smarter.energynetworks.org
smarter.energynetworks.org/register

60. Five ways ENA will support innovators and the SIF
1. An entry point to find out more about the SIF
1. Support / facilitate collaboration amongst Networks and innovators
1. Communicate to stakeholders at relevant intervals through the SIF process
1. Aim to populate the SNP with SIF Discovery, Alpha and Beta projects
1. The SNP also contains info on other funding mechanisms (NIC, NIA, etc.)
60

61. Thank you, Q&A at 11.45am
61

62. Energy Networks Association
4 More London Riverside
London SE1 2AU
t. +44 (0)20 7706 5100
@EnergyNetworks
energynetworks.org
Energy Networks Association Limited is a company registered in England & Wales No. 04832301
Registered office: 4 More London Riverside, London SE1 2AU
© ENA 2021

63. EIC Intro &
Strategic Innovation Fund Support
Matthieu Michel, Operations Director, EIC

64. Evolving innovation
process to take ideas into
BAU
Global community of
innovators and SMEs
Network Partners
(Whole system)
What is the EIC Partnership?
Platform bringing
innovators & industry
together
Removing barriers
to accelerate
innovation into BAU
Our gas, electricity and water partners:
A team of technical and
commercial experts who
make the journey happen
Not for Profit

65. INNOVATOR AND
SME BENEFITS
The key EIC benefits identified by our
innovators, with a focus on accelerating the
delivery of innovation
EIC activities informed and validated by
SINGLE GATEWAY
Single, funded gateway to access industry
Include guides to remove barriers to engage with industry
EDUCATION, SUPPORT AND INSIGHT
Calls for Innovation, projects, EIC funding finder
INDUSTRY OPPORTUNITIES AND FUNDING
To access industry experts, through sector-wide coordination and established
networks
REDUCED COSTS
£
COLLECTIVE VOICE
To affect change

66. Strategic Innovation Fund: How can the EIC help?
1. Dedicated team to support and provide guidance to Innovators to shape proposals aligned
with industry needs (including SIF)
Please visit the EIC Innovator Support Page for an overview of the support available.
2. Established process to facilitate direct access to Network Companies
SIF Proposals must be sponsored by a Network licensee.
3. Experienced in facilitating the development of collaborative whole system / multi sector
partnerships. E.g. Gas, Electricity, Water, Rail.
4. Non selected SIF proposals: Feedback will be provided and alternative funding mechanisms explored.

67. Next Steps (Timescales Indicative)
TI
M
ES
CA
LE
S
• 06TH SEP: SIF Challenges advertised on EIC Opportunities page (www.ukeic.com/opportunities)
• 06TH OCT → 20TH OCT: Shortlisted proposal shared with relevant utilities and discussions.
• 20th OCT → 17th NOV: Selected proposals finalisation / Submissions on Portal.
Can be lead applicant
Submissions and EIC Review
(06th Sep → Early Oct)

68. Ofgem Strategic Innovation
Fund: Applications,
Assessment & Awards
Thomas Poole
Project Manager, Innovate UK

69. Application assessment
All applications are assessed by independent assessors drawn from industry and academia
What do they look for?
• Clear and concise answers
• The right amount of information
• not too much detail
• no assumptions
• Quantification and justification
• A proposal that presents a viable opportunity for growth, a level of innovation that
necessitates public sector investment and has the right team and approach to be
successful
Keep your assessors engaged
and interested in your proposal.
You want them to be fascinated
and excited by your idea!

70. SIF Assessment Process
Written
applications
submitted
Assessed by 5
independent
assessors
Portfolio
Recommendation
Projects go
live
Ofgem Funding
Decision
Innovate UK will provide to
Ofgem:
- Applications
- Application Annexes
- Assessor Feedback
Independent assessors are
selected based on knowledge,
experience and understanding
of the competition subject
area
Ofgem to Issue
Project Directions
Important Note
Ofgem are the unlimited and final decision makers of the Strategic Innovation Fund
Notifications &
Feedback
17th November
2021
December 2021 January 2022 Early February
2022
Early February
2022
1st March
2022

71. Contact
Eligibility & Scope Queries
Strategic Innovation Fund –
Programme Team
SIF_Ofgem@innovateuk.ukri.org
Ofgem Website:
SIF Governance Document
Innovation Funding Service (IFS)
Queries
Customer Support Services:
•0300 321 4357 (Monday - Friday
9:00am - 11:30am & 2:00pm -
4:30pm)
support@innovateuk.ukri.org
Market Engagement
Knowledge Transfer Network:
www.ktn-uk.co.uk
Energy Networks Association:
https://smarter.energynetworks.org/
Energy Innovation Centre:
https://www.ukeic.com/

72. Q&A
Please add your questions to the Q&A box

73. Thank you for attending
Ofgem Strategic Innovation Fund
7 September 2021