Funding innovation
We are constantly trialling new technology and innovative ways of working to deliver value for money, reduce customer inconvenience and keep the whole sector moving forward.
Our regulator, Ofgem, provides two funding streams to support projects that contribute to addressing challenges faced by customers in vulnerable situations and facilitate the energy systems transition to a greener future.
The Network Innovation Allowance (NIA)
The backbone of innovation, this funding stream worth £11.9 million is allocated to a wide range of innovation projects which are assessed and approved by NGN, and all have the potential to support customers in vulnerable situations and help facilitate the transition to net zero.
The Strategic Innovation Fund (SIF)
This competitive four phase funding stream supports the acceleration of transformational whole energy system innovation to address climate change and ensure value for money for people who use and pay for Britain’s energy networks. For the RIIO-3 price control period (2026 – 2031), Ofgem has allocated an additional £500 million to the SIF. This includes the new Deployment Phase, to support the transition of proven innovations into operational deployment across Great Britain’s energy system.
Decarbonisation Project Development Use It Or Lose It Fund
This funding stream is worth £8.3 million during the five years between 2026 and 2031, with a maximum spend of £2.5m per project.
The fund is designed to enable the delivery of small decarbonisation facilitation projects, including Regional Energy Strategic Planning (RESP) related projects, shrinkage related activities and early development work for projects that network companies intend to bring forward under specific re-openers during the RIIO-3 price control.