OFGEM has launched a new £450 million “Strategic Innovation Fund” to support greener innovation to heat homes and businesses, store energy, or transport goods and people across Britain.
As part of the regulator’s support to reach the UK’s net-zero target by 2050 and lower energy bills for consumers, the company has announced that network companies, system operators, businesses and researchers can bid for funding to start transitioning to an emissions-free energy system.
For its first release, the funding will initially be available over the next five years, with OFGEM providing the option to increase this period in response to need and depending on the complexity of the plans.
OFGEM’S Chief Executive, Jonathan Brearley, stated: “The Strategic Innovation Fund means cutting edge ideas and new technologies become a reality, helping us find greener ways to travel and to heat and power Britain at low cost. Britain’s energy infrastructure will play a pivotal role in cutting net-zero greenhouse gas emissions and this fund will help make sure our energy system is ready to deliver that.”
To be eligible for the first round of funding, network companies must propose innovative changes like the rollout of clean heating or technologies that allow networks to support flexible energy solutions. In their bid for support, the companies must address four challenges that are crucial for our green transition: whole system integration, data and digitalisation, heat, and transport.