Funding
How we fund our innovation programme
We embed innovation into every aspect of our business, and are proud to have created a culture where innovation takes centre stage.
We innovate through a wide range of funding methods, but mainly with the help of two vital funding streams, Network Innovation Allowance (NIA) and Strategic Innovation Fund (SIF).
FUND STREAM 1
Ofgem Network Innovation Allowance
The backbone of innovation, this funding stream is allocated to a wide range of innovation projects assessed and approved by NGN, all of which have the potential to support vulnerable customers and help facilitate the transition to net zero.
This report outlines some of the exciting projects made possible by NIA funding this year. Click the link below for further project details, including progress and closure reports.
FUND STREAM 2
Ofgem Strategic Innovation Fund
This funding stream of £450 million is available to UK gas and electricity networks to access between 2021-2026. Unlike the NIA funding, this more targeted funding is available for projects that evidentially accelerate the transition to net zero, to help the UK become a ‘Silicon Valley’ of energy.
The fund has three phases to take a project from the drawing board stage to final delivery.
With each phase, the value of investment increases.
You can read about one of our SIF-funded projects later in this report
FUND STREAM 3
Use it or Lose it Fund
In its RIIO-2 Final Determination, Ofgem established a Net Zero and Re-opener Development Fund Use it or Lose it allowance (UIOLI). The purpose of the UIOLI is to enable Network Licensees to fund small Net Zero facilitation projects, and also to allow for early development work on projects that network companies intend to bring forward at a later stage through other RIIO-2 Net Zero-related mechanisms. NGN were awarded £4.6m under the UIOLI.
FUND STREAM 4
Additional funding
Some of our innovation portfolio is also funded through Total Expenditure (TOTEX), third-party and alternative business sources, to drive efficiencies and enable process improvements across NGN’s operations, by refining and implementing products at a higher technology readiness level.
