The Network Innovation Allowance (NIA) is a key innovation funding mechanism for the UK’s energy sector. Established under Ofgem’s RIIO-2 framework, it provides regulated electricity and gas networks with dedicated funding (typically between £50,000 and £2m) to trial new technical, commercial or operational ideas.
NIA funding is specifically designed to support early-stage energy innovation that benefits consumers (including vulnerable groups) or supports the UK’s net zero transition. It helps energy innovators and startups bring new solutions to life in partnership with network operators.
If you’re developing an energy technology or service, NIA could be your route to trialing it with a UK network; the Energy Innovation Centre (EIC) is here to help you connect the dots.
What Types of Energy Projects Does NIA Fund?
NIA funding supports projects that:
- Are too innovative or uncertain to be funded as business-as-usual
- Deliver measurable consumer or environmental benefits
- Align with national or regional energy transition goals.
NIA Project Examples
Led by the EIC, this cross-network project tested ways to improve public experience during streetworks, especially for disabled and older people. It involved organisations including Northern Powergrid, SGN and Cadent.
A collaboration with Northern Gas Networks, NEA and Newcastle University, this project tested how households respond to decarbonisation technology and helped design frontline training for energy advisors.
This innovation explores how electric vehicles can act as a backup power source for vulnerable customers using vehicle-to-home (V2H) and vehicle-to-grid (V2G) technologies. It’s helping develop more resilient, accessible home energy solutions.
Each of these projects started as a forward-thinking idea and was brought to life thanks to NIA funding and strong partnerships.
Project Examples
While the EIC doesn’t provide funding directly, we help innovators access it by:
Connecting innovators with networks
We identify the most relevant UK energy network for your project and help you approach them for collaboration.
Shaping strong proposals
Our team supports early-stage innovators in developing proposals that meet Ofgem’s NIA governance requirements and align with RIIO-2 objectives.
Navigating the process
From hosting Q&A sessions to refining your pitch, we offer comprehensive support.
Highlighting success stories
We help share your impact across the sector to encourage learning, replication and scale.
Explore our resource for innovators – the Hub, to see how we can support your NIA journey.
How to Apply for NIA Funding
If you’re new to the process, here’s how to get started:
Check eligibility
Is your idea at an early or mid-stage (TRL 2–8)? Can it deliver consumer benefit or system improvements? Would it be funded by a network under normal operations? If not, NIA might be a fit.
Engage with EIC
We help shape your idea and match you with the right network partner.
Looking Ahead: Opportunities Beyond 2025
There’s growing support for NIA as a key driver of the UK’s energy transition. Ofgem has proposed allocating £45.6m in additional NIA funding for 2026–2028, underlining its importance for long-term innovation.
We also see increasing interest in:
- Future-proofed infrastructure
- AI-enabled optimisation
- Solutions to support vulnerable customers.
Ready to Explore NIA Funding?
The NIA continues to unlock high-potential, low-risk innovation for UK energy networks. If you have an idea that could improve the future of energy, the EIC can help you take the first step.
Visit the Hub or get in touch to start your innovation journey.
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