The challenges focus on network planning, equitable power systems, electrification of heat and power-to-gas solutions.
The first funding phase will begin in September 2023, offering feasibility study grants.
Successful projects will progress to the alpha and beta phases for further development and demonstration.
Marzia Zafar, Deputy Director of Strategy and Innovation at Ofgem, said: “This is a great opportunity for innovators to focus their talents on solving some of the major challenges the energy sector is facing on the road to decarbonisation.
“SIF has already proved to be a launchpad for some fantastic innovative thinking and we’re looking forward to seeing what exciting proposals we get in response to this year’s set of specific challenges.”