Electricity Demand Turn Up trial: EOI for flexibility providers

UK registered businesses providing flexibility services can submit an expression of interest for a trial assessing if DTU can reduce renewable electricity curtailment in Great Britain. Successful applicants can apply for a share of up to £16 million.

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Contents

Summary

This expression of interest (EOI) competition is the first stage in selecting Flexibility Service Providers (FSPs) to participate in Phase 1 of the Demand Turn Up (DTU) Trial.

No funding will be awarded through this EOI stage. Successful applicants may be invited to a subsequent award stage.

This competition is operated by Innovate UK on behalf of the R&D Missions Accelerator Programme within UK Research and Innovation (UKRI).

The trial is jointly funded UK Research and Innovation (UKRI) and the Department for Energy Security and Net Zero (DESNZ). For the full trial, UKRI and DESNZ will invest up to £16 million.

The aim of this competition is to identify FSPs, including energy suppliers and aggregators, that can participate in Phase 1 of a DTU Trial.

The trial will test whether rebating the value of eligible Final Consumption Levies (FCLs) for verified DTU activity can make DTU more cost competitive, encourage consumer participation and reduce the need for renewable generation curtailment. It will generate evidence to inform future government policy on the treatment of FCLs for DTU.

Selected FSPs will deliver live DTU propositions through eligible National Energy System Operator (NESO) markets. They will pass the financial benefits of FCL rebates to participating consumers and support the trial’s monitoring, research and evaluation.

We reserve the right to adjust funding allocations for any of our competitions under exceptional circumstances, for example, in response to changes in policy, portfolio funding considerations, or broader government funding decisions.

In applying to this competition, you are entering into a competitive process. This competition has a funding limit, so we may not be able to fund all the proposed projects. It may be the case that your project scores highly but we are still unable to fund it.

This EOI closes at 11am UK time on the deadline stated in this Innovate UK competition brief. We cannot guarantee other government or third party sites will always show the correct competition information.

Funding type

Grant

Project size

This is an expression of interest (EOI) competition. No funding will be allocated at this stage. Grant funding is capped at £3 million per participating Flexibility Service Provider over the full trial. This is the maximum rebate cost that can be claimed.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Eligibility

Your project

Your full stage proposition for Phase 1 must:

  • have a grant funding request of up to £3 million

  • last up to 4 months

  • carry out all of its project work in the UK

  • intend to exploit the results from or in the UK

  • start on 1 December 2026

  • end by 31 March 2027

Projects must always start on the first of the month, even if this is a non-working day. We aim to notify successful applicants in October 2026, subject to financial checks. The start date is 1 December 2026. This is the date from which final consumption levy (FCL) rebate payments can be made.

You must only include eligible project costs in your application. See our overview of eligible project costs.

If your project’s grant funding request or duration falls outside of our eligibility criteria, you must provide justification by email to support@iuk.ukri.org at least 10 working days before the EOI closes. We will then decide whether to approve your request.

If you project does not meet our criteria and you have not requested justification approval, your application will be made ineligible and it will not be sent for assessment.

Lead organisation

To work alone your organisation must be a UK registered business of any size or not for profit.

More information on the different types of organisation can be found in our Funding rules.

You must be a Flexibility Service Provider (FSP) working in the Great Britain (GB) electricity sector.

FSPs can include energy suppliers, aggregators, and industrial or commercial organisations that participate directly in energy markets.

To participate in the trial, you must confirm that you:

  • have an existing customer base of domestic or non-domestic electricity consumers, or both

  • are active in, or able to participate in, at least one of the NESO balancing markets, for example, Balancing Mechanism (BM), Demand Flexibility Service (DFS) and Local Constraint Market (LCM)

  • have the capability to recruit new and existing customers for the trial

  • can design and deliver innovative Demand Turn Up (DTU) propositions that would become viable or significantly more attractive with FCL rebates

  • can support research and evaluation activities, including the provision of relevant consumer and electricity consumption data and, subject to appropriate permissions, access to participants for primary data collection

  • are willing and able to work collaboratively with DESNZ, UKRI, NESO and the appointed Delivery Lead, including participating in regular meetings and reporting throughout the trial

Subcontractors

Subcontractors are allowed in this competition.

If you intend to use subcontractors please make this clear in your EOI submission and provide details.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you cannot use subcontractors from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total project costs.

Number of applications

An eligible organisation can only lead on one application. Any further applications by the same organisation as lead will be made ineligible.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Applicants must ensure that all of the proposed work within projects, both that in the UK and internationally, will comply with the UKRI guidance on the use of animals in research and innovation.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Previous applications

You cannot use a previously submitted application to apply for this competition.We will not award you funding if you have:

Innovate UK may withhold a grant payment at any time if you have any outstanding sums due to us in relation to other projects.

Funding

For this expression of interest (EOI) competition there is no funding allocated.

For the full trial, UKRI and DESNZ will invest up to £16 million.

Objectives

This expression of interest (EOI) competition is the first stage in selecting Flexibility Service Providers (FSPs) to participate in Phase 1 of a Demand Turn Up (DTU) trial.

No funding will be awarded at this EOI stage. Successful applicants may be invited to a subsequent award stage.

DTU is a form of consumer led flexibility that encourages consumers to increase their electricity consumption at times when additional demand can benefit the electricity system. It could help make better use of renewable electricity that might otherwise be curtailed. At present, however, Final Consumption Levies (FCLs) applied to electricity consumption can make it less cost effective to turn up demand than to curtail generation.

The aim of this competition is to identify FSPs, including energy suppliers and aggregators, that can participate in Phase 1 of a DTU Trial.

The trial will test whether rebating the value of eligible FCLs for verified DTU activity can make DTU more cost competitive, encourage consumer participation and reduce the need for renewable generation curtailment. It will generate evidence to inform future government policy on the treatment of FCLs for DTU.

If invited to the subsequent award stage, your Phase 1 proposition must:

  • deliver measurable and verifiable DTU through one or more eligible National Energy System Operator (NESO) markets

  • recruit and support eligible domestic or non-domestic consumers to participate in the trial

  • provide participating consumers with a financial benefit linked to eligible DTU activity

  • pass the financial benefit of FCL rebate payments to participating consumers, subject to any eligible participation costs agreed in advance

  • measure eligible DTU activity and provide the data required to calculate and verify FCL rebate payments

  • support the trial’s monitoring, research and evaluation, including the collection and analysis of relevant consumer characteristics and electricity consumption data

  • comply with applicable market rules, consumer protection requirements, trial terms and data sharing requirements

  • commence live delivery within the Phase 1 timetable

We are particularly interested in propositions that:

  • serve a diverse range of consumers, including vulnerable and fuel poor households

  • provide indicative estimates of the number and types of consumers that could participate in Phase 1

  • estimate the DTU capacity and volume that could be delivered, including how this may vary by time, duration and location

  • test different approaches to communicating DTU opportunities to consumers

  • explore how industrial and commercial consumers can participate in DTU

The trial will seek to answer the following key research questions:

  1. How much additional electricity demand is created in response to DTU signals supported by FCL rebates, and how much results from demand shifting?

  2. What wider social and economic benefits result from providing FCL rebates for eligible DTU activity?

  3. How do FCL rebates affect supplier and aggregator bidding behaviour and wider market outcomes?

  4. Does the trial create any market distortions, undesirable impacts, perverse incentives or opportunities for gaming?

Further sub-questions are listed in Annex 2 in Supporting information.

Trial phasing

The trial will be delivered in three phases. Phase 1 will focus on delivering consumer propositions at pace and generating initial evidence against the trial objectives. You must therefore propose propositions that are already operational or can commence live delivery on 1 December 2026 if you wish to participate in Phase 1.

Phase 2 is expected to commence from April 2027 and Phase 3 from September 2027. Subject to evidence from earlier phases, these phases may test different variables, including FCL rebate levels, market interactions, consumer groups and approaches to scaling successful offers.

This EOI relates to Phase 1 only. The design and scope of subsequent phases will be informed by evidence and lessons from Phase 1 and may therefore change.

Phase 1 delivery model

Phase 1 will use an FSP led delivery model operating through eligible NESO markets.

Participating FSPs must:

  • identify, recruit and support eligible domestic or non-domestic consumers

  • design, communicate and deliver DTU propositions

  • participate in eligible NESO markets in accordance with the relevant rules and requirements

  • deliver measurable and verifiable DTU through those markets

  • collect and provide the data required to calculate and verify FCL rebate payments

  • pass the financial benefit of FCL rebates to participating consumers, subject to any eligible participation costs agreed in advance

  • invite consumers to participate in research and evaluation activities

  • support the collection and analysis of relevant consumer and electricity consumption data

  • work collaboratively with DESNZ, UKRI, NESO and the appointed trial Delivery Lead

FSPs will continue to receive payments from NESO for accepted bids in accordance with normal market arrangements. FCL rebate payments will be administered separately through the trial.

FSPs that are not suppliers do not pay FCLs themselves but can reflect the value of the FCL rebate in a lower DTU bid price, knowing they will receive that rebate after delivery. The rebate is paid back to the FSP for the purpose of ultimately benefiting participating consumers, who initially pay FCLs through their electricity bill and can then receive financial benefit back from the FSP. We will make provisions within the trial design and selection process for avoiding any potential for businesses receiving double subsidies.

Role of the trial Delivery Lead

UKRI will appoint a trial Delivery Lead to support the design, mobilisation, administration, research and evaluation of the trial. Participating FSPs will be required to work with the Delivery Lead and provide the information and access needed to support these activities. Further details will be provided at the subsequent award stage.

Phase 1 eligible markets

Phase 1 will support verified DTU activity delivered through the following eligible NESO markets:

  • Balancing Mechanism (BM)

  • Demand Flexibility Service (DFS)

  • Local Constraint Market (LCM), where it continues to operate separately from DFS

The status of these markets may change before or during the trial. UKRI and DESNZ will confirm the eligible markets and applicable requirements at the subsequent award stage.

Distribution System Operator flexibility markets are not eligible during Phase 1. This is because Phase 1 focuses primarily on transmission system needs and the costs associated with transmission network constraints.

FCL rebates and other payments

Phase 1 will provide payments equivalent to eligible FCLs for measurable and verified DTU delivered through eligible NESO markets.

Participating FSPs will continue to receive any payments due from NESO under the normal arrangements for the relevant market. The trial will not alter NESO procurement, bidding, dispatch or settlement arrangements. FCL rebate payments will be calculated, verified and paid separately under the trial arrangements.

The following charges are not eligible for rebate during Phase 1:

  • Balancing Services Use of System charges

  • Transmission Network Use of System charges

  • Distribution Use of System charges

  • any other taxes, levies or network charges not expressly identified as eligible FCLs under the trial

The possible treatment of other charges in subsequent phases will be kept under review.

Geographical focus

The trial will operate across Great Britain. The greatest initial benefits are expected in areas where network constraints coincide with high levels of renewable electricity generation and curtailment, particularly Scotland and the East of England.

Propositions involving consumers in other parts of Great Britain are also eligible where they can deliver DTU in response to relevant electricity system needs through an eligible NESO market.

For additional context on network constraints, participants can refer to the Thermal Constraint Costs data published by NESO, which provides daily costs for relevant network boundaries, as well as the Electricity Ten Year Statement, which offers a forward looking view of anticipated network requirements and constraints.

Trial duration

Phase 1 is expected to commence on 1 December 2026. Live trial delivery is expected to continue until 31 March 2028. Funded activity, including final data provision, reporting and evaluation support, may continue until 30 May 2028.

Portfolio approach

We want to fund a variety of projects across different technologies, markets, locations and type of FSPs. We call this a portfolio approach.

Projects we will not fund

We are not funding projects that:

  • provide demand turn down or demand reduction rather than verified DTU

  • operate outside the specified markets

  • seek FCL rebates for consumption that is not eligible, measurable and verifiable under the trial

  • seek rebates for BSUoS, TNUoS, DUoS or other charges outside the scope of the trial

  • do not pass the financial benefit of FCL rebates through to participating consumers, subject to any eligible participation costs agreed in advance

  • cannot meet the trial’s consumer recruitment, data sharing, monitoring, verification, research or evaluation requirements

  • are limited to feasibility studies, technology development or proposition design without live delivery

  • deliberately encourage wasteful electricity consumption, gaming or activity that does not provide a legitimate consumer or electricity system benefit

  • provide ongoing operational support or permanent electricity price reductions beyond the trial period

  • do not comply with relevant regulatory, consumer protection, subsidy control or financial viability requirements

Dates

2 September 2026

Online briefing event: register to attend

Briefing slides will be available to download from Supporting Information after the event.

24 September 2026

Applicants notified

1 December 2026

Project start on

How to apply

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

  • that all the information provided in the application is correct

  • your proposal meets the eligibility and scope criteria

  • all sections of the application are marked as complete

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into two sections:

  1. Project details.

  2. Application questions.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long-term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

1. Project details

This section provides background for your application and is not scored.

Application team

Decide which people from your organisation will work with you on the project and invite those people to help complete the application.

Application details

Give your project’s title, start date and duration.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope, it will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

Your EOI application will be reviewed by a panel of at least three individuals drawn from UKRI, DESNZ and, where appropriate, the appointed Delivery Lead.

Questions 1 to 8 are not scored. Questions 7 and 8 will help UKRI and DESNZ understand the range of potential participants and inform the detailed design of Phase 1 and future phases of the Demand Turn Up (DTU) Trial.

Questions 9 to 11 are scored using the published scoring criteria. The scores will be used to identify propositions that may be suitable for Phase 1 and to inform selection of a balanced portfolio.

You must answer all questions.

You must not include any website addresses or links (URLs) in your answers. Any website addresses or URLs included, will not be viewed or opened.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and any partners or subcontractors working on your project.

We are collecting this information to understand more about the geographical location of all applicants.

Your answer can be up to 100 words long.

Question 2. Animal testing (not scored)

Will your project involve any trials with animals or animal testing?

You must select one option:

  • Yes

  • No

We will only support innovation projects conducted to the highest standards of animal welfare.

Further information for proposals involving animal testing is available at the UKRI Good Research Hub and NC3R’s animal welfare guidance.

Question 3. Permits and licences (not scored)

Will you have the correct permits and licences in place to carry out your project?

We are unable to fund projects which do not have the correct permits or licences in place by your project start date.

You must select one option:

  • Yes

  • No

  • In the process of being applied for

  • Not applicable

Question 4. International (not scored)

Does your proposed work involve any international collaboration or engagement?

You must provide details of any expected international collaboration or engagement. You must include a list of the names and the countries, any international project co-leads, project partners, visiting researchers, or other collaborators are based in. You must also include details of any subcontractors or service providers.

If your proposed work does not involve international collaboration or engagement, your answer must confirm this.

Your answer can be up to 100 words long.

Question 5. Trusted Research and Innovation (not scored)

You must explain if your proposed project work relates to UKRI’s Trusted Research and Innovation (TR&I) Principles, including:

  • a list of any dual-use (both military and non-military) applications to your research

  • a list of the areas where your project is relevant to one or more of the 17 areas of the UK National Security and Investment (NSI) Act

  • whether an export control license is required for this project under the academic export control guidance and the status of any applications

  • a list of any items or substances on the UK Strategic Export Control List

If your proposed work does not relate to UKRI’s TR&I Principles, your answer must confirm this.

We may ask you to provide additional TR&I information at a later date, in line with UKRI TR&I Principles and funding terms and conditions.

Your answer can be up to 100 words long.

Question 6: Your acceptance of the trial eligibility requirements (not scored)

To participate in the DTU trial you must confirm that you:

  • are a Flexibility Service Provider (FSP) working in the Great Britain (GB) electricity sector

  • have an existing customer base of domestic or non domestic electricity consumers, or both

  • are active in, or able to participate in, at least one of the NESO balancing markets, for example, Balancing Mechanism (BM), Demand Flexibility Service (DFS) and Local Constraint Market (LCM)

  • have the capability to recruit new and existing customers for the trial

  • can design and deliver innovative DTU propositions that would become viable or significantly more attractive with FCL rebates

  • can support research and evaluation activities, including the provision of relevant consumer and electricity consumption data and, subject to appropriate permissions, access to participants for primary data collection

  • are willing and able to work collaboratively with DESNZ, UKRI, NESO and the appointed Delivery Lead, including participating in regular meetings and reporting throughout the trial

You must confirm that you meet and accept all the requirements listed above. If you select no, your application will not be considered for Phase 1. You may provide further information under Question 8 about changes that could enable your participation in a future phase.

You must select one option:

  • Yes

  • No

Question 7. Your organisation and customer base (not scored)

Tell us about your organisation.

You must provide:

  • the type of services you provide

  • a description of your current consumer base, including the approximate number of consumers

  • the split between domestic and non domestic consumers

  • the geographical distribution of your consumers

  • your current electricity market and flexibility activities.

You can also provide:

  • relevant consumer characteristics

  • the size and type of non domestic consumers

  • any other information that helps explain the nature and reach of your organisation.

This information will be used to understand the range and characteristics of organisations and consumers that could participate in the trial.

Your answer can be up to 400 words long.

Question 8. Trial design feedback and future phases (not scored)

Provide your feedback on the design of the overall DTU Trial and describe how your organisation could contribute to future phases.

You can provide:

  • any aspects of the proposed trial design that could support or limit successful delivery

  • any suggestions or changes to the design that could increase consumer participation, DTU delivery or value for money

  • any views on the proposed rebate payment mechanism, including potential operational issues or unintended consequences for suppliers, aggregators or consumers

  • any other DTU propositions that you could offer during future phases, and the development or mobilisation needed before those propositions could be delivered

  • any barriers that could prevent or limit your participation in Phase 1 or future phases

  • any additional costs associated with participation and how you have estimated them

  • your views on whether some participation costs should be reimbursed, including the possible approach for small and medium sized enterprises

  • any issues that UKRI and DESNZ should consider when developing data sharing, monitoring, verification, research or evaluation arrangements

The information provided will be used to inform the detailed design of Phase 1 and future phases. It will not affect the score awarded to your Phase 1 proposition.

Your answer can be up to 800 words long.

Question 9. Phase 1 proposition and potential delivery

What DTU proposition do you propose to deliver during Phase 1?

Describe:

  • the proposition and how it will operate

  • the consumer groups you will target

  • how consumers will receive and respond to DTU signals

  • the estimated number and geographical distribution of participants

  • the estimated DTU capacity and volume you could deliver

  • how DTU capacity and volume may vary by time, duration and location

  • the evidence, assumptions and method used to produce your estimates

  • how participation in the trial and the availability of FCL rebates would enable or strengthen your customer proposition

Your answer can be up to 500 words long.

Question 10. Phase 1 readiness and delivery

How ready are you to deliver your proposed DTU proposition during Phase 1?

Describe:

  • your plan for ensuring live delivery on 1 December 2026 and any preparatory activities you will undertake

  • your approach to recruiting, communicating with and supporting participating consumers

  • the eligible NESO markets in which you currently participate or expect to participate by that date

  • your approach to providing the data needed to calculate and verify FCL rebate payments

  • your approach to providing relevant consumer characteristics and electricity consumption data for monitoring, research and evaluation

  • the people, systems and other resources available to support delivery

  • any dependencies or risks that could affect delivery and how you will manage them

Your answer can be up to 500 words long.

Question 11. Experience and capacity

What experience and capacity does your organisation have to deliver the proposed DTU proposition?

You can describe:

  • experience participating in electricity or flexibility markets

  • experience delivering consumer led flexibility propositions

  • experience recruiting, communicating with and supporting consumers

  • experience managing consumer and electricity consumption data

  • similar propositions, products or services delivered previously and the outcomes achieved

  • experience and capacity to support monitoring, research and evaluation

Provide evidence relevant to your proposition. You are not expected to demonstrate experience in every area listed. We will consider the relevance and strength of your overall evidence.

Your answer can be up to 500 words long.

Panel review next steps

The panel will score Questions 9 to 11 using the published criteria. The information provided in Questions 1 to 8 will not be scored. It will be used to confirm relevant application information, understand the range of potential participants and inform the detailed design and requirements of Phase 1 and future phases.

A proposition must score at least 2 against each scored question to be considered for Phase 1. Meeting this minimum standard does not guarantee an invitation to the subsequent award stage.

An invitation does not constitute a grant award. Grant awards will be subject to the eligibility, assessment and approval requirements of the second stage competition.

FSPs not invited to the Phase 1 competition will remain eligible to apply for Phase 2, subject to its final scope and eligibility requirements. Phase 2 is expected to provide a broader opportunity for propositions that require further development or mobilisation. Further information about Phase 2 will be provided separately.

Your submitted application will be assessed against these criteria:

Electricity Demand Turn Up trial EOI for flexibility providers Assessor guidance for applicants.pdf (opens in a new window)

Supporting information

The Demand Turn Up (DTU) trial is a joint initiative between DESNZ and UKRI. The trial is coordinated and managed by UKRI through its Clean Energy Superpower Mission, part of the R&D Missions Accelerator Programme (RDMAP) and is being delivered in close partnership with DESNZ.

As Great Britain's electricity system transitions towards higher levels of renewable generation, new challenges are emerging in the operation of the electricity network. Historically, flexibility markets have focused primarily on reducing demand during periods of peak system stress. However, increasing renewable generation is also creating periods when electricity supply exceeds the ability of the network to transport power to where it is needed.

This is particularly evident in Scotland, and increasingly in parts of the East of England, where there can be abundant wind generation but insufficient network capacity to transfer electricity to areas of higher demand. As a result, renewable generators are often instructed to reduce their output, a process known as curtailment. The costs associated with curtailment are ultimately recovered through consumer bills.

An alternative approach is to increase electricity demand in areas experiencing network constraints at times when renewable generation would otherwise be curtailed. This approach, known as Demand Turn Up (DTU), encourages consumers to increase their electricity consumption when the electricity system can benefit from additional load. DTU represents a potentially valuable, but currently underutilised, form of consumer led flexibility that could help make better use of renewable electricity while reducing system costs.

At present, however, DTU is often unable to compete economically with curtailment. This is largely due to Final Consumption Levies (FCLs), which comprise a range of policy costs applied to electricity consumption. As a result, it is frequently less expensive for the National Energy System Operator (NESO) to curtail renewable generation than to incentivise consumers to increase demand. With the cost of managing network constraints expected to rise significantly as renewable deployment continues, there is growing interest in whether reforms to FCLs could enable DTU to play a greater role in supporting electricity system operation and reducing curtailment costs.

The DTU Trial has been developed to test this proposition. By providing payments equivalent to eligible FCLs for verified DTU activity, the programme will assess whether consumers can be effectively incentivised to increase electricity demand at times and locations where doing so delivers system benefits. The trial will generate evidence on consumer participation, market delivery models, system impacts and value for money, helping to inform future policy decisions on the role of DTU within Great Britain's electricity system.

The importance of this work was highlighted by the then Secretary of State for Energy Security and Net Zero when announcing the trial on 24 March 2026:

"Wind farms are currently paid to switch off their turbines when there isn't enough capacity on the grid to transport wind generation to where demand is. This trial will instead allow companies to offer this wasted wind cheaply or for free to consumers... when it is cheaper than turning off turbines."

"Measures will be brought forward when parliamentary time allows to enable the government to make this change permanently based on the results of the trial."

Source: Statement by the Secretary of State for Energy Security and Net Zero to the House of Commons, "Solar and wind to cut bills and boost clean energy", 24 March 2026.

The trial has three core objectives:

  1. Inform long-term policy: Generate evidence to inform a government decision on whether exempting FCLs from DTU should be progressed as an enduring policy intervention, feeding into the legislative process.

  2. Support innovation: Support the development and deployment of new DTU propositions and business models by suppliers and aggregators, testing what works in practice.

  3. Deliver consumer benefits at pace: provide participating consumers with opportunities to reduce their electricity costs, seek to enable participation by lower income and vulnerable consumers where possible, and explore the potential to reduce constraint management costs.

For more information on RDMAP and the Clean Energy Superpower Mission please visit the R&D Missions Accelerator Programme.

Briefing recording and slides

Briefing recording and slides will be available to download here after the briefing event.

If your application is unsuccessful

If you are unsuccessful with your application this time, you will receive feedback from the reviewers.

Support for SMEs from Innovate UK Business Growth service

Innovate UK Business Growth helps innovation focused businesses make the best strategic choices and access the right resources, in order to grow and ultimately achieve scale.

Visit the service’s website to learn about how you might benefit as a winner.

Protecting your innovation

Secure Innovation campaign has been developed to help founders and leaders of innovative startups protect their technology, competitive advantage, and reputation.

This was developed by UK’s National Protective Security Authority (NPSA) and the National Cyber Security Centre (NCSC).

Data sharing

This competition is operated by Innovate UK on behalf of the R&D Missions Accelerator Programme within UK Research and Innovation (UKRI), working in partnership with the Department for Energy Security and Net Zero (DESNZ) (each an ‘agency’).

Any relevant information submitted and produced during the application process concerning your application can be shared by one agency with the other, for its individual storage, processing and use.

This means that any information given to or generated by Innovate UK in respect of your application may be passed on to DESNZ and vice versa. This would include, but is not restricted to:

  • the information stated on the application, including the personal details of all applicants

  • scoring and feedback on the application

  • information received during the management and administration of the grant, such as Monitoring Service Provider reports and Independent Accountant Reports

Innovate UK may also share any relevant information submitted and produced during the application process concerning your application with Innovate UK’s national and regional UK third parties and partners who may contact you. For more information see how we handle grant applicant and grant holder data.

Innovate UK and DESNZ are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, Innovate UK Business Connect and DESNZ will be data controllers for personal data submitted during the application.

Innovate UK’s Privacy Policy

Innovate UK Business Connect Privacy Policy

DESNZ Personal information charter

Innovate UK complies with the requirements of UK GDPR and the Data Protection Act 2018, and is committed to upholding data protection legislation, and protecting your information in accordance with data protection principles.

The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Innovate UK or any of our partners will not tolerate abusive language in any written or verbal correspondence, applications, social media or any other form that might affect staff.