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.

Competition opens: Thursday 20 August 2026 Competition closes: Wednesday 16 September 2026 11:00am

Competition sections

• Summary
• Eligibility
• Scope
• Dates
• How to apply
• Supporting information

Description

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).

Who can apply

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 your 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:

• failed to exploit a previously funded project
• an overdue independent accountant’s report
• failed to comply with grant terms and conditions

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.

Your proposal

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.

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