Electricity Demand Turn Up Trial: EOI for Flexibility Providers (UK)

Deadline: 16-Sep-26

The Innovate UK Demand Turn Up (DTU) Trial Phase 1 supports UK Flexibility Service Providers (FSPs) to test innovative demand-side electricity solutions that can increase electricity consumption when renewable generation is available. Participating FSPs can claim up to £3 million each in Final Consumption Levy (FCL) rebates, with the wider trial backed by up to £16 million and projects running from 1 December 2026 to 31 March 2027. What Is the Demand Turn Up Trial? The Demand Turn Up (DTU) Trial is an Innovate UK initiative designed to test new approaches to managing electricity demand in Great Britain. The trial focuses on situations where electricity supply from renewable generation is high but demand is comparatively low. Instead of curtailing or reducing renewable generation, the DTU approach encourages consumers to increase electricity consumption at appropriate times. The trial will examine whether rebating eligible Final Consumption Levies (FCLs) for verified DTU activity can make these demand-side services more commercially attractive.

The objective is to:

- Increase demand when renewable electricity is available. - Reduce renewable generation curtailment. - Improve the cost competitiveness of demand-side flexibility. - Encourage consumers to participate in flexibility markets. - Test innovative electricity demand solutions. - Generate evidence for future UK energy-system policy and market development. What Is Final Consumption Levy Rebate? Final Consumption Levies are charges associated with electricity consumption. Under the DTU Trial, eligible FCL costs associated with verified demand-turn-up activity can potentially be rebated. The purpose of the rebate is to reduce the cost of increasing electricity demand during periods when the electricity system benefits from additional consumption. For participating Flexibility Service Providers, the rebate can help create more attractive financial propositions for electricity consumers. What Is a Flexibility Service Provider? A Flexibility Service Provider (FSP) is an organisation capable of changing or managing electricity demand in response to system needs.

FSPs can include:

- Energy suppliers. - Electricity aggregators. - Industrial organisations. - Commercial organisations. - Other eligible organisations with access to electricity consumers and flexibility capabilities. FSPs participating in the trial will act as the link between the electricity system, eligible consumers, and DTU propositions. What Will Phase 1 Test? Phase 1 will test whether FCL rebates can make Demand Turn Up services more commercially competitive.

Selected FSPs will be expected to:

- Develop and deliver live DTU propositions. - Recruit eligible domestic or non-domestic consumers. - Participate in eligible National Energy System Operator (NESO) markets. - Deliver verified DTU activity. - Pass the financial benefits of applicable FCL rebates to participating consumers. - Collect and provide relevant trial data. - Support monitoring, research, and evaluation. - Work with the organisations responsible for delivering and evaluating the trial. Why Does the Trial Matter? The electricity system is increasingly dependent on variable renewable generation such as wind and solar. At times, renewable electricity production can exceed what the electricity system needs. This can result in renewable generation being curtailed. Demand-side flexibility provides another option. Instead of reducing renewable generation, consumers can potentially increase electricity consumption when additional electricity is available and valuable to the system. The DTU Trial therefore explores whether financial incentives can unlock more flexible electricity demand.

Potential benefits include:

- Better use of renewable electricity. - Reduced renewable curtailment. - Greater consumer participation in flexibility markets. - New commercial opportunities for energy suppliers and aggregators. - Improved flexibility across the UK electricity system. - Evidence for future energy-market design. How Much Funding Is Available? The maximum rebate funding available to an individual participating Flexibility Service Provider is: Up to £3 million per FSP over the full trial. The total investment for the full DTU Trial is up to £16 million. The £3 million figure represents the maximum rebate cost that can be claimed by an individual participating FSP over the trial. Applicants should therefore distinguish between the maximum individual allocation and the overall programme investment. Project Duration and Key Dates Phase 1 projects must follow the specified trial timetable.

- Start date: 1 December 2026

- End date: 31 March 2027

- Maximum duration: 4 months

- Geographic scope: United Kingdom

- Intended exploitation: Results must be intended for exploitation in the UK.

Applicants should ensure that their proposed delivery model can be implemented within this relatively short trial period. Who Is Eligible? Eligible applicants must meet the requirements for participation as a Flexibility Service Provider in Great Britain’s electricity sector.

Applicants must be:

- UK-registered businesses or not-for-profit organisations. - Active as, or capable of acting as, Flexibility Service Providers. - Operating within the Great Britain electricity sector. - Serving domestic or non-domestic electricity consumers. - Able to participate in at least one eligible NESO balancing market. - Capable of recruiting customers. - Able to design and deliver innovative DTU propositions. - Capable of passing the financial benefits of eligible FCL rebates to participating consumers. Applicants must also be able to work collaboratively throughout the trial. What Is Required From Participating FSPs? Selected FSPs will have responsibilities beyond simply delivering an electricity flexibility service. Customer Recruitment FSPs must have an existing customer base and the capability to recruit suitable participants. Customers may