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 be:
- Domestic electricity consumers.
- Commercial electricity consumers.
- Industrial electricity consumers.
NESO Market Participation
Applicants must already participate in, or be able to participate in, at least one relevant NESO balancing market.
This requirement ensures that selected providers can connect their DTU propositions with the electricity system’s existing flexibility mechanisms.
DTU Proposition Development
FSPs must develop an innovative proposition that encourages customers to increase electricity demand at appropriate times.
The proposition should demonstrate:
- How consumers will participate.
- How DTU activity will be delivered.
- How activity will be verified.
- How FCL rebates will benefit consumers.
- How the proposition can operate within the relevant electricity markets.
Monitoring and Evaluation
Selected FSPs will also contribute to the trial’s research and evaluation.
This means applicants should have systems capable of collecting reliable operational and customer data.
How to Apply
The opportunity begins with an Expression of Interest (EOI) competition.
Applicants should use the EOI stage to demonstrate that they have the capability, customer base, market access, and delivery model required to participate in Phase 1.
Step 1: Confirm Your Organisation’s Eligibility
Verify that your organisation:
- Is registered in the UK.
- Is eligible to operate as an FSP.
- Has an existing electricity customer base.
- Can participate in an eligible NESO balancing market.
- Can recruit suitable consumers.
Step 2: Develop the DTU Proposition
Explain how your proposed service will encourage consumers to increase electricity consumption when the electricity system benefits from additional demand.
Clearly explain the customer journey and operational model.
Step 3: Explain the FCL Rebate Mechanism
Show how eligible FCL rebates will affect the economics of your proposition.
Applicants should clearly explain how the financial benefit will reach participating consumers.
Step 4: Demonstrate Market Capability
Provide evidence that the organisation can operate within the relevant NESO market environment.
This should include the organisation’s existing flexibility capabilities and relevant market experience.
Step 5: Demonstrate Customer Recruitment Capacity
Explain:
- Who the target consumers are.
- How they will be recruited.
- Why they are suitable for DTU participation.
- How they will respond to the flexibility proposition.
Step 6: Prepare for Monitoring and Evaluation
Describe how the project will measure DTU activity and provide reliable data for the trial’s research and evaluation requirements.
Step 7: Demonstrate UK Exploitation
Explain how lessons, technologies, commercial propositions, or other outcomes from the trial could be used in the UK electricity sector beyond Phase 1.
Required Collaboration
Selected participants will be expected to collaborate with relevant trial stakeholders, including:
- Department for Energy Security and Net Zero (DESNZ)
- UK Research and Innovation (UKRI)
- National Energy System Operator (NESO)
- The appointed Delivery Lead
Collaboration is required throughout the trial and forms an important part of successful delivery.
Common Mistakes to Avoid
Applicants should avoid:
- Applying without an existing electricity customer base.
- Failing to demonstrate access to a relevant NESO balancing market.
- Describing a conventional energy-saving programme rather than a genuine DTU proposition.
- Failing to explain how customers benefit financially.
- Treating the FCL rebate as unrestricted grant funding.
- Providing insufficient evidence of customer recruitment capability.
- Ignoring monitoring and evaluation requirements.
- Proposing activities that cannot be completed between December 2026 and March 2027.
- Failing to demonstrate UK-based delivery and exploitation.
Tips for a Strong EOI
A competitive EOI should provide clear evidence in five areas:
- Customer access — Demonstrate a credible existing customer base.
- Technical capability — Explain how DTU activity will be delivered and verified.
- Market capability — Demonstrate participation in or access to an eligible NESO market.
- Commercial proposition — Show how FCL rebates improve the economics for customers.
- Scalability — Explain how the trial could support wider adoption of demand-side flexibility.
Applicants should keep the proposal evidence-based and demonstrate that the organisation can move quickly from selection to live trial activity.
Frequently Asked Questions
What is the Demand Turn Up Trial?
The Demand Turn Up Trial is an Innovate UK initiative testing whether financial rebates can encourage consumers to increase electricity demand when additional consumption can help the UK electricity system use more renewable generation.
Who can apply?
UK-registered businesses and not-for-profit organisations that can operate as Flexibility Service Providers in the Great Britain electricity sector may apply, provided they meet the customer, market participation, and delivery requirements.
How much funding can an FSP receive?
An individual participating Flexibility Service Provider can claim up to £3 million in FCL rebate costs over the full trial. The total investment available across the trial is up to £16 million.
When will Phase 1 take place?
Phase 1 is scheduled to begin on 1 December 2026 and end on 31 March 2027, giving projects a maximum duration of four months.
What type of customers can participate?
FSPs must have an existing customer base of domestic or non-domestic electricity consumers and demonstrate the ability to recruit customers for DTU propositions.
Does an applicant need to participate in a NESO market?
Yes. Applicants must be active in, or able to participate in, at least one eligible NESO balancing market.
What is the purpose of the FCL rebate?
The FCL rebate is intended to make demand-turn-up activity more cost competitive. By reducing eligible levy costs associated with verified DTU activity, the trial will test whether consumers are more willing to participate in flexible electricity demand.
Conclusion
The Innovate UK Demand Turn Up Trial Phase 1 provides Flexibility Service Providers with an opportunity to test innovative demand-side energy solutions within Great Britain’s electricity system.
The trial combines FCL rebates, consumer flexibility, renewable energy integration, and electricity-market participation to investigate whether increasing demand at the right times can reduce renewable curtailment and create a more flexible energy system.
Eligible FSPs should focus on demonstrating an established customer base, access to NESO markets, a credible DTU proposition, robust verification and monitoring capabilities, and a clear plan for delivering measurable results within the 1 December 2026 to 31 March 2027 trial period.
For more information, visit GOV.UK.
