UKRI is investing up to £25 million in businesses and innovators developing AI, digital and other novel solutions that accelerate consumer led flexibility across the UK's energy system.
The funding comes from the Consumer Led Flexibility (CLF) Challenge, part of the Clean Energy Superpower Mission within the UKRI R&D Missions Accelerator Programme. Projects must show how they will help unlock at least two gigawatts (GW) of additional flexibility on the system by 2030, supporting the National Energy System Operator's target of 10-12 GW of demand turn down during a winter peak.
The competition is split into two strands. Strand 1 takes a software first approach, backing new AI and digital tools that unlock consumer led flexibility at scale. Strand 2 focuses on demand segments, seeking end to end solutions for particular markets and groups of energy users.
Below, I have explained the key things you need to know about this competition before you apply: who is eligible, how much funding is on the table, and what the application process looks like.
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Strand 1: Software First
This strand backs new AI and digital tools that address the barriers holding consumer led flexibility back. Your project must focus on one or more of these themes:
- 1. Multi-market co-optimisation and locational pricing
- 2. Portfolio reliability and risk transfer
- 3. Confidence and AI forecasting
- 4. Feeder level flexibility and resilience
- 5. Electric Vehicle smart charging and Vehicle to everything (V2X)
- 6. Heat flexibility with comfort guarantees
- 7. Open datasets for AI
Note that UKRI won't fund V2X hardware solutions or end to end V2X integration through this competition.
Strand 2: Demand Segments
This strand seeks end to end solutions in particular segments of demand. It covers three themes:
- 8. Low income households in constrained areas
- 9. Industrial and commercial anchor loads
- 10. Residential scaling
Strand 2 projects are expected to draw on elements of the Strand 1 themes in their approach. You can focus on multiple themes within the same strand or across both strands, but you must submit your application to the correct strand for your project.
Who is Eligible?
Your Organisation
To apply as a sole applicant or lead a collaborative project, you must be a UK registered business of any size, academic institution, charity, not for profit, public sector organisation, or research and technology organisation (RTO).
You can also involve the following UK registered organisations as collaborators:
- Academic institutions
- Businesses of any size
- Charities
- Not for profits
- Public sector organisations
- Research and technology organisations (RTOs)
For a collaboration to be eligible, the lead and at least one other organisation must claim grant funding, and no single partner can account for more than 70% of the total eligible project costs. UKRI strongly encourages you to include end users and energy system experience in your consortium.
A business or RTO can only lead one application, but can collaborate in two further applications.
Your Project
Your project must:
- Request between £100,000 and £3 million in grant funding
- Last between 4 and 30 months
- Start by 1 January 2027
- End by 30 June 2029
All funded work must be carried out in the UK, and you must intend to exploit the project results from or within the UK.
Your project must also:
- Contribute to unlocking at least two gigawatts (GW) of additional flexibility on the system by 2030
- Demonstrate clear, staged consumer led flexibility outcomes
- Focus on one or more of the competition's themes
- Have a clear technical novelty or feasibility challenge
- Present a credible commercial pathway and a strong knowledge sharing plan
UKRI won't fund projects that:
- Are primarily literature reviews or requirement gathering without clear plans for scale up and implementation by 2030
- Don't consider the end user or a route to real world impact by 2030
- Don't deliver measurable and specific objectives
How Much Funding Can I Apply For?
The amount you can claim depends on your organisation's type and size and the sort of research your project involves.
Individual grants range from £100,000 to £3 million.
Applying as a Company
| Project Type | Micro and Small | Medium | Large |
|---|---|---|---|
| Feasibility Studies* | 70% | 60% | 50% |
| Industrial Research** | 70% | 60% | 50% |
| Experimental Development*** | 45% | 35% | 25% |
*Feasibility studies evaluate the potential of a project by objectively uncovering its strengths, weaknesses, opportunities and threats. Grants are capped at £500,000 and projects at six months.
**Industrial research refers to planned research aimed at acquiring new knowledge for developing new products, processes, or services. Grants are capped at £1 million and projects at 24 months.
***Experimental development is closer to market. It involves using existing knowledge to develop or improve products, processes, or services. Grants are capped at £3 million and projects at 30 months.
Funding Example
Say you're a small business running an industrial research project with £1 million in eligible costs. You can claim up to 70% of your costs, or £700,000.
You will need to fund the remaining £300,000 from other sources, like R&D Tax Relief, investment or loans.
Applying as a Non-Commercial Organisation
Research organisations undertaking non-economic activity can share up to 100% of the total eligible project costs. If your consortium contains more than one, this maximum is shared between them. These organisations are funded at higher rates:
- Up to 100% of eligible costs if you're a charity, not for profit, public sector organisation, research organisation, or RTO
- Up to 80% of full economic costs (FEC) if you're an academic institution
How Do I Apply?
The deadline for applications is 26 August 2026.
Applications are submitted via Innovate UK's Innovation Funding Service (IFS) portal.
The application is split into four sections:
Project Details
This section provides background for your application and is not scored. It covers:
- Application details
- Application team
- Project summary
- Public description
- Research category
- Scope
Most answers in this section are limited to 400 words.
Application Questions
There are 15 questions in total:
- Nine unscored questions covering topics like applicant location, animal testing, permits and licences, international collaboration, innovator support, and a two minute video pitch
- Six scored questions covering your technical approach and commercial potential, project management and delivery, team and resources, state of the art and intellectual property, wider impacts and benefits, and costs and value for money
You can include appendices for the technical approach, project management, and wider impacts questions. Page limits range from one to four A4 pages, depending on the question and your research category.
Finances
Each organisation in your project must complete its own project costs, organisation details and funding details.
Project Impact
Each partner must complete the Project Impact questions before you can submit; this section is not scored.
Your application will be reviewed by three independent assessors. Their individual scores will be combined to determine your final result.
If you're successful, you'll be notified by 28 October 2026. Industrial research and experimental development applications that pass the initial assessment may be invited to an interview in Autumn 2026.
Projects longer than 12 months will also include stage gates, giving UKRI set points to review progress against your KPIs and milestones.
Like with most competitions, Innovate UK takes a 'portfolio approach' by funding projects across different technologies, markets and technological maturities. This means that a strong score won't necessarily guarantee that your application will be successful.
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