Innovate UK has up to £41.5 million to invest in the design and practical demonstration of new business models that intelligently link supply, storage and demand in heating, power and transport. The investment will support three chosen smart system demonstrators, while up to £1.5m will be available for studies into new smarter approaches to local energy.

The purpose of the competition is to help businesses develop local energy solutions, that will benefit the consumer while promoting economic growth in the UK. The funding is part of the government’s Industrial Strategy Challenge Fund programme, Prospering From Energy Revolution. The programme is committed to cutting the UK’s dependence on fossil fuels to preserve a safe and stable climate. It aims to provide smarter, cleaner and cheaper energy services.

Demonstrator Projects Should:

• Optimise energy across a range of supplies, infrastructure and demands
• Deliver lower costs, lower emissions and economic benefit
• Intelligently link energy supply and demand
• Develop processes and skills for designing, financing, building and operating smart local energy systems
• Encourage private investment to replicate these impacts across the UK

Concepts and Design Studies Should Show how Implementation by the Early 2020s Could:

• Reduce energy bills by at least 25% and reduce carbon emissions in line with targets
• Improve future energy services in a UK location at least the size of a medium-sized town
• Produce high-value local jobs and local and export business opportunities
• Improve energy security and make the UK more resilient to environmental, technological, social and economic change
• Improve energy efficiency and infrastructure productivity
• Meet air quality targets
• Create ways to test and scale new technologies and business, consumer and regulatory models to speed up industry growth

The deadline for applications is at midday on the 25th of July 2018. A briefing event for the competition will take place mid-May. Successful projects will be supported by an energy integration network including the Energy Systems Catapult, a network of world-leading centres designed to transform the UK’s capability for innovation in specific areas and help drive future economic growth.