Science Minister Lord Vallance calls on businesses and researchers to develop cutting edge tech, that could cut energy costs in the long-term
Households could benefit from cheaper bills thanks to AI as Science Minister Lord Vallance challenges tech experts to come up with cutting edge tech that will help shift peak electricity demand by 2030 (Thursday 7 August).
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An initial £4 million for the first year of a five-year challenge will support researchers to come up with solutions that help shift electricity demand in evenings and weekends by 2 gigawatts – potentially cutting energy costs in the long-term for the consumer, boosting our energy security, and further reducing our reliance on fossil fuels – helping to make Britain a clean energy superpower and delivering on our Plan for Change.
As demand for energy spikes – like in the early evening when people return home – the grid often turns to gas-fired power stations, which are more expensive and more polluting, while leaving the UK exposed to volatile global gas markets.
The work of innovators across the UK will deliver better forecasting, as well as help manage and shift demand at busy times by the equivalent to the amount used by one and a half million homes. Examples could include:
This could reduce the need to build network infrastructure and new power plants, leading to a reduction in consumer bills in longer term – supporting our mission to make Britain a Clean Energy Superpower by 2030 through generating at least 95% of UK electricity from clean sources and delivering on a key pillar of our Plan for Change.
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The Clean Energy: 2GW Peak Time Flexibility challenge is the first of 5 to be announced as part of the R&D Missions Accelerator Programme – backed by £500m set out in the Spending Review. It is also the first time government has set a clear, measurable and stretched target for R&D to deliver its core missions.
The project will be led by UK Research and Innovation (UKRI) in collaboration with the Department for Energy Security and Net Zero (DESNZ), which is responsible for leading the government’s clean energy mission.
Science Minister Lord Vallance said:
Minister for Climate Kerry McCarthy said:
The initial £4m of funding will by April 2026 bring Britain’s expert AI and energy businesses, universities and research organisations together to explore where current solutions can be scaled up, build use-cases and enable testing – including building simulation and modelling capability – so successful products can be brought to market more quickly.
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The programme will also look at where government involvement and funding can help to get them moving and improve people’s lives more quickly.
Further challenges will be launched over the coming weeks and months on how cutting-edge research can help make our streets safe, build an NHS that is fit for the future, break down barriers to opportunity and unlock growth to deliver our Plan for Change.
Funding will be awarded to a consortium of existing world-leading centres based around the UK including the Energy Systems and Digital Catapults, and other leading research institutions to lead the work.
Susan Bowen, CEO of Digital Catapult, said:
Shubhi Rajnish, Chief Information Officer at the National Energy System Operator (NESO), said:
Marzia Zafar, Deputy Director for Energy Systems Management and Security at Ofgem, said: