Funding opportunity

Funding opportunity: Sandpit: market access acceleration in consumer led flexibility

Are you or a designated expert within your organisation interested in participating and shaping the future of the UK’s flexibility market? If so, submit an expression of interest to co-design actionable prototype and minimum viable test products across four challenge areas:

  • multi-market optimisation
  • locational price discovery
  • DNO flexibility incentives
  • flexibility ‘micro-grids’

Projects co-designed at the sandpit on 27 April 2026, in person at a location in London, will be assessed on the day. Successful projects will be eligible to apply for Contracts for Innovation funding following the event.

Who can apply

You should be a designated expert within your organisation and interested in shaping the future of the UK’s flexibility market. You should have expertise relevant to one or more of the four main challenge areas:

  • multi-market optimisation
  • locational price discovery
  • DNO flexibility incentives
  • flexibility ‘micro-grids’

The sandpit is open to any individuals and organisations with related experience across the four defined challenge areas who wish to contribute to the ideas developed. However, to lead a project for funding you must:

  • be an organisation of any size, including those based in the EU, EEA or internationally
  • work alone or with other organisations as subcontractors

Contracts will be awarded to a single legal entity only, though they will be encouraged to work with collaborators from sandpit attendees and beyond where necessary via subcontracts to pool relevant expertise to ensure successful project delivery. Applicants should be able to demonstrate their ability to build and deliver high-impact scalable solutions while collaborating across system operators, research intuitions, and other subject matter experts.

During the sandpit, you will be encouraged to collaborate with other attendees across system operators, research institutions, businesses, other subject matter experts. You will work to formulate prototype and minimum viable test products which address the main challenge areas. Projects are strongly encouraged to bring together experience as necessary across different types of organisations to deliver an impactful project.

These prototype and minimum viable test products will be assessed by a panel of experts on the day, to determine which will be eligible to apply for funding. The evaluation criteria the panel will use to determine the highest quality projects will be shared with sandpit attendees in advance of the event. We will also be using a portfolio approach to determine who is invited to submit funding application.

What we're looking for

Delivering 12 gigawatts (GW) of consumer-led flexibility by 2030 is essential for achieving a clean power system. Technology innovation alone will not get us to that 12GW target. Market architecture is also a key barrier to scaling this flexibility. Fragmented access, weak locational signals, and operator dispatch caution are currently trapping innovation in pilot environments rather than allowing scaling into dependable system capacity.

To break these barriers UK Research and Innovation (UKRI) is convening a one-day Innovation Sandpit. This collaborative event will bring together sector experts including but not limited to:

  • the National Energy System Operator
  • distribution system operators
  • innovators
  • independent market platform providers
  • research
  • Catapult organisations

They will work together to co-design feasible intervention ideas that can be funded towards prototype and minimum viable test products.

This initiative is part of UKRI’s Clean Energy Superpower Mission, which is one of the missions included in the Research and Development Missions Accelerator Programme. This sandpit is specifically part of the Consumer Led Flexibility Challenge within the Mission.

Funding

The selected prototype and minimum viable test products will be eligible to apply for a part of a total funding amount of £1 million, inclusive of VAT. The applications will include (but are not limited to) written confirmation of evidence assessed during the sandpit day, a project plan including lead applicant and sub-contractor details as well as costings.

The individual project value is approximately £50,000 to £350,000 per project, inclusive of VAT.

The funding will be delivered using the Contracts for Innovation mechanism. Contracts for Innovation competitions involve procurement of R&D services and are not subject to subsidy control criteria. This competition is run by the Authority under the Procurement Act 2023 (R&D exemption).

Full details on the funding opportunity and requirements will be shared with sandpit attendees before the event. Innovate UK reserves the right not to award a contract to any of the selected projects from the sandpit.

Timeline

The prototype and minimum viable test products will be assessed by an expert panel during the Sandpit. A formalised application, is due within two weeks post-event. Projects must start on 1 July.

The delivery window is three to six months post award.

Please note, Arup have been contracted by UKRI to support with the facilitation and delivery of the sandpit.

How to apply

To apply

Please submit your expression of interest using the following Microsoft form by Midday on the 1st April 2026:

Expression of interest: Sandpit, market access acceleration in consumer led flexibility.

How we will assess your application

Applicants will be selected based on their demonstrated expertise in the four key problem areas and their capacity to deliver high-impact, scalable solutions.

A panel from UKRI, Ofgem, and Department for Energy Security and Net Zero will review all expressions of interest forms. This is to ensure a balanced cohort of innovators, network operators, and research experts capable of driving meaningful market reform.

Full details on the funding opportunity and requirements will be shared with selected sandpit attendees before the event.

Contact details

Ask about this funding opportunity

For more information on this opportunity contact the Clean Energy Superpower Mission team:

Email: rdmapenergymission@ukri.org

Include ‘Market Access Sandpit’ in the subject line.

We aim to respond within three working days.

Additional info

Contracts for Innovation provides innovative solutions to challenges faced by the public sector. This can lead to better public services and improved efficiency and effectiveness.

Updates

  • 20 March 2026
    Changed closing date from 26 March to 1 April 2026. Amended other details.

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