Ultra Long Duration Energy Storage Project Development Studies 2026: £350,000–£700,000 Innovate UK Grants for UK Battery Demonstrators
Innovate UK is offering up to £3 million for UK-led project development studies that prepare electrochemical ultra long duration energy storage demonstrators for the UK grid, with applications closing on 30 September 2026.
Ultra Long Duration Energy Storage Project Development Studies 2026: £350,000–£700,000 Innovate UK Grants for UK Battery Demonstrators
Innovate UK has opened a Phase 1 grant competition for project development studies that can move electrochemical ultra long duration energy storage (ULDES) from a promising technology toward a credible UK demonstration. The competition has up to £3 million available in total. Individual projects must request between £350,000 and £700,000, run for three to nine months, start by 1 January 2027 and finish by 30 September 2027.
This is a specialist opportunity for companies and delivery teams that can connect battery technology with a real site, a grid route, engineering design, commercial users, financing and a UK manufacturing plan. It is not a general battery research grant. Innovate UK will not fund laboratory-scale discovery, a narrow component improvement, or a conventional short-duration battery project. The proposal must show how a defined electrochemical storage technology could support a UK demonstration by 2030 and eventually operate at scale in the energy system.
The call is open now and closes at 11:00am UK time on 30 September 2026. The official UKRI page links to the detailed competition on the Innovation Funding Service, where the application is completed and submitted. Applicants notified on 2 November 2026 must not begin work until Innovate UK has approved the Grant Offer Letter.
Key details
| Detail | Information |
|---|---|
| Opportunity | Ultra Long Duration Energy Storage Project Development Studies |
| Funder | Innovate UK, part of UK Research and Innovation |
| Phase | Phase 1 project development studies, formally feasibility studies |
| Total competition fund | Up to £3 million, subject to sufficient high-quality applications |
| Project grant request | £350,000 to £700,000 |
| Closing date | 30 September 2026 at 11:00am UK time |
| Applicant notification | 2 November 2026 |
| Project start | By 1 January 2027, on the first day of a month |
| Project end | By 30 September 2027 |
| Lead applicant | UK-registered business of any size |
| Consortium partners | Businesses, academic institutions, research and technology organisations, charities, not-for-profits and public-sector organisations may participate |
| Technology boundary | Electrochemical ULDES capable of at least 100 continuous hours of discharge and at least 25 years of working life |
| Official opportunity | UKRI funding opportunity page |
| Detailed application | Innovation Funding Service competition |
The £3 million figure is the competition-wide budget, not an automatic award. The project-level request is the more important planning number. Innovate UK may fund fewer projects than the total budget could accommodate, and a high-scoring application is not guaranteed funding if the portfolio budget is exhausted.
What the grant is intended to fund
The grant supports the practical work needed before a large energy-storage demonstration can be built. Every study must cover six connected areas: a technology assessment, engineering design, cost and scale-up roadmap, market assessment, development plan, and manufacturing and supply-chain plan. Together, these should answer whether the proposed technology can be built, connected, financed, operated and repeated in the UK.
The technology assessment should describe the electrochemical mechanism, system architecture and evidence available so far. Innovate UK specifically expects analysis of self-discharge, round-trip efficiency, operational lifetime, degradation while idle and operating, energy and power density, charge characteristics, safety, reliability, sustainability and emissions. A modelled performance claim should be separated from a measured or independently validated result.
The engineering section is expected to include Front-End Engineering Design for a demonstration project. It should address the selected site, plant layout, infrastructure, execution plan, safety, environmental matters and regulatory requirements. A proposal that says a site will be found later is weaker than one that has already identified a suitable location and can explain its grid, planning and permitting route.
The study must also test the economics of scale. Its cost roadmap should show fixed capital expenditure, fixed operating expenditure, variable operating expenditure, the major components and materials, and the assumptions behind deployment at commercial scale. The market assessment should consider how the storage system would help the UK electricity system during severe stress events, maintain reserve capacity, serve other revenue markets and replicate across the country.
The two eligible technology streams
Applicants must select one of two streams and demonstrate that the technology and planned project meet its requirements.
Stream 1: near-commercial scale-up
Stream 1 is for a near-commercial electrochemical ULDES system that could compete with installed lithium iron phosphate battery technology on cost and performance. The technology must be able to store energy for several days and support uses such as intraday and interday energy arbitrage, uninterruptible power supply, long-outage backup, commercial and industrial applications, and critical infrastructure.
The planned pathway must lead to a grid-connected demonstration of at least 100 MWh by 2030. The applicant should aim for a total ownership cost below US$40 per kWh by 2030, or provide evidence that the system could compete with installed LFP technology. The proposal must include a commercialisation plan and a credible ambition to develop UK manufacturing capacity and domestic supply chains.
Stream 2: system innovation and low-cost pathways
Stream 2 is for earlier-stage electrochemical technologies with potential to compete with unabated combined-cycle gas turbines, which currently provide a strategic-reserve function in the UK. The system must be relevant to monthly and seasonal energy arbitrage and show potential for minimal degradation or self-discharge over long periods.
The planned pathway must lead to a grid-connected pilot demonstration of at least 100 kWh by 2030. The technology should have a route toward total ownership cost below US$15 per kWh in the early 2030s, or evidence that it could compete with CCGT generation. It also needs a commercialisation plan and a plan for UK manufacturing and supply-chain development.
The two streams are not interchangeable labels. A team should choose the one that matches the technology’s maturity, use case, demonstration scale, performance evidence and cost benchmark. The application must state the selected stream and make the relevant comparison using a clearly defined system boundary.
Who can apply and how partnerships work
The lead organisation must be a business registered in the UK. It may apply alone or lead a collaboration. A consortium may include another UK business, an academic institution, a research and technology organisation, a charity, a not-for-profit organisation or a public-sector body. Any organisation receiving funding must conduct its project work in the UK, intend to exploit the results in the UK and spend most of the funding in the UK.
The lead does not need to be a large battery manufacturer. A smaller technology company can be a fit if it can demonstrate the technical, commercial and delivery capabilities needed to take the study through to demonstration. The team may need specialist partners for front-end engineering, grid connection, planning, market modelling, environmental assessment, manufacturing and finance. Each partner should have a defined responsibility rather than being included only to make the consortium look broad.
Research organisations undertaking non-economic activity can share up to 30% of total eligible project costs. Research and technology organisations, charities, not-for-profits, public-sector organisations and research organisations may receive up to 100% of eligible costs for that activity. Academic institutions may claim up to 80% of full economic costs using the Transparent Approach to Costing. Commercial or economic activities are subject to separate subsidy-control rates: feasibility work can receive up to 70% for a micro or small organisation, 60% for a medium organisation or 50% for a large organisation.
Build the budget around the funding rate that applies to each organisation and activity. Do not assume that the £700,000 upper request limit means Innovate UK will cover the entire cost of a large study.
What a credible project must prove
The proposal needs to show a route to a UK demonstration by 2030, not simply a technical ambition. Innovate UK gives priority to projects with strong site and technology readiness, a workable consenting and permitting route, grid integration, delivery potential, promising commercial prospects, and a commitment to UK manufacturing and supply chains.
The deployment plan should identify the site or explain a tightly evidenced path to securing it. Useful evidence can include a site arrangement, grid-connection offer, planning permission or certificate of lawfulness, draft end-user contracts, an offtake agreement, a customer able to provide a revenue stream, heads of terms for key work packages, and documentation showing how private finance will be secured. Not every item will be available at the same stage for every project, but the application should be candid about what is complete, what is in progress and what the study will resolve.
The manufacturing plan should go beyond saying that the system will be made in Britain. Describe current production readiness, facilities, equipment, volumes, quality controls and suppliers. Map the transition from demonstration to early commercial production, identify critical raw materials and components, and explain which work can be performed competitively in the UK. Include workforce, training, knowledge transfer and apprenticeship implications where they are relevant.
Application process and required materials
Applications are submitted through the Innovation Funding Service. The form has four broad sections: project details, application questions, finances and Project Impact. The lead applicant creates the application team and invites partners to complete their assigned sections. Every partner must complete the required sections and accept the terms and conditions before submission.
The unscored project-details section asks for the project title, dates, duration, research category, a project summary of up to 400 words, a public description of up to 400 words and a scope answer of up to 400 words. The public description should not contain commercially sensitive information because Innovate UK may publish it before the project starts. The form also asks about applicant location, animal testing, permits and licences, international collaboration, export control and trusted research and innovation.
The scored questions cover the technology, demonstration delivery, performance and competitiveness, commercialisation, manufacturing and supply-chain benefits, team and resources, project management, and costs and value for money. The technology and demonstration answers can each run to 600 words, as can the performance, commercialisation and manufacturing answers. A two-page PDF appendix may summarise the main people, and a separate two-page PDF project plan or Gantt chart is required to support project management.
Do not insert website addresses or URLs into application answers. The official form says those links will not be viewed or opened. Complete every section, check that the application shows as complete, and resubmit after any changes made before the deadline. An application that is submitted but not resubmitted after editing is not ready for assessment.
How to prepare a stronger proposal
Start with the demonstration decision, then work backward to the study. Define the target site, capacity, power, duration, grid interface, operating profile and intended user. For Stream 1, anchor the plan to at least 100 MWh by 2030; for Stream 2, anchor it to at least 100 kWh. Explain why that demonstration is the right size for the technology and what evidence it will generate.
Create an evidence register with separate columns for measured results, independent validation, model outputs, extrapolations and assumptions. Include test duration and operating conditions. For cost claims, define whether the figure includes balance of plant, installation, replacement components, financing, operations and maintenance. This makes the comparison with LFP or CCGT much easier for assessors to follow.
Next, make a risk-and-decision schedule. List the technical, grid, planning, environmental, commercial, finance and supply-chain risks; identify the decision each study task will inform; and assign the responsible partner. A development study should reduce uncertainty, not merely describe it.
Finally, obtain partner commitments before writing polished prose. Talk to the site owner, grid actor, engineering contractor, prospective customer, investor and key suppliers. A short letter or documented engagement is more useful than a generic claim that conversations will happen after award. Make the team’s capability gaps visible and explain how the project will close them.
Common reasons a proposal may not fit
This competition does not fund laboratory-scale discovery research, component or subsystem development, manufacturing-process optimisation in isolation, incremental improvements to short-duration batteries, or non-electrochemical storage such as hydrogen, thermal, pumped-hydro, compressed-air or other mechanical systems. A proposal can mention these surrounding systems if needed for context, but the funded project must remain inside the stated electrochemical ULDES boundary.
Other avoidable problems include requesting less than £350,000 or more than £700,000 without advance justification, proposing a duration outside three to nine months, starting after the required date, or failing to show that most work and spending will be in the UK. Do not begin work before the Grant Offer Letter is approved. Check permits and licences early because Innovate UK cannot fund work that lacks the required permissions by the start date.
Treat the 100-hour discharge requirement and 25-year working-life requirement as screening tests, not marketing language. State the chemistry, intended discharge duration and expected working life in the scope answer, then support them with evidence and a plan to validate remaining uncertainties.
Timeline and next steps
The competition opened on 3 August 2026 and closes at 11:00am UK time on 30 September 2026. Applicants are scheduled to be notified on 2 November 2026. Funded projects must start by 1 January 2027 and finish by 30 September 2027. The first draft of the project development study must be completed by 31 May 2027 so it can inform a future Phase 2 application.
Innovate UK plans a Phase 2 competition for technology demonstrations in the middle of 2027, with at least £10 million allocated for that planned phase. Winning Phase 1 funding is not required to apply for Phase 2, and Phase 2 remains subject to future approvals. This means applicants should treat Phase 1 as valuable project-development funding in its own right, while building outputs that will make a later demonstration decision more informed.
Before the deadline, confirm the lead company’s UK registration, choose the appropriate stream, identify the site pathway, assemble the core team, prepare the cost model and request any accessibility adjustment. Innovate UK recommends contacting it at least 15 working days before closing if support is needed for a disability or long-term condition. General competition support is available at support@iuk.ukri.org and 0300 321 4357 during the published weekday hours.
Frequently asked questions
Is this a grant for buying or deploying a battery today?
No. It funds a Phase 1 project development study, not a completed commercial installation. The study should prepare a credible future demonstration by resolving technical, engineering, site, grid, market, finance and supply-chain questions.
Does a project have to win Phase 1 to apply for Phase 2?
No. The official guidance says Phase 1 participation is not a condition of eligibility for the planned Phase 2 competition. Phase 1 can still help a team produce the evidence needed for a strong future demonstration proposal.
Can an academic institution lead the application?
No. The lead applicant must be a UK-registered business. Academic institutions can participate in an eligible collaboration, subject to the research-participation and costing rules.
Is the £3 million total available to every successful applicant?
No. The £3 million is the total Phase 1 competition allocation. Each project must request £350,000 to £700,000, and Innovate UK may not fund every strong proposal.
Where is the authoritative information?
Use the official UKRI opportunity page for the status and dates, then follow its link to the Innovation Funding Service competition for the complete scope, questions, finance rules, assessment materials and submission process.