Alternative Energy Market Innovation Programme – Phase 2

Working closely with our consortium partners, led my Metis, our work within DESNZ’s Alternative Energy Market (AEM) Innovation Programme has provided innovative analysis and valuable real-world learnings to help inform future Government policy decisions, alongside the installation of new technology for consumers and ongoing support through the Energy Saver App. 

Split into two phases the project was tasked with meeting specific criteria and objectives set by the Department of Energy Security and Net Zero (DESNZ) and measured throughout the project timeline, running from April 2023 up to November 2025:  

  • Phase 1 of the project scrutinised the UK’s current energy tariff system by modelling five future tariff designs and their effect on energy prices across different household locations and archetypes.  
  • Phase 2, known as Intelligent Smart Energy Engine (ISEE) Retrofit, explored the real-world application of tariff scenarios within a trial environment where Oxfordshire County Council (OCC) energy consumers were offered tailored Energy Smart Appliances (ESA) propositions through an Energy Saver App based on their energy and building profiles. ESA propositions included solar panel and battery storage installations and were tailored to the requirements and preferences of each individual trial participant. 

 

Client Brief 

The DESNZ Net Zero Innovation Portfolio (NZIP) provides funding for low carbon technologies and systems to help enable the UK to end its contribution to climate change. As part of NZIP, the AEM Innovation Programme aims to support the development and demonstration of innovative domestic demand side flexibility propositions in a future energy system where electricity market arrangements may look different from today. 

The programme included the ISEE project which assessed the impact of alternative energy market scenarios on tariff uptake, behavioural change and ESA subscription by consumers. Engage managed the ISEE project, acting as the direct link between the project delivery partners (a consortium led by Metis) and DESNZ). 

Achievements

The primary role undertaken by Engage across both phases was Project Governance, Management and Reporting. As well as being the key contact and liaison for DESNZ engagement, this involved: 

  • Establishing the Phase 2 delivery plan incorporating multiple project workstreams that facilitate the requirements and structure of the Phase 2 proposal that was agreed with DESNZ. 
  • Develop Project Control documentation that was established during Phase 1 in line with Phase 2 requirements with additional controls, including but not limited to: 
  • Project Initiation Document (PID); 
  • Consortium / Project Board; and 
  • Consortium member weekly / fortnightly Progress Reports. 
  • Project Governance, meeting coordination and Quality Management. 
  • Monthly reporting into DESNZ in line with Project Plan and Finance and Tracker (PPFT) which tracked the cost of each deliverable in the project plan and associated evidence. 
  • Weekly internal reporting, tracking delivery and milestone progress. 
  • Leading relationship and interactions and reporting with key DESNZ Monitoring Officer, implementing and executing financial controls. 
  • Lead the creation, development, review and submission of report-based deliverables. 
  • Provision of contract and commercial assistance, focusing on consortium interaction and alignment across workstreams. 

The ISEE Project was also nominated for several Industry Awards and won both ‘Net Zero Engagement Award’ at the Utility Week Awards 2025 and the ‘Smart Systems and Flexibility Project of the Year’ at the edie Net Zero Awards 2025 

Client Outcomes 

Engage managed the end-to-end process for report development, from the design and sign-off on the structure to the final drafting and key outputs. Working closely with DESNZ and their support partner Carbon Trust, an extensive review process was undertaken with Engage managing all feedback and ensuring the relevant project workstreams were able to meet the evolving requirements of the end client.  

 The ISEE Project and the final report focussed exclusively on the Oxfordshire area, but we believe this kind of initiative could be rolled out across all local council areas in the UK. The key driver is investment. Investment in funding for ESAs and investment in the delivery structure required to bring all the components together. Engage was one of those critical components, enabling individual consortium parties and project workstreams to take an agile approach to delivery and benefit from the power of collaboration.  

The ultimate objective of the ISEE Project was to deliver a report and analysis to help inform DESNZ on the potential future energy market scenarios and policy considerations, so whilst the establishment of new energy asset capabilities for consumers may not have been the wider AEM Programme’s priority, it is this aspect of the project that we are most proud of. 

 

 

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