Science Minister Lord Vallance has called on businesses and researchers to develop technology that could cut energy costs in the long term.

£4 million has been allocated for the  first year of a five-year challenge that will support researchers to come up with solutions that help shift electricity demand in evenings and weekends by two gigawatts.

This could potentially cut energy costs in the long term for the consumer, boost energy security and further reduce reliance on fossil fuels.

Research will deliver better forecasting and 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 getting AI to predict how much energy we’ll use days ahead of time or automatically heating or cooling buildings when clean energy is most available and cheapest.

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.

The project will be led by UK Research and Innovation (UKRI) in collaboration with the Department for Energy Security and Net Zero (DESNZ).

Science minister Lord Vallance said: "We’re calling on Britain’s brightest minds and innovative businesses to help us cut energy bills, boost energy security, and reduce our reliance on fossil fuels.

"This is a challenge with real impact – if we get it right, we’ll save families money, protect the planet, and make the UK a clean energy superpower.

"R&D has the power to change lives and we want to harness it to deliver real, measurable progress towards the government’s 5 missions and turn bold ideas into real solutions by 2030."

Minister for climate Kerry McCarthy said: "We are working to build a more flexible electricity system, giving households more choice and control over when and how they use energy.

"This new challenge will help deliver that, exploiting the exciting potential of AI and other cutting-edge tech to help more people access flexible tariffs and save on bills as part of our Plan for Change."