The UK Government is calling on businesses to sign up to a new £20 million programme that could pay them for reducing their energy use during times of peak demand.

Under the pilot scheme, projects will need to deliver efficiency savings at least during the winter between November and February, 3-7pm – when demand is at its highest. Businesses can bid for a slice of the cash by installing technologies such as more efficient motors, air conditioning and lighting measures.

There will be a minimum bid size of 100kW and a project plan with estimated savings and one for measuring and verifying these must be submitted.

The announcement is part of the Government’s proposals set out in 2012 in an effort to dramatically cut electricity demand across the UK economy.

Energy Secretary Ed Davey said: “We’re looking for brilliant organisations with bright ideas about how to lower our electricity use, help cut energy bills and bring down our emissions.”

The Electricity Demand Reduction (EDR) pilot will be fully launched in June this year, with the closing date for applications in October.