The Energy Revolution research consortium aims to deliver a suite of strategic research projects addressing industry-led challenges and working to create prosperous clean energy communities.
The Industrial Strategy Challenge Fund is also working towards the fast-track creation of up to three practical local energy system demonstrators and related design studies, which the government says could be ready for new consumer energy systems by the 2020s.
These practical demonstrators will build supply chain capabilities, deliver positive changes for energy consumers and inform future projects.
The innovation accelerator fund will also develop and commercialise smart local energy system products and services and help UK business and researchers engage with the innovation opportunities around the world.
Chief Executive of UK Research and Innovation, Professor Sir Mark Walport, said: “Clean and affordable energy is one of the biggest challenges of the 21st century and one that affects us all.
“The energy revolution challenge will address this societal and environmental need by unlocking the potential of world-class research and innovation.”