Nesta is launching a project to explore the potential for a greater role for distribution network operators (DNOs) in the heat transition. We previously considered this in our work on the future of energy retail. With the upcoming publication of the Warm Homes plan and consultation beginning on the next price control for electricity networks, we want to generate more evidence on whether:

• involving DNOs in the delivery of home upgrades would make it easier to finance the transition to low-carbon heat in homes
• a greater and more direct role for DNOs in home decarbonisation would have strategic benefits, for example in heat planning and in coordinating upgrades to homes and the grid
• change is deliverable - DNOs could be effectively incentivised to take on new roles, and the benefits would, overall, outweigh the costs.

Nesta is seeking an external consultant specialising in energy markets and regulation to work in a joint team with us on this project. We anticipate working closely with members of the consultancy team, rather than commissioning standalone pieces of work.

We envisage splitting this work into two phases:

• Phase 1: October to December 2025 - Initial assessment of the range of roles that DNOs could take on, and a deep dive into their suitability as a financing vehicle for home decarbonisation. This assessment will look at the implications for consumers, the overall costs of the transition, and DNOs as businesses, including their attractiveness to investors. We anticipate this will mainly involve desk research and stakeholder consultation, with the work (likely presented as a report or position piece) completed before Christmas so that the output can be published in January 2026.
• Phase 2: January 2026 onwards - To be defined during Phase 1, this could include modelling or analysis as well as additional qualitative research. This research will gain more insight into the potential for DNO involvement to finance home decarbonisation, the strategic benefits that might arise from a greater DNO role and how these could be maximised, and the implications for policy design and regulation.

At this stage we will commission consultants to work with us during Phase 1, with a presumption, but not a guarantee, that the project will proceed to a second phase.

More information about the role and what we are offering can be found in the open call document.

Given the short timescale for commissioning, we are inviting expressions of interest. Please submit a document of up to three pages to [email protected] - outlining the following:

• Initial ideas on research priorities and activities for Phase 1, given the timescale and goals set out above.
• Proposed team member(s) and short summary of their relevant experience and expertise.
• A proposed budget, including day rates.

We are happy for you to include CVs or links to other work as an annex.

Your expression of interest should be emailed as a single document by 17:00pm on Tuesday 21 October 2025. Please email [email protected] if you have any questions about this tender.