On 30 March, following the success of Phases 1 and 2, the Department for Energy Security and Net Zero (DESNZ) announced an extension to the Industrial Energy Transformation Fund (IETF) as part of the Powering up Britain package, increasing total grant funding for UK businesses by £185 million. Phase 3 of the IETF will open for new applications in early 2024.
Building on previous stakeholder feedback and information gathered from earlier application rounds, DESNZ has today launched a consultation to seek views from UK industry and other key stakeholders on the design of Phase 3 and the longer-term role of government support. The consultation will run from Monday 26 June to Friday 21 July 2023. We would also like to invite you to join our consultation briefing event on Wednesday 5 July.
The IETF remains the only technology neutral grant fund that supports the commercial roll out and permanent installation of energy efficiency and deep decarbonisation technologies at industrial sites. By providing support for energy efficiency, the fund has bolstered industry’s ability to respond to rising energy prices, helping sites to overcome capital barriers to investing in technologies that can immediately reduce their energy bills. Through support for decarbonisation studies and deployment projects, the Fund is helping to kick-start the industrial transformation required to meet Net Zero, especially by supporting first movers with complex, novel solutions.
The Government has run six competition windows to date: Phase 1 of the IETF opened in 2020, and the final window of Phase 2 closed at the beginning of 2023. Despite challenging economic circumstances over this period, we received a total of almost 500 applications, a record 148 of which were submitted in the final, Autumn 2022, application window.
This consultation is crucial in helping government to deliver the Fund, ensuring that all stakeholders have had an opportunity to give their opinion, enabling government to deliver policies which are informed by robust evidence. The consultation is split into two parts:
· Part 1 – Development of Phase 3, seeks views on IETF Objectives; Eligibility and Scope; Technologies; Project Assessment Criteria; and Monitoring and Evaluation.
· Part 2 – asks for views on the long-term role of government support post 2025 which will help inform the development of future industrial policies.
We very much welcome your feedback and input into designing IETF Phase 3. To respond to the consultation, please visit our consultation page.
IETF Phase 3 consultation event
We invite you to join our online IETF Phase 3 consultation webinar on Wednesday 5 July. It will be an opportunity to:
Hear about the consultation proposals for the Competition Scope for Phase 3 (Technologies, Themes, Sectors, etc)
Hear about the consultation proposals for Competition Process for Phase 3 (Application process, Due diligence process, Grant limits etc)
Hear about the process for submitting consultation responses
Network online and develop partnerships for IETF Phase 3
Speak with DESNZ online for discussions about the consultation.
The webinar will be of particular interest to:
Mining and quarrying companies
Recovery and recycling of materials companies
Energy efficiency and decarbonisation technology providers
To register for the webinar, please visit our registration site.
If you have any questions about the Phase 3 consultation, please contact IETF@beis.gov.uk.