Funding competition IETF deployment of energy efficiency technologies, Spring 2021

Organisations can apply for a share of up to £40 million for grants to improve the energy efficiency of industrial processes, reducing energy bills and cutting carbon emissions.

This competition has not yet opened.

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Competition sections

Description

This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites. This is the second round of the IETF Phase 1 competition.

The Industrial Energy Technology Fund (IETF) will support the onsite deployment of technologies that improve the energy efficiency of an industrial process or processes.

IETF will award up to £40 million across 2 strands. These are:

In this strand you must be an industrial business of any size to apply. You can apply on your own or in collaboration with other organisations. Your project must take place at a manufacturing site or data centre in England, Wales or Northern Ireland and be led by the operator of that site.

The other competition strand, IETF energy efficiency and decarbonisation studies, Spring 2021, will fund projects that support energy efficiency and decarbonisation studies.

The IETF is a Department for Business, Energy and Industrial Strategy (BEIS) fund. Innovate UK is delivering part of this competition on behalf of BEIS, which is a joint sponsor. Following the assessment of applications, the awarding, contracting, and monitoring of projects will be delivered by BEIS

In applying to this competition you are entering into a competitive process. The competition closes at 11am UK time on the deadline stated.

Funding type

Grant

Project size

The minimum grant support available per project is £100,000. The maximum grant funding that an individual project can claim is £14 million. Please refer to the funding section for rules on how much grant funding your organisation can claim.

Who can apply

Your project

Your project must:

  • start by 1 January 2023
  • end by 31 December 2024
  • have a minimum total grant funding of £100,000

At the end of your project you must have installed and begun to operate (or be ready to operate) the energy efficiency technology.

Your project work must be carried out at a single manufacturing site or data centre in England, Wales or Northern Ireland.

You can include multiple projects within your application but you must make sure:

  • all projects are located at the same eligible site
  • all individual elements are eligible

If you are submitting multiple projects, we will assess your application as a single submission.

If you want to apply for projects across different sites, you will need to submit one application for each site.

Eligible project costs

The IETF will only award grant funding to cover the eligible costs of deploying technologies where it can be demonstrated that these costs are additional and necessary to achieving the energy efficiency saving.

You must include a counterfactual case as part of your application. This means you have to refer to a similar, less energy efficient investment that would have been credibly carried out without the grant.

The difference between the costs of both cases of investment identifies the energy efficiency-related cost and constitutes the eligible costs.

If the technology’s only purpose is to achieve energy savings (for example in the case of a heat exchanger project) then it is possible to consider the total investment costs as eligible costs.

Commitment to knowledge sharing

You must consent to produce a case study for knowledge sharing during your project. It will be made publicly available so should not include any commercially sensitive information.

Lead organisation

This competition is aimed at businesses that use energy or produce direct emissions as a result of their industrial processes.

IETF is not seeking to fund general research, development, and testing of a technology solution. Technology developers are not eligible to apply as lead applicants. Industrial processes refer to a set of economic activities as defined by the Standard Industrial Classification (SIC). Businesses are allocated a SIC code at the time of registering at Companies House. You will need to check your business SIC code to make sure you are eligible.
For this competition your business must fall into the following categories of activity:

  • manufacturing SIC 10 (000) through to SIC 33 (200)
  • data centres SIC 63 (110)


If you are a parent company with a SIC code which does not reflect the activity carried out at the site of the proposed project, please email ietf@innovateuk.ukri.org with your organisation’s details, project locations and a brief outline of your project. An example of this would be where a data centre is owned by a telecoms company.

We will work with you to establish whether the activity at the site is eligible for this competition.

To lead a project your organisation must also:

  • be a registered business of any size, in England, Wales or Northern Ireland
  • carry out its project work at a site in England, Wales or Northern Ireland

A site is defined as the postcode, or multiple directly adjoining postcodes at which the project takes place.

The lead applicant must be the owner of the industrial process or data centre operator. A third party (for example, a consultancy or an energy service company) can prepare an application on behalf of the lead applicant. However, BEIS will not have a legal relationship with, or pay money to a third party.

Project team

Lead organisations can collaborate with other organisations provided the project partners meet the criteria below.

To collaborate with the lead your organisation must:

  • be a business of any size, a research organisation, a research and technology organisation, an academic institution or a public sector organisation. You must read the Supplementary Grant Award Guidance to find out which definition your organisation falls into
  • be registered in England, Wales or Northern Ireland
  • carry out its project work in England, Wales or Northern Ireland


The lead must claim funding by entering their costs into the Innovation Funding Service during the application. If the lead is collaborating with other organisations then the lead and at least one other partner must claim grant funding and enter their costs into the Innovation Funding Service.

Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Partners must enter their own project costs into the Innovation Funding Service.

Your project can include partners that do not receive any of this competition’s funding, for example businesses registered in Scotland or outside the UK

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in question 5 for why you could not use suppliers from the UK.

You must also provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you.

We expect all subcontractor costs to be justified and appropriate to the total eligible project costs. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

Applications which are successful at the assessment stage will undergo due diligence. Applicants must be willing to dedicate sufficient resource to assist us in completing this process.

Previous applications

You can use a previously submitted application from the first round of the IETF phase 1 to apply for this competition. This took place in the Summer 2020. Some application questions have changed, you must make sure that you are eligible, your proposal is in scope and the questions are answered in full.

Subsidy control (and state aid where applicable)

This competition provides funding in line with the UK's obligations and commitments to Subsidy Control. Further information about the UK Subsidy Control requirements can be found within the EU-UK Trade and Cooperation agreement and the subsequent guidance from the department of Business, Energy and Industrial Strategy (BEIS).

IETF is unable to award grant funding to organisations that are considered to be in financial difficulty. Please see the Supplementary Grant Award Guidance for more information. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

European Commission State aid

You must apply under European Commission State aid rules if you are an applicant who is conducting activities that will affect trade of goods and electricity between Northern Ireland and the EU as envisaged by Article 10 of the Protocol on Ireland/Northern Ireland in the EU Withdrawal Agreement.

In certain limited circumstances, the European Commission State aid rules may also apply if you are an organisation located in England, Wales, or Scotland and conduct activities that affect the trade of goods and electricity between Northern Ireland and the EU. For further information, please see section 7 of the BEIS technical guidance.

For further information see Supplementary Grant Award Guidance and BEIS guidance on the Northern Ireland Protocol.

For applicants subject to the European Commission State aid rules, applicants will be required to prove that they were not an “Undertaking in Difficulty” on the date of 31 December 2019 but became a UID between 1 January 2020 and 30 June 2021. We will ask for evidence of this.

Further Information

If you are unsure about your obligations under the UK Subsidy Control regime or the State aid rules, please take independent legal advice.

You must make sure at all times that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.

This aims to regulate any advantage granted by a public sector body which threatens to or actually distorts competition in the United Kingdom or any other country or countries.

If there are any changes to the above requirements that mean we need to change the terms of this competition, we will tell you as soon as possible

Funding

Total funding available

We have allocated up to £40 million to fund projects across 2 competition strands:

The majority of the funding will be allocated in this deployment strand.

Grant funding thresholds

The minimum threshold for grant awards is £100,000 towards the total eligible costs of the project. The maximum grant funding that an individual project can claim is £14 million.

Your application can be made up of multiple projects and there is no minimum cost per project. You must make sure that:

  • the total grant funding for each application is at least £100,000
  • the total grant funding for individual projects does not exceed £14 million

You should consider whether your application falls within these thresholds by estimating how much of the total project cost you can claim based on the rules outlined in the funding section of this competition. If you are unsure, please email ietf@innovateuk.ukri.org for further information about your eligibility.


We will assess your application in terms of its value for money. You must only apply for the minimum amount of grant to enable the project to go ahead.

Eligible costs

IETF will award grant funding to cover eligible costs of deploying technologies if you can show that these costs are additional and necessary to achieving the energy efficiency saving. The extra investment costs necessary to achieve the higher level of energy efficiency will be determined as follows:

  • where the costs of investing in energy efficiency can be identified in the total investment cost as a separate investment, this energy efficiency-related cost will constitute the eligible costs
  • in all other cases, the costs of investing in energy efficiency are identified by reference to a similar, less energy efficient investment that would have been credibly carried out without the grant. The reference investment should be similar in terms of size, capacity, and all other technical characteristics besides those that achieve the energy saving, and meet relevant minimum standards. This is the counterfactual case. The difference between the costs of both investments identifies the energy efficiency-related cost and constitutes the eligible costs.

You must include a justification for the costs claimed in your application

Each project partner can claim for their share of the eligible project costs. The maximum grant value that each partner can claim is determined by the rules below. If your organisation’s work on the project is mostly commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically.

You can apply for funding for multiple projects if you are able to show that each project is a separate investment. The maximum amount of funding a single project can receive is £14 million in total. Aggregated applications may exceed this.

If you are unsure about the funding rules of this competition, please contact Innovate UK or take legal advice.

Ineligible costs

You can only claim funding in this competition for projects that take the energy efficiency of your site beyond the relevant legal minimum standards.

The following are costs which are ineligible:

  • costs not directly linked to the achievement of the energy efficiency improvement
  • the value of contributions in kind, for example a contribution in goods or services as opposed to money
  • depreciation costs incurred from production down-time

You cannot apply for or obtain, duplicate funding for the same funded activities covered by the grant. Duplicate funding means funding provided by another source for the same activity.

Where you declare any match or pooled funding, IETF will not consider this duplicate funding.

You cannot claim for the costs of operating your installed energy efficiency technology, or for any preparatory work conducted before the grant is awarded.

Assisted areas

The government can in certain circumstances, offer additional financial support to organisations acting economically if they are conducting projects located in specific geographical areas.

If your project is located in assisted area A you could receive funding for your eligible project costs of:

  • up to 65% if you are a micro or small organisation
  • up to 55% if you are a medium-sized organisation
  • up to 45% if you are a large organisation

If your project is located in assisted area C you could receive funding for your eligible project costs of:

  • up to 55% if you are a micro or small organisation
  • up to 45% if you are a medium-sized organisation
  • up to 35% if you are a large organisation

If your project is located in another area you could receive funding for your eligible project costs of:

  • up to 50% if you are a micro or small organisation
  • up to 40% if you are a medium-sized organisation
  • up to 30% if you are a large organisation

For further information on assisted areas please see the Supplementary Grant Award Guidance.

Research organisations

Any research organisations in your project team undertaking non-economic activity as part of the project can share up to 30% of the total eligible costs. If your project team contains more than one research organisation undertaking non-economic activity, this maximum is shared between them.

For organisations based in the England and Wales you must refer to the company accounts guidance for definitions of different organisation sizes.

For projects subject to the European Commission State aid rules, please read the EU definitions of different organisation sizes.

Your proposal

The Industrial Energy Technology Fund (IETF) will support the onsite deployment of technologies that improve the energy efficiency of an industrial process or processes.

This competition aims to support the commercial roll out and permanent installation of technologies at industrial sites.

Eligible technologies must have been proven to work through successful operations or be qualified through test and demonstration. This corresponds to Technology Readiness Levels (TRLs) of 8, 9 and above.

See the supplementary Technological Scope for Energy Efficiency Studies and Deployment Projects guidance, for further details including a description of technology readiness levels (TRLs). You must check that any proposed technology meets the specific technical requirements.

Energy saving solutions will differ from site to site, but some examples of eligible technologies include:

  • monitoring and management equipment that improves the efficiency of processes
  • more efficient heat exchange
  • more efficient driers
  • energy recovery from waste heat
  • energy recovery from waste pressure
  • onsite resource efficiency measures to reduce wastage and optimise use of raw materials
  • more efficient refrigeration or other cooling or heating measures necessary to create and maintain the operational temperature of the industrial process itself (including cooling technologies for data centres).
  • fuel switching is permitted where it is essential to achieving energy efficiency improvements. Fuel switching must comply with eligibility criteria detailed in the supplementary Technological Scope for Energy Efficiency Studies and Deployment Projects guidance.

Portfolio approach

We are looking to fund a portfolio of projects.

The portfolio approach is intended to make sure the IETF has a diverse set of projects, tailored to meet the fund’s objectives, balanced across the following variables:

  • geographical areas
  • technologies
  • industrial sectors
  • organisation sizes
  • project sizes

Monitoring, evaluation and knowledge sharing

You must submit data throughout the duration and for 5 years after the end of the project.

BEIS will use this to:

  • check that payment milestones have been met
  • evaluate your project to see it has achieved the benefits described in your proposal
  • make sure that your project has contributed to the overall objectives of the Industrial Energy Technology Fund

This information may be used to create and maintain a register of grant recipients and publishable project case studies. BEIS or Innovate UK may publish aggregated statistics on the benefits of the IETF.

If you are successful you will need to submit a detailed monitoring and verification plan that will be approved by BEIS. This will expand on the outline plan captured in question 7.

Specific themes

Through this strand of the competition, we are not funding:

  • technologies that are not proven to work through successful operations or are not qualified through test and demonstration
  • repair and maintenance projects that would be undertaken in the normal course of business
  • feasibility or engineering studies for energy efficiency solutions
  • plant closure projects
  • new build plant or expansions
  • energy efficiency measures that are not integral to the industrial process, including:

- building lighting

- space heating and cooling for buildings where not integral to the industrial process

- on or off-site transport

  • electricity generation, including the installation of new renewable projects like solar panels or wind turbines
  • fuel switching that does not achieve energy efficiency improvements.
  • combined heat and power (CHP) upgrades to existing plants.

8 March 2021
Competition opens
11 March 2021
Online briefing event
8 June 2021
Online briefing events
14 July 2021 11:00am
Competition closes
30 November 2021
Applicants notified

Before you start

You must read the Technological Scope for Energy Efficiency Studies and Deployment Projects guidance and the Supplementary Grant Award Guidance.

We encourage you to request an eligibility screening assessment as early as possible. This can be a valuable opportunity to get an opinion on your eligibility for the competition.

You can request an eligibility screening assessment by emailing Innovate UK at ietf@innovateuk.ukri.org. Type ‘Eligibility screening assessment request’ as your subject line of your email.

When completing your application, you will need to complete and upload the project benefit calculator form (version 2.0) in excel format to help capture energy savings calculations and other benefits as part of question 7.

What we will ask you

The application is split into 3 sections:

  1. Project details.
  2. Application questions (including the project benefit calculator v2.0).
  3. Finances.

1. Project details

This section sets the scene for the assessors and is not scored. However, some aspects will be used to determine if your project is eligible and in scope.

Application team

Decide which organisations will work with you on the project. Invite people from those organisations to help complete the application.

Application details

The lead applicant must complete this section. Give your project’s title, start date and duration.


Public description

Describe your project in detail, and in a way that you are happy to see published. Do not include any commercially sensitive information. If your application aggregates multiple projects describe the overall package and its key features. If we award your project funding, we will publish this description. This could happen before you start your project.

Your answer can be up to 400 words long.

Eligibility and scope

Please provide the following details to help us assess your eligibility:

  1. Your company’s standard industrial classification (SIC) code and industrial activity at the site of the application if different.
  2. Full address of the project investment site.
  3. Full address of your headquarters (if different from your company’s registered address).
  4. Please confirm that the project would not have gone ahead in its current form without IETF funding. If your project would have gone ahead in its current form without this funding, it will be ineligible and will not be assessed.

Your answer can be up to 200 words long

Please provide the following details to help us assess whether your project fits with the scope of the competition. If your application includes multiple projects, please provide sufficient detail for assessors to understand the distinct projects. We will use this to assign experts to assess your application.

Describe or explain:

  • how your project fits with the scope of the competition
  • how your proposed technology has either been proven to work through successful operation or qualified through test and demonstration
  • what the Technology Readiness Level is of the project technology

See the supplementary Technological Scope for Energy Efficiency Studies and Deployment Projects guidance for further details, including a description of TRLs.

Your answer can be up to 400 words long

If your project is not eligible and in scope, it will be rejected and will not be sent for assessment. We will give you feedback on why.

Additional information

The following information may be used for the purposes of monitoring and evaluating the impact of the IETF.

Provide details of:

  • the size of each organisation acting economically in the project team. Refer to the ‘Funding section’ for further information.
  • your meter point numbers for the project site: electricity meter point administration number (MPAN) and gas meter point reference number (MPRN)

Describe or explain:

Your answer can be up to 400 words long.

2. Application questions

Answers to these questions will be scored by the assessors. You will need to pass minimum quality thresholds in order to receive funding. Written feedback will be provided.

Applications are assessed by up to 5 assessors. The assessors are experts from business, academia and/or the public sector. Applications are assessed against the same set of scoring criteria. All applications are assessed on individual merit.

After assessment, a proposed list of projects for funding will be reviewed by both BEIS-led and Innovate UK-led panels. The panels will submit a list of recommendations to BEIS ministers for a final decision. It is possible that an application that received lower assessors’ scores may be recommended for funding over others in order to achieve a more balanced project portfolio.

Do not include any website addresses (URLs) in your answers.

Question 1: Equality, diversity and inclusion (not scored)

We collect and report on equality, diversity and inclusion (EDI) data to address under-representation in business innovation and ensure equality, diversity and inclusion across all our activities.

You must complete this EDI survey and type ‘EDI survey completed’ within your answer. The survey will ask you questions on your gender, age, ethnicity and disability status. You will always have the option to ‘prefer not to say’ if you do not feel comfortable sharing this information.

Question 2. Project overview and technical feasibility

What is the technical solution to the energy efficiency gap that has been identified? Describe or explain:

  • the main motivation for the project
  • the approach you intend to take and the technological solution that you intend to deploy
  • why this approach was chosen and why other options were discounted
  • the nature of the outputs you expect from the project, including the projected benefits (for example carbon savings) and additional benefits from carrying out the project (for example streamlining an industrial process) – detailed benefit calculations will be captured in question 7
  • how the project is scalable and whether it could be replicated by others in the sector or other sectors
  • how the solution or solutions are aligned with the government’s commitment to reach net zero by 2050 and your own decarbonisation plans

Your answer can be up to 600 words long. The question is worth 15 marks.

You can submit one appendix of any diagrams or technical drawings to support your answer. It must be PDF, no larger than 10MB in size and can be up to 2 A4 pages long. The font must be legible at 100% zoom.

Question 3: Deliverability

Which organisations are in the project team and what are their roles? How will you manage the project effectively and what are the key project delivery milestones?

Describe or explain:

  • any project dependencies, lead-in times or decision-making timescales
  • the project team structure, including the roles, skills and experience of key members and personnel
  • the resources, equipment and facilities needed for the project and how you will access them
  • the details of any key external parties, including sub-contractors, who you will need to work with to successfully carry out the project
  • the main work packages of the project, indicating the lead partner assigned to each and the total cost of each one
  • your approach to project management, identifying any major tools and mechanisms you will use to get a successful project outcome

Your answer can be up to 400 words long. This question is worth 5 marks.

You can submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF no larger than 10MB in size and can be up to 1 A4 page long. The font must be legible at 100% zoom.

Question 4: Risk assessment

What are the main risks for this project and what actions have been or will be taken to mitigate them?

Describe or explain:

  • the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks
  • how you will mitigate these risks
  • the structures and processes in place to own and manage the risks identified
  • any project inputs that are critical to completion, such as resources, expertise, data sets
  • any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage this

Your answer can be up to 400 words long. This question is worth 5 marks.

You can submit a risk management plan or risk register as an appendix to support your answer. It must be a PDF no larger than 10MB in size and can be up to 1 A4 page long. The font must be legible at 100% zoom.

Question 5: Project cost and value for money

How much will the project cost and does the proposed grant represent value for money for the taxpayer?

In terms of the project goals, describe or explain:

  • the total eligible project costs and the grant you are requesting
  • your counterfactual case if applicable
  • how you have ensured good value for money for the taxpayer by obtaining the best cost for the project (for example through competitive tenders)
  • how firm the costs are (for example whether they are quotes or tenders)
  • how budgets will be managed
  • how you have worked out the minimum IETF grant required to enable the project to go ahead
  • any subcontractor costs and why they are critical to the project

Please ensure the costs you are claiming against are eligible based on the guidance on eligible costs and funding rules provided. If applicable, your counterfactual case is in reference to a similar, less energy efficient investment that would have been credibly carried out without the aid. The difference between the costs of both investments identifies the energy efficiency-related cost and constitutes the eligible costs.

Applications will be assessed in terms of their value for money, and applicants should minimise the grant amount claimed to that amount which is needed to enable the projects to be taken forward.

Your answer can be up to 400 words long. This question is worth 10 marks.

Question 6: Added value

What would have happened to the project without IETF funding?

Describe or explain:

  • the extent to which any of the project would have still occurred, for example, would the project not have gone ahead at all, or would it still have gone ahead but at a smaller scale or at a later date?
  • why some or none of the project would have gone ahead without public funding
  • why you are not able to wholly fund the project from your own resources or other forms of private-sector funding such as loans
  • how this project goes above and beyond your existing energy and carbon reduction commitments, such as Climate Change Agreements

Your answer can be up to 600 words long. This question is worth 15 marks.

You can submit evidence to support your answer as an appendix. It must be a PDF no larger than 10MB in size and can be up to 3 A4 pages long. The font must be legible at 100% zoom.


Examples of good evidence include:

  1. Internal analysis of investment options, for example, this project alongside other investment options showing that without IETF funding this project is not competitive.
  2. Evidence of a funding gap or of IETF funding being a tipping point for adequate return, for example, clear discounted cash flow analysis, IRR analysis.
  3. Proof of decision making such as board minutes.
  4. Evidence that the project cannot be fully funded by the partners or that other funding sources such as commercial loans or other financial options are not available, for example, proof of declined credit.
  5. Investment budgets versus the cost of the project.

Question 7: Project benefits

Download and complete the project benefits calculator (version 2.0). This calculator will capture information on the projected carbon and energy savings from the energy efficiency improvement. You must upload the completed calculator as an appendix in Excel format to this question.

Your answer will be used to assess the credibility of your inputs to the project benefits calculator. You can also provide as an additional appendix any evidence that further supports your figures, for example:

  • data from readouts from on-site monitoring systems
  • reports showing current output or energy usage
  • internal analysis or business case showing expected energy savings
  • any output changes from the project

Describe or explain:

  • what makes your project cost effective
  • the reductions you envisage on fuel bills and, if applicable, greenhouse gas emissions
  • whether or not the project will directly lead to a change in output

You must also include a written description of the methodologies used in your calculator inputs, covering:

  • how you derived the baseline energy consumption (in MWh) and production output, including any assumptions or data sources
  • how you derived the energy consumption (in MWh) and production output after the energy efficiency measure has taken place, including any assumptions or data sources
  • how you derived the cost of energy (in £/MWh) including any assumptions or data sources
  • how you derived the project lifespan (in years) – the expected economic life of the asset being deployed (i.e. the total number of years over which you expect the asset to deliver the estimated energy savings) – including any assumptions or data sources

When considering production output figures, these can be in whatever unit of measurement is most appropriate for your business and project. This must be consistent across the baseline and post-intervention scenarios.

We will assess energy savings on a per unit of production output basis. Therefore, if your level of output changes as a direct result of the energy efficiency measure, please provide:

  • for your baseline figures, your counterfactual level of output (what would occur without IETF funding) and the associated level of energy usage
  • for your post intervention figures, the expected level of output and energy usage after the energy efficiency measure has taken place

Your answer can be up to 800 words long.

Your appendix must be a PDF no larger than 10MB in size and can be up to 2 A4 pages long. The font must be legible at 100% zoom.

This question is worth 45 marks and scores will be assigned on a competitive ranking based on the cost-effectiveness of the projects in terms of reducing fuel bills (15 marks) and greenhouse gas emissions (30 marks). The credibility of the figures you provide and quality of supporting evidence will affect your score. The figures you provide will also be used to assess whether your project meets the minimum value for money requirements for public funding.

Question 8: Measurement and verification

Provide an outline measurement and verification plan for how you will monitor actual energy savings from the project.


Please describe and explain the following:

  • how you plan to monitor all the benefits from your project, including the measurement of energy, carbon and fuel bill savings
  • the methodologies you will use to verify the savings from the project, which might include: metering direct fuel consumption, analysis of fuel bills and measurement of routine adjustments (such as production volume)
  • who will be responsible for measuring and verifying the savings

This information will be used as a baseline for your detailed measurement and verification plan if you are successful.

Your answer can be up to 400 words long. This question is worth 5 marks.

3. Finances

For full details on the costs you can claim please see our project costs guidance. Please note that for the purpose of this competition, ‘Capital Usage’ (Section 7) in the project costs guidance is not an eligible cost. Also, under ‘Other Costs’ (Section 10), only costs directly linked to achieving the higher level of energy efficiency are eligible.

Background and further information

Data sharing

We will be sharing all data on your application and project with BEIS. BEIS may contact you to obtain further information about your project and gather IETF evaluation information irrespective of whether your application is successful

Further information

The IETF is open to sites in England, Wales, and Northern Ireland. To find out more information about the IETF or this competition, email us at ietf@innovateuk.ukri.org.

Please note that eligibility check requests should be directed to the email service. If you would like to check the eligibility status of your application, please type 'Eligibility screening assessment request' in the subject line of your email. You will be asked to provide further details to aid with this request.

If your site is located in Scotland, you will have the opportunity to apply for the Scottish Industrial Energy Transformation Fund (SIETF). Please find further details about the SIETF on the Scottish Government website or email IETF@gov.scot.

Help with your application

If you need more information about how to apply email support@innovateuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 11:30am and 2pm to 4:30pm, Monday to Friday (excluding bank holidays).

Innovate UK is committed to making support for applicants accessible to everyone.

We can provide help for applicants who face barriers when making an application. This might be as a result of a disability, neurodiversity or anything else that makes it difficult to use our services. We can also give help and make other reasonable adjustments for you if your application is successful.

If you think you need more support, it is important that you contact our Customer Support Service as early as possible during your application process. You should aim to contact us no later than 10 working days before the competition closing date.

Application advice service

If you want help to find a project partner or for general advice on developing and improving your application, contact Jenni McDonnell, jenni.mcdonnell@ktn-uk.org, at the Knowledge Transfer Network.

If you have questions please make use of the services above. You are advised to do so as early as possible since these services may be busier as the competition approaches its close date.

Industrial Energy Transformation Fund
The UK Government announced £315 million of funding in the 2018 Autumn Budget. The Department for Business, Energy and Industrial Strategy (BEIS) and its delivery partners will manage the Industrial Energy Transformation Fund, with £289 million to invest in England, Wales and Northern Ireland. In September 2020, the Scottish Government announced that it will deliver the remaining funding, contributing to a total budget of £34 million over the next 5 years for the Scottish Industrial Energy Transformation Fund.

The IETF, is managed by BEIS and delivered in partnership with IUK, is now in its second round. Industry can bid for a share of up to £40 million budget.

The remaining budget will be allocated in future windows to support feasibility and engineering studies, and the deployment of energy efficiency and deep decarbonisation technologies. The next phase of the IETF will launch later in 2021. For further details please see the Government response to the public consultation on the IETF webpage.

Interactions with other BEIS funds


Recognising the scale of the challenge in decarbonising UK industrial sectors, BEIS currently offers a mix of subsidies, taxes, policy exemptions, and funding schemes to support industry to decarbonise and reduce energy bills.

Through this strand of the IETF competition, we aim to bring down the up-front cost to industry of investing in energy efficiency technologies so that these can be deployed and start generating bill savings. Amongst other technologies, the IETF will provide continued support for eligible heat recovery projects, similar to those funded through the Industrial Heat Recovery Support Programme as that programme has now closed for new applications

The competition is aimed at technologies that are ready to deploy. In this way, we hope to support the on-site commercial demonstration and permanent deployment of technologies that have been supported by innovation schemes such as:

  • the Industrial Energy Efficiency Accelerator which aims to increase the number of energy efficiency technologies available to industry by supporting their development to deployment stage.
  • the Energy Entrepreneurs Fund (EEF), which is a competitive funding scheme to support the development of technologies, products and processes in energy efficiency, power generation and storage.
  • the Transforming Foundation Industries Challenge (a part of the Industrial Decarbonisation Challenge Fund, also run by IUK). This supports innovation projects which improve the resource or energy efficiency of foundation industry processes and products.

The IETF also sits alongside complementary non-investment schemes such as the Energy Technology List. This is a list of energy efficient plant and machinery, such as boilers, electric motors, and refrigeration systems. For a product to be on the ETL, it must meet specific energy-saving or energy efficient criteria. BEIS annually reviews the technologies and products that qualify for inclusion. IETF applicants are not restricted to the technologies on this list.

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