Government launches consultation with UK industry.

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Government launches consultation with UK industry to finalise design of £185 million Phase 3 of Industrial Energy Transformation Fund (IETF)

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, 5th July 2023.

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.

For information on DESNZ’s privacy policy, please visit our Gov.uk page.