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.
Following the recent IETF Phase 3 consultation with UK industry during the Summer, DESNZ has now published the Government Response to the consultation on the design of Phase 3 and the longer-term role of government support.
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 Response covers the final design of IETF Phase 3; Fund Objectives; Eligibility and Scope; Technologies; Project Assessment Criteria; and Monitoring and Evaluation.
It also covers responses regarding the long-term role of government support post 2025, which will help inform the development of future industrial policies.
- To read the Government Response to the recent consultation and find out more about the final design of IETF Phase 3, please visit our consultation page.
If you have any questions about the IETF, please contact IETF@energysecurity.gov.uk
