Referral of the proposed Industrial Energy Transformation Fund Phase 3 subsidy scheme, by the Department for Energy Security and Net Zero
The Subsidy Advice Unit (SAU) has published a report providing advise to the Department for Energy Security and Net Zero (DESNZ) concerning its proposed subsidy scheme, the Industrial Energy Transformation Fund Phase 3.
Administrative timetable
| Date | Action |
|---|---|
| 11 January 2024 | SAU’s report published |
| 11 December 2023 | Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account) |
| 24 November 2023 | Beginning of reporting period |
Final report
11 January 2024: The SAU has published its report providing advice to DESNZ concerning IETF Phase 3. The report includes the SAU’s evaluation of DESNZ’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.
- (11.1.24)
Request from DESNZ
24 November 2023: The SAU has accepted a request for a report from DESNZ for its proposed subsidy scheme, the Industrial Energy Transformation Fund Phase 3. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DESNZ’s assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by DESNZ
Phase 3 of the Industrial Energy Transformation Fund provides grants supporting industrial sites to transition to a low carbon future. The fund targets existing industrial processes, helping businesses to reduce energy consumption by investing in more efficient technologies and reduce emissions by bringing down the costs and risks associated with investing in decarbonisation technologies.
The fund is open to a broad range of industrial sectors, supporting businesses of all sizes, both within and outside of industrial clusters. Phase 3 of the IETF will be open to companies with industrial sites located in England and Wales. These companies can lead an application independently or can collaborate with project partners, including other companies and research organisations.
Under the branding of the IETF, DESNZ separately administers grants to beneficiaries in Northern Ireland. The Scottish Government administers a separate Scottish IETF for industries located in Scotland. The Scottish IETF and Northern Ireland schemes are not included within the scope of this referral.
Businesses must operate an existing site which falls into one of the following sectors:
- mining and quarrying (with the exception of coal mining operations, removed in Phase 3)
- manufacturing
- recovery and recycling of materials
- data centres
- industrial laundries (added in Phase 3)
- controlled environment horticulture (added in Phase 3)
Funding will be allocated across 3 strands:
- deployment of energy efficiency technologies;
- deployment of decarbonisation technologies, and;
- studies to help sites investigate what solution would work on their site
Subsidies will be allocated as grants. Grants are offered against clearly defined eligible costs and aid intensity thresholds, and the applicant must demonstrate their grant claim is necessary to the successful delivery of the project or study. Subsidy intensities have not changed from previous phases, so until guidance for Phase 3 is published, please see section ‘4.5.6 Organisation Size & Grant amount requested’ in the IETF Autumn 2022 applicant guidance.
The Phase 3 budget will be allocated by DESNZ across 2 application windows. This subsidy control assessment is for Phase 3 of the IETF.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning DESNZ’s proposed scheme, the Industrial Energy Transformation Fund Phase 3, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at SAU-IETFPhase3-2023@cma.gov.uk copying the public authority IETF@energysecurity.gov.uk
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with DESNZ. The SAU will send a copy of your submission to DESNZ together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DESNZ using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: SAU-IETFPhase3-2023@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk
Last updated 11 January 2024 + show all updates
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Final report published
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First published.