Research and analysis

FLOWMIS process evaluation: executive summary

Published 3 November 2025

This is an independent report produced by Ipsos, for DESNZ, and as such, may not reflect policy views or direction.

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1. Introduction

Ipsos was engaged by the Department for Energy Security and Net Zero (DESNZ) in September 2023 to evaluate the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) application phase. The goal was to understand how the scheme was delivered relative to its intentions, identify what worked well and what could have been improved, and assess the impact of the context on its execution. The evaluation also aimed to suggest improvements for future schemes. This work is intended to inform ongoing program management and policymaking. The UK government has committed £160 million to FLOWMIS, focused on developing port infrastructure to support floating offshore wind activities, contributing to the UK’s offshore wind ambitions and the broader Net Zero transition. The evaluation is based on a total of 41 interviews with internal stakeholders, non-applicants, applicants and successful applicants.

FLOWMIS seeks to support the establishment of floating offshore wind infrastructure by investing in port projects through grant funding. By offering grant funding, FLOWMIS aims to mitigate market failures, such as private investors’ reluctance due to high upfront costs and perceived risks. This approach encourages further private investment by reducing capital costs and addressing the fundamental coordination failure of the markets where no single entity is willing to act first due to the high risks and costs involved.

2. FLOWMIS competition call and application process

Respondents learned about the FLOWMIS competition call through various channels, including trade publications, GOV.UK emails, LinkedIn, and sector associations. The communication was effective, as most interviewees were aware of the scheme and appreciated the support from the delivery team. However, the timing of the competition call posed challenges, with some participants finding the application timeline too short or experiencing operational disruptions due to delays. For some applicants, these delays complicated stakeholder engagement and project planning, leading to scepticism about project viability.

The financial implications of FLOWMIS were mixed. One applicant faced setbacks after investing with the expectation of grant recovery, only to find the expenditure ineligible due to scheme delays. Conversely, another applicant benefited from the extended timeline, allowing for a more comprehensive application. Non-applicants cited reasons such as the scheme’s unrealistic spending timelines (in their opinion), and insufficient funding for large-scale developments.

Ports generally found the application requirements for FLOWMIS clear, with most not needing additional information to decide whether to apply. Applicants were satisfied with the application process, describing it as smooth and comparable to other schemes, though some noted challenges such as the duplication of requested information due to different delivery staff. The application’s demands on financial and staff resources were significant, requiring comprehensive documentation and technical assessments. Applicants expressed frustration about the need to show evidence of commercial interest with developers at the application stage, given the uncertainty in the market and the undeveloped state of floating offshore wind technology. While many applicants did not require additional support from DESNZ, one mentioned the need for more interactive support to clarify requirements during the process.

The scheme’s rules generally aligned with applicants’ development plans, though some faced challenges, such as tight timelines to spend grant funds. This led to increased pressure and costs as ports had to accelerate work, sometimes limiting their ability to submit larger bids. More than half of the applicants hired external consultants to aid in bid development, highlighting the resource intensity of the process. Non-applicants often cited timing and resource constraints as reasons for not applying, with many in early project stages unable to meet application demands. Suggestions for improvement included more flexible spending timelines, clearer funding distribution approaches, and better communication regarding application outcomes. Non-applicants also proposed preliminary funding for ports so that they could be more ready for the funding call us and more support for operations and maintenance activities.

3. Assessment of applications

The FLOWMIS assessment process involved evaluating applicants across five key areas: commercial, technical, strategic, financial, and economic assessments. Initial checks ensure applicants meet basic eligibility requirements, such as being UK-based and capable of delivering floating offshore wind projects.

Many applicants and internal stakeholders found the application requirements clear and the process well-managed. Additional internal stakeholders generally found the assessment process to be thorough and comprehensive across the necessary dimensions, ensuring robust decision-making. However, challenges were noted, such as the difficulty in assessing commercial traction in a nascent industry and the complexities of financial guarantees for non-private ports. While applicants generally appreciated the scheme’s transparency and communication, they suggested improvements like more flexible timelines and better incorporation of private investment considerations. Despite these challenges, the process was regarded positively for its structured approach and effective use of lessons from previous schemes like OWMIS, with stakeholders confident in its ability to achieve FLOWMIS’s objectives.

4. Governance of FLOWMIS and scheme delivery to date

The due diligence process for FLOWMIS involved thorough scrutiny by the Central Grants and Loans Team to identify and mitigate risks, primarily focusing on ensuring projects do not require more funding than initially accounted for. This involved a detailed examination of financial arrangements and the capability of projects to deliver claimed benefits.

Stakeholders acknowledged challenges in the due diligence process, such as tight timelines and communication breakdowns, which added pressure and complexity. Suggestions for improvement include better engagement and communication among teams, more senior engagement on calls, greater clarity on financial scrutiny, and proactive outreach to industries with transferable skills. Nevertheless, stakeholders appreciated the defined roles and responsibilities within the delivery team, contributing to an efficient work environment. Ultimately the governance and decision-making process was felt to be well-structured, with a participatory approach and clear guidelines,

5. Scheme delivery to date and lessons learnt

While the scheme continues to advance, delivery timelines have shifted. The scheme faced delays due to political and financial complexities, but FLOWMIS remains promising, with ongoing Final Grant Agreements taking place at point of writing (February 2025). The initial funding timeline was extended to accommodate more ports, yet the time-limited nature of grant funding continues to pose challenges. Stakeholders noted that the launch appeared rushed, lacking a comprehensive strategy, and called for more thorough planning and policy design.

The FLOWMIS scheme’s initial findings and recommendations, though still evolving, suggest several improvements for future similar initiatives. Key areas for enhancement include clearer guidelines and technical specifications for applicants, more generous lead times for application preparation, and preliminary funding to help ports in the early stages of preparing for infrastructure projects. The nascent nature of the floating offshore wind sector necessitates flexibility in funding proposals, with suggestions for less prescriptive criteria and more time for application development. Additionally, aligning funding timelines with project delivery schedules and involving industry-recognised delivery partners could improve the scheme’s efficacy. Future support strategies could consider business case-driven models and alternative models like revenue guarantees or special purpose vehicles to spur investment.

Overall, FLOWMIS is making strong progress in addressing challenges within the UK’s offshore wind sector. Despite the inherent challenges and tight timelines, the scheme is advancing, with the funding announced for one applicant announced and final grant agreement progressing for another. By fostering infrastructure readiness and reducing market uncertainties, FLOWMIS is viewed as building a strong foundation for future growth in the sector.