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Industrial Energy Transformation Fund

The Industrial Energy Transformation Fund (IETF) supports the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future.

From:
Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy
Published
16 July 2019
Last updated
29 January 2026 — See all updates

Applies to England, Northern Ireland and Wales
Guidance for Scotland

Overview

The Industrial Energy Transformation Fund (IETF) is designed to help businesses with high energy use to cut their energy bills and carbon emissions through investing in energy efficiency and low carbon technologies.

The IETF launched in 2020, and is in 3 phases with £500 million of funding available up until 2028.

For more information about the IETF contact ietf@energysecurity.gov.uk.

IETF closed, July 2025

Following the Spending Review, it was decided there would be no further extension of the IETF. No successor fund is planned.

In the 2024 Autumn Budget, the government committed £163 million to continue delivery for all current projects in Phases 1 and 2 and the first Phase 3 competition window of the IETF through to completion. All successful projects from those competitions remain fully funded.

IETF evaluation

IETF competition winners

We will publish summaries of winning projects from all competition windows once available.

IETF winners landscape map / directory

Map of heat network zone

We have also developed a landscape map showing the locations and details of IETF winners. Visit the Tableau Dashboard.

IETF Phase 3

Phase 3 launched in January 2024. It will provide up to £185 million in funding between 2024 and 2028.

IETF Phase 2

Phase 2 expanded the IETF scope to support the deployment of decarbonisation technologies. It will provide around £220 million in funding between Autumn 2021 and 2027.

IETF Phase 1

Phase 1 supported the deployment of energy efficiency projects as well as energy efficiency and decarbonisation studies.

The 2 Phase 1 competitions ran between July 2020 and July 2021.

IETF privacy notice

Consultations

We have published the government response to our consultation on the design of IETF Phase 3.

Updates to this page

Published 16 July 2019
Last updated 29 January 2026 Show all updates

  1. Added Evaluation of the Industrial Energy Transformation Fund (IETF) and the Benefits report.

  2. Following the 2025 Spending Review, there will be no further extension of the Industrial Energy Transformation Fund (IETF), and the planned second competition window of IETF Phase 3 will not take place.

  3. IETF Phase 3 has launched; it will open to applications on 29 January 2024.

  4. Consultation on the design of IETF Phase 3 has concluded.

  5. Added link to IETF Phase 2, Summer competition winners.

  6. Added link to consultation on IETF Phase 3.

  7. We will hold a consultation later this year to finalise the design of IETF Phase 3 before launching it in early 2024. We have added a link to the latest winners for the Phase 2: Spring 2022 competition.

  8. We have announced winners from the Phase 2, Autumn 2021 competition.

  9. Link added to IETF Phase 2: Autumn 2022 competition.

  10. IETF Phase 2: Summer 2022 competition page added.

  11. Industrial Energy Transformation Fund (IETF) Phase 2: Spring 2022: guidance available now, opens to applications on 31 January 2022. Phase 2: Autumn 2021 is now closed to applications.

  12. Added information about IETF Phase 2 and a first stage process evaluation for IETF Phase 1.

  13. Link added to Industrial Energy Transformation Fund (IETF) Phase 1: Summer 2020 competition winners.

  14. IETF Phase 1: Spring 2021 opens to applications on 8 March 2021. Link to guidance added.

  15. First published.

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