Fund for replacing transformers – What you need to know!
The Industrial Energy Transformation Fund (IETF) is a grant designed to encourage energy intensive businesses to cut their carbon emissions and reduce their energy waste through switching to energy efficient low-carbon technologies. This fund is run by BEIS and Innovate UK.
Our Energy Policy Manager pitched the case of transformer replacement to BEIS and Innovate UK and as a result of this in Phase 1: Spring 2021, transformer replacements were added to the technological scope. The fund aims to support innovative and mature technologies. Hence, a future-proof level of low losses transformers qualifies to enter the competition. This only applies to replacing old transformers and does not apply to new builds or expansions.
- Multiple distribution transformer replacements with Wilson e3 Ultra Low Loss transformers
- One or more power transformer replacement with new Tier 2 power transformers
How do I know if I’m eligible?
- Be a manufacturer (SIC codes 10 to 33) or data centre (SIC code 63110).
- The business has to be registered in England, Wales or Northern Ireland.
- The deployment must be carried out at a single site (one postcode) in these areas.
- The minimum value of the fund must be £100,000.
- The maximum proportion of the eligible cost businesses can receive depends on the size of the business and the geographical location but it varies between 30% to 65% of the total project costs.
What dates do I need to look out for?
Applications for phase 1 have been open from March 8th 2021 and run until July 14th 2021 at 11am. Awarded projects must start no later than 1 January 2023 and end by 31 December 2024. Innovate UK will host a briefing session on 8th June, you can register here or watch the recording for the launch event here.
What is the available fund value?
Funds are given in the form of grants with a minimum grant of £100,000 for deployment projects with a maximum grant funding of £14 million for each individual project (capped by state aid limitations). The funding is available as a capital grant and does not cover operational costs. Please see the table below for more information.
|Business size||Funding as a proportion of the eligible costs||Located in “A” areas||Located in “C” areas|
How Wilson Power Solutions can support you through the process:
Our Energy Policy Manager at Wilson Power Solutions can deliver a briefing if your team is interested.
Initial free of charge consultation
Energy Policy and Sales Teams at Wilson Power Solutions can provide consultation to check the initial project concept validity and eligibility.
Basic project payback calculations
Wilson Power Solutions can provide an initial recommendation to estimate the financial expectations of the project. Carbon, energy and financial savings payback can be produced to showcase the level of energy efficiency that could be achieved based on the existing site assets.
Wilson Power Solution can help provide any transformer collateral for the competition application and figure out any collaboration details if needed. We have talked to a company that specialises in assisting in government funding applications. They can be hired to take over the application process on your behalf.
Data logging before deployment
Wilson Power Solutions can recommend an independent auditing company to go on-site to do power quality and consumption data logging for a week. This data will then be analysed to show any existing system issues and inefficiencies.
Design, manufacturing and supply of transformers
According to the industrial site requirement, Wilson Power Solutions will design, manufacture and supply energy efficient low loss transformers according to standards.
Post-deployment data logging
Wilson Power Solutions can recommend an independent auditing company to log consumption, power quality and other data to show the energy, carbon and financial savings. Data logging and analysis will take place multiple times over the following five years of the deployment of the project. This information will then be shared with Innovate UK and BEIS and be made a public case study that demonstrates decarbonisation.
Please see our guide https://www.wilsonpowersolutions.co.uk/app/uploads/WPS-IETF-Guide-Spring-2021.pdf and our digest https://www.wilsonpowersolutions.co.uk/app/uploads/WPS-IETF-Digest-Spring-2021.pdf for further information on the IETF.
If you are interested in this fund and the scope in which Wilson Power Solution has proposed, please fill the contact form on the right. Alternatively, get in touch with our Energy Policy Manager, Ayah Alfawaris, on firstname.lastname@example.org
IETF: Industrial Energy Transformation Fund FAQ
The Industrial Energy Transformation Fund (IETF) was designed by the UK government to encourage energy-intensive businesses to cut their carbon emissions and reduce their energy waste by switching to energy-efficient low-carbon technologies. A budget of £315 million was allocated by the government to be spent through the IETF. BEIS manages England, Wales and North Ireland’s […]
Fund for replacing transformers – What you need to know!
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