BEIS are seeking views on the Industrial Energy Transformation Fund, which will help industry to improve energy efficiency, cut energy bills and shift to lower carbon energy and processes.
The £315 million Industrial Energy Transformation Fund will support businesses with high energy use to:
- cut their bills and emissions through increased energy efficiency
- transition to a low carbon future through the use of lower carbon energy and processes
This informal consultation seeks views and supporting evidence to help design the fund. Its focus is particularly on the benefits and barriers to industrial decarbonisation as government has a good understanding of these issues for energy efficiency.
The government’s modern Industrial Strategy is a long-term plan to boost the productivity of the UK economy. An important part of this approach is putting the UK at the forefront of tackling four global Grand Challenges – one of these being maximising the advantages for UK industry from the global shift to clean growth.
Moving to a low carbon economy and cutting energy use is vital both to saving households and businesses money on their energy costs and to reducing carbon emissions. Whole new industries will be created and existing industries transformed as the UK moves towards a low carbon, more resource-efficient economy.
The Industrial Energy Transformation Fund (IETF) was announced in the autumn Budget in 2018. The Fund will support businesses with high energy use, such as energy intensive industries, to transition to a low carbon future. It will help companies cut their energy bills and carbon emissions through investing in energy efficiency and low-carbon technologies. The IETF has a UK-wide budget of £315m over five years to 2024. The Government’s current view on the Fund is that it will support both energy efficiency and decarbonisation projects as this will lead to carbon emission reductions and lower energy bills.
As well as supporting projects that are ready for deployment, decarbonisation projects in particular may need support at an early stage, therefore BEIS propose to support feasibility and capacity building. IETF support will provide a proportion of the funding for projects, with the rest match-funded by industry. To maximise value for money, a competitive bidding process is proposed.
This consultation closes at 11:45pm on 31 May 2019