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Inverter Drive Systems Ltd

IDS are ABB Inverter specialists. We specify, install, commission, repair, service and hire variable speed drives.

Industrial Energy Transformation Fund

Industrial Energy Transformation Fund

What is the Industrial Energy Transformation Fund?

The Government describe the Industrial Energy Transformation Fund (IETF) as:

“Supporting the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future.” But what is it exactly?

In 2018, the Government announced that £315 million of funding will be made available in grant form, to help businesses with high energy use to cut carbon emissions and energy bills by investing in energy efficiency and low carbon technology. This funding is available up until 2025 and Phase 2 of this scheme is due to open on 31st January 2022.

When is the Industrial Energy Transformation Fund Open to Applications?

The IETF Phase 2 opens at 11am on 31st January 2022 and will provide up to £60 Million of grant funding. This round of funding will close at 3pm on 29th April 2022.

There will be 2x further opportunities to apply for funding:

  • Summer 2022, May – September
  • Autumn 2022, October – January

Who is Eligible for the Industrial Energy Transformation Fund?

Phase 2 of the IETF is available to the following sectors:

Eligible industrial processes SIC codes
Mining and quarrying 05101 through to 05200
07100 through to 08990
Manufacturing 10000 through to 33200
Recovery and recycling of materials 38320
Data centre 63110

The Government website states:

“Please check the SIC code you were allocated at the time of registering at Companies House. If the parent company SIC Code does not reflect the activity carried out at your site, for example where a data centre is owned by a telecoms company, you may still be eligible.”

The Industrial Energy Transformation Fund Phase 2 guidance document provides more detail on the eligibility criteria.

What Projects can be funded through the Industrial Energy Transformation Fund?

In Phase 2 of the IETF, up to £60 million of grant funding is available for the following project types:

  • studies – feasibility and engineering studies to enable companies to investigate identified energy efficiency and decarbonisation projects prior to making an investment decision
  • energy efficiency – deployment of technologies to reduce industrial energy consumption
  • deep decarbonisation – deployment of technologies to achieve industrial emissions savings


Grants are awarded towards the total cost of successful proposals. These project proposals must fall within the minimum and maximum thresholds displayed in the table below:

Funding applied for Minimum threshold per application Maximum threshold per project
Energy efficiency deployment projects £100,000 £14 million
Deep decarbonisation deployment projects £100,000 £30 million
Engineering studies £50,000 (total eligible cost) £14 million
Feasibility studies £30,000 (total eligible cost) £7 million

How to apply for the Industrial Energy Transformation Fund

Applications to the IETF are open from 11am on 31st January 2022. A link to the Phase 2 Industrial Energy Transformation Fund application form will be added to this page on the Government website and we will add the link to this article as soon as it becomes available. It is advisable to read the Phase 2 IETF Guidance document prior to completing the application.

Did you know?

If you have already applied for IETF funding, regardless of whether the application was successful or not, you can still apply for funding in each of the 3x sets of Phase 2. You cannot, however, apply for funding for a project that has already been awarded. There is a wealth of other useful questions and answers about Phase 2 of the IETF available here.

Where do IDS come in?

IDS are an ABB VP specialising in inverter technology. Inverters (variable speed drives) are renowned for reducing the energy used by electric motors. From crushers, hydraulic power packs, dc to ac upgrades, fans and cooling towers, to pumps, mixers, conveyors and HVAC systems. With technical support and back up from ABB and more than 20 year’s experience working with inverter technology to make UK sites more energy efficient, we can help your site create an eligible project for submission to Phase 2 of the IETF.

Whilst we cannot make an application on your behalf, we can be your “Project Partner” and assist you with your application.

For an initial discussion or to arrange an electric motor energy survey, please call us on 0115 944 1036 or email [email protected]

Extra Advice and Guidance

If you need more information about Phase 2 of the IETF or the application process for England, Wales and Northern Ireland, please contact the BEIS IETF team at [email protected] If your site is based in Scotland, you can apply for the Scottish Industrial Energy Transformation Fund (SIETF), or contact them at [email protected]

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