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ISCF Driving the Electric Revolution - Building Regional Centres of Excellence

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This latest competition will award up to £30 million to build regional centres of excellence for the development, prototyping and scale-up of power electronics, machines and drives (PEMD) technologies.

This competition aims to provide funding to establish the centres, building on existing capabilities and expertise where it already exists across the UK. The centres will support the industrialisation of PEMD technologies to help accelerate the growth of the UK’s supply chains for PEMD. The centres must be open access facilities that support the development, prototyping and scaling of PEMD technologies and manufacturing processes.

ISCF funding will support:

- The investment in capital equipment needed to create the centres
- Funding for operational costs to enable the centres to become established up to the end 31 March 2024

Details from the competition scope will be posted on Innovate UK’s website during October. The competition will open on 21st October. The Innovate UK pages will include all the details potential applicants need to know, including dates for submissions.

The Driving the Electric Revolution Challenge was launched in July 2019 by the Department of Business, Energy and Industrial Strategy as part of the Industrial Strategy Challenge Fund (ISCF). The ISCF provides funding and support to UK businesses and researchers. The fund is designed to ensure that research and innovation takes centre stage in the government’s Industrial Strategy.

The fund is being administered by UK Research and Innovation.

The Driving the Electric Revolution Challenge is an investment of £80 million over 4 years. It was set up to help UK businesses seize the opportunities presented by the transition to a low carbon economy. It aims to ensure the UK leads the world in the design, development and manufacture of power electronics, machines and drives (PEMD) across 7 sectors.

The challenge will create world-leading supply chains in the UK and expertise for the manufacture of Power Electronics, Machines and Drives (PEMD).

Find out more about the Electronics, Sensors and Photonics Main Interest Group at https://ktn-uk.co.uk/interests/electronics-sensors-photonics

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ISCF Driving the Electric Revolution - Building Regional Centres of Excellence

  1. 1. ISCF Wave 3 Challenge Driving The Electric Revolution Welcome Paul Huggett, Knowledge Transfer Network 29/10/2019
  2. 2. Agenda 10:30: Welcome, Paul Huggett, Knowledge Transfer Network 10:40 - Introduction to DER, Matt Boyle, Interim Challenge Director 11:00: Competition Scope, Venn Chesterton, Deputy Challenge Director, Innovate UK 11:30: Competition Process, Bimba James, Portfolio Manager, Innovate UK 12:00: Q&A Session, All Speakers 12:45: Lunch & Networking 13:00: One to One Surgeries (fully booked) 15:00: Close
  3. 3. Finding valuable partners - Project consortium building - Supply Chain Knowledge - Driving new connections - Articulating challenges - Finding creative solutions Awareness and dissemination - Public and private finance - Advice – project scope - Advice – proposal mentoring - Project follow-up Promoting Industry needs - Informing policy makers - Informing strategy - Communicating trends and market drivers Intelligence on trends and markets - Business Planning support - Success stories / raising profile Navigating the innovation support landscape - Promoting coherent strategy and approach - Engaging wider stakeholders - Curation of innovation resources Connecting Supporting NavigatingInfluencingFunding KTN: What we do
  4. 4. Driving the electric revolution: building regional centres of excellence Competition Briefing 29th October 2019
  5. 5. • To bring the scope and guidance to life, so you fully understand the competition and the relevant rules and processes for applying for and undertaking a project; • To give you the opportunity to ask us questions, and get appropriate guidance; • To highlight where you can find help at KTN; • To provide you with networking opportunities, with others, in the PEMD innovation landscape. Aim’s of today’s briefing
  6. 6. 5 foundations of The Industrial Strategy The Industrial Strategy is driving productivity and earning power across the country by focusing on the 5 foundations of productivity that support a vision for a transformed economy. Ideas The world’s most innovative economy Infrastructure A major upgrade to UK’s infrastructure People Good jobs and greater earning power for all Places Prosperous communities across the UK Business environment The best place to start and grow a business
  7. 7. AI and data economy Ageing society Clean growth Future of mobility Putting the UK at the forefront of the artificial intelligence and data revolution Harnessing the power of innovation to help meet the needs of an ageing society Maximising the advantages for UK industry from the global shift to clean growth Becoming a world leader in shaping the future of mobility Industrial Strategy Challenge Fund: Grand Challenges
  8. 8. Driving the Electric Revolution Challenge Overview
  9. 9. • £80M ISCF Wave 3 challenge • Focus on Supply Chain development in Power Electronics, Machines and Drives Power ElectronicsMachines Drives What is Driving the Electric Revolution?
  10. 10. ‘Driving the Electric Revolution will be the catalyst to building £5bn more Power Electronics, Machines and Drives (PEMD) products in the UK by 2025, encouraging industry across 7 sectors to invest and collaborate with academia to establish a PEMD supply Chain.’ Mission statement
  11. 11. The World needs more PEMD
  12. 12. Zero Carbon Road Transport 2040 Electric or Hybrid Aircraft 2040 Eliminate Diesel Rolling Stock 2040 Carbon Neutral by 2050 DER (PEMD) Faraday Future Flight Made Smarter Automotive OffHighway Rail Marine Aerospace Energy Industrial Policy/Wider Context
  13. 13. Enhancing UK strengths to lead the world Supply Chain Development Build new supply chain to support increase in electrification demand Build UK SME’s into credible Tier 1s and Tier 2s Materials to Manufacturing Covering full PEMD lifecycle from new materials to manufacturing Driving innovation beyond our international competitors Training and Skills Meeting industry requirements for PEMD specialists Retraining, technical and dedicated PEMD degree programmes Developing World Leading Facilities Prototyping and Scale-Up Consolidating international leadership in UK academic base Focused across all Sectors Maximise productivity Enable cross fertilisation Secure sufficient capacity
  14. 14. Delivery mechanisms National Centre of Excellence £30m Skills/Training Skills/Training ComponentSupplyChains £19m Power Electronics Semiconductors Motors Electric Steels Winding Magnets Drives Integration Scale up Validation Low Volume, High Value Supply Chains High Volume, High Efficiency Supply Chains Rail Aerospace Off Highway Industrial Marine Energy Automotive £10m £10.5m £6m
  15. 15. Driving the electric revolution objectives Objective 1 • To leverage the UK’s world leading research capability in PEMD to help industry create the supply chains necessary to manufacture the PEMD products the world needs Objective 2 •To identify gaps in the supply chains and help industry fill them. •Filling these generates enormous leverage downstream Objective 3 • To ensure cooperation and collaboration so we don’t duplicate effort, waste time and can reuse solutions across the 7 sectors. Objective 4 • We help fill the skills gap by retraining, upskilling and repurposing engineers from traditional internal combustion businesses into PEMD supply chains.
  16. 16. • Centres are established FOR INDUSTRY: • activity must be defined and led by industry • NO fundamental research • YES for building and developing supply chain capability • Proposals must clearly demonstrate industry support • The UKRI team will be closely monitoring business development activity Industry engagement with centres 9
  17. 17. • The centres: • represent a significant investment of the overall DER budget • will play a major role in delivering the DER objectives • are expected to report on progress regularly • must have a detailed evaluation framework in place* *This will be in cooperation with the wider challenge programme A key role in delivering the objectives 10
  18. 18. Innovate UK will: • provide a grant funding agreement to the centres • monitor the centres on a monthly or quarterly basis during their grant drawdown and at a rate to be agreed when the centres are fully established • expect industry investment or leveraged funding information to be provided quarterly • expect representation as an observer on the main decision making bodies of the centres • require an annual business plan for the centres which will be signed off by UK Research and Innovation each year • expect one representative of the centres to join the Programme Board for the Driving the Electric Revolution Challenge (which meets quarterly) Challenge teams centre support
  19. 19. Driving the electric revolution: building regional centres of excellence Applicant Briefing: Competition Scope
  20. 20. ü To provide funding to establish a network of flagship physical centres. ü These are for the development and scale up of PEMD technologies and manufacturing processes, building on existing capabilities and expertise. ü They will undertake industrialisation activities to support the growth of the UK’s PEMD supply chain, providing a location, equipment and staff expertise to undertake projects. ü They will not perform fundamental research as this is already funded through existing centres. Aims
  21. 21. We expect centres to: • focus on all 7 industry sectors, including all levels of their supply chains - Tier N to OEMs. • help SMEs to develop and scale new PEMD technologies. • leverage a further £82m of co-investment by March 2024 • start quickly - within 18 months of grant award we expect the winning proposal to have invested in the equipment, commissioned it and operating. Centres outcomes
  22. 22. Centres must: • be open access • work with all parts of the UK’s PEMD supply chain, from SMEs to OEMs • work with a range of PEMD technologies from opening, based on the needs of users • resemble and operate as industrial scale manufacturing and development facilities, but with greater flexibility • support activities and projects (funded by industry or other sources and supported by industry) that develop future PEMD solutions and manufacturing processes Competition Scope (i)
  23. 23. Centres must: • build on existing centres of excellence already operating • use capability and knowledge from within your organisation or your consortium partners • link to and work with other locations, universities or centres that undertake fundamental research in PEMD • NOT directly replicate existing capabilities in the UK • commit to work with other partners, stakeholders and organisations around the UK not involved in the consortium but who still offer critical capabilities in PEMD Competition Scope (ii)
  24. 24. • Front door: Centres will work as one joined up single entity during their creation and operating lifetime, with a single process to work with users of the facilities, regardless of location. • Users: Centres will undertake business development activities to find users, including working with partners to promote the centres in the UK and internationally. • We envisage between 2 and 4 regional centres, reflecting the UK’s existing PEMD clusters. • This does not mean that the ISCF investment is only in these physical locations or in just these buildings or sites. • One regional centre could mean investment in a small number of sites within that region if that reflects the best delivery structure. Centre locations
  25. 25. To lead a project, or work alone, your organisation must: • be a UK registered business of any size, a research organisation or a RTO • show you can leverage industry investment alongside the ISCF funding • demonstrate clear industry support for your application • have demonstrable expertise in PEMD • carry out its project work in the UK & intend to exploit the results from, or in, the UK • Academic institutions cannot work alone Project Leadership
  26. 26. To collaborate with the lead organisation your organisation must: • be a UK registered business, research organisation, academic institution, charity, public sector organisation or RTO • carry out its project work in the UK • intend to exploit the results from or in the UK Project team
  27. 27. • We expect your total eligible project costs to be up to £50 million • Funding from UK Research and Innovation must end by 31st March 2024 • This date will be the end of ‘the project’ with regard to the grant draw down • Centres must operate for 10 years in total. • ‘Project’ phase: Award date up to 31/03/2024 • ‘Operational’ phase: 01/04/2024 to 31/03/2030 latest Project size and duration
  28. 28. • There is up to £30 million to fund innovation projects in this competition • The centres must leverage a further £82 million of industry investment alongside the ISCF funding, by March 2024. Funding
  29. 29. • Funding of capital assets into centres from: • universities, RTOs, public authorities or industry • cash investments made by industry • In-kind (non-cash) contributions from industry that demonstrates clear value for the in-kind support • Any surpluses generated by the centres and re-invested as additional OPEX or CAPEX • Direct industry funded project work that takes place in the centres • Induced or aligned funding from industry or partners that happens as a result of the centres: • e.g. investment in a business’s own production facilities following a project with the centres to prove out a concept or manufacturing process Industry co-investment - examples
  30. 30. • collaborative research and development projects • centres that propose to carry out fundamental research • projects that duplicate capability or conflict with existing investments and capabilities, whether funded by UK Research and Innovation or not • projects that require ISCF funding for new buildings to be built • skills and training activity* • projects that do not establish open access facilities focused on the development and scale up of PEMD technologies and manufacturing processes *There is a further £6m dedicated to skills and training We are not funding:
  31. 31. Tell us: • how your team are building on existing investments and capabilities to deliver a world class network of centres for PEMD development and scale up • why your organisation, or the organisations in your collaboration, are the best placed to deliver the regional centres and contribute to the overall challenge objectives • what you will invest the ISCF funding in and what it will buy across the locations proposed, including how this aligns with your project team’s existing assets, capability and knowledge • your co-investment from industry and other sources • your operating model, for at least 10 years • how you will work with users of the centres, from SMEs to large businesses • the support you have had from, and work you have done with, industrial users of the proposed equipment and capabilities to demonstrate the clear industry need for the proposed facilities • how you will work with the wide ‘ecosystem’ of existing stakeholders, research centres and programmes Your proposal – Key points
  32. 32. Competition Process 1
  33. 33. Agenda • Eligibility Criteria • Application Questions and Process • Application Finances • Submitting your application • Assessment • Project set up for successful applicants • Q&A 2
  34. 34. Eligibility criteria 3
  35. 35. Eligibility criteria 4 In collaborative projects the lead and at least one other organisation must claim grant funding You can include partners that do not receive any grant funding. Their costs will count towards your total eligible project costs
  36. 36. Eligibility for State Aid The successful project will be funded as either: • a research organisation as defined in the Research, Development and Innovation Framework (2014) and therefore classed as non-state aid • a predominantly commercial undertaking either under the GBER (2014) or a model that is exempt from consideration as state aid by the European Commission In either case applicants must demonstrate how their proposal complies with the definition under GBER, both in the establishment of a centre and in their operation of it. The centres must remain compliant with their status under the award, for the duration of the UK Research and Innovation funding period. Applicants are advised to seek independent legal advice if they are unsure on compliance with State Aid requirements. 5
  37. 37. Key dates 6
  38. 38. Application questions and process 7
  39. 39. Application process 8 Feedback Notify applicants Invite to interview and interviews Assessment Complete and submit documents Download finance form Register for the competition Via competition website – application form will be emailed To be completed by all partners Use all of the space provided. Upload documents to the FTP site. Don’t leave submission until the last minute! Applications will be assessed by independent assessors. On dates provided By date provided Within 4 weeks of receiving your notification
  40. 40. Application process (2) 9 Public area Click Login to access the Secure area
  41. 41. Application process (3) 10 UPLOAD documents Enter your login details and accept the T and Cs. Click the Login button at the bottom. Click Upload and follow the on- screen instructions. Secure area
  42. 42. Application form 11 Optional appendices
  43. 43. Application form (2) 12 Optional appendices Application form (continued) Section3: Fundingfrom ISCFand industry Question 9 What is the financial commitment required for the centres? Question 10 How does your bid represent value for money and long term viability? Other funding from public sector bodies Finance summary table Please label all appendices using the file format ‘AppendixQ2- (application number eg.123456)’
  44. 44. Project details • Application Details - Title, Timescales • Project Summary - Short summary and objectives of the project including what is innovative about it • Public Description - Description of your project which will be published if you are successful • Scope - How does your project align with the scope of this competition? - If your project is not in scope, it will be ineligible for funding 13
  45. 45. Application finances 14
  46. 46. Finance summary table 15
  47. 47. Project finance forms – capital projects • Each organisation claiming a grant must complete a Project Finance Form. • IMPORTANT: Figures on the individual Project Finance Forms must total the same as those shown on the Finance Summary Table on the application form. • The form includes a tab for each cost category which needs to be completed. The figures in each cost category tab populates the summary/total fields. • Cost categories are split into operating (O) and capital (C). • Form must show the status as “complete” before submitting. Select ‘No’ on any tabs that are not applicable to mark them as ‘complete’. 16
  48. 48. Project finance forms – capital projects (2) Do not include: • costs incurred by the centres during the operational phase after 31 March 2024. Instead list these costs in your response to question 9. • any in kind financial support in this form. This form is only for costs directly incurred by the partners. For this competition capital utilisation costs of existing assets are not eligible costs. 17
  49. 49. Capital equipment (C) 18 All specialist materials, plant and equipment, laboratory / process kit, machinery, computers, furniture etc
  50. 50. Property Capital Costs (C) All costs associated with the capital build • Land purchase costs • Property acquisition (including acquisition price, Land Registry fees, Stamp Duty Land Tax) • Construction costs (new build, refurbishment and fit-out) • Equipment procured via a works contractor (furniture, fixtures and fittings, IT and AV costs) • Professional fees (legal, PM/QS, design fees, commissions, statutory fees, consultant fees, project insurance etc) 19
  51. 51. Capitalised labour (C) • Labour costs incurred specifically associated with the capital build, e.g. technicians to get the equipment up and running, consultant fees directly associated with the development • This does NOT include labour costs associated with the day to day running of the facility 20
  52. 52. Other capital costs (C) Any other costs which are not specific to the other tabs 21
  53. 53. Labour costs (O) 22
  54. 54. Overheads (O) Overheads are additional costs and operational expenses incurred directly as a result of the project. these could include additional costs for administrative staff, general IT, rent and utilities In calculating the value of these costs we offer 2 methods: • 20% of labour costs • calculate overheads 23
  55. 55. Calculate overheads (O) Indirect (administration) overheads please ensure they are additional and directly attributable to the delivery of the project Direct overheads E.g. office utilities, IT infrastructure, laptop provision not covered by capital usage must be directly attributable to the project Provide detailed breakdown together with methodology/basis of apportionment 24
  56. 56. Material costs (O) 25 Once ‘Yes’ is selected from the drop down option, the table will appear
  57. 57. Sub-contracting costs (O) 26
  58. 58. Travel and subsistence costs (O) 27
  59. 59. Other costs (O) 28
  60. 60. Assessment and next steps 29
  61. 61. Application assessment 30 All applications are assessed by independent assessors drawn from industry and academia - What do they look for? • Clear and concise answers • The right amount of information • not too much detail • no assumptions • Quantification and justification • A proposal that presents a viable opportunity for growth, a level of innovation that necessitates public sector investment and has the right team and approach to be successful
  62. 62. Notes on feedback 31 • The feedback is compiled using the written comments of the independent assessors who review and assess the applications. • It is intended to be constructive in nature and to highlight both the strong as well as the weak areas of your application. • Please bear in mind that because applications are assessed by a number of assessors, you may receive information which appears to be conflicting. This may reflect their different interpretations of the proposal that you submitted. • It must also be noted that some proposals may appear to have been favourably assessed based on their comments, in such instances it could be that your proposal simply fell below the funding threshold, with others achieving a higher merit score overall.
  63. 63. Scoring 32 • We review scores and feedback to check assessors are adhering to our guidelines and scoring fairly. • In some cases, where an outlier score is identified, and where we feel a score is unjust and not supported by feedback, we may remove that score and update the total score for the application. • Please be aware that both low and high outliers may be removed and as a result scores may increase or decrease.
  64. 64. Application assessment 33 • The score spread shows the difference between the top and bottom scores • If score spread is 30 or more we will look to see if an outlier is apparent • If there is a 3 or more appear in either the two columns Count of No Scope or Count of No Recc’d we review the applications feedback and if justified, the application will not be eligible for funding.
  65. 65. Identifying outliers 34 • The green box highlights a particular assessors scores on an application • The purple box highlights a set of scores for a particular question • We look for a difference of 20 or more within the assessors total score to identify an outlier. At first glimpse we would consider assessor 3 to be the outlier with a score of 62 but this must be backed up by the feedback
  66. 66. Interviews 35 If you are invited to progress to interview: • You can bring up to nine people to attend the interview • You will have 40 minutes to present a maximum of 40 PowerPoint slides, with no videos or embedded links • There is a 40 minute Q&A session lead by members of the panel • You will have an opportunity to respond to the assessor feedback so the panel can read it prior to interview • The response to feedback, presentations and presenters’ names have to be provided ahead of the interview
  67. 67. Project setup for successful applicants 36
  68. 68. Notifications 37 Successful applicant Innovate UK The Project may not start until the organisation has received and returned signed acceptance of the Grant Confirmation Letter Notification sent
  69. 69. Feedback 38 Feedback provided Feedback is issued to both successful and unsuccessful applicants within 4 weeks of notification. Feedback is uploaded to the secure area of your FTP site
  70. 70. Project set up 39 All grant claiming project partners will be required to complete project set up and financial viability and eligibility checks. To avoid delays you should consider: • Who will be the project manager? • Who will be the finance contact for each consortium member? • How will your consortium be set up? Please bear in mind that the winning proposal for this competition will form a major part of the delivery of the overall Driving the Electric Revolution challenge and as such will be expected to work with the other parts of the programme in a collaborative manner. The centres will be expected to attend all cohort meetings with other collaborative projects funded by the Challenge to share non- commercially sensitive results and best practice, and to encourage further collaboration and project opportunities.
  71. 71. Collaboration agreement 40 • Original agreement signed by all participants • Key Features: • Who is in the consortium? • What are the aims, and how is the work divided up? • Ownership of IPR • Management of consortium Negotiating a Collaboration Agreement can be complex and time consuming. Start work on this at an early stage in the process.
  72. 72. Grant claims and payments 41 • All grants are claimable quarterly in arrears • Claims can only be made for costs incurred and paid between the project start and end dates • Claims may be subject to an independent audit according to grant size • Claims are only paid once quarterly reporting and necessary audits are complete • Projects over 6 months are monitored on a quarterly basis including a visit from the appointed Monitoring Officer. Anything outside of this will be discussed on a case by case basis. • The monitoring will be carried out against a detailed project plan and financial forecast
  73. 73. Contact details 42 Customer Support Services: 0300 321 4357 (Mon-Fri, 9am-5:30pm) support@innovateuk.ukri.org Knowledge Transfer Network: www.ktn-uk.co.uk Innovate UK: https://www.gov.uk/government/organisations/innovate-uk
  74. 74. Competition Process Q&A 43