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

2. ISCF Wave 3 Challenge
Driving The Electric Revolution
Welcome
Paul Huggett, Knowledge Transfer Network
29/10/2019

3. 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

4. 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

5. Driving the electric revolution: building regional
centres of excellence
Competition Briefing
29th October 2019

6. • 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

7. 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

8. 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

9. Driving the Electric Revolution
Challenge Overview

10. • £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?

11. ‘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

12. The World needs more PEMD

13. 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

14. 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

15. 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

16. 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.

17. • 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

18. • 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

19. 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

20. Driving the electric revolution: building
regional centres of excellence
Applicant Briefing: Competition Scope

21. 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

22. 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

23. 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)

24. 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)

25. • 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

26. 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

27. 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

28. • 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

29. • 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

30. • 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

31. • 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:

32. 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

33. Competition Process
1

34. Agenda
• Eligibility Criteria
• Application Questions and Process
• Application Finances
• Submitting your application
• Assessment
• Project set up for successful applicants
• Q&A
2

35. Eligibility criteria
3

36. 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

37. 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

38. Key dates
6

39. Application questions and process
7

40. 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

41. Application process (2)
9
Public area
Click Login to access
the Secure area

42. 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

43. Application form
11
Optional
appendices

44. 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)’

45. 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

46. Application finances
14

47. Finance summary table
15

48. 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

49. 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

50. Capital equipment (C)
18
All specialist materials,
plant and equipment,
laboratory / process kit,
machinery, computers,
furniture etc

51. 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

52. 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

53. Other capital costs (C)
Any other costs which are not specific to
the other tabs
21

54. Labour costs (O)
22

55. 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

56. 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

57. Material costs (O)
25
Once ‘Yes’ is selected from the drop down option, the table will appear

58. Sub-contracting costs (O)
26

59. Travel and subsistence costs (O)
27

60. Other costs (O)
28

61. Assessment and next steps
29

62. 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

63. 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.

64. 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.

65. 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.

66. 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

67. 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

68. Project setup for successful applicants
36

69. 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

70. 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

71. 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.

72. 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.

73. 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

74. 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

75. Competition Process Q&A
43