Notice

AI for Decarbonisation Innovation Programme: Stream 3 clarification questions

Updated 19 March 2024

This notice was withdrawn on 27 November 2024

This competition is closed: see the resulting projects.

1. I would like to enquire and confirm whether Lot 1 and specifically using AI to accelerate decarbonisation of electricity demand would include accelerating the decarbonisation of electricity demand in homes through the switchover from gas boilers to heat pumps?
_{(Added 1 September 2023)}

This depends on the nature of your project. Lot 1 is looking for innovative AI technologies that can help accelerate and optimise the use of low carbon electricity systems, especially in a widespread electrification scenario, whilst maintaining security and reliability, and reducing the cost of existing options. For example, projects looking at using AI to design next generation heat pumps or using AI / smart meter data / other data to determine the size and type of appropriate heat pump are eligible. Projects looking at using AI as digital assistant / large language model are not eligible. Projects also must demonstrate their innovativeness, impact on net zero targets and security of energy supply. Provided your project involved these elements and is at TRL 3 -7, it would be eligible.

2. One of the projects I have in mind is split in 2 parts: Part 1 is a traditional control and metering system that would need to developed as hardware; Part 2 is a remote software system that features some AI elements. Most of the work for this programme would be dedicated to the hardware development and only a smaller part dedicated to the AI element of the remote software system. Is there any criteria how much of the project must be dedicated to the core AI part?
_{(Added 1 September 2023)}

There is no criteria on how much the project must be dedicated to the core AI part but we expect this to be a significant part of the project. The programme is an innovation competition, so we expect your project to be at technology readiness level (TRL) between 3 – 7 and then make technical progress so that you increase the TRL by the end of the project (even if that is just by one level). Projects that look to install or implement already commercially available hardware or technologies (TRL 9) are not eligible for the fund. Details of the TRLs can be found in the Appendix of the Guidance Document.

3. The most efficient way for me to provide match funding is through sweat, for example providing resources ‘for free’. Is there a way that the match funding can be provided through non-paid time spend on the project?
_{(Added 1 September 2023)}

The match funding must be in monetary form, we cannot accept in-kind contribution (a contribution in goods or services). The match funding may come from applicant’s own resources or external private sector investors but may not include grant or other similar funding attributable to any public authority funding the same work.

4. I have one question regarding the following eligibility criteria for the AI for Decarbonisation Programme, Stream 3:

You can apply for Aid for startups if your company:

• has spent at least 10% turnover on research and development in at least 1 of the last 3 years (if you’re a startup with no turnover yet, you must have this validated by an independent party).

Our situation is that we are operating a recently formed startup, with no turnover or financial statements to demonstrate either operational or R&D expenses. However technical research has been our main activity, and has been by far the biggest sink of time and resources. Hence I would suppose we comply with the criteria in spirit.
_{(Added 22 September 2023)}

You are eligible to apply as a start-up. If your application is successful, you will be asked to provide the validation from an independent party as part of the due diligence checks. The turnover (or absence of turnover) should be checked by a certified auditor, which would be a registered Auditor or a Chartered Accountant in Practice.

5. Does the grant submission affect our IPR?
_{(Added 22 September 2023)}

All applications remain confidential. If you are successful, only the public summary that you provide for the project will be published, but the application and project specifics remain confidential.

6. Are participants allowed to retain existing and any arising IP from the project?
_{(Added 22 September 2023)}

Any intellectual property developed remains that of the project. Applicants should detail how this will be managed across any partner/collaborative organisation in their collaboration agreements.

7. I am looking to apply under the ‘Aid for Start-ups’ category. In some places the documentation says that the total amount that can be applied for is £350,000. However in ‘4.4 Funding levels for Aid for Start-ups’, it says:

‘Applicants within this subsidy category requesting grant funding of up to and including £150,000, will be required to demonstrate 10% of their total eligible project costs for their match funding.’

I am a little confused as to whether this is implying that the total startups can apply for is £150,000, or whether this is just an example, and that we can apply for up to £350,000, but we would still need to provide 10% matched funding. I couldn’t find anywhere else that said that startup aid was limited to £150k so I am somewhat confused.
_{(Added 10 October 2023)}

We can confirm that as a start-up, you can apply up to £350,000 with 10% match funding. The wording under Section 4.4 above was a mistake – the Guidance Document has now been re-uploaded with the correct information.