Ofwat opens new fund to support innovation scaling

(by Karma Loveday)

The Water Innovation Implementation Programme — a new part of the Ofwat Innovation Fund —opened for applications last week. It is designed to help move innovations from successful trials to implementation at scale.

Formally open until 2030, the programme is initially being run as a trial with a review point scheduled for March 2027. £40m is available across two streams: 

The Early Adopter & Fast Follower stream:

Applicants can request £100,000 — £1m in 50:50 match-funding to implement a proven innovation, with a maximum of £5m in total match-funding per innovation available. In each case, the Early Adopter must be a water company (including New Appointment and Variations or Infrastructure Providers). Early Adopter proposals that meet the minimum requirements will be shared with other water companies, who will have three months to submit Fast Follower applications. Projects that secure at least two eligible Fast Followers will be considered for funding. To support equitable access, two Fast Follower places per project are reserved for companies serving fewer than 3m customers.

The Implementation Enablers stream:

Funding is flexible and needs-based, drawing from up to £10m available for the stream. Lead entrants can be different types or organisation, including water companies, suppliers, academics, non-governmental organisations and other sectors. The stream involves a collaborative process built around cycles of barrier identification, solution development and solution selection. The stream will use end-to-end sprints, workshops and targeted calls to industry to design and support practical solutions that address shared barriers to implementation across the sector.

A Sector Implementation Committee and Ofwat will review all bids and make recommendations for funding, with Ofwat making the final decision.