Funding Opportunities

Through the Fund, we are delivering a series of competitions to fund innovative initiatives which can deliver benefits for customers, society and the environment. Current and upcoming competitions are shown below.

Information on previous competitions can be found on our ‘Past Competitions’ page.

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Water Breakthrough Challenge 3

Following a review of the pilot period (summarised in our End of Pilot Report) and a consultation, we have now announced our plans for the next competitions in the Innovation Fund (detailed in Ofwat’s decision document and summarised in this blog).

The third round of the Water Breakthrough Challenge (‘Breakthrough 3’) opened on 3 October 2022, with £38 million available for innovative initiatives which deliver benefits for customers, society and the environment.

Water companies in England and Wales were able to bid for funding through two streams:

Water Breakthrough Challenge Catalyst Stream

Approximately £8 million is available.

Individual entries can seek between £150,000 and £2 million.

Entries opened at 12 noon BST on 3 October 2022 and closed at 12 noon GMT on Thursday 8 December 2022.

Water companies may devolve project management responsibilities (including drafting entries) to their partners.

Find out more and enter the catalyst stream

Water Breakthrough Challenge Transform Stream

Approximately £30 million is available.

Individual entries can seek between £2 million – £10 million. (Ofwat are exploring options to allow bids over £10 million).

Stage 1 entries opened at 12 noon BST on Monday 3 October 2022, and closed at 12 noon GMT on Wednesday 9 November 2022.

Water companies must play a leading role in all aspects of developing entries and delivering projects.

Find out more and enter the transform stream

Key Information

Following the consultation, several key design decisions have been made regarding the Water Breakthrough Challenge:

Eligibility: Both streams require lead entrants to be a water company in England or Wales, however the Catalyst Stream allows for entry leads to delegate project management responsibilities to their partners.
Financial contributions: Both streams maintain a requirement for 10% financial contribution.
Intellectual Property Rights (IPR): Both streams allow for background IPR to be licensed, but require that foreground IPR be shared with water companies in England and Wales. Entries can propose an alternative IPR approach.
Entry process: Both streams will maintain a similar entry process to that used in Breakthrough 2.
Timing: Both streams will be run annually in autumn 2022, 2023 and 2024 to provide time for innovation planning and partnership development.

More detailed information is available on the Breakthrough 3 webpage.

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Key information

We will be working on the detailed design of the new competition in the coming months, and will provide a full update in Autumn 2022. At this stage, we can confirm the following:

Eligibility: Anyone will be able to enter, subject to terms and conditions.
Financial contributions: There will be no mandatory 10% financial contribution
Intellectual property rights (IPR): There will be no IPR licensing requirements applied to winning entries to this competition
Entry process: There will be a straightforward entry process that is proportionate to the value and risk of proposed initiatives
Timing: The competition will be run annually, with exact timing to be determined.

More detailed information about the competition is available on the Discovery webpage.

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Water Discovery Challenge (coming soon)

Following overwhelming support in the consultation, we will be launching the Water Discovery Challenge (‘Discovery’) on 25 January 2023, with the goal of reducing barriers to access the Fund. Discovery will target early-stage innovation with the potential to deliver benefits for water customers, society or the environment.

Unlike the Water Breakthrough Challenge, there will be no requirement for organisations to partner or receive sponsorship from a water company to be able to enter the competition.

Approximately £4 million will be available.

Individual entries will be able to receive up to £500,000.

No water company partner or sponsor required.

Launching 25 January 2023.

Learn more about discovery