Ofwat banks on innovation by doubling innovation fund to £0.4 billion

The announcement will extend the fund, founded in 2020, for a further five years to 2030.

Recently highlighted by Chancellor Rachel Reeves as an example of how regulators are supporting the Government's plan for economic growth the fund’s growth is part of an overall quadrupling of water investment expenditure, with a £104 billion plan for the sector over the remainder of the decade. 

Said Ofwat senior director for sector performance Helen Campbell:  

“There’s no question that the water sector faces many urgent challenges – reaching net zero emissions, ending the overuse of storm overflows, preventing leaks, and adapting to the impact of climate change – all while ensuring customers are properly served and enabling economic growth.

“While the first five years championed nascent technologies and new approaches to demonstrate their future potential, the next five years must see them scale and deliver a lasting and beneficial impact for customers, society and the environment”.? 

To date, the fund has supported 93 projects involving more than 240 partners. Much has been accessed via competitions including the 2020 pilot Innovation in Water, as well as four Water Breakthrough Challenges and the first Water Discovery Challenge. Winners of the fifth Water Breakthrough Challenge are to be announced in Spring this year.

While the annual Water Breakthrough Challenges focus on innovative ideas from water company-led consortia the Water Discovery Challenges, seeking groundbreaking ideas from companies outside the isector.

Additionally, three new funding streams to support the implementation and scaling of successful innovations will be introduced.  

The Ofwat Innovation Fund will be delivered by innovation prize experts, Challenge Works (a Nesta enterprise), in collaboration with Arup and Isle Utilities.