Publication - Advice and guidance

Low Carbon Infrastructure Transition Programme: application guidance

Published: 24 Apr 2016

Guidance on eligibility and the application process for the Low Carbon Infrastructure Transition Programme (LCITP).

Published:
24 Apr 2016
Low Carbon Infrastructure Transition Programme: application guidance

This webpage provides all the necessary guidance for projects applying for support from the Low Carbon Infrastructure Transition Programme. See below for guidance relating to:

Eligibility

Projects will be expected to provide full details in the application form, with supporting financial information, demonstrating how the project meets the required eligibility criteria. The projects will then be assessed by the LCITP project team.

Organisation types

Applications for project development support are accepted from organisations such as:

  • SMEs
  • Non SMEs
  • Community groups
  • Registered charities
  • Third Sector
  • Community Benefit Societies
  • Community Interest Companies
  • Local Authorities
  • Public sector organisations
  • Registered Social Landlords
  • Academic institutions

Subject matter

The LCITP will consider support for projects in the following areas:

  • low carbon and/or renewable electricity and heat generation
  • local energy economies
  • heat recovery (e.g. district heating)
  • energy storage and distributed energy systems
  • hydrogen
  • demand side management and active network management
  • innovative/ local finance solutions and investor readiness for low carbon projects
  • energy efficiency (e.g. non-domestic building retrofit)

Project qualities

It is anticipated that eligible projects will demonstrate the following qualities:

  • falling within the agreed subject/topic areas outlined above
  • an innovative approach to cross sector collaboration to ensure successful project delivery
  • the potential to deliver significant reductions of greenhouse gas emissions (MtCO2e) and/or energy consumption
  • the ability to attract other sources of funding that make a significant contribution towards the cost of the project
  • the potential to have a positive and significant social and economic impact on Scotland
  • community engagement and/or potential for community investment; and
  • the ability to demonstrate directly the added benefits that can be delivered through LCITP support

Excluded projects

LCITP will not generally support:

Projects which can already access existing full support and/or funding. The LCITP works jointly with sector partners that deliver support in other areas and may be able to signpost applicants to alternative funding schemes where possible.

Specific exclusions include:

  • research and development of technology
  • marine/offshore wind energy
  • sustainable transport
  • domestic energy efficiency
  • capital investment into commercial renewable development (except where it has a community focus)
  • established technologies
  • any project work that falls under pre-catalyst phase (e.g. masterplanning)

Applicants should know that as the LCITP is a new programme, the eligibility criteria will be reviewed as the programme develops and evolves and therefore may be subject to change.

Project stages

We have identified three broad stages in the development of a low carbon project:

  • catalyst: feasibility work and outline business case development
  • development: final business case, investment options and investment propositions
  • demonstrator: capital support may be available to demonstrate the commercial viability of a proven technology in the Scottish context

Applications can be made during an LCITP Call by a single organisation or by a consortium/partnership with a project lead organisation, which, if funded will agree and sign the contract agreement. Supported projects will not automatically progress through all of the stages of the programme, and will be reassessed for support upon successful completion of stages 1 and/or 2. Technology specific calls will be issued periodically in line with market demand.

Required progress

To be eligible for LCITP support you must have a defined infrastructure project. To meet this definition a project must have:

  • identified a technology
  • identified a location
  • identified an end user

LCITP does not support concept development or options appraisals. An options appraisal will indicate which sort of technological development/approach is the most sensible and realistic option for the project development opportunity in your circumstances. Wherever possible, should it be determined that a project proposal is pre-LCITP or ineligible for other reasons, efforts will be made to signpost the project to more suitable public sector support schemes.

Catalyst applications

Applications at feasibility stage or outline business case are welcomed.

For the purposes of LCITP, a feasibility study is the evaluation and analysis of an identified infrastructure project. It will support the process of decision-making by objectively and rationally detailing its strengths and weaknesses, opportunities and threats, as well as identifying the resources required to deliver it.

Development applications

For projects that have already proven feasibility, whether or not supported through LCITP, the programme may support the development of high quality and comprehensive investment grade business proposals in relation to infrastructure projects. This may include the preparation of the following:

  • business plan
  • strategic development plan
  • market demand analysis
  • valuations
  • financing options appraisal

The LCITP team has prepared full guidance relating to the preparation of investment-grade business proposals.

Demonstrator applications

Demonstrator funding is only available through the LCITP under an open Call process. These are launched by the LCITP according to market demand, as appropriate.

How to apply

Begin by filling out an initial contact form for each project to be considered.

The LCITP team will contact you to build up a picture of your project and recommend the most appropriate next steps within 20 days of receiving your initial contact form. If your project is eligible, the LCITP team will make arrangements to support you to complete the full application form.

We have produced two guidance notes:

  1. Completing a full application to the LCITP - this provides prospective applicants with an idea of the type of information they are expected to have to be able to complete a full application to the LCITP.

  2. Developing an investment grade proposal - this provides high-level guidance on the probable content of a business case and proposition to prospective investors. It is an organised list of information that projects can consult to determine whether they have sufficient information available to produce an investment-grade proposal, or what they may be required to produce to reach such a stage.

Download the guidance notes.

Assessment

Once completed and signed (both electronic and hard copy are required), full applications will be subject to evaluation and given a score by the LCITP Assessment Panel at a monthly Case Conference, so that a decision can be made on LCITP support and next steps.

Each project will receive a full copy of the completed LCITP appraisal form, to help applicants understand the decisions and recommendations of the panel. All applications submitted must be approved in writing by an individual with relevant authority within the applicant organisation, before support can commence for any project or activity.

Case Conferences

Case Conferences are held on the final Tuesday of each month. Final applications and supporting documentation should be submitted no less than one working week in advance of the Case Conference, to give panel members sufficient time to prepare.

Download the guidance below

Contact

Contact the LCITP project team at lcitp@gov.scot