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Grant Analysis

Purpose & Target

The core objective of this grant is to develop and pilot innovative generative AI solutions that create a 'digital spine' for the EU energy system. This aims to significantly enhance the digitalization, decarbonization, reliability, and energy efficiency of the entire system. - Target recipients: This grant targets a broad range of organisations active in the energy sector, including energy service companies, aggregators, digital infrastructure providers, system integrators, energy asset manufacturers, energy communities, and active consumers. - SECTOR-SPECIFIC: Energy, Technology - Geographic scope: Projects are required to demonstrate their solutions across at least three EU Member States and/or associated countries. - Key filtering criteria: Proposals must focus on practical, demonstrable applications of generative AI within the energy sector, particularly for piloting and deploying close-to-market solutions that foster multi-country collaboration. - Grant frequency: This is a specific call within the Horizon Europe Work Programme 2025, indicating recurring funding opportunities within the broader Horizon Europe framework. - Program context: This grant falls under Horizon Europe, Cluster 5, and directly supports the EU's Green Deal objectives by leveraging advanced digital technologies.

Financial Structure

Funding Type: This grant provides direct funding for 'Innovation Actions' (HORIZON-IA).
Minimum Grant Amount per Project: EUR 8,000,000.
Maximum Grant Amount per Project: EUR 8,000,000.
Total Budget for this Topic (HORIZON-CL5-2026-02-D3-19): EUR 16,000,000, which is allocated for 2 expected grants.
Budget Year: The budget is allocated for the year 2025.
Financial Capacity: Applicants must demonstrate sufficient financial capacity, as detailed in Annex C of the Work Programme General Annexes.
Legal and Financial Framework: The legal and financial setup of the grants is described in Annex G of the Work Programme General Annexes, which includes provisions for eligible and ineligible costs, reporting, and audit requirements. Specific details on co-financing and funding rates are not provided for this particular topic within the given text, but standard Horizon Europe rules apply.

Eligibility Requirements

General Conditions

Admissibility Conditions: Proposals must adhere to page limits and layout described in Annex A and E of the Horizon Europe Work Programme General Annexes, and Part B of the Application Form.
Financial and Operational Capacity: Applicants must meet financial and operational capacity requirements as described in Annex C of the Work Programme General Annexes.

Eligible Countries

Organisations from all EU Member States are eligible for funding.
Organisations from Horizon Europe Associated Countries are also eligible for funding.
Organisations from certain non-EU/non-Associated Countries may be eligible if specific funding provisions have been made, as detailed in the Horizon Europe Programme Guide.

Consortium Requirements

Projects must involve partners from at least three EU Member States and/or Associated Countries to demonstrate solutions geographically.
The consortium should be diverse, including both traditional energy stakeholders (e.g., system operators) and new entrants such as energy service companies, aggregators, digital infrastructure providers, system integrators, energy asset manufacturers, energy communities, and active consumers.

Specific Restrictions

Projects are subject to restrictions for the protection of European communication networks, as described in Annex B of the Work Programme General Annexes.

Action Type

This call is for 'Innovation Actions' (IA), meaning proposals should focus on developing prototypes, piloting, and demonstrating near-market solutions rather than fundamental research.

Application Process

Application Timeline

Planned Opening Date for Submissions: 2025-09-16.
Application Deadline: 2026-02-17 00:00:00+0000.

Submission Process

Submission Procedure: This is a single-stage submission process.
Application Forms: The specific application form for this call (Standard application form HE RIA, IA) is available within the Funding & Tenders Portal Submission System.
Evaluation Process: Proposals will be evaluated using the Standard evaluation form (HE RIA, IA).

Required Documentation and Materials

Proposals must adhere to the page limits and layout specified in Annex A and Annex E of the Horizon Europe Work Programme General Annexes, as well as Part B of the Application Form.

Available Support and Guidance

Online Manual: Comprehensive guidance on procedures from proposal submission to grant management.
Horizon Europe Programme Guide: Detailed information on the structure, budget, and political priorities of Horizon Europe.
Funding & Tenders Portal FAQ: Answers to common questions regarding proposal submission, evaluation, and grant management.
Research Enquiry Service: For general questions about European research and EU Research Framework Programmes.
National Contact Points (NCPs): Provide guidance, practical information, and assistance on participation in Horizon Europe, available in EU and many non-EU countries.
Enterprise Europe Network (EEN): Offers advice to businesses, particularly SMEs, including guidance on EU research funding.
IT Helpdesk: For technical assistance with the Funding & Tenders Portal (e.g., passwords, access rights, submission issues).
European IPR Helpdesk: Assists with intellectual property issues.
European Standards Organisations (CEN-CENELEC, ETSI) Research Helpdesks: Advise on incorporating standardisation into project proposals.
Partner Search Tool: Available to help organisations find suitable partners for their consortium.

Post-Award Requirements

Project Implementation: Successful projects are expected to demonstrate AI-powered energy services and smart grid functionalities across at least three EU Member States and/or Associated Countries.
Reporting and Compliance: Adherence to reporting requirements and compliance obligations as outlined in the Model Grant Agreement (MGA) and Annotated Model Grant Agreement (AGA).

Evaluation Criteria

Overall Grant Objectives and Impact

Availability of generative AI tools for various energy system actors (electricity system operators, service providers, households, energy communities) to drive digital and green transformation.
Implementation of decentralised IT solutions based on generative AI to optimize local grids, increasing the uptake of renewables, EVs, and electrification.
Enhancement of energy system reliability, resilience, security, and efficiency through advanced AI and digital tools.
Improvement of knowledge for modernizing and operating energy networks, integrating digital services, renewables, and electrification.
Development of smarter demand-side tools for industries and consumers using AI to optimize energy production and consumption.

Quality and Implementation Excellence

Technical soundness: The proposal must detail how it will develop and pilot prototypes of a generative AI-powered 'digital spine' for the EU energy system, leveraging existing open-source solutions and AI algorithms from 'AI Factories'.
Scalability and Replication: Demonstration of AI-powered energy services, tools, and smart grid functionalities (e.g., flexibility, EV charging) across at least three EU Member States and/or Associated Countries.
User Involvement: Clear plans for involving energy sector users in the development and testing of generative AI tools, indicating potential uptake.
Data and Asset Management: Specific details on the types of assets and data sources to be used in the project.
Standards Engagement: Active engagement with relevant European and international standards and technical specifications organizations.
Synergy with EU Initiatives: Mandatory contribution to and active participation in the BRIDGE initiative.
System Integration: Demonstration of how new solutions can integrate into or replace parts of existing legacy systems, including SCADA functionalities for Distribution System Operators (DSOs).
Diverse Applications: The project should jointly provide a diverse set of applications for generative AI within the energy sector.

Innovation and AI Application

Generative AI Development: Exploration of generative AI's potential for system optimization through scenario generation, simulation, and time series forecasting.
Flexibility and Interoperability: Development of generative AI that can identify sources of flexibility and provide solutions for interoperability and data exchange to enable decentralised optimisation of distributed assets, integrating various data sources and sectors.
High-Risk Use-Case Management: Proposal of tools and control systems to apply generative AI solutions in high-risk use-cases (as defined by the AI Act), ensuring dynamic, flexible, and reconfigurable automated management.

Compliance & Special Requirements

Regulatory and Ethical Compliance

AI Act Compliance: Developed solutions applying generative AI in high-risk use-cases must adhere to the definitions and requirements set forth in the EU AI Act.
Data Protection and Privacy: While not explicitly detailed, the integration with various data sources and sectors implies adherence to EU data protection regulations (e.g., GDPR).
Environmental Standards: Projects must align with the EU's Green Deal objectives for decarbonisation, renewable energy integration, and energy efficiency, contributing to environmental sustainability.
Ethical Standards: The general principles and requirements for researchers, employers, and funders, as specified in the European Charter for Researchers and the Code of Conduct for their recruitment, should be consulted.

Technical and Operational Requirements

Generative AI Technologies: Projects must leverage and further develop existing (open-source) digital solutions, AI algorithms, and tools, particularly those from 'AI Factories'.
System Design: Focus on automated, AI-powered, software-defined smart energy systems, with a strong emphasis on decentralised IT solutions.
Dynamic Control Systems: Proposed tools and control systems must be dynamic, flexible, and offer reconfigurable automated management, control, and data exchange for seamless decentralised operations.
Standards Alignment: Mandatory engagement with relevant European and international standards development organisations and adherence to standards for flexibility markets, data exchange, IoT, and edge-cloud computing.
Legacy System Integration: Projects must demonstrate how new solutions can be integrated into or replace parts of existing legacy systems, specifically mentioning SCADA system functionality for Distribution System Operators (DSOs).
Network Protection: Solutions are subject to restrictions for the protection of European communication networks, aiming to increase the reliability, resilience, and security of the energy system.

Strategic Considerations and Opportunities

Green Deal Contribution: Direct alignment with the EU's ambitious Green Deal targets for 2030 and 2050 through enhancing digital and green transformation in energy.
REPowerEU Alignment: Indirectly supports REPowerEU by fostering energy independence, efficiency, and integration of renewables.
BRIDGE Initiative: Mandatory contribution to and active participation in the BRIDGE initiative, fostering collaboration and knowledge sharing across EU-funded smart grid, energy storage, and digital energy projects.
Innovation Ecosystem: Opportunities to collaborate with diverse stakeholders, including traditional energy players and new entrants, contributing to a vibrant energy innovation ecosystem.
Open-Source Development: Preference for open-source solutions where relevant, building upon previous Horizon Europe project outcomes.

Grant Details