The core objective of this grant is to develop and deploy novel Underground Thermal Energy Storage (UTES) systems in dense urban areas. It aims to advance European knowledge and technology competitiveness in thermal storage, contributing to the decarbonisation of cities and enhancing the security of the renewable-based energy system.
Target recipient type: Organisations capable of innovation, research, and demonstration in urban energy systems, including public bodies, private companies (SMEs and enterprises), and research institutions.
Organization size: Not specified, open to various sizes based on capacity to deliver.
This grant is SECTOR-SPECIFIC, focusing on energy, environment, urban development, and construction.
Geographic scope: European cities and densely populated urban areas, aiming for a European-wide impact.
Key filtering criteria for initial screening: Proposals must focus on UTES technologies, demonstrate solutions in urban contexts, incorporate societal engagement, and be ready for innovation action (demonstration to commercialisation).
Grant frequency: This specific topic is part of the recurring Horizon Europe Work Programme, but it has a single application deadline.
Financial Structure
This grant topic uses a lump sum funding mechanism, meaning payments are linked to the completion of defined work packages rather than actual incurred costs.
Total budget allocated for this specific topic: 18000000.0 EUR.
Expected number of grants to be awarded: 2.
Minimum funding per project: 9000000.0 EUR.
Maximum funding per project: 9000000.0 EUR.
Currency: EUR.
Funding rate: Not explicitly stated as a percentage for this specific topic, but the Horizon Europe reimbursement rates are included in the calculation of the lump sum contribution.
Eligible Costs
Applicants must propose the lump sum amount based on their estimated direct and indirect project costs, ensuring they align with costs eligible for an actual costs grant.
Categories of eligible costs include: Personnel costs (e.g., employees, contractors, SME owners), Subcontracting costs, Purchase costs (e.g., travel, equipment, other goods/services), and Other cost categories (e.g., financial support to third parties, access to research infrastructure).
Indirect costs are calculated by applying a 25% flat rate to the direct cost categories that qualify for indirect costs under Horizon Europe rules.
Financial Mechanisms and Payments
Payments are conditional on the proper implementation of the corresponding work packages, as described in the grant agreement.
A portion of the total lump sum (between 5% and 8%) is retained as a contribution to the Mutual Insurance Mechanism.
If work package conditions are not met, payments for those work packages may be withheld or the grant reduced.
Financial Reporting and Audit
There is no obligation to report actual costs incurred, significantly reducing the administrative burden for beneficiaries.
Financial checks or audits are typically not conducted on cost expenditure; instead, the focus is on the technical implementation of the action and the fulfilment of work package conditions.
Eligibility Requirements
The eligibility criteria are primarily defined by the Horizon Europe Work Programme General Annexes, which are referenced by this grant topic.
Organizational Type
Eligible organization types are not explicitly listed in the topic description but generally include legal entities such as universities, research organisations, public bodies, small and medium-sized enterprises (SMEs), and large enterprises.
Geographic Location
Organizations must be established in an EU Member State or a Horizon Europe Associated Country, as described in Annex B of the Work Programme General Annexes.
Formation of a consortium is required, as the topic description explicitly states, 'The consortium should assess...' and discusses collaborative efforts.
Financial Capacity
Financial and operational capacity must be demonstrated, as described in Annex C of the Work Programme General Annexes.
Technical Expertise
Expertise is required in novel technologies, interfaces, design methods, and organisational concepts for Underground Thermal Energy Storage (UTES) systems (e.g., ATES, CTES, BTES).
Experience with integration into existing energy grids, interaction with other urban subsurface uses, subsurface modelling, and advanced monitoring systems is essential.
Socio-Economic Expertise
Effective contribution of Social Sciences and Humanities (SSH) disciplines and involvement of SSH experts/institutions are required to enhance the societal impact of the research activities and ensure innovation translates into real-life outputs.
Exclusion Criteria
Standard Horizon Europe exclusion criteria apply, as described in Annex C of the Work Programme General Annexes.
Application Process
The application process is managed through the EU Funding & Tenders Portal, following the Horizon Europe guidelines.
Application Submission
The submission system is planned to open on 2025-09-16.
The application deadline is 2026-02-17 00:00:00+0000.
The submission procedure is 'single-stage', meaning a full proposal is submitted directly.
The application form specific to this call is a 'Standard application form (HE RIA, IA)' and is available in the Submission System.
Documentation and Materials
Proposals must adhere to page limits and layout described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes.
A detailed budget table (HE LS) is required, demonstrating the breakdown of the proposed lump sum per work package and per beneficiary/affiliated entity.
Evaluation Process
Evaluation will be conducted by external independent experts.
Award criteria, scoring, and thresholds are described in Annex D of the Work Programme General Annexes.
The submission and evaluation processes are further detailed in Annex F of the Work Programme General Annexes and the Online Manual.
An indicative timeline for evaluation and grant agreement is described in Annex F.
Support and Guidance
Applicants can access support through the Online Manual, Horizon Europe Programme Guide, Funding & Tenders Portal FAQ, Research Enquiry Service, National Contact Points (NCPs), Enterprise Europe Network, IT Helpdesk, European IPR Helpdesk, CEN-CENELEC Research Helpdesk, and ETSI Research Helpdesk.
A 'Partner Search' tool is available to help find suitable consortium partners.
Post-Award Requirements
Grant recipients are required to ensure the proper implementation of work packages in accordance with Annex 1 of the grant agreement.
Compliance with all other obligations under the grant agreement is mandatory.
Checks, reviews, and audits will focus on the technical implementation of the action, the fulfilment of work package conditions, ethics, research integrity, dissemination and exploitation of results, management of intellectual property, and gender equality.
Evaluation Criteria
The evaluation of proposals will be based on standard Horizon Europe procedures, with specific criteria outlined in Annex D of the Work Programme General Annexes. Experts will assess the quality of proposals across three main aspects:
Excellence
The novelty and innovation of proposed technologies, interfaces, design methods, and organisational concepts for UTES systems.
The soundness of the research and innovation methodology, including the approach to deploying one or more demonstrators.
Scientific and technical quality, considering aspects like optimal utilisation of geothermal resources, subsurface models, and integration with heating infrastructures.
Impact
Contribution to an advanced European innovative knowledge base and increased technology competitiveness in thermal storage.
Expected improvement in the security of the future European renewable-based energy system.
Potential for significant reduction in the Levelised Cost of Heat Storage (LCOHS).
Contribution to the decarbonisation of cities and densely populated urban areas with high safety solutions.
Effective engagement of local communities and responsiveness to their expectations, ensuring inclusive societal engagement.
Potential for translation of innovation into real-life outputs and contribution to shaping future regulatory and standardisation needs.
Creation of large, open multisensory datasets adhering to FAIR data principles, data quality standards, and GDPR-compliant practices.
Consideration of de-risking solutions and support schemes guiding innovative energy storage technologies towards commercialisation.
Quality and Efficiency of the Implementation
Coherence and effectiveness of the work plan, including the proposed activities and milestones.
Appropriateness of the resources allocated, as detailed in the lump sum breakdown, and the capacity of the consortium to carry out the activities.
Complementarity of the consortium members' expertise, including the effective contribution and involvement of SSH experts.
Robustness of risk management strategies, including measures to mitigate adverse impacts of UTES.
Compliance & Special Requirements
Applicants and projects under this grant must adhere to several compliance standards and specific requirements.
Regulatory Compliance
Projects must comply with the EU Financial Regulation 2024/2509.
Proposals should assess the current regulatory context relevant to their solutions and provide recommendations for shaping future needs, including those related to regulation, standardisation, and permitting.
Ethical and Societal Standards
This topic explicitly requires citizen engagement and dialogue throughout the project.
The effective contribution of Social Sciences and Humanities (SSH) disciplines and the involvement of SSH experts, institutions, and expertise are mandatory to enhance the societal impact of the research activities and ensure the translation of innovation into real-life outputs.
Projects should practice inclusive societal engagement that is early, continuous, and sensitive to both technical specificities and social challenges of underground thermal energy storage technologies.
Data Protection and Management
Projects are expected to create large, open multisensory datasets that adhere to FAIR data principles (Findable, Accessible, Interoperable, Reusable).
Adoption of data quality standards and data integration operating procedures is required.
All data handling and sharing practices must be GDPR-compliant.
Risk Management and Security
Consideration should be given to de-risking solutions for innovative energy storage technologies.
Advanced monitoring systems (e.g., fibre optic sensors, satellite imagery) should be used for monitoring and early detection of adverse impacts of UTES, with measures proposed to mitigate such effects.
Intellectual Property
Management of intellectual property generated within the project will be subject to checks during the grant period.
Grant Details
energy
environment
construction
urban development
climate action
research and innovation
underground thermal energy storage
geothermal energy
heat pumps
subsurface models
digital twins
fibre optic sensors
satellite imagery
monitoring systems
smes
enterprises
universities
research organisations
public bodies
cities
local communities
lump sum
innovation action
europe
eu member states
associated countries
dense urban areas
decarbonisation
energy security
renewable energy
heat storage
smart cities
sustainability
societal engagement
data sharing
commercialization
regulation
standardisation
risk mitigation
infrastructure
societal innovation
ai
digital agenda
eosc
fair data
Underground Thermal Energy Storage in dense urban areas
HORIZON-CL5-2026-02-D3-22
Horizon Europe
SME
ENTERPRISE
UNIVERSITY
OTHER
AT
BE
BG
HR
CY
CZ
DK
EE
FI
FR
DE
GR
HU
IE
IT
LV
LT
LU
MT
NL
PL
PT
RO
SK
SI
ES
SE
AL
BA
GE
IS
IL
MD
ME
MK
NO
RS
TR
UA
UK
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