HORIZON-CL5-2027-02-D3-24

Large scale operational validation and upscaling of state-of-the-art (Generative) AI tools and models powering a next generation digital energy system

Status
forthcoming
Programme
Horizon Europe (HORIZON)
Action type
HORIZON Innovation Actions
Opens
3 Dec 2026
Deadline
31 Mar 2027
Fetched
15 Jul 2026, 07:18 UTC
Plain-language summary

Validate and upscale secure, frugal generative AI tools for real-time digital energy system operations and consumer empowerment.

This call funds projects to demonstrate advanced AI tools for managing distributed energy systems efficiently and securely. It focuses on integrating AI with the digital energy infrastructure and scaling machine learning at the edge. Projects should align with EU policies on AI, energy data, and digitalisation to support a sustainable and competitive energy supply.

Likely relevant for

  • AI technology developers
  • Energy system operators
  • Digital energy infrastructure providers
  • Research institutions in AI and energy
  • SMEs in AI and energy sectors

Project signals

Focus on generative AI for energyDemonstrations at operational grid or demo sitesIntegration with digital spine and digital twinAgent-based architectures for AI scalingAlignment with EU AI and energy policies

What it funds

  • Validation and scaling of secure, frugal generative AI tools for real-time grid and market operations in distributed energy systems
  • Demonstration of AI development environments integrated with the digital spine and digital twin of the energy system
  • Prototyping and validating machine learning at edge nodes and federated swarm-level agent-based architectures
  • Development of governance frameworks and operating models for AI-powered digital energy infrastructure
  • Use and contribution to European AI factories, gigafactories, standards, and open-source platforms
  • Contribution to the BRIDGE initiative and alignment with EU digitalisation and AI policies

Expected outcomes

  • Advanced, secure, energy- and resource-efficient AI tools for grid and market operations and consumer empowerment
  • Demonstrated AI development environment integrated with digital energy infrastructure
  • Scaled capabilities for edge and federated learning using agent-based architectures
  • Governance framework and operating model for generative AI-powered digital spine
  • Promotion of AI adoption and competitiveness consistent with EU policies
  • Active collaboration with European standards organisations and open-source communities

Who can apply / participate

  • Research organisations
  • Industry players including SMEs and large enterprises
  • Energy system operators
  • Technology providers in AI and energy sectors
  • Consortia of multiple eligible entities
  • Consortium composition rules must be checked in the specific call documents
  • Entities established in China are not eligible
  • Other country eligibility conditions apply as per Horizon Europe Annex B
  • Restrictions on entities controlled by Chinese legal entities
  • Use of Copernicus and Galileo/EGNOS data if satellite data is used
  • Compliance with financial and operational capacity requirements
  • Exact consortium size and composition requirements
  • Specific eligibility of third-country participants beyond China restrictions

Must check before shortlisting

  • Eligibility restrictions related to control by Chinese entities
  • Specific consortium composition rules
  • Budget and funding rate details
  • TRL requirements and starting levels

Money

Total indicative budget of approximately EUR 20 million for 2 expected grants in 2027. Funding rate and detailed budget allocations must be confirmed in call documents.

  • Total budget for 2027 — 20000000EUR
    Indicative budget for 2 grants
  • Minimum contribution per grant — 10000000EUR
    Per grant minimum funding

Application notes

  • Single-stage submission model. Proposal page limits and layout as per Horizon Europe General Annexes and Application Form guidelines.
  • Proposal must comply with admissibility conditions including page limits and layout
  • Eligibility conditions as per Horizon Europe Annex B
  • Financial and operational capacity requirements per Annex C
  • Evaluation criteria and process described in Annex D and F
  • Legal and financial set-up governed by Horizon Europe Model Grant Agreement
  • Prepare proposal according to Application Form templates
  • Submit via Funding & Tenders Portal by deadline
  • Ensure compliance with eligibility and admissibility criteria
  • Participate in evaluation process as described in call documents
  • Entities controlled by Chinese legal entities are not eligible
  • Use of satellite data must comply with Copernicus and Galileo/EGNOS requirements
  • Check specific consortium and eligibility rules in call documents

Derived from official EU Funding portal source · updated 2 Jul 2026, 09:57 UTC. Use this as a shortlisting aid; the official call text remains authoritative.

Related calls

These funding calls are closely related and may be worth considering as part of the same funding landscape.

Official source text

Fine print from the EU source record. Expand when you need the original wording.

Topic description

Expected Outcome: Project results are expected to contribute to all the following expected outcomes: Advanced, secure frugal (energy-, resource-, data- and cost-efficient, sustainable) AI tools for real-time grid operations (including protection), market operations (if relevant) and consumer empowerment in distributed energy systems. A demonstrated AI development environment integrated with the upgraded digital spine of the energy system and energy-saving consumer applications. Scaled-up capabilities for learning at edge nodes and federated systems using agent-based architectures. A governance framework and operating model for the Gen(AI)-powered digital spine. Scope: Building up on previous actions in Horizon Europe (e.g. the digital spine of the energy system in cluster 5 as well as cloud and edge continuum and AI data processing activities in cluster 4) and Digital Europe (Common Reference Framework for energy consumer applications across the EU, Common Energy Data Space), projects are expected to: Validate (demo site and operational grid) and scale secure state-of-the-art specialised frugal (energy- and resource-efficient, data- and cost-efficient, locally deployed and sustainable) open-source (Generative-)AI tools and models for real-time grid (and market, if relevant) monitoring, balancing, forecasting and consumer empowerment in a distributed energy system. Demonstrate an AI development environment within the enhanced digital spine of the energy system, including its digital twin, which should incorporate the functionality of the Common Reference Framework for energy saving applications. Prototype and validate at scale machine learning at the edge node level and federated at swarm level in an agent-based architecture, leveraging new mechanisms for scaling down AI models as well as incremental and reinforcement learning. The project's deliverables should be compatible with the principles of the Common European Energy Data Space and consistent with the EU's Apply AI and Competitiveness Compass, ensuring that they promote AI adoption and competitiveness in line with EU policies, as well as the EU Digitalisation of the energy sector initiatives. Where relevant and possible, the selected projects are expected to make use of the European AI factories and AI gigafactories. The selected projects are expected, where available, to make use of and further develop commonly agreed European standards and to actively collaborate and contribute to the work of established and de facto European standards developing organisations and open-source communities and platforms. Selected projects are expected to contribute to the BRIDGE [1] initiative and actively participate in its activities. Technology Readiness Level - Technology readiness level expected from completed projects Activities are expected to achieve TRL 7-8 by the end of the project – see General Annex B. Activities may start at any TRL. [1] https://bridge-smart-grid-storage-systems-digital-projects.ec.europa.eu/

Destination

This Destination includes activities targeting a sustainable, secure and competitive energy supply. In line with the scope of cluster 5, this includes activities in the areas of renewable energy; energy system, grids and storage; as well as Carbon Capture, Utilisation and Storage (CCUS). This Destination contributes directly to the Strategic Plan’s Key Strategic Orientations ‘ Green transition ’, ‘ Digital transition ’ and ‘ A more resilient, competitive, inclusive and democratic Europe ’. In line with the Strategic Plan, the overall expected impact of this Destination is to contribute to the ‘Ensuring more sustainable, secure and competitive energy supply through solutions for smart energy systems based on renewable energy solutions’ . This destination contributes to the activities of the Strategic Energy Technology Plan (SET Plan) and its implementation working groups. The main impacts to be generated by topics under this Destination are: Renewable energy Energy producers have access to efficient and competitive European renewable energy and renewable fuel technologies with a solid knowledge base and are able to deploy them to enhance the EU’s energy security and reach its climate neutrality objectives, in a sustainable way in environmental (e.g., biodiversity, multiple uses of land and water, natural resources, pollution) and socioeconomic terms, and in line with the Sustainable Development Goals. Technology providers have access to European, competitive, resilient, reliable, sustainable, and affordable value chains of renewable energy and renewable fuel technologies including emerging ones, and with strong export potential to supply both the EU internal and global markets. They benefit also from circular renewable energy technologies that are safe and sustainable by design with reduced and diversified external dependence on critical raw materials [1] . Economic sectors benefit from better integration of renewable energy and renewable fuel-based solutions that are, among others, competitive, cost-effective, efficient, flexible, reliable, and sustainable. Such integration is facilitated through digitalisation and integration of artificial intelligence of renewable energy technologies that provide network stability and reliability. European industries benefit from a reinforced export potential of renewable energy and renewable fuel technologies, also through international partnerships, and become more competitive in innovative renewable energy technologies in Europe and globally. European researchers benefit from a stronger community and from a reinforced scientific basis on renewable energy and renewable fuel technologies including emerging ones, also through international collaborations. European citizens have access to an energy market that is fair and equitable, more resilient, uses all different types of local renewable energy resources, and is less dependent on fossil fuels imports. Citizens experience less fuel and energy poverty, and also benefit from new employment and upskilling opportunities. Local communities benefit from a more decentralized, affordable, and secure energy system and from multiple uses of land and water. Energy systems, grids and storage R&I actions will support the just digital and green transformation of the energy system through advanced solutions for accelerating the energy systems integration and decarbonisation . The developed clean, sustainable solutions will contribute to making the energy system work better for actors and supply more reliable, resilient and secure energy – even under increasingly more frequent extreme climate events. The solutions developed will contribute to increase flexibility and grid hosting capacity for renewables through optimizing cross sector integration and grid scale storage as well as cover off-grid situations. They will improve the preparedness of the electricity system to support the EU's binding target for 2030 of minimum of 42.5% renewables in the gross final energy consumption (with the aspiration to reach 45%), and full decarbonisation by 2050. They will enable further electrification of demand and will enhance the competitiveness of the European value chain , reduce pressure on resources (also by making technologies ‘circular by design’) and decrease dependencies. Such solutions would also enable a better EU resilience to climate risks. The solutions will improve consumer awareness and engagement in the energy transition, via innovative offers and services (e.g. demand response, energy communities) and will target different types of consumers, including “hard to reach” population groups (such as energy poor or low-income households). This will result in increased trust in, and uptake of the new products and services entering the energy system. Carbon capture, use and storage (CCUS) and carbon dioxide removal (CDR) Accelerated deployment of carbon capture, use and storage (CCUS) as a CO2 emission mitigation option in electricity generation and/or in industry applications, as well as carbon dioxide removal for negative emissions. Legal entities established in China are not eligible to participate in both Research and Innovation Actions (RIAs) and Innovation Actions (IAs) falling under this destination. For additional information please see “Restrictions on the participation of legal entities established in China” found in General Annex B of the General Annexes. [1] For an example of a methodology for the assessment of sustainability, circularity and contribution to EU resilience and technological autonomy of clean energy technology in the R&I pipeline, please see Study on circular approaches for a sustainable and affordable clean energy transition

Conditions and documents

General conditions

1. Admissibility Conditions: Proposal page limit and layout

described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes.

Proposal page limits and layout: described in Part B of the Application Form available in the Submission System.

2. Eligible Countries

described in Annex B of the Work Programme General Annexes.

A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide.

3. Other Eligible Conditions

In line with the “restriction on control in innovation actions in critical technology areas” delineated in General Annex B of the General Annexes, entities established in an eligible country but which are directly or indirectly controlled by China or by a legal entity established in China are not eligible to participate in the action.

If projects use satellite-based earth observation, positioning, navigation and/or related timing data and services, beneficiaries must make use of Copernicus and/or Galileo/EGNOS (other data and services may additionally be used).

described in Annex B of the Work Programme General Annexes.

4. Financial and operational capacity and exclusion

described in Annex C of the Work Programme General Annexes.

5a. Evaluation and award: Award criteria, scoring and thresholds

are described in Annex D of the Work Programme General Annexes.

5b. Evaluation and award: Submission and evaluation processes

are described in Annex F of the Work Programme General Annexes and the Online Manual.

5c. Evaluation and award: Indicative timeline for evaluation and grant agreement

described in Annex F of the Work Programme General Annexes.

6. Legal and financial set-up of the grants

The granting authority may, up to 4 years after the end of the action, object to a transfer of ownership or to the exclusive licensing of results, as set out in the specific provision of Annex 5.

described in Annex G of the Work Programme General Annexes.

Specific conditions

described in the [specific topic of the Work Programme]

Support information

Online Manual is your guide on the procedures from proposal submission to managing your grant. Horizon Europe Programme Guide contains the detailed guidance to the structure, budget and political priorities of Horizon Europe. Funding & Tenders Portal FAQ – find the answers to most frequently asked questions on submission of proposals, evaluation and grant management. Research Enquiry Service – ask questions about any aspect of European research in general and the EU Research Framework Programmes in particular. National Contact Points (NCPs) – get guidance, practical information and assistance on participation in Horizon Europe. There are also NCPs in many non-EU and non-associated countries (‘third-countries’). Enterprise Europe Network – contact your EEN national contact for advice to businesses with special focus on SMEs. The support includes guidance on the EU research funding. IT Helpdesk – contact the Funding & Tenders Portal IT helpdesk for questions such as forgotten passwords, access rights and roles, technical aspects of submission of proposals, etc. European IPR Helpdesk assists you on intellectual property issues. CEN-CENELEC Research Helpdesk and ETSI Research Helpdesk – the European Standards Organisations advise you how to tackle standardisation in your project proposal. The European Charter for Researchers and the Code of Conduct for their recruitment – consult the general principles and requirements specifying the roles, responsibilities and entitlements of researchers, employers and funders of researchers. Partner Search help you find a partner organisation for your proposal.

Raw budget overview
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