Next generation distribution substation for increasing the system resilience
HORIZON Innovation Actions
Basic Information
- Identifier
- HORIZON-CL5-2026-02-D3-18
- Programme
- Cluster 5 Call 02-2026 (WP 2025)
- Programme Period
- 2021 - 2027
- Status
- Open (31094502)
- Opening Date
- September 16, 2025
- Deadline
- February 17, 2026
- Deadline Model
- single-stage
- Budget
- €15,000,000
- Min Grant Amount
- €5,000,000
- Max Grant Amount
- €5,000,000
- Expected Number of Grants
- 3
- Keywords
- HORIZON-CL5-2026-02-D3-18HORIZON-CL5-2026-02
Description
Project results are expected to contribute to all of the following expected outcomes:
- Improved observability, monitoring and control of the electricity distribution grids;
- Optimised management (including maintenance) of the grids by system operators and improved system resilience (including withstanding natural hazards and cybersecurity incidents);
- Grid operators integrate in their practices real-time decision-making. These could be assisted by artificial intelligence (AI) algorithms, if applicable;
- A 'smart substation ecosystem’ is created that includes distribution system operators, technology/solution providers, integrators, application developers etc. This should cover both high-to-medium and medium-to-low voltage levels.
Projects are expected to:
- Demonstrate the integration of power electronics, intelligent electronic devices (IEDs), and software solutions in the distribution substations or in their proximity;
- Demonstrate real-time monitoring and analysis of grid conditions (including power quality, voltage levels, grid component monitoring, and overall system performance) that allow operators to quickly identify and address any potential issues or disturbances, help to prevent outages and minimise the impact of service disruptions;
- Consolidate data streams from otherwise dispersed sources to create unified visualisations and consolidated analytics that offer insights into the performance of distributions substations;
- Develop the concept of a flexible and programmable electricity distribution grid in which the substation is a centre of intelligence that facilitates optimal power routing while ensuring the resilience of the electricity grid.
The demonstration, test and validation of the activities should be carried out in at least two pilots in different EU Member States and/or Associated Countries.
The projects should propose a set of best practices and recommendations on effective overarching principles and operational measures for: (i) building smart distribution substations, and (ii) integrating them into a more resilient, intelligent, and responsive distribution grid which is able to tackle disturbances and address net congestion.
Projects are expected to include at least five distribution system operators (DSOs) operating across different geographies and climate conditions. This total number of DSOs per project could be distributed across the different pilots of a particular project.
Additionally, collaboration is encouraged with the following entities:
- at least two suppliers of technologies for smart power substations;
- at least one TSO.
This collaboration (minimum number of entities) is sought per project in total and does not necessarily apply per each pilot in particular.
The selected projects are expected to contribute to the BRIDGE initiative[1], actively participate in its activities.
[1] https://bridge-smart-grid-storage-systems-digital-projects.ec.europa.eu/
Destination & Scope
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 competitive European renewable energy and renewable fuel technologies and deploy them to enhance the EU’s energy security. This will contribute to the 2030 “Fit for 55” targets (in particular, at least 42.5% renewable energy share and aiming for 45% in the EU energy consumption, 5.5% advanced biofuels and renewable fuels of non-biological origin share in EU fuel consumption). It will also contribute to the indicative target of at least 5% innovative renewable energy technology for the newly installed renewable energy capacity. By 2050, climate neutrality in the energy sector will be achieved 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, reliable, sustainable, and affordable value chains of renewable energy and renewable fuel technologies.
- Economic sectors benefit from better integration of renewable energy and renewable fuel-based solutions that are among others cost-effective, efficient, flexible, reliable, and sustainable. Such integration is facilitated by digital technologies and by renewable energy technologies that provide network stability and reliability.
- European researchers benefit from a stronger community and from a reinforced scientific basis on renewable energy and renewable fuel technologies, also through international collaborations.
- European industries benefit from a reinforced export potential of renewable energy and renewable fuel technologies, also through international collaborations.
- European industries become frontrunners and maintain technological leadership in innovative renewable energy technologies in line with the energy union strategy.
- European citizens, including disadvantaged and vulnerable groups, have access to an energy market that is affordable, fair and equitable, more resilient, uses all different types of local renewable energy resources, and is less dependent on fossil fuels. Local communities benefit from a more decentralised and secure energy system and from multiple uses of land and water. Less citizens experience fuel and energy poverty.
- Strategic Energy Technology Plan (SET Plan) implementation working groups on solar photovoltaics, solar thermal technologies, renewable fuels and bioenergy, wind energy, geothermal energy, and ocean energy benefit from a reinforced scientific basis and collaboration on renewable energy and renewable fuel technologies towards meeting the ambitious targets of the European Green Deal.
Energy systems, grids & 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 and supply more reliable, resilient, and secure. The solutions will contribute to increase flexibility and grid hosting capacity for renewables through optimising cross sector integration and grid scale storage. They will enhance the competitiveness of the European value chain, reduce pressure on resources (also by making technologies ‘circular by design’) and decrease dependencies.
Innovative and cost-effective energy storage (integration) solutions are developed, that provide flexibility to the energy system, reduce total cost of grid operation and enhancement and that minimise the use of critical raw materials and ensure, to the best extent possible, their reuse and recycling, are key elements of the energy system.
Carbon capture, use and storage (CCUS) and carbon dioxide removal (CDR)
- Accelerated development of carbon capture, use and storage (CCUS) as a CO2 emission mitigation option in electricity generation, in industry applications and carbon dioxide removal technologies (including conversion of CO2 to energy products).
- Reduced EU’s dependency on imported fossil fuels and increased energy security, reduced energy system’s vulnerability to the impacts of the changing climate.
Eligibility & Conditions
General conditions
1. Admissibility Conditions: Proposal page limit and layout
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
The following exceptions apply: subject to restrictions for the protection of European communication networks.
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
described in Annex G of the Work Programme General Annexes.
Specific conditions
described in the [specific topic of the Work Programme]
Application and evaluation forms and model grant agreement (MGA):
Application form templates — the application form specific to this call is available in the Submission System
Standard application form (HE RIA, IA)
Evaluation form templates — will be used with the necessary adaptations
Standard evaluation form (HE RIA, IA)
Guidance
Model Grant Agreements (MGA)
Additional documents:
HE Main Work Programme 2025 – 1. General Introduction
HE Main Work Programme 2025 – 8. Climate, Energy and Mobility
HE Main Work Programme 2025 – 14. General Annexes
HE Framework Programme 2021/695
HE Specific Programme Decision 2021/764
EU Financial Regulation 2024/2509
Decision authorising the use of lump sum contributions under the Horizon Europe Programme
Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
EU Grants AGA — Annotated Model Grant Agreement
Funding & Tenders Portal Online Manual
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