Open

Innovative solutions for a generative AI-powered digital spine of the EU energy system

HORIZON Innovation Actions

Basic Information

Identifier
HORIZON-CL5-2026-02-D3-19
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-D3-19HORIZON-CL5-2026-02

Description

Expected Outcome:

Project results are expected to contribute to all of the following expected outcomes:

  • Availability of generative Artificial Intelligence (AI) tools for electricity system operators, energy service providers, and households and energy communities to enhance digital and green transformation in energy, mobility, and buildings;
  • Implementation of decentralised IT solutions based on generative AI to support local grid optimisation, thereby increasing the uptake of renewable energy sources, electric vehicles, and electrification of household and industrial demand at the distribution level;
  • Increased reliability, resilience, security, and energy efficiency of the energy system through advanced AI and digital tools;
  • Enhanced knowledge for modernising and operating energy networks, integrating digital services, renewables, and electrification through the use of cutting-edge AI technologies;
  • Development of smarter demand-side tools for industries and consumers, leveraging AI to optimise energy production and consumption.
Scope:

To achieve the Green Deal objectives for 2030 and 2050, substantial investments are required in a smart and digitally enabled energy system capable of integrating higher shares of renewable energy and electrification of demand and electricity storage. This encompasses various sectors such as transport (notably electric vehicles), industry (heating and hydrogen production) and residential heating.

Effective smart planning, operation and control of the electricity grid and numerous distributed devices – including smart electricity meters, smart bi-directional charging networks for electric vehicles, and smart building platforms – are essential. These efforts must be underpinned by markets for flexibility and demand response, along with seamless data exchange between actors and devices.

On-going innovation in the energy data space, smart Internet of Things (IoT) solutions, and digital twins for energy systems, coupled with energy price and market considerations, provide the foundation for advanced energy system intelligence. This intelligence will be further enhanced by leveraging generative artificial intelligence and the emerging AI Factories[1].

The scope is to develop and pilot prototypes of a generative AI-powered digital spine[2] that enhances the digitalisation and decarbonisation of the EU energy system.

The overall scope is the development of a prototype of an automated, AI-powered, software-defined smart energy system leveraging and further developing existing (open-source) digital solutions of lower TRLs developed in EU and national research, innovation- and deployment-programmes, as well as AI algorithms and tools provided by the AI Factories, namely to:

  • Develop and test the potential for generative AI to develop apps/programmes for local system optimisation and for system planning and operation;
  • Develop and test generative AI that can identify sources of flexibility and provide solutions for interoperability and data exchange to enable decentralised optimisation of distributed assets. This includes the integration with various data sources and sectors, such as mobility, to promote decentralisation, energy-efficiency, and cost-efficiency and to enable interoperability across different parts of the energy system;
  • Explore the potential of generative AI for system optimisation through scenario generation, simulation, and time series forecasting, while also developing optimisation tools for both supply-side and demand-side management using forecasts and data for renewable energy, transmission assets, storage, and energy-saving applications for consumers;
  • Propose tools and control systems to apply generative AI solutions developed in a high-risk use-case (as defined in the AI act).

The developed solutions should be dynamic, flexible, offering reconfigurable automated management, control and data exchange to ensure seamless operations across decentralised a setting.

Projects are expected to:

  • Demonstrate AI-powered energy services, tools for power system planning and operation, and smart grid functionalities, such as flexibility, and electric vehicle (EV) charging as well as possibly transmission system operation across at least three EU member states and/or associated countries to enhance demand flexibility and drive innovative capabilities for decarbonisation and energy efficiency;
  • Indicate which generative AI basic tools, including available tools from the AI Factories, will be used and demonstrate how energy sector users will be involved in the development and the testing (and possible uptake) of the generative AI tools by the project;
  • Indicate what types of assets and what data sources will be used and involved in the project;
  • Involve both traditional energy stakeholders and new entrants, such as energy service companies, aggregators, digital infrastructure providers, system integrators, energy asset manufacturers, energy communities, and active consumers;
  • Leverage relevant European and international standards and technical specifications, and actively engage with standards development organisations;
  • Contribute to the BRIDGE initiative[3], actively participate in its activities;
  • Make use of the AI Factories and solutions, open-source where relevant, building on developments in previous Horizon Europe projects, particularly those related to flexibility markets and data exchange, Internet of Things and edge-cloud computing, adhering to relevant standards and engaging with standards development organisations to further develop these standards;
  • Demonstrate how the new solutions can be integrated into and/or replace (parts of) existing legacy systems, including (for projects that focus on DSOs) demonstrate how the new solutions can integrate core functions of grid operations including SCADA systems functionality;
  • Jointly provide a diverse set of applications of generative AI.

[1] https://digital-strategy.ec.europa.eu/en/policies/ai-factories

[2] https://digital-strategy.ec.europa.eu/en/news/accelerating-green-transition-role-digital-infrastructures-decarbonising-energy-and-mobility

[3] 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 OrientationsGreen 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

  1. 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.
  2. Technology providers have access to European, reliable, sustainable, and affordable value chains of renewable energy and renewable fuel technologies.
  3. 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.
  4. European researchers benefit from a stronger community and from a reinforced scientific basis on renewable energy and renewable fuel technologies, also through international collaborations.
  5. European industries benefit from a reinforced export potential of renewable energy and renewable fuel technologies, also through international collaborations.
  6. European industries become frontrunners and maintain technological leadership in innovative renewable energy technologies in line with the energy union strategy.
  7. 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.
  8. 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)

  1. 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).
  2. 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

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

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]

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