Advanced Distribution Management Systems (ADSM) for more efficient and flexible distribution grids

Overview

The Horizon Europe call for proposals titled "HORIZON-CL5" focuses on the development and demonstration of Advanced Distribution Management Systems (ADSM) aimed at enhancing the efficiency and flexibility of electricity distribution grids. This initiative is part of the Horizon Europe program under Cluster 5, which targets climate, energy, and mobility. Eligible applicants include a diverse set of organizations, specifically a minimum of three Distribution System Operators (DSOs) and at least two universities or research organizations. The call encourages collaboration with technology suppliers, solutions providers, and transmission system operators (TSOs) to form a comprehensive consortium that meets the project's multidimensional requirements. The funding type available under this call is a grant category known as HORIZON Action Grant Budget-Based (HORIZON-AG), distributed through Horizon Innovation Actions (IA). A total budget of €28.5 million is allocated for this call, with expectations to award three grants of up to €9.5 million each. Geographically, applicants must be from EU Member States and Associated Countries, with the requirement for projects to demonstrate activities through at least two different pilot implementations within these regions. The project phase is primarily focused on demonstration, validation, and commercialization, with technologies aimed at enhancing grid reliability, controllability, and resilience. The application process is a single-stage submission, opening on August 4, 2027, with a deadline on December 1, 2027. The application requires detailed proposals that align with the overarching goals of improving grid management through innovative digital solutions, including artificial intelligence, digital twins, and security features designed to mitigate cyber threats. While specifics about success rates are not explicitly mentioned, the competitive nature of the funding indicates that only a limited number of high-quality projects will be selected. Co-funding requirements are not highlighted but are likely anticipated to leverage additional financial support from various stakeholders involved in the project. Overall, the call aims to drive research and innovation in ADSM technologies, emphasizing open-source solutions and best practices across the European power sector. As a strategic initiative, it aligns with broader EU objectives, including enhancing energy independence and supporting the transition towards a sustainable energy landscape.

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Highlights

This is a Horizon Europe (HORIZON) call for proposals under the ENERGY (HORIZON-CL5-2027-07) call, focusing on Advanced Distribution Management Systems (ADSM) for more efficient and flexible distribution grids. The call includes several topics for HORIZON Innovation Actions (HORIZON-IA) and HORIZON Coordination and Support Actions (HORIZON-CSA). The type of Model Grant Agreement (MGA) is HORIZON Action Grant Budget-Based [HORIZON-AG]. The deadline model is single-stage. The planned opening date is 04 August 2027, and the deadline date is 01 December 2027, 17:00:00 Brussels time. The expected outcomes of the projects are to contribute to: Enhanced reliability, resilience, controllability, and efficiency of electricity distribution grids; Effective management of congestion in distribution grids; Distribution system operators (DSO) leveraging modern digital solutions and employing improved systems to effectively manage their grids and improve interoperability with Transmission System Operators (TSOs) and other DSOs; Development of vendor-agnostic reference architectures, solutions, and tools to help advance ADSM design and operation and effectively manage a broad range of grid services. The scope of the projects should address the following: Design and test innovative solutions, architectures, technologies, and processes for advancing the way ADSMs are designed and operated; Provide ADSM software platforms that improve grid performance, controllability, and help integrate distributed energy resources (DERs) in an efficient way, while reducing congestion and improving grid flexibility; Advance forecasting solutions for energy supply, demand, and flexibility made available to the system operator, providing advanced analytics and visualizations; Advance interoperability, both with TSOs and other DSOs, as well as with the DERs at the edge of the grid; Leverage modern solutions, notably digital twins and artificial intelligence; Use security-by-design and advanced protection mechanisms against cyber threats; Use and/or develop, to the greatest extent possible, open-source software solutions and/or software modules; Develop a manual and propose best practices on this matter to be used by other DSOs (including instructions to operate the system); Identify remaining gaps and further needs for research and development. The demonstration, test, and validation of the activities should be carried out in at least two pilots in different EU Member States or Associated Countries. Projects are expected to include at least three Distribution System Operators (DSOs) and at least two universities and/or research organizations. Collaboration is encouraged with at least one supplier of technology and solutions for ADMS; at least one transmission system operator, which manages grids that are connected to the grids operated by any of the DSOs that are partners in the project; and at least one project funded under the separate call ‘Advanced TSO control rooms to enhance grid control and resilience’ with the view to strengthen TSO-DSO coordination and support interoperable solutions. The project proposals are expected to describe a credible mechanism to do so. Selected projects are expected to contribute to the BRIDGE initiative and actively participate in its activities. General conditions for participation include: Admissibility Conditions: Proposal page limit and layout described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes and Part B of the Application Form available in the Submission System. Eligible Countries described in Annex B of the Work Programme General Annexes, with specific provisions for non-EU/non-Associated Countries as detailed in the Horizon Europe Programme Guide. Other Eligible Conditions: Projects using satellite-based earth observation, positioning, navigation and/or related timing data and services must use Copernicus and/or Galileo/EGNOS. There are restrictions on control in innovation actions in critical technology areas, particularly regarding entities controlled by China. There are also restrictions for the protection of European communication networks, as described in Annex B of the Work Programme General Annexes. Financial and operational capacity and exclusion are described in Annex C of the Work Programme General Annexes. Evaluation and award criteria, scoring, and thresholds are described in Annex D of the Work Programme General Annexes. Submission and evaluation processes are described in Annex F of the Work Programme General Annexes and the Online Manual. The indicative timeline for evaluation and grant agreement is described in Annex F of the Work Programme General Annexes. The legal and financial set-up of the grants is described in Annex G of the Work Programme General Annexes. Specific conditions are described in the specific topic of the Work Programme. Application and evaluation forms and model grant agreement (MGA) information: Application form templates are available in the Submission System (Standard application form HE RIA, IA). Evaluation form templates will be used with necessary adaptations (Standard evaluation form HE RIA, IA). Guidance is provided in the HE Programme Guide. Model Grant Agreements (MGA) include the HE MGA. Additional documents include: HE Main Work Programme 2026-2027 – 1. General Introduction, HE Main Work Programme 2026-2027 – 8. Climate, Energy and Mobility, HE Main Work Programme 2026-2027 – 15. General Annexes, HE Programme Guide, 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, Funding & Tenders Portal Terms and Conditions, and Funding & Tenders Portal Privacy Statement. The budget overview for the call includes the following topics: HORIZON-CL5-2027-07-D3-11 (HORIZON-IA): Budget €17,000,000, indicative number of grants 2, contribution around €8,500,000 per grant. HORIZON-CL5-2027-07-D3-16 (HORIZON-IA): Budget €28,500,000, indicative number of grants 3, contribution around €9,500,000 per grant. HORIZON-CL5-2027-07-D3-17 (HORIZON-IA): Budget €18,000,000, indicative number of grants 3, contribution around €6,000,000 per grant. HORIZON-CL5-2027-07-D3-25 (HORIZON-IA): Budget €28,500,000, indicative number of grants 3, contribution around €9,500,000 per grant. HORIZON-CL5 (HORIZON-IA): Budget €28,500,000, indicative number of grants 3, contribution around €9,500,000 per grant. HORIZON-CL5-2027-07-D3-27 (HORIZON-IA): Budget €22,500,000, indicative number of grants 3, contribution around €7,500,000 per grant. HORIZON-CL5-2027-07-D3-28 (HORIZON-CSA): Budget €6,000,000, indicative number of grants 1, contribution around €6,000,000 per grant. HORIZON-CL5-2027-07-D3-32 (HORIZON-IA): Budget €30,000,000, indicative number of grants 3, contribution around €10,000,000 per grant. Partner search announcements are available for collaboration on this topic. LEARs, Account Administrators, or self-registrants can publish partner requests for open and forthcoming topics after logging into the Portal, as well as any user having an active public Person profile. The submission system is planned to be opened on the date stated on the topic header. For support, applicants are advised to read all provisions carefully before preparing their application. The Online Manual serves as a guide on procedures from proposal submission to grant management. The Horizon Europe Programme Guide contains detailed guidance on the structure, budget, and political priorities of Horizon Europe. The Funding & Tenders Portal FAQ provides answers to frequently asked questions on proposal submission, evaluation, and grant management. The Research Enquiry Service can answer questions about European research in general and the EU Research Framework Programmes in particular. National Contact Points (NCPs) offer guidance, practical information, and assistance on participation in Horizon Europe. The Enterprise Europe Network (EEN) provides advice to businesses, with a special focus on SMEs, including guidance on EU research funding. The IT Helpdesk addresses questions related to forgotten passwords, access rights and roles, and technical aspects of proposal submission. The European IPR Helpdesk assists with intellectual property issues. CEN-CENELEC Research Helpdesk and ETSI Research Helpdesk advise on tackling standardisation in project proposals. The European Charter for Researchers and the Code of Conduct for their recruitment outline the roles, responsibilities, and entitlements of researchers, employers, and funders. Partner Search tools help find partner organizations for proposals. In summary, this Horizon Europe call aims to foster innovation and coordination in Advanced Distribution Management Systems to enhance the reliability, efficiency, and interoperability of electricity distribution grids. It encourages projects that design and test innovative solutions, leverage modern digital technologies, and promote collaboration among various stakeholders, including DSOs, TSOs, universities, and technology providers. The call provides funding opportunities for both Innovation Actions and Coordination and Support Actions, with specific requirements for project composition and expected outcomes.

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Breakdown

Eligible Applicant Types: The eligible applicant types include Distribution System Operators (DSOs), universities, and research organizations. The opportunity specifically mentions that projects are expected to include at least three Distribution System Operators (DSOs) and at least two universities and/or research organizations. Collaboration is also encouraged with suppliers of technology and solutions for ADMS, and transmission system operators (TSOs). Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Action Grant Budget-Based [HORIZON-AG]. The calls are primarily HORIZON Innovation Actions (HORIZON-IA) and HORIZON Coordination and Support Actions (HORIZON-CSA). Consortium Requirement: A consortium is required. Projects are expected to include at least three Distribution System Operators (DSOs) and at least two universities and/or research organisations. Collaboration is encouraged with other entities. Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU Member States and Associated Countries. The demonstration, test, and validation activities should be carried out in at least two pilots in different EU Member States or Associated Countries. 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. Target Sector: The target sector is energy, specifically focusing on advanced distribution management systems (ADSM) for electricity distribution grids. The program targets the enhancement of reliability, resilience, controllability, and efficiency of electricity distribution grids. It also focuses on integrating distributed energy resources (DERs) and leveraging modern digital solutions like digital twins and artificial intelligence. Mentioned Countries: The opportunity mentions EU Member States and Associated Countries as the primary geographic focus. It also refers to non-EU/non-Associated Countries that may have specific provisions for funding participants in Horizon Europe projects. China is mentioned as a country that, if exerting control over an entity established in an eligible country, would render that entity ineligible. Project Stage: The expected maturity of the project is at the demonstration, test, and validation stage. The scope includes designing and testing innovative solutions, architectures, technologies, and processes for advancing ADSM, indicating a focus on development and demonstration. Funding Amount: The funding amounts vary depending on the specific topic. For HORIZON-IA calls, the budget ranges from €17 million to €30 million, with indicative grant amounts ranging from approximately €6 million to €10 million per project. The HORIZON-CSA call has a budget of €6 million, with one grant expected around €6 million. Application Type: The application type is an open call with a single-stage submission process. Nature of Support: The beneficiaries will receive money in the form of grants to support their projects. Application Stages: The application process consists of a single stage. Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants for each topic provides some context. For example, a topic with a budget of €28.5 million expects to fund around 3 projects, suggesting a competitive selection process. Co-funding Requirement: The information does not explicitly state a co-funding requirement. Summary: This Horizon Europe funding opportunity focuses on advancing distribution management systems (ADSM) for more efficient and flexible electricity distribution grids in EU Member States and Associated Countries. The program aims to enhance grid reliability, resilience, and controllability by leveraging digital solutions, integrating distributed energy resources, and improving interoperability between different grid operators. Consortia applying for this opportunity must include at least three Distribution System Operators (DSOs) and at least two universities or research organizations, with collaboration encouraged with technology suppliers and transmission system operators. The funding is provided through Horizon Innovation Actions (HORIZON-IA) and Coordination and Support Actions (HORIZON-CSA), with budgets ranging from €17 million to €30 million for IA calls and €6 million for CSA calls. The application process is a single-stage submission, and projects are expected to demonstrate and validate their activities through pilots in at least two different EU Member States or Associated Countries. The program also encourages the use of open-source software solutions and adherence to security-by-design principles to protect against cyber threats.

Short Summary

Impact

The funding aims to enhance the reliability, resilience, controllability, and efficiency of electricity distribution grids through the development and demonstration of Advanced Distribution Management Systems (ADSM).

Applicant

Applicants should possess expertise in energy systems, digital solutions, and project management, specifically involving Distribution System Operators, universities, and technology providers.

Developments

The funding will support projects focused on designing and testing innovative ADSM solutions, including software platforms, forecasting solutions, interoperability, and security measures.

Applicant Type

This funding is designed for a consortium of Distribution System Operators, universities, research organizations, and technology suppliers.

Consortium

A consortium of multiple applicants is required, including at least three Distribution System Operators and two universities or research organizations.

Funding Amount

The total budget for this opportunity is €28,500,000, with each grant providing a minimum and maximum of €9,500,000.

Countries

Eligible applicants must be from EU Member States and Associated Countries, with projects requiring demonstration in at least two different EU Member States or Associated Countries.

Industry

This funding targets the energy sector, specifically focusing on advanced distribution management systems within the Horizon Europe framework.

Update Log

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Update on March 16th, 2026
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Description II
Expected Outcome:Project results are expected to contribute to all the following expected outcomes:Enhanced reliability, resilience, controllability and efficiency of electricity distribution grids. Congestion in distribution grids is managed effectively;Distribution system operators (DSO) leverage modern digital solutions and employ improved systems to effectively manage their grids and improve interoperability with TSOs and other DSOs;Vendor-agnostic reference architectures, solutions and tools are developed to help advancing the ADSM design and operation and effectively manage a broad range of grid services. Scope:Projects are expected to address all the following items:Design and test innovative solutions, architectures, technologies and processes for advancing the way the ADSM are designed and operated;Provide ADSM software platforms that improve grid performance, controllability, and help integrating distributed energy resources (DERs) in an efficient way, while reducing congest...

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