Cross-regional network and market model for optimisation of long duration storage

This Horizon Europe grant opportunity focuses on optimizing long-duration energy storage (LDES) within cross-regional energy networks. The call, identified as HORIZON-CL5-2025-02-D3-21, is categorized under Horizon Innovation Actions, providing funding through a HORIZON Lump Sum Grant model. Applications for the grant are open, with a submission deadline set for September 2, 2025.

Eligible applicants include various stakeholders such as startups, SMEs, large enterprises, universities, research institutes, and public-private partnerships, particularly those involved in energy and climate innovation. The call stipulates that a consortium is required, emphasizing collaboration among system operators, technology providers, and financial actors to address the complexities of integrating LDES into European energy systems.

The geographic eligibility primarily encompasses EU member states, EEA countries, and EU candidates, although the emphasis remains on a comprehensive understanding of existing operational systems in specified regions (NUTS 2 or 3). The target sector is energy, specifically focusing on LDES, renewable energy integration, and smart grid technologies.

Projects should aim to develop and test advanced models and tools to enhance LDES integration. This includes conducting tests in real operational environments to validate solutions. While exact funding amounts may vary, they are anticipated to be within several million euros per project, based on comparable Horizon Europe grant offerings.

The application process is single-stage, focusing on maximizing the long-term benefits of LDES through optimized grid operation, decarbonization strategies, and improved economic viability. The grant is designed to cover 100% of eligible project costs, negating co-funding requirements. Success rates for such grants typically range between 10 to 39%, although specific figures for this call have not been provided.

The overarching goal of this funding opportunity is to foster cost-effective decarbonization and enhance investor confidence in LDES technologies, ultimately supporting grid resilience and reliability within the context of a sustainable European energy framework.

This is a Horizon Europe (HORIZON) Call Cluster 5 Call 02-2025 (WP 2025) funding opportunity focused on "Cross-regional network and market model for optimisation of long duration storage" with the topic ID HORIZON-CL5-2025-02-D3-21. It is a HORIZON Innovation Action (HORIZON-IA) with a HORIZON Lump Sum Grant [HORIZON-AG-LS] model grant agreement.

The call is currently open for submission with a single-stage deadline model. The opening date was 06 May 2025, and the deadline for submission is 02 September 2025 at 17:00:00 Brussels time.

The expected outcomes of the projects funded under this topic are: Energy system planners and operators will deliver advanced tools to better optimise overall system value of Long-Duration Energy Storage (LDES) for cross-regional networks and markets dominated by intermittent and stochastic renewable energy sources. Optimised LDES integration in relevant grid locations will help energy system stakeholders to maximise total lifetime cost-benefit, improved grid-operation as well as avoided fossil fuel use and CO2 abatement, renewable energy balancing and reduced need for network reinforcement; Finetuned business cases for revenue stacking for multiple services as well as detailed overview of marginal abatement costs of various technologies and their combinations across the participating regions will help operators, planners and investors to take the right long term strategic decisions concerning LDES integration in the energy system. Cost effective decarbonisation and market revenue streams to improve LDES economics (e.g., nodal and locational pricing) will increase investors trust and therefore accelerate LDES roll out.

The scope of the projects should include: Development and testing of new, advanced, integrated models and tools for cross-regional networks and markets that are dominated by intermittent and stochastic renewable energy sources. The creation of a spatial-temporal model designed to create, analyse and optimize scenarios for strategically integrating, locating and dimensioning LDES (here defined as: >12h) for a future European energy system. Testing the proposed solution under different scenarios in a relevant/operational environment. Basing the project on a complete understanding of existing operational systems in at least two adjacent regions (NUTS 2 or 3) – best represented in the form of a digital twin (or similar). Consortia should include the respective system operators, service providers, technology providers, potential financial actors and other relevant stakeholders. Production of practical, operationally useful knowledge on cross-regional strategies for combining a variety of clean flexibility LDES solutions/technologies and cross-sector integration, focusing on the optimal combination of LDES with RES production sites, industrial complexes and districts (e.g. co-location and hybridisation), to support the grid. Analysis of the overall system value of integration of LDES (>12h) in the energy system under different future decarbonisation pathways, assessing the impact on operation and planning of energy infrastructure costs as well as security of supply, system reliability and resiliency. Maximising the benefit of LDES integration within the context of system wide optimisation of long-term grid enhancement strategies. This encompasses relevant, validated historical data sets, visualisation, scenario analysis, model sensitivity analysis and data set optimisation, optimal use of previously developed models and digital twins, cyber security, use of open-source solutions and free licensing. Identification of technical and regulatory barriers, and propose possible recommendations and policy actions, to promote the best solutions tackling these barriers and support replication of the solutions.

The submission session was made available on 09 May 2025 for multiple HORIZON-CL5-2025-02 topics, including D3-09, D3-26, D2-11, D3-15, D3-11, D3-17, D3-25, D2-12, D3-16, D2-10, D3-04, D2-03, D3-21, D3-27, D3-03, D3-06, D2-08 and D2-06.

General conditions for participation include: Admissibility conditions related to proposal page limits and layout as described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes and Part B of the Application Form. Eligible countries as described in Annex B of the Work Programme General Annexes, with specific provisions for non-EU/non-Associated Countries. Other eligible conditions, including restrictions for the protection of European communication networks. Financial and operational capacity and exclusion criteria as described in Annex C of the Work Programme General Annexes. Evaluation and award criteria, scoring, and thresholds as described in Annex D of the Work Programme General Annexes. Submission and evaluation processes as described in Annex F of the Work Programme General Annexes and the Online Manual. Indicative timeline for evaluation and grant agreement as described in Annex F of the Work Programme General Annexes. Legal and financial set-up of the grants, with eligible costs taking the form of a lump sum as defined in the Decision of 7 July 2021.

Specific conditions are described in the specific topic of the Work Programme and Annex G of the Work Programme General Annexes.

Application and evaluation forms and model grant agreement (MGA) details: Application form templates are available in the Submission System, including the Standard application form (HE RIA, IA). Evaluation form templates will be used with necessary adaptations, including the Standard evaluation form (HE RIA, IA). Guidance documents include the HE Programme Guide, Lump Sum MGA, call-specific instructions, detailed budget table (HE LS), and guidance on lump sums.

Additional documents provided are: 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 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 HORIZON-CL5-2025-02 call in 2025 includes various topics with their respective budget, stage, opening date, deadline, contributions, and indicative number of grants. The HORIZON-CL5-2025-02-D3-21 topic has a budget of 14 000 000 EUR and aims to award around 2 grants.

Partner search announcements are available for those seeking collaboration on this topic. LEARs, Account Administrators, and self-registrants can publish partner requests.

To start the submission process, access the Electronic Submission Service via the submission button, selecting the appropriate type of action and model grant agreement.

For help and support, consult 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, ETSI Research Helpdesk, and the Partner Search tool.

In summary, this Horizon Europe funding opportunity seeks to advance the integration of long-duration energy storage (LDES) into the European energy system. It calls for projects that will develop and test advanced models and tools to optimize the value of LDES in cross-regional energy networks. The projects should focus on creating practical knowledge, identifying barriers, and proposing policy actions to promote LDES deployment. The call encourages consortia to include diverse stakeholders such as system operators, technology providers, and financial actors, and to base their solutions on a thorough understanding of existing energy systems, ideally represented through digital twins. The ultimate goal is to facilitate cost-effective decarbonization, improve grid operation, and increase investor confidence in LDES technologies.

Eligible Applicant Types: The opportunity is open to consortia that include system operators, service providers, technology providers, potential financial actors, and other relevant stakeholders. While not explicitly stated, this suggests eligibility for a range of entities including large enterprises, SMEs, research institutions, and potentially investors.

Funding Type: The primary funding mechanism is a grant, specifically a HORIZON Lump Sum Grant, as indicated by the type of MGA (Model Grant Agreement) being HORIZON-AG-LS. There are different types of actions: HORIZON Innovation Actions (HORIZON-IA), HORIZON Coordination and Support Actions (HORIZON-CSA), HORIZON Research and Innovation Actions (HORIZON-RIA) and HORIZON Programme Cofund Actions (HORIZON-COFUND).

Consortium Requirement: A consortium is required, as the description emphasizes the need for a complete understanding of existing operational systems in at least two adjacent regions and specifies that consortia should include various types of stakeholders.

Beneficiary Scope (Geographic Eligibility): The opportunity is primarily focused on the European energy system, with the project needing to be based on a complete understanding of existing operational systems in at least two adjacent regions (NUTS 2 or 3). While not explicitly limiting eligibility to EU entities, the emphasis on the European energy system suggests a strong preference for EU or EU-associated country applicants. 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 program targets the energy sector, specifically focusing on long-duration energy storage (LDES), renewable energy sources (RES), grid operation, and cross-sector integration. It also touches on climate, with a focus on decarbonization pathways.

Mentioned Countries: The opportunity does not explicitly mention specific countries, but it refers to the European energy system and NUTS 2 or 3 regions, implying a focus on regions within the European Union. It also mentions non-EU/non-Associated Countries that are not automatically eligible for funding.

Project Stage: The project stage is primarily focused on development, testing, and demonstration, with an emphasis on testing solutions in a relevant/operational environment. This suggests a Technology Readiness Level (TRL) of 4-7, moving from validation in a lab environment to demonstration in an operational environment.

Funding Amount: The funding amounts vary depending on the specific topic. Some topics offer around EUR 500,000, while others offer EUR 5,000,000, EUR 7,500,000, EUR 10,000,000, EUR 12,000,000, EUR 14,000,000, EUR 18,000,000, EUR 20,000,000, EUR 28,000,000 or EUR 69,000,000.

Application Type: The application type is an open call, with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of a lump sum grant.

Application Stages: The application process is single-stage.

Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants for each topic provides some insight into the potential competitiveness.

Co-funding Requirement: Co-funding may be required for HORIZON COFUND actions, but this is not specified for all actions.

This Horizon Europe Cluster 5 call focuses on developing and testing advanced models and tools for integrating long-duration energy storage (LDES) into cross-regional energy networks. The goal is to optimize the overall system value of LDES in markets dominated by renewable energy sources, improve grid operation, reduce reliance on fossil fuels, and promote cost-effective decarbonization. Projects should develop spatial-temporal models, test solutions in relevant environments using digital twins, and include a consortium of diverse stakeholders such as system operators, technology providers, and financial actors. The call encompasses various funding instruments, including Innovation Actions, Research and Innovation Actions, Coordination and Support Actions and Programme Cofund Actions, each with different budget allocations and expected outcomes. The application process involves a single-stage submission, with eligible costs taking the form of lump sum contributions. The call aims to address technical and regulatory barriers to LDES integration and accelerate the rollout of these technologies in the European energy system.