Hybrid AI-Control Framework for a next-generation grid-scale energy storage and system integration

This summary outlines the Horizon Europe funding opportunity titled "Hybrid AI-Control Framework for a next-generation grid-scale energy storage and system integration" (HORIZON-CL5-2026-03-D3-20). The call, part of the BATTERIES and ENERGY program, focuses on funding projects that develop and validate integrated systems combining grid-scale energy storage solutions with hybrid artificial intelligence control mechanisms within digital twin frameworks.

Eligible applicants for this funding can include a variety of organizations such as enterprises (both small and large), research organizations, universities, and public institutions established in EU member states or associated countries. Notably, entities controlled directly or indirectly by China are ineligible to participate. The funding mechanism is a Horizon Lump Sum Grant, providing fixed financial support rather than reimbursement of costs.

Projects must demonstrate real-time management for optimal energy dispatch and validate system integration with existing energy infrastructures, including the capability to operate seamlessly across borders. The total budget for this call is €14 million, with two grants expected to be awarded, each valued at €7 million. The expected outcomes include enhancing efficiency and resilience of the energy system, supporting high penetration of renewable energy, and lowering operational costs for consumers.

The application process is single-stage, with submissions opening on December 18, 2025, and closing on March 31, 2026. Projects are required to contribute co-funding alongside EU support, typically following a structure where the EU covers 70% of the project costs.

Successful proposals should contribute to the advancement of the European Union's strategic energy goals and facilitate the transition to a decarbonized grid system. The focus on advanced technologies within the energy sector aims to support the European Green Deal objectives, ultimately fostering sustainable energy solutions.

This is a Horizon Europe call, specifically under the BATTERIES and ENERGY (HORIZON-CL5-2026-03) program. The call focuses on "Hybrid AI-Control Framework for a next-generation grid-scale energy storage and system integration". It is a HORIZON Innovation Action (HORIZON-IA) with a HORIZON Lump Sum Grant [HORIZON-AG-LS] type of Model Grant Agreement (MGA). The deadline model is single-stage. The planned opening date is 18 December 2025, and the deadline date is 31 March 2026, 17:00:00 Brussels time.

The expected outcomes of the projects should contribute to: Advanced digital twin and AI technologies (i.e. hybrid) to support proactive grid storage management and an effective integration with energy and ancillary services markets, for systems with high levels of renewable energy. Optimized energy storage operations resulting in reduced operational and ancillary service costs, extended asset lifespans and increased revenues from market participation while boosting renewable energy uptake for decarbonization. Optimized energy dispatch and storage cycling, increasing grid resilience and cost efficiency, aiding in lowering energy costs for consumers.

The scope of the projects should involve developing and validating an integrated system that combines grid-scale energy storage with a hybrid AI control mechanism and optimization within a digital twin framework. This system should enable proactive and adaptive management of storage and flexibility assets (e.g., large industrial plants with flexible electricity demand), ensure seamless integration with existing grid infrastructures (including offshore systems if applicable) and electricity markets, while enhancing system efficiency and resilience, even during rare or extreme events. The project should demonstrate real-time management for optimal energy dispatch, ancillary services, and storage cycling. It should also develop a scalable integration framework for seamless cross-border operability and validate improvements in grid reliability through field demonstrations and simulations, providing a potential blueprint for EU-wide deployment. Proof of concept studies using PHIL (Power Hardware-in-the-Loop) technology applied to scaled systems are expected to be used for the proactive and adaptive management algorithms. Selected projects are expected to contribute to the BRIDGE initiative and actively participate in its activities.

The general conditions 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 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 detailed in the Horizon Europe Programme Guide), Other Eligible Conditions (including restrictions on entities controlled by China, and the use of Copernicus and/or Galileo/EGNOS for projects using satellite data), Financial and operational capacity and exclusion (described in Annex C of the Work Programme General Annexes), Evaluation and award criteria, scoring and thresholds (described in Annex D of the Work Programme General Annexes), Submission and evaluation processes (described in Annex F of the Work Programme General Annexes and the Online Manual), Indicative timeline for evaluation and grant agreement (described in Annex F of the Work Programme General Annexes), and Legal and financial set-up of the grants (including potential objections to transfer of ownership or exclusive licensing of results, and eligible costs taking the form of a lump sum as defined in the Decision of 7 July 2021, 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 the model grant agreement (MGA) are available, with application form templates specific to the call in the Submission System (Standard application form HE RIA, IA) and evaluation form templates to be used with necessary adaptations (Standard evaluation form HE RIA, IA). Guidance is provided in the HE Programme Guide, Lump Sum MGA, call-specific instructions, detailed budget table (HE LS), and guidance on lump sums.

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 includes several topics: HORIZON-CL5-2026-03-D2-02 (14,200,000 EUR, around 3 grants), HORIZON-CL5-2026-03-D3-01 (9,000,000 EUR, around 3 grants), HORIZON-CL5-2026-03-D3-12 (15,000,000 EUR, around 3 grants), HORIZON-CL5-2026-03-D3-13 (31,500,000 EUR, around 3 grants), HORIZON-CL5-2026-03-D3-18 (20,000,000 EUR, around 2 grants), HORIZON-CL5-2026-03-D3-19 (24,000,000 EUR, around 3 grants, contributions from 4,000,000 to 12,000,000 EUR), HORIZON-CL5-2026-03-D3-20 (14,000,000 EUR, around 2 grants), HORIZON-CL5-2026-03-D3-21 (12,000,000 EUR, around 3 grants), HORIZON-CL5-2026-03-D3-22 (12,000,000 EUR, around 2 grants), and HORIZON-CL5-2026-03-D3-29 (25,000,000 EUR, around 5 grants). All topics are single-stage with planned opening date 18 December 2025 and deadline 31 March 2026.

Partner search announcements are available, and LEARs, Account Administrators, or self-registrants can publish partner requests. The submission system is planned to open on the date stated on the topic header. General FAQs and support are available, including an 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 and ETSI Research Helpdesk, and a Partner Search function.

In summary, this Horizon Europe call seeks to fund innovation actions that develop and validate integrated systems for grid-scale energy storage, utilizing hybrid AI control mechanisms and digital twin frameworks. The goal is to improve grid management, enhance the integration of renewable energy sources, and increase the efficiency and resilience of energy systems across Europe. The call provides funding opportunities for projects that can demonstrate real-time management, cross-border operability, and improved grid reliability, ultimately contributing to a more sustainable and cost-effective energy landscape.

Eligible Applicant Types: The eligible applicant types are not explicitly stated but can be inferred to include entities eligible for Horizon Europe funding. This typically encompasses a wide range, including universities, research institutes, SMEs, large enterprises, and other organizations, both public and private, from eligible countries. However, entities directly or indirectly controlled by China or by a legal entity established in China are not eligible to participate in the action, in line with the restriction on control in innovation actions in critical technology areas.

Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Lump Sum Grant, as indicated by the type of Model Grant Agreement (MGA) being HORIZON-AG-LS. The calls are for HORIZON Innovation Actions (HORIZON-IA) and HORIZON Research and Innovation Actions (HORIZON-RIA).

Consortium Requirement: The opportunity does not explicitly state whether a single applicant or a consortium is required. However, given the scope and nature of Horizon Europe projects, it is highly likely that a consortium of multiple applicants is preferred, if not required, to bring together the necessary expertise and resources. The partner search announcements further suggest that consortia are expected.

Beneficiary Scope (Geographic Eligibility): Eligible countries are 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.

Target Sector: The program targets the energy sector, specifically focusing on batteries and energy storage. It also involves digital technologies such as AI and digital twins, and addresses climate and mobility challenges. The specific topic is "Hybrid AI-Control Framework for a next-generation grid-scale energy storage and system integration."

Mentioned Countries: China is mentioned as a country whose entities, if directly or indirectly controlled by it, are not eligible to participate in the action. The opportunity is open to EU member states and associated countries, as well as potentially to participants from non-EU/non-associated countries that have made specific provisions for funding.

Project Stage: The projects are expected to develop and validate an integrated system, suggesting a Technology Readiness Level (TRL) ranging from development to validation and demonstration. The call includes both Research and Innovation Actions (RIA) and Innovation Actions (IA), indicating that projects can range from research-oriented to demonstration and deployment-focused.

Funding Amount: The funding amounts vary depending on the specific topic within the call. The budget overview provides the following ranges:
HORIZON-CL5-2026-03-D2-02: EUR 14,200,000 (around EUR 4,700,000 per grant, 3 grants)
HORIZON-CL5-2026-03-D3-01: EUR 9,000,000 (around EUR 3,000,000 per grant, 3 grants)
HORIZON-CL5-2026-03-D3-12: EUR 15,000,000 (around EUR 5,000,000 per grant, 3 grants)
HORIZON-CL5-2026-03-D3-13: EUR 31,500,000 (around EUR 10,500,000 per grant, 3 grants)
HORIZON-CL5-2026-03-D3-18: EUR 20,000,000 (around EUR 10,000,000 per grant, 2 grants)
HORIZON-CL5-2026-03-D3-19: EUR 24,000,000 (EUR 4,000,000 to EUR 12,000,000 per grant, 3 grants)
HORIZON-CL5-2026-03-D3-20: EUR 14,000,000 (around EUR 7,000,000 per grant, 2 grants)
HORIZON-CL5-2026-03-D3-21: EUR 12,000,000 (around EUR 4,000,000 per grant, 3 grants)
HORIZON-CL5-2026-03-D3-22: EUR 12,000,000 (around EUR 6,000,000 per grant, 2 grants)
HORIZON-CL5-2026-03-D3-29: EUR 25,000,000 (around EUR 5,000,000 per grant, 5 grants)

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 success rate, which would depend on the number of proposals received.

Co-funding Requirement: The information does not explicitly state whether co-funding is required. However, Horizon Europe grants typically fund a significant portion of the project costs, with the possibility of requiring some level of co-funding from the applicants or other sources.

Summary: This Horizon Europe call, part of the BATTERIES and ENERGY program, focuses on "Hybrid AI-Control Framework for a next-generation grid-scale energy storage and system integration." It seeks to fund projects that develop and validate integrated systems combining grid-scale energy storage with hybrid AI control mechanisms and digital twin frameworks. The goal is to enable proactive and adaptive management of energy storage and flexibility assets, seamlessly integrate with existing grid infrastructures and electricity markets, and enhance system efficiency and resilience. Projects should demonstrate real-time management for optimal energy dispatch, develop scalable integration frameworks, and validate improvements in grid reliability. The funding is provided as a lump sum grant, and the application process is single-stage. Eligible applicants include a wide range of organizations from EU member states, associated countries, and potentially non-EU/non-associated countries with specific funding provisions. The call aims to advance digital twin and AI technologies for grid storage management, optimize energy storage operations, and increase grid resilience and cost efficiency, ultimately contributing to decarbonization and lowering energy costs for consumers. The indicative budget and number of grants vary by topic, with individual grants ranging from approximately EUR 3 million to EUR 12 million.