Innovative microgrids for improved energy system integration and efficiency in urban contexts

The Horizon Europe grant opportunity HORIZON-MISS-2027-04-CIT-01 focuses on the development and implementation of Low Voltage Direct Current (LVDC) microgrids to enhance energy system integration and efficiency in urban contexts. This initiative aims to support the European Green Deal and the Clean Industrial Deal, with a total budget of €20 million, supporting approximately three projects each receiving around €7 million.

Eligible applicants include local authorities representing at least three different Member States or Associated Countries, along with partnerships involving universities, research institutions, technology providers, and other legal entities. At least one city involved must be among the 112 designated for the EU Mission on Climate-Neutral and Smart Cities.

Funding is provided as a grant in the form of lump sums, offering financial predictability for project participants. The application process is single-stage with proposals due by October 7, 2027. Projects are expected to demonstrate both real-life and virtual implementations, utilizing digital twins for better assessment of LVDC microgrid integrations and their societal impacts.

The call emphasizes the inclusion of social sciences and humanities expertise to ensure that projects address community engagement, regulatory barriers, and stakeholder acceptance. Collaborations with the Cities Mission Platform are essential, requiring formal agreements to promote synergy and maximize the collective impact of funded projects.

Proposals must also focus on regulatory compatibility, standardization efforts, and the development of training and awareness materials. Success rates for similar grant opportunities suggest competitiveness, indicating a likelihood of receiving between 10 to 39 percent of applications.

Overall, this initiative is positioned as a critical step towards urban energy transformation in Europe, seeking innovative solutions that enhance energy efficiency, improve renewable energy integration, and ensure equitable energy access across various urban settings.

This is a Horizon Europe call, specifically HORIZON-MISS-2027-04-CIT-01, focusing on Innovative microgrids for improved energy system integration and efficiency in urban contexts. It falls under the broader call of Supporting the implementation of the Climate-Neutral and Smart Cities Mission (HORIZON-MISS-2027-04). The action type is HORIZON-IA, meaning Horizon Innovation Actions, and it utilizes a HORIZON Lump Sum Grant [HORIZON-AG-LS] Model Grant Agreement. The deadline model is single-stage. The planned opening date is 09 February 2027, and the deadline is 07 October 2027, 17:00:00 Brussels time.

The expected outcomes of the projects funded under this call are: Improved awareness of the potential of Low Voltage Direct Current (LVDC) microgrids to support the goals of the European Green Deal and the Clean Industrial Deal, including as defined under the SET Plan and the Solar Strategy. Increased acceptance of LVDC microgrids in Europe, with significant and measurable contributions to human and building safety (notably with respect to DC faults), energy and resource efficiency, integration of renewables & storage and demand response, peak power shaving, resilience, and (where applicable) established proof of concept on how LVDC microgrids can enable energy communities to share energy assets and increase self-consumption of local renewables sources. Increased uptake in European cities, facilitated by technical guidelines for installation of LVDC microgrids and recommendations on regulatory alignment to European, national, regional and local authorities, as well as power distribution operators. Increased number of regulatory options and standards supporting EU industry leadership in the supply of LVDC solutions, in line with the Competitiveness Compass guidelines for fostering innovation and growth.

The scope of this call is centered around Low Voltage Direct Current (LVDC) microgrids. Most electric appliances in buildings are based on Direct Current (DC): PV panels, stationary and e-vehicle batteries, LED lighting, IT equipment, heat pumps and other appliances. Their connection to a LVDC microgrid inside the building would significantly improve energy and materials efficiency (replacing AC/DC converters by simpler DC/DC converters) and optimise local electrical and/or thermal energy storage and self-consumption of local renewables, contribute to (AC) grids stability through demand response and ancillary services (incl. reactive power support), and increase resilience by enabling islanded operation. The required power capacity of the connection of the LVDC microgrid to the AC (Alternating Current) distribution grid via a central AC/DC converter would be significantly lower than a traditional AC installation, thereby reducing pressure on city grid. The LVDC microgrid could also be implemented at small neighbourhood level (e.g. a street), possibly in parallel to an existing AC grid, enabling more efficient and easier sharing of common energy assets and self-consumption in an energy community.

Proposals are expected to address the following aspects: Develop innovative, safe and sustainable LVDC microgrids design methods and tools, ensuring notably grid monitoring, control and safe handling of DC faults at affordable cost; develop methodologies and assess the life-cycle costs/benefits of LVDC microgrids (compared to traditional AC installations), for the application itself and the overall energy system (including the impacts on the AC distribution grid, for example, due to the injection of harmonics, or contribution to grid stability through ancillary services and demand response over the current and next day), from technical, environmental, economic and social aspects (notably on vulnerable consumers energy bill). Demonstrate in real life an LVDC microgrid, connecting all electrical applications in at least one residential, office or commercial building, or in one neighbourhood. The proposal must already include a review of the local regulatory framework(s) and grid codes and a demonstration that the real-life implementation(s) of the LVDC microgrid will be possible in the local context(s) (possibly through pre-agreed regulatory relaxation or ‘innovation sandbox’). Beyond the real demonstration(s), the installation of LVDC microgrid must be demonstrated virtually in other types of buildings, including at least one building under renovation, in the environment of different cities and countries, including at least one vulnerable urban area if possible, by numerical simulation using digital twins, with the objective of assessing the regulatory feasibility and life-cycle costs/benefits (detailed in the first bullet) in these different environments. The total number of real and virtual demonstrations must be at least 3. Identify regulatory barriers at European, national and distribution system operator levels, and make suggestions to resolve them. Contribute to standardization (CEN-CENELEC, IEC), notably contributing use cases. Develop LVDC solutions awareness, education and training materials (respectively for public authorities and general public, for students, for urban planners, project developers and installers), in collaboration with local academia and research partners. Disseminate project results, engage all relevant stakeholders along the value chain, including residents, users, industry, and researchers, from the planning phase; organise at least one open workshop coupled with site visits.

This topic requires contributions from social sciences and humanities (SSH) disciplines and the involvement of SSH experts and institutions. Their contributions should enhance the societal relevance and impact of proposed activities from planning to implementation and especially related to the last two bullets. The projects under this topic shall be open to cooperate with each other on relevant tasks such as joint workshops and dissemination events and joint policy briefs and contribution to standardisation process, to maximise the collective impact. Proposals should build on previous projects, notably Horizon Europe project Shift2DC, as well as HYPERRIDE, TIGON, HYNET and THEUS. Collaboration with the Cities Mission Platform is essential. The collaboration with the Cities Mission Platform must be formalized through a Memorandum of Understanding to be concluded as soon as possible after the project starting date. Under the guidance of the Cities Mission Platform, the selected projects will engage in clustering activities with other relevant projects supported under the Cities Mission, such as the ones on PED digital twins, to promote synergies and complementarities. Proposals should ensure that appropriate provisions for activities and resources aimed at enforcing clustering activities and cooperation with the Cities Mission Platform are included in the work-plan.

Regarding admissibility conditions, the proposal page limit and layout are described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes and in Part B of the Application Form available in the Submission System. 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.

Other eligible conditions include that at least three cities, represented by a local authority or by an entity with an explicit consent from the local authority, each from a different Member State or Associated Country, must participate as beneficiaries. At least one of the three cities must be one of the 112 cities selected for the EU Mission on Climate-Neutral and Smart Cities.

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.

Grants awarded under this topic will be linked to the following action(s): HORIZON-MISS-2021-CIT-02-03. Collaboration with the Cities Mission Platform is essential, and projects must ensure that appropriate provisions for activities and resources aimed at enforcing this collaboration are included in the work plan of the proposal. The collaboration with the Cities Mission Platform must be formalized through a Memorandum of Understanding to be concluded as soon as possible after the project starting date. Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025). Legal and financial set-up of the grants is described in Annex G of the Work Programme General Annexes.

Application form templates are available in the Submission System, including the Standard application form (HE RIA, IA). Evaluation form templates will be used with the necessary adaptations, including the Standard evaluation form (HE RIA, IA). Guidance is provided in the HE Programme Guide. Model Grant Agreements (MGA) include the Lump Sum MGA. Call-specific instructions include a Detailed budget table (HE LS) and Guidance: "Lump sums - what do I need to know?".

Additional documents include: HE Main Work Programme 2026-2027 – 1. General Introduction, HE Main Work Programme 2026-2027 – 12. Missions, 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 in the year 2027 is as follows: HORIZON-MISS-2027-04-CIT-01 - HORIZON-IA HORIZON Innovation Actions has a budget of 20,000,000 EUR, is a single-stage call, opens on 2027-02-09, closes on 2027-10-07, and has an indicative number of 3 grants with contributions around 7,000,000 EUR. HORIZON-MISS-2027-04-CIT-02 - HORIZON-CSA HORIZON Coordination and Support Actions has a budget of 5,000,000 EUR, is a single-stage call, opens on 2027-02-09, closes on 2027-10-07, and has an indicative number of 1 grant with contributions around 5,000,000 EUR. HORIZON-MISS-2027-04-CIT-03 - HORIZON-IA HORIZON Innovation Actions has a budget of 18,000,000 EUR, is a single-stage call, opens on 2027-02-09, closes on 2027-10-07, and has an indicative number of 2 grants with contributions around 9,000,000 EUR. HORIZON-MISS-2027-04-CIT-05 - HORIZON-PCP HORIZON Pre-commercial Procurement has a budget of 26,823,812 EUR, is a single-stage call, opens on 2027-02-09, closes on 2027-10-07, and has an indicative number of 3 grants with contributions between 7,000,000 and 12,000,000 EUR. HORIZON-MISS-2027-04-CIT-CCRI-04 - HORIZON-IA HORIZON Innovation Actions has a budget of 22,500,000 EUR, is a single-stage call, opens on 2027-02-09, closes on 2027-10-07, and has an indicative number of 3 grants with contributions around 7,500,000 EUR.

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This Horizon Europe Innovation Action call aims to foster the adoption of Low Voltage Direct Current (LVDC) microgrids in urban environments to support the European Green Deal. It seeks projects that can demonstrate the benefits of LVDC microgrids in terms of energy efficiency, integration of renewable energy sources, and grid stability. The call encourages the development of innovative design methods and tools, real-life and virtual demonstrations, identification of regulatory barriers, contribution to standardization, and the creation of awareness and training materials. Successful projects will involve collaboration with the Cities Mission Platform and contribute to the EU's climate-neutral and smart cities mission. The call requires the participation of at least three cities from different Member States or Associated Countries, with at least one being among the 112 cities selected for the EU Mission on Climate-Neutral and Smart Cities. The funding will be provided as a lump sum, and projects are expected to cooperate with each other to maximize their collective impact.

Eligible Applicant Types: The eligible applicant types include cities represented by a local authority or by an entity with explicit consent from the local authority, from a Member State or Associated Country. 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.

Funding Type: The funding type is a grant, specifically a HORIZON Innovation Action (HORIZON-IA) with eligible costs taking the form of a lump sum.

Consortium Requirement: A consortium is required. At least three cities, each from a different Member State or Associated Country, must participate as beneficiaries.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU Member States and 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 sectors are energy, climate, and urban development, specifically focusing on Low Voltage Direct Current (LVDC) microgrids, renewable energy integration, energy efficiency, and smart cities. It also requires contributions from social sciences and humanities (SSH) disciplines.

Mentioned Countries: The opportunity is open to Member States and Associated Countries of the EU. No specific countries are named, but the requirement for three cities from different Member States or Associated Countries implies a focus on the EU and its associated regions.

Project Stage: The project stage is demonstration, validation, and development, with an emphasis on real-life implementation and virtual demonstrations using digital twins. The projects should build on previous projects, notably Horizon Europe project Shift2DC, as well as HYPERRIDE, TIGON, HYNET and THEUS.

Funding Amount: The budget for the HORIZON-MISS-2027-04-CIT-01 topic is EUR 20,000,000, with an indicative contribution of around EUR 7,000,000 per grant.

Application Type: The application type is a single-stage call.

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

Application Stages: The application process is a single-stage process.

Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants is 3 for a budget of EUR 20,000,000.

Co-funding Requirement: Co-funding is not explicitly mentioned as a requirement.

Summary: This Horizon Europe call, HORIZON-MISS-2027-04-CIT-01, focuses on "Innovative microgrids for improved energy system integration and efficiency in urban contexts." It aims to promote the adoption of Low Voltage Direct Current (LVDC) microgrids in European cities to support the European Green Deal and Clean Industrial Deal goals. The call seeks projects that will develop innovative LVDC microgrid designs, demonstrate their real-life and virtual implementations, identify and address regulatory barriers, contribute to standardization, and develop awareness and training materials. To be eligible, consortia must include at least three cities from different EU Member States or Associated Countries, with at least one city selected for the EU Mission on Climate-Neutral and Smart Cities. The funding is provided as a lump sum grant, with an indicative contribution of around EUR 7,000,000 per grant, and the application process is a single-stage call. Collaboration with the Cities Mission Platform is essential, requiring a formal Memorandum of Understanding. The projects should build on previous projects, notably Horizon Europe project Shift2DC, as well as HYPERRIDE, TIGON, HYNET and THEUS. The call emphasizes the importance of integrating social sciences and humanities (SSH) expertise to enhance the societal relevance and impact of the proposed activities.