Large scale operational validation and upscaling of state-of-the-art (Generative) AI tools and models powering a next generation digital energy system

The Horizon Europe funding opportunity identified as HORIZON-CL5-2027-02-D3-24 focuses on substantial investments aimed at the large-scale operational validation and upscaling of state-of-the-art generative AI tools and models within the digital energy sector. With a total budget allocation of €20 million, this initiative seeks to award two grants of €10 million each for projects that enhance real-time grid operations, market functionalities, and consumer empowerment through advanced AI technologies.

Eligible applicants include universities, research organizations, technology providers, energy companies, and other entities from EU member states and associated countries with the ability to conduct innovation activities. While single entities can apply, the formation of multi-stakeholder consortia is strongly encouraged given the complexity of the projects involved.

The program emphasizes the importance of covering substantial elements such as operational validation in actual environments, and scaling of AI solutions integrated into the digital spine of energy systems. Projects are expected to validate AI tools in realistic settings, prototype and validate machine learning capabilities, and lay the groundwork for market adoption.

This funding call operates on a single-stage application process. Proposals must be submitted electronically via the EU Funding & Tenders Portal, with the opening date set for December 3, 2026, and a submission deadline of March 31, 2027. The opportunity is positioned under the broader scope of Cluster 5 of Horizon Europe, addressing climate, energy, and mobility which aligns with the EU’s strategic goals of digital and green transitions.

Support mechanisms include direct financial grants and access to various resources such as the Horizon Europe Programme Guide, National Contact Points, and other networks aimed at assisting applicants throughout the proposal process. The success rates are typically between 10% and 39%, indicating a competitive selection process.

Co-funding, while not mandatory, can enhance proposals’ competitiveness by demonstrating financial or in-kind contributions from partners. Overall, this funding aims to encourage the development and validation of innovative AI systems that can significantly impact the energy sector, promoting sustainable and efficient energy management across Europe.

This is a Horizon Europe (HORIZON) call, specifically the BATTERIES and ENERGY (HORIZON-CL5-2027-02) call, focusing on large-scale operational validation and upscaling of state-of-the-art (Generative) AI tools and models powering a next generation digital energy system, with the topic identifier HORIZON-CL5-2027-02-D3-24. It is a HORIZON Innovation Action (HORIZON-IA) with a HORIZON Action Grant Budget-Based [HORIZON-AG] Model Grant Agreement (MGA). The deadline model is single-stage. The planned opening date is 03 December 2026, and the deadline is 31 March 2027 at 17:00:00 Brussels time.

The expected outcomes of the projects should contribute to: Advanced, secure frugal (energy-, resource-, data- and cost-efficient, sustainable) AI tools for real-time grid operations (including protection), market operations (if relevant) and consumer empowerment in distributed energy systems; A demonstrated AI development environment integrated with the upgraded digital spine of the energy system and energy-saving consumer applications; Scaled-up capabilities for learning at edge nodes and federated systems using agent-based architectures; A governance framework and operating model for the Gen(AI)-powered digital spine.

The scope of the projects should build upon previous actions in Horizon Europe (e.g., the digital spine of the energy system in cluster 5, cloud and edge continuum, and AI data processing activities in cluster 4) and Digital Europe (Common Reference Framework for energy consumer applications across the EU, Common Energy Data Space). Projects are expected to: Validate and scale secure state-of-the-art specialized frugal open-source (Generative-)AI tools and models for real-time grid (and market, if relevant) monitoring, balancing, forecasting, and consumer empowerment in a distributed energy system; Demonstrate an AI development environment within the enhanced digital spine of the energy system, including its digital twin, which should incorporate the functionality of the Common Reference Framework for energy saving applications; Prototype and validate at scale machine learning at the edge node level and federated at swarm level in an agent-based architecture, leveraging new mechanisms for scaling down AI models as well as incremental and reinforcement learning. The project's deliverables should be compatible with the principles of the Common European Energy Data Space and consistent with the EU's Apply AI and Competitiveness Compass, ensuring that they promote AI adoption and competitiveness in line with EU policies, as well as the EU Digitalisation of the energy sector initiatives. Where relevant and possible, the selected projects are expected to make use of the European AI factories and AI gigafactories. The selected projects are expected, where available, to make use of and further develop commonly agreed European standards and to actively collaborate and contribute to the work of established and de facto European standards developing organisations and open-source communities and platforms. 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, with proposal page limits and layout described in 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 outlined in the Horizon Europe Programme Guide); Other Eligible Conditions (restriction on control in innovation actions in critical technology areas, use of Copernicus and/or Galileo/EGNOS for projects using satellite-based data); Financial and operational capacity and exclusion (described in Annex C of the Work Programme General Annexes); Evaluation and award (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); Legal and financial set-up of the grants (granting authority may object to transfer of ownership or exclusive licensing of results up to 4 years after the end of the action, as set out in Annex 5; 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) include: Application form templates (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 (HE Programme Guide); Model Grant Agreements (MGA) (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; Funding & Tenders Portal Privacy Statement.

The budget overview includes several topics: HORIZON-CL5-2027-02-D2-05 (HORIZON-IA, EUR 18,800,000, around 2 grants), HORIZON-CL5-2027-02-D2-06 (HORIZON-IA, EUR 37,800,000, around 2 grants), HORIZON-CL5-2027-02-D3-07 (HORIZON-IA, EUR 12,000,000, around 2 grants), HORIZON-CL5-2027-02-D3-08 (HORIZON-COFUND, EUR 30,000,000, around 1 grant), HORIZON-CL5-2027-02-D3-09 (HORIZON-IA, EUR 43,000,000, around 1 grant), HORIZON-CL5-2027-02-D3-10 (HORIZON-IA, EUR 9,000,000, around 2 grants), HORIZON-CL5-2027-02-D3-15 (HORIZON-IA, EUR 36,000,000, around 3 grants), HORIZON-CL5-2027-02-D3-24 (HORIZON-IA, EUR 20,000,000, around 2 grants), HORIZON-CL5-2027-02-D3-30 (HORIZON-IA, EUR 16,000,000, around 2 grants), HORIZON-CL5-2027-02-D3-31 (HORIZON-CSA, EUR 5,000,000, around 1 grant). All topics are single-stage, open on 2026-12-03, and close on 2027-03-31.

Partner search announcements are available for collaboration on this topic. LEARs, Account Administrators, or self-registrants can publish partner requests after logging into the Portal. The submission system is planned to open on the date stated on the topic header. There are no topic Q&As available. General FAQs are available.

Support is available through 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 Partner Search.

In summary, this Horizon Europe call focuses on advancing AI tools and models for the next generation digital energy system. It seeks to validate and upscale AI technologies for real-time grid operations, consumer empowerment, and the development of AI environments within the digital spine of the energy system. The call encourages collaboration, the use of European standards, and contributions to the BRIDGE initiative. The total budget for the call is significant, and it is structured to support innovation actions and coordination and support actions. Applicants should carefully review the general and specific conditions, and utilize the available support resources to prepare their proposals.

Eligible Applicant Types: The eligible applicant types are not explicitly stated in the provided text. However, given that it is a Horizon Europe call, eligible applicants typically include universities, research institutes, SMEs, large enterprises, and other organizations involved in research and innovation. The mention of LEARs, Account Administrators, and self-registrants suggests that legal entities and organizations are the intended applicants, rather than individuals.

Funding Type: The primary financial mechanism is a grant, specifically through HORIZON Innovation Actions (HORIZON-IA) and HORIZON Programme Cofund Actions (HORIZON-COFUND) and HORIZON Coordination and Support Actions (HORIZON-CSA). The type of Model Grant Agreement (MGA) is HORIZON Action Grant Budget-Based [HORIZON-AG].

Consortium Requirement: The text does not explicitly state whether a single applicant or a consortium is required. However, the presence of a partner search function and the nature of Horizon Europe projects suggest that consortia are often preferred, if not required, especially for Innovation Actions.

Beneficiary Scope (Geographic Eligibility): Eligible countries are described in Annex B of the Work Programme General Annexes. The text mentions that non-EU/non-Associated Countries may have specific provisions for funding their participants. There is also a restriction on entities controlled by China. Therefore, the geographic eligibility includes EU member states, associated countries, and potentially other countries with specific funding arrangements, excluding entities controlled by China.

Target Sector: The program targets the energy sector, specifically focusing on the digital transformation of the energy system. It also targets artificial intelligence, particularly the application of AI tools and models in real-time grid operations, market operations, and consumer empowerment. Additional sectors include climate and mobility, as the call falls under the BATTERIES and ENERGY call within Horizon Europe which is cluster 5.

Mentioned Countries: China is explicitly mentioned as a country whose controlled entities are not eligible. The European Union is implicitly mentioned as the primary geographic focus, along with associated countries and potentially other non-EU countries with specific funding provisions.

Project Stage: The expected maturity of the project is at the innovation and demonstration stage. The call specifically mentions "large scale operational validation and upscaling," "demonstration," "prototyping," and "validate at scale," indicating that projects should be at least at the Technology Readiness Level (TRL) 5-6 and aiming for TRL 7-8.

Funding Amount: The funding amounts vary by topic, ranging from EUR 5,000,000 to EUR 43,000,000. Specific funding amounts for each topic are listed in the "Budget overview" section.

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 grants to support their projects.

Application Stages: The application process consists of a single stage.

Success Rates: The success rates are not explicitly mentioned. However, the "Indicative number of grants" provides some insight into the number of projects expected to be funded per topic.

Co-funding Requirement: The text does not explicitly mention a co-funding requirement for Innovation Actions (IA) or Coordination and Support Actions (CSA). However, the HORIZON-COFUND action implies a co-funding requirement, as it is designed to co-fund projects with other sources of funding.

Summary:

This Horizon Europe call, under the BATTERIES and ENERGY theme (HORIZON-CL5-2027-02), aims to foster the development and validation of advanced AI tools and models for the next generation digital energy system. The call seeks projects that can validate and scale AI solutions for real-time grid operations, market operations, and consumer empowerment. It encourages the use of open-source technologies, European AI factories and gigafactories, and collaboration with European standards organizations. The call is structured around Innovation Actions (IA), Coordination and Support Actions (CSA) and Cofund Actions, each with varying funding levels and expected outcomes. Eligible applicants include organizations from EU member states, associated countries, and potentially other countries with specific funding arrangements, excluding entities controlled by China. The application process is a single-stage open call, with a planned opening date of December 3, 2026, and a deadline of March 31, 2027. The funding amounts vary from 5 million to 43 million EUR depending on the action.