Next generation distribution substation for increasing the system resilience

The EU Funding & Tenders Portal has announced a call for proposals under the Horizon Europe program, specifically focusing on next-generation electricity distribution substations aimed at increasing system resilience, identified as HORIZON-CL5-2026-02-D3-18. This initiative falls under Cluster 5 and is classified as a Horizon Innovation Action with a budget-based grant model.

The application process follows a single-stage submission, with the opening date set for September 16, 2025, and a deadline of February 17, 2026, at 17:00 Brussels time. The expected outcomes for funded projects include enhanced observability, monitoring, and control of electricity distribution grids, optimized grid management, improved system resilience against natural disasters and cybersecurity threats, real-time decision-making supported potentially by artificial intelligence, and the formation of a 'smart substation ecosystem'. This ecosystem will involve collaboration between distribution system operators, technology providers, integrators, and application developers across various voltage levels.

The projects should demonstrate the integration of innovations such as power electronics, intelligent electronic devices, and software solutions in distribution substations. They must also facilitate real-time analysis of grid conditions to quickly identify and alleviate potential issues, thereby minimizing service disruptions. Moreover, projects are expected to conduct demonstration and validation activities in at least two pilot locations situated in different EU Member States or Associated Countries, offering best practices for building smart substations.

Eligible applicants include at least five distribution system operators from diverse geographies. The call invites collaboration with at least two technology suppliers and at least one transmission system operator, promoting a comprehensive approach to enhancing grid resilience.

Funding amounts for this call will vary, with budgets ranging from €6 million to €33 million across different action types. The entire budget for this specific topic is €18 million, anticipating two grants with each potentially receiving around €9 million.

Further conditions relating to eligibility, evaluation criteria, and submission specifics are detailed in the appropriate annexes of the Horizon Europe Work Programme General Annexes. While exact success rates are not disclosed, information on indicative budgets and numbers of grants provides insight into competitive aspects.

The overall goal of this effort is to modernize electricity distribution systems, ensuring they are resilient, intelligent, and capable of addressing contemporary challenges in energy distribution. Projects applying to this call are expected to significantly contribute to the development of innovative solutions within the energy sector, facilitating a smarter and more efficient energy distribution network across Europe.

The EU Funding & Tenders Portal presents a call for proposals under the Horizon Europe program, specifically focusing on "Next generation distribution substation for increasing the system resilience" with the topic ID HORIZON-CL5-2026-02-D3-18. This topic falls under Cluster 5, Call 02-2026 (WP 2025) (HORIZON-CL5-2026-02) and is classified as a HORIZON Innovation Action (HORIZON-IA) with a HORIZON Action Grant Budget-Based [HORIZON-AG] Model Grant Agreement (MGA).

The call adopts a single-stage deadline model, with the planned opening date set for 16 September 2025 and a deadline of 17 February 2026, 17:00:00 Brussels time.

The expected outcomes of the projects should contribute to: Improved observability, monitoring, and control of electricity distribution grids; Optimized grid management (including maintenance) and improved system resilience against natural hazards and cybersecurity incidents; Real-time decision-making by grid operators, potentially assisted by artificial intelligence (AI) algorithms; and the creation of a 'smart substation ecosystem' involving distribution system operators, technology/solution providers, integrators, and application developers, covering both high-to-medium and medium-to-low voltage levels.

The scope of the projects should include: Demonstrating the integration of power electronics, intelligent electronic devices (IEDs), and software solutions in or near distribution substations; Demonstrating real-time monitoring and analysis of grid conditions (including power quality, voltage levels, grid component monitoring, and overall system performance) to enable quick identification and resolution of issues, prevention of outages, and minimization of service disruption impacts; Consolidating data streams from dispersed sources to create unified visualizations and analytics for insights into distribution substation performance; and Developing a flexible and programmable electricity distribution grid concept where the substation acts as a center of intelligence for optimal power routing and grid resilience.

The demonstration, testing, and validation activities should be conducted in at least two pilots located in different EU Member States and/or Associated Countries. Projects should propose best practices and recommendations for building smart distribution substations and integrating them into a more resilient, intelligent, and responsive distribution grid capable of handling disturbances and addressing net congestion.

Projects are expected to involve at least five distribution system operators (DSOs) from diverse geographies and climate conditions, potentially distributed across the project's pilots. Collaboration is also encouraged with at least two suppliers of technologies for smart power substations and at least one Transmission System Operator (TSO). The collaboration requirements apply to the project as a whole and not necessarily to each pilot individually. Selected projects are expected to contribute to and actively participate in the BRIDGE initiative.

Regarding general conditions, admissibility conditions related to proposal page limits and layout are 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 are detailed 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 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 criteria 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 detailed 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 setup 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 the Model Grant Agreement (MGA) are available, with application form templates accessible in the Submission System, including the Standard application form (HE RIA, IA). Evaluation form templates, including the Standard evaluation form (HE RIA, IA), will be used with necessary adaptations. Guidance is provided in the HE Programme Guide, and the Model Grant Agreements (MGA) include the HE MGA.

Additional documents include: 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 lists various topics, their corresponding budget for the year 2025, the stage (single-stage), opening date (2025-09-16), deadline (2026-02-17), contributions, and the indicative number of grants. The topic HORIZON-CL5-2026-02-D3-18, which is a HORIZON Innovation Action, has a budget of 18,000,000 EUR and an indicative number of 2 grants, with contributions around 9,000,000 EUR.

Partner search announcements are available, and LEARs, Account Administrators, or self-registrants can publish partner requests for open and forthcoming topics after logging into the Portal. The submission system is planned to open on the date stated on the topic header.

General support information includes references to 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 and ETSI Research Helpdesk, the European Charter for Researchers and the Code of Conduct for their recruitment, and Partner Search.

In summary, this Horizon Europe call focuses on enhancing the resilience and intelligence of electricity distribution grids by modernizing distribution substations. It seeks projects that integrate advanced technologies like power electronics, intelligent electronic devices, and AI-driven software solutions to improve grid monitoring, control, and management. Successful projects will demonstrate these innovations through pilot programs, propose best practices for smart substation development, and foster collaboration among DSOs, technology suppliers, and TSOs, ultimately contributing to a more reliable and efficient energy distribution system across Europe. The call encourages projects that can demonstrate real-time decision-making capabilities and contribute to the creation of a smart substation ecosystem.

Eligible Applicant Types: The eligible applicant types are not explicitly stated, but the call targets distribution system operators (DSOs), technology/solution providers, integrators, application developers, and transmission system operators (TSOs). The program also mentions the Enterprise Europe Network which focuses on SMEs. Therefore, eligible applicants likely include SMEs, large enterprises, research institutions, and other relevant organizations.

Funding Type: The primary financial mechanism is a grant, specifically through HORIZON Innovation Actions (HORIZON-IA), HORIZON Research and Innovation Actions (HORIZON-RIA), HORIZON Pre-commercial Procurement (HORIZON-PCP), and HORIZON Coordination and Support Actions (HORIZON-CSA). The grants are budget-based.

Consortium Requirement: A consortium is required. Projects are expected to include at least five distribution system operators (DSOs). Collaboration is also encouraged with technology suppliers and at least one TSO.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU Member States and/or Associated Countries. Non-EU/non-Associated Countries may also be eligible if they have specific provisions for funding in Horizon Europe projects.

Target Sector: The target sector is energy, specifically focusing on electricity distribution grids, smart substations, power electronics, intelligent electronic devices (IEDs), software solutions, and grid resilience. The program falls under the broader thematic area of Climate, Energy and Mobility.

Mentioned Countries: The opportunity explicitly mentions EU Member States and Associated Countries. It also refers to non-EU and non-Associated Countries that have specific funding provisions within Horizon Europe.

Project Stage: The project stage ranges from demonstration and validation to proposing best practices and recommendations. It includes activities related to research, innovation, pre-commercial procurement, coordination, and support. The maturity level spans from development to demonstration and potentially early commercialization.

Funding Amount: The funding amounts vary depending on the type of action:
HORIZON-IA: around €7.5 million to €11 million per grant
HORIZON-RIA: around €4 million to €6 million per grant
HORIZON-PCP: around €20 million per grant
HORIZON-CSA: around €2 million per grant
The total budget for the HORIZON-CL5-2026-02 call is substantial, with individual topics having budgets ranging from €6 million to €33 million.

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 involves a single stage.

Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants for each topic provides some insight. For example, a topic with a €33 million budget aims to fund around 3 projects, while a topic with a €6 million budget aims to fund around 3 projects. This suggests that success rates may vary depending on the specific topic and the number of applications received.

Co-funding Requirement: The information does not explicitly state whether co-funding is required.

Summary: This Horizon Europe call (HORIZON-CL5-2026-02) focuses on the next generation of electricity distribution substations to increase system resilience. It seeks to fund projects that improve the observability, monitoring, and control of electricity distribution grids, optimize grid management, and enhance system resilience against natural hazards and cybersecurity incidents. The call encourages the integration of power electronics, intelligent electronic devices (IEDs), and software solutions in distribution substations. Projects should demonstrate real-time monitoring and analysis of grid conditions, consolidate data streams for unified visualizations, and develop flexible and programmable electricity distribution grids. The call requires consortia to include at least five distribution system operators (DSOs) from different geographies and encourages collaboration with technology suppliers and transmission system operators (TSOs). The funding is provided through various Horizon Europe action types, including Innovation Actions (IA), Research and Innovation Actions (RIA), Pre-commercial Procurement (PCP), and Coordination and Support Actions (CSA), with budgets ranging from €6 million to €33 million per topic. The call is open to entities from EU Member States and Associated Countries, with potential eligibility for entities from non-EU/non-Associated Countries under specific conditions. The application process is a single-stage submission, with a planned opening date of September 16, 2025, and a deadline of February 17, 2026. The selected projects are expected to contribute to the BRIDGE initiative and actively participate in its activities.