Supporting digitalisation of Distribution System Operators for a smart energy transition (Smart Grid Academy)

Expected Impact

Proposals should present the concrete results which will be delivered by the activities and demonstrate how these results will contribute to the topic-specific impacts. This demonstration should rely on a solid analysis of the current situation, realistic assumptions and baselines, and establish clear causality links between proposed activities, results and impacts.

In terms of qualitative impact, proposals under this topic should demonstrate how they will contribute to:

• Enhanced operational efficiency, resilience and flexibility of distribution networks through accelerated and fit-for-purpose digitalisation of DSOs
• Strengthened institutional and human capacity of DSOs, in particular small/local DSOs, to plan, implement and govern digital transformation in line with EU energy and digital policy frameworks
• Improved integration of DERs and demand-side measures and participation of active consumers.

In terms of quantitative impact, proposals should quantify their results and impacts using the indicators provided for the topic, when they are relevant for the proposed activities. Proposals are not expected to address all the listed impacts and indicators. The results and impacts should be quantified for the end of the project and for 5 years after the end of the project. The quantitative indicators for this topic include:

• Number of Digitalisation Roadmaps developed
• Number of Digitalisation Roadmaps consequently embedded in the DNDPs[1]
• Number of DSOs directly involved in trainings, workshops, etc.
• Number of follower/associated DSOs indirectly involved in capacity building activities (e.g. through networking, pairing)
• Number of trainings activities, and personnel involved in them
• Investments in digitalisation triggered by the implementation of investment plans developed thanks to the project (cumulative, in million Euro).

Proposals should also provide indicators which are specific to their proposed activities.

Proposals should also quantify their impacts related to the following common indicators for the LIFE Clean Energy Transition sub-programme:

• Primary energy savings triggered by the project in GWh/year
• Final energy savings triggered by the project in GWh/year
• Renewable energy generation triggered by the project (in GWh/year)
• Reduction of greenhouse gas emissions (in tCO2-eq/year)
• Investments in sustainable energy (energy efficiency and renewable energy) triggered by the project (cumulative, in million Euro).

Funding rate

Other Action Grants (OAGs) — 95%

Objective

The clean energy transition requires a modernised, smart energy system that can manage decentralised and variable power sources, ensure grid stability and security of supply, and improve energy efficiency and overall system efficiency, including through digitalisation-enabled demand flexibility. The digitalisation of electricity Distribution System Operators (DSOs), within the framework of Electricity Market Design[2] and the Digitalisation of Energy Action Plan[3], enables smarter operation of distribution networks, facilitates active consumer participation and flexibility markets, and supports the EU’s long-term objective of climate neutrality by 2050.

However, the transition towards digitalisation presents a multitude of challenges for DSOs, notably for small and medium-sized DSOs. As they modernise their networks and integrate new technologies, DSOs must address complex technical, operational, and organisational constraints. These challenges are driven by the accelerating energy transition, the rapid growth in the installation of renewable energy sources, rising electricity demand, distributed loads, and the need to balance innovation with system reliability and (cyber)security. At the same time, stakeholders notably market participants including energy communities, smart building owners, regulators, customers increasingly expect greater data availability, transparency, and performance.

This topic aims to support capacity building for the roll-out of digital technologies and processes in Distribution System Operators, covering data management systems, network observability, and the safe deployment and operation of Artificial Intelligence (AI) technologies. Proposals should focus on available technologies and solutions; the development and demonstration of new technologies are not in the scope of the topic. The topic supports the implementation of key provisions of EU legislation in line with the Strategic Roadmap for Digitalisation and AI in the Energy Sector[4], the Directives on Renewable Energy[5] and Energy Efficiency[6] and the Union of Skills communication[7].

The EU is facing important increases in energy prices, driven by market volatility and exacerbated by its dependence on imported fossil fuels. A key priority for the EU is to strengthen the resilience of its energy system vis-a-vis geopolitical crises impacting the global energy market. Therefore, applicants under this topic are invited, where possible, to develop and implement long-term structural sustainable and energy efficiency measures to enhance EU energy system resilience against future crises, in coherence with short-term energy relief measures needed to respond to the current shock on the global energy markets.

Scope

Proposals are expected to support DSOs, in particular small/local DSOs, to build necessary in-house capacity, knowledge and skills to modernise and digitalise their activities, allowing them to play a key role in the clean energy transition. To do so, proposals should support DSOs in developing a Digitalisation Roadmap and support them in embedding this Roadmap, fully or partially, in the DSO’s Distribution Network Development Plan (DNDP)[8].

The Digitalisation Roadmap should not be a standardised document, but tailor-made to the size, grid typology and digital readiness level of each DSO. The Digitalisation Roadmap should cover at least the following areas depending on the specificities of each DSO:

• Data Exchange and Interoperability: Create the conditions for DSOs to exchange data with other electricity market stakeholders, such as Transmission System Operators (TSOs), consumers or distributed energy producers, to enhance the efficiency and reliability of the energy system, for example: • Integrate data from different sources into a cohesive operational frame (e.g. from smart meters, GIS, SCADA, sensors, etc.)
• Enhance data governance across planning and operations, improve data quality, define data architectures, information models and standards
• Improve data interoperability and enable real-time data-exchange with other DSOs, TSOs or with market participants as relevant

• Grid Observability: Increase the observability of distribution networks, enabling DSOs to better plan and manage the grid, predict demand and integrate distributed energy resources, while minimising curtailment and reducing energy losses, including: • Real-time monitoring and control of distribution network assets, e.g. through IoT sensors, ICT systems, digital twins
• Enable observability and integration of distributed energy resources (DERs), e.g. solar panels, batteries, heat pumps and EV chargers
• Design necessary tools, such as market platforms and energy management systems (EMSs), to enable flexibility and other demand side services in coordination with TSOs, DSOs, and market participants

• Artificial Intelligence (AI): Support the deployment of AI solutions in distribution management systems, enabling DSOs to optimise grid operations, predict energy demand, and improve customer service, including: • Integrate AI models in advanced distribution management systems (ADMS): e.g. for grid congestion, voltage control, load and weather forecasting etc.
• Use AI to enhance security (and cybersecurity) of distribution network, e.g. forecasting extreme events
• Support in deploying high-risk AI systems: testing and validation of AI systems, legal support and regulatory compliance
• Use AI and digital solutions in grid connection procedures, for faster processing of connections where relevant

Other areas where digitalisation could improve efficiency of a DSO and of the distribution network and contribute to the expected impacts of the call, could also be in scope, for example grid planning, procurement, permitting, energy efficiency services, customer service etc.

To support DSOs in developing their Digitalisation Roadmaps, the following activities should be covered:

• Proposals should describe the current state of the art of digitalisation of targeted DSOs (e.g. technological infrastructure, digital tools, skills, etc.) and seek a clear advancement beyond it, bridging the gaps between planning, operational technologies and information technologies.
• Proposals should strengthen the capacity of DSO staff to plan, prioritise and implement digitalisation measures enabling them to acquire the necessary skills, knowledge and strategic insight across technical, economic, organisational and regulatory dimensions including procurement aspects, and to define context-specific digitalisation pathways.
• Proposals should define capacity building activities and technical assistance services to DSOs, including targeted pilot projects to test the feasibility and value of proposed digital solutions. Networking, pairing and peer exchange could be used too.
• Proposals should aim to reach a large number of DSOs in the targeted countries, seek to pool resources for DSOs with similar needs or in proximity, be ambitious in terms of number of trained participants and volume and depth of the training offer, with lasting effects and tailored to specific needs and national languages, as appropriate. Individual training could also be supported if needed.
• Proposals should promote collaboration activities and knowledge sharing among DSOs and relevant stakeholders including but not limited to technology providers, regulations, customers and energy communities.

Proposals should support a substantial number of DSOs and work with follower/associated DSOs for which transfer of knowledge should be described and effectively provided during the project lifetime. The proposal should clearly explain and justify the choice of the DSOs and territories they intend to address. Cooperation of small DSOs operating in territorial proximity is encouraged. Participation of European / national / regional associations of DSO is encouraged. Applicants should propose approaches that can be upscaled at national level or cross-border level with DSOs with similar conditions.

Proposals should clearly identify the targeted DSOs and demonstrate their involvement and commitment, for example through participation in the consortium or through specific and tailored letters of support at executive level. Proposals should also explain the content of the support to be provided and how the consortium will deliver this support on the ground.

Proposals are encouraged to explore synergies with the Large-Scale Partnership for the Digitalisation of the Energy System in the Pact for Skills (Renewables)[9] take into account the factors of success and review of existing academies, including Net-Zero Industry Academies[10], indicated in the Union of Skills communication.

Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.

The Commission considers that proposals requesting a contribution from the EU of up to EUR 2 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

[1] During or after the end of the project, depending on the DNDP timing for each DSO.

[2] https://energy.ec.europa.eu/topics/markets-and-consumers/electricity-market-design_en

[3] https://energy.ec.europa.eu/topics/eus-energy-system/digitalisation-energy-system_en#eu-action-plan-for-digitalising-energy

[4] https://energy.ec.europa.eu/news/commission-presents-measures-digitalise-europes-energy-system-while-ensuring-sustainable-2026-06-03_en

[5] Directive (EU) 2023/241

[6] Directive (EU) 2023/179

[7] https://commission.europa.eu/topics/competitiveness/union-skills_en

[8] The Distribution Network Development Plan (DNDP) is a strategic document mandated by the EU Directive 2019/944 to be developed, published, and updated biennially by European DSOs.

[9] https://pact-for-skills.ec.europa.eu/about/industrial-ecosystems-and-partnerships/renewables_en

[10] See European Battery Academy, European Solar Academy and European Raw Materials Academy