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

Expected outcome

Projects are expected to contribute to all the following outcomes: 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.

Scope

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. In order to reach this goal, proposals are expected to address all of 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.

What this means for cities and regions

Cities, municipal energy companies, housing providers and distribution operators piloting DC microgrids in public buildings, districts or energy communities. Topic budget €20 million; 3 grants expected; around €7 million per project. Opens 9 February 2027; closes 7 October 2027. Rooftop solar potential from satellite imagery and Copernicus climate data support site selection, PV yield forecasting and measuring the emissions effect of each pilot.