Key topics to support the Clean Energy Package Mark van Stiphout Deputy Head of Unit – DG Energy C2

Horizon 2020 work programme 2018-2020 Total budget envelope: ~ EUR 30 billion Covering 18 programme parts (e.g. Energy Challenge) contributing to various extents to focus areas (virtually linked calls) Focus Areas Building a low-carbon, climate resilient future Connecting economic and environmental gains – the Circular Economy Digitising and transforming European industry and services Boosting the effectiveness of the Security Union EUR 1953 million EUR 12 million Energy Challenge WP 2018-2020 EUR 30 million Texts for calls: 2018 – finalised 2019 – to be confirmed mid-2018 2020 – to be added as of mid-2018 EUR 20 million

Overview of Energy Challenge activities 1766 M€ Calls for proposals LC-SC3-2018-2019-2020 347 M€ Other Actions (e.g. procurements, Grant to identified beneficiaries) Energy efficiency Global leadership in renewables Smart and clean energy for consumers 91 M€ Smart citizen-centred energy system Financial contribution to other calls for proposals Smart Cities and Communities Enabling near-zero CO2 emissions from fossil fuel power plants and carbon intensive industries Joint Actions Cross-cutting issues

Calls for proposals LC-SC3-2018-2019-2020 Energy efficiency Global leadership in renewables Smart and clean energy for consumers Smart citizen-centred energy system Smart Cities and Communities Enabling near-zero CO2 emissions from fossil fuel power plants and carbon intensive industries Joint Actions Cross-cutting issues 192 M€* 445 M€* 20 M€* 176 M€* 110 M€* 88 M€* 52 M€* 42 M€* * Budget figures for 2018-2019 only (2020 to be confirmed at a later stage)

Smart Citizen Centered Energy System EC-2 Mitigating households energy poverty 2018-2019-2020 Support Energy Systems: Grid EC-3 Consumer Engagement / Demand Response 2020 - Demo ES-7 Pan-European Forum on R&I Smart Grid flexibility, local energy systems 2018 Support EC-1 Role of consumers in a changing market 2018-2019-2020 Support ES-1 Distribution grid: flexibility and market options 2019 - Demo Digitisation: IoT: 2018-2019 Big Data: 2019 Cybersecurity 2018-2020 5G: 2018 Smart and Clean Energy for Consumers ES-6 Advanced Tools and technologies 2019 Research ES-2 Transmission grid: increased regional cooperation 2019 - Demo ES-5 Innovative grid services (Consumers, DSO, TSO) 2018-2020 Demo Smart Citizen Centered Energy System

Digitisation of the energy system Multiplication of connected objects (Internet of Things) Develop the future energy system – increase the digital capacity of the energy sector for the benefit of a system that is able to integrate higher shares of RES and promotes energy efficiency Exponential increase in Generation of data (Big Data) Reliable & Secure energy & telco infrastructure

Digitisation to support the energy transition Horizon2020 – key calls: work programme 2018-2020 Active network management: procurement of services by network operators in markets and on platforms Optimise asset management through a toolbox for data analysis, management, processing Interoperability for smart homes, buildings and grids Develop, test and demonstrate Cyber-security technologies for the electricity system; 5G

LC-SC3-ES-5-2018: TSO – DSO – Consumer: Largescale demonstrations of innovative grid services through demand response, storage and small-scale (RES) generation Rationale (why?): Demonstrate at a large-scale how markets and platforms enable electricity TSOs and DSOs to procure energy services from large-scale and small-scale assets connected to the electricity network. Key issues: will lead to the development of a seamless pan-European electricity market that makes it possible for all market participants (if necessary via intermediaries such as energy suppliers or aggregators) to provide energy services in a transparent and non-discriminatory manner; enables TSOs and DSOs to give incentives to connected consumers, buildings, devices (including small-scale generation) to improve predictability and anticipate problems, based on jointly developed grid- models; defines and tests 1) standardised products and key parameters81 for grid services; 2) the activation process for the use of assets for network services; 3) the settlement process for payment related to the services; , through a combination of local markets with wholesale & balancing markets, in a way that will increase cost-efficiency in (future) network operations and that creates consumer benefit provide the foundations for new network codes, particularly on demand-response. In so doing they will contribute to opening up significant new revenue streams for consumers to provide grid services, and increase the share of RES in the electricity system. (including through local markets) for consumers that provide the grid services, taking into account tariff and tax systems

LC-SC3-ES-5-2018: TSO – DSO – Consumer: Largescale demonstrations of innovative grid services through demand response, storage and small-scale (RES) generation Key issues: facilitates scaling up the platforms and markets to spread its wider use and to increase liquidity, in particular by facilitating integration of small-scale and large-scale assets, and by integrating new services into existing platforms and/or links new services to existing markets as much as possible, by allowing to integrate future network services that support the energy network transition (e.g. those needed in scenarios with large RES penetration) and by being compatible across borders in line with EU rules on market coupling and balancing; allows procurement based on the specific location and grid conditions (if necessary); , through a combination of local markets with wholesale & balancing markets, in a way that will increase cost-efficiency in (future) network operations and that creates consumer benefit provide the foundations for new network codes, particularly on demand-response. In so doing they will contribute to opening up significant new revenue streams for consumers to provide grid services, and increase the share of RES in the electricity system. (including through local markets) for consumers that provide the grid services, taking into account tariff and tax systems

LC-SC3-ES-5-2018: TSO – DSO – Consumer: Largescale demonstrations of innovative grid services through demand response, storage and small-scale (RES) generation Key issues (how?): Define the needs of network operators for system operation, and turn these into services and products, based on interaction with suppliers, aggregators and energy service companies, that test what services can be provided by what assets; Test the needs of network operators and technological capabilities of the assets, including to ensure reliability of supply; Identify the relevant system data that enable market participants to better assess and forecast the need for grid services and publish such data (as much as possible); Test innovative ways to promote consumer participation, engagement and perception, such as peer-to-peer trading, and innovative ways to reduce transaction costs, such as via distributed ledgers (blockchain); investigate the possibilities for innovative pricing and compensation; Expected impact: demonstrating cost-efficient & replicable model(s) for electricity network services that can be scaled up to include networks operated by other TSOs and DSOs; Innovation Action TRL between 5 and 8 EU funding per project 13 - 17 Meur 2018 budget: 30 MEur , through a combination of local markets with wholesale & balancing markets, in a way that will increase cost-efficiency in (future) network operations and that creates consumer benefit provide the foundations for new network codes, particularly on demand-response. In so doing they will contribute to opening up significant new revenue streams for consumers to provide grid services, and increase the share of RES in the electricity system. (including through local markets) for consumers that provide the grid services, taking into account tariff and tax systems

LC-SC3-ES-5-2018: TSO – DSO – Consumer: Largescale demonstrations of innovative grid services through demand response, storage and small-scale (RES) generation Eligibility criteria: Consortia shall involve: at least 2 energy suppliers and at least 2 ESCOs or independent aggregators, Transmission System Operators (TSO) from at least 3 different Member States (this doesn't exclude participation of additional TSOs from non-Member States), 5 Distribution System Operators (DSO) from several Member States, with at least 2 of those DSOs operating in the area covered by the transmission system of any of the participating TSOs. , through a combination of local markets with wholesale & balancing markets, in a way that will increase cost-efficiency in (future) network operations and that creates consumer benefit provide the foundations for new network codes, particularly on demand-response. In so doing they will contribute to opening up significant new revenue streams for consumers to provide grid services, and increase the share of RES in the electricity system. (including through local markets) for consumers that provide the grid services, taking into account tariff and tax systems

Flexibility in the future energy system – other relevant Calls ES-1-2019: Flexibility and retail market options for the distribution grid LC-SC3-EE-4-2019: Upgrading smartness of existing buildings through innovations for legacy equipment LC-SC3-EE13-2018-2019: Enabling next-generation of smart energy services SU-DS04-2018-2020: Cybersecurity in the Electrical Power and Energy System (EPES): an armour against cyber and privacy attacks DT-ICT-10-2018: Interoperable and smart homes and grids DT-ICT-11-2019: Big data solutions for energy

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