RHC Accelerator

Horizon Europe is the EU’s key funding programme for research and innovation. While Horizon Europe covers a broad range of research and innovation activities, it includes significant opportunities for projects related to renewable heating and cooling. Calls under Horizon Europe often target:

• Innovative renewable heating and cooling technologies
• Integration of renewable heating and cooling into energy systems
• Enhancing energy efficiency in heating and cooling systems

A total of €224 million in funding is available for the first two years of the work programme.

Eligibility Criteria

The project consortium must include at least three partner organisations from three different EU or associated countries. Organisations from other countries may also join the consortium. Some calls for proposals require a multi-actor approach, meaning the proposed project must involve a diverse set of stakeholders, including end-users and users of the project’s results.

Co-financing Rate & Financing Criteria

The co-financing rate varies between 30-100% percent depending on the project. For Research and Innovation Action and the Coordination and Support Action the financing covers 100% of the project’s cost. For the Innovation Action, the co-financing rate can be up to 70%, while for the Programme Co-Fund Action the funding varies between 30% and 70%.

The financing criteria change according to each cluster of the programme. Nonetheless, there are some common requirements. Any organisation can apply as long as it can carry out the tasks agreed upon. This includes, but is not limited to, universities, industries, SMEs, ministries and local governments, NGOs, etc.Most of the calls require at least 3 partners from 3 different countries. At least one of the partners must be from an EU country.  

Specific Technology Categories Aligned with the Respective Scheme

Cluster 5: Climate, Energy, and Mobility, which includes energy efficiency in buildings and industry, as well as a sustainable built environment.

The LIFE Programme supports climate action and environmental sustainability projects, including:

• Renewable heating and cooling solutions as part of broader climate change mitigation efforts
• Demonstration projects that showcase innovative heating and cooling technologies

A sub-programme of the LIFE Programme, LIFE Clean Energy Transition, aims to support energy efficiency by addressing structural or organisational obstacles, creating favourable enabling frameworks, and building the capacity of public and private participants.

Eligibility Criteria

Projects must involve participants from EU member states or associated countries. Organisations from third countries can participate but cannot coordinate the project. A consortium must typically consist of at least three partner organisations from three different eligible countries. Partners should include a mix of stakeholders such as public authorities, private entities, NGOs, and research institutions.

Projects usually have a set duration, often ranging from 1 to 5 years, depending on the specific call for proposals.

Projects should aim to deliver measurable improvements in energy efficiency, reduce greenhouse gas emissions, and strengthen the capacity of public and private sectors to implement clean energy solutions. Proposals should showcase innovative approaches and have the potential for replication and scalability across different regions or sectors within the EU.

Co-financing Rate & Financing Criteria

The programme provides co-financing for up to 95% of eligible project costs. This means that the EU can cover up to 95% of the project’s total eligible expenses, with the remaining 5% needing to be financed by the project’s partners or other sources. Contributions from third parties can be used to cover part of the remaining project costs not covered by the EU grant. These contributions can come from national, regional, or local governments, private sector sponsors, or other funding programmes.

The Innovation Fund is one of the world’s largest funding programs for demonstrating innovative low-carbon technologies in areas such as energy-intensive industries, renewable energy, energy storage, and carbon capture and storage.

It targets innovative low-carbon technologies and processes, which can include:

• Demonstration Projects: The fund supports large-scale demonstration projects of innovative low-carbon technologies, including carbon capture, utilization, and storage (CCUS), renewable energy, energy storage, and energy-intensive industries.
• Innovative Technologies: Projects must involve technologies that are not yet commercially deployed or are at an early stage of commercialization

Eligibility Criteria

Projects typically need to be of significant scale, with substantial impacts on reducing greenhouse gas emissions. Specific minimum and maximum thresholds are detailed in the calls for proposals. Projects should also be at a sufficiently advanced stage of development (e.g., pilot, demo) to demonstrate commercial viability. Projects must be located in EU member states or countries associated with Horizon Europe.

In terms of project consortium requirements, while the primary focus is on EU member states and associated countries, international partners can be involved, particularly in the case of global demonstration projects.

Co-financing Rate & Financing Criteria

The Innovation Fund provides co-financing of up to 60% of the additional costs of the innovative aspects of the project. This percentage may vary based on specific calls or project types.

The European Investment Bank (EIB) provides financing for a wide range of projects, including those focused on renewable heating and cooling. The scope of support includes:

• Renewable Heating and Cooling Projects: The EIB supports projects that involve the implementation of renewable energy technologies for heating and cooling. This includes technologies such as solar thermal, geothermal, biomass, and advanced heat pumps.
• Energy Efficiency Improvements: The EIB also funds projects aimed at improving the efficiency of existing heating and cooling systems, which can include upgrading infrastructure or integrating renewable technologies.

Eligibility Criteria

Projects must be located in EU member states or countries associated with Horizon Europe. The EIB also supports projects in neighbouring countries and developing regions under certain conditions. Typically, projects need to be of significant scale to qualify for EIB funding. This often means large investments or substantial improvements in heating and cooling infrastructure.

The EIB provides financing to both public and private sector entities. This can include local authorities, private companies, and public-private partnerships. Applicants must demonstrate financial stability and the ability to manage the project’s budget effectively. This includes showing the capacity to repay loans and manage operational costs.

Co-financing Rate & Financing Criteria

1. Co-Financing Rate:

Loan Terms: The EIB can finance up to 50% to 70% of the total project costs. The exact percentage can vary based on the project’s risk profile, type, and specific terms of the funding agreement.

Blended Finance: In cases where the EIB uses blended finance, the co-financing structure can include a mix of grants, loans, and equity, depending on the project’s needs and risk factors.

• Interest Rates and Repayment:

Interest Rates: The EIB typically offers competitive interest rates compared to commercial lenders, often at lower rates due to its non-profit mandate and strong credit rating.

Repayment Terms: Repayment terms are generally long-term, aligning with the project’s cash flow and financial structure. Terms can range from 10 to 20 years, depending on the project’s nature and scale.

•  Financial Structuring:

Tailored Solutions: The EIB often tailors its financial solutions to fit the specific needs of the project, which can include flexible repayment schedules and customized financing packages.

Primarily aimed at supporting regions affected by the transition to a low-carbon economy, the JTF can fund:

• Renewable heating and cooling projects that help regions move away from fossil fuels
• Initiatives that reskill workers for jobs in renewable heating and cooling sectors

The Just Transition Mechanism is a financial tool that provides tailored support to the most vulnerable and coal-intensive regions in the transition to a greener economy.

The mechanism consists of three pillars:

1. a Just Transition Fund of €40 billion to primarily provide grants;
2. a dedicated scheme under InvestEU to encourage private investment;
3. a public sector loan facility with the EIB Group to mobilise additional investment and leverage public financing.

Eligibility Criteria

JTF supports regions and communities in EU member states that are heavily reliant on fossil fuels and where the transition will have significant economic impacts. Projects should contribute to economic diversification and sustainable development in affected regions.

They must align with local and regional transition plans. Proposals are submitted to managing authorities in the eligible regions or countries, which then assess and forward them for EU funding.

Co-financing Rate & Financing Criteria

The JTF provides up to 85% co-financing for eligible costs in the most disadvantaged regions. The co-financing rate can be lower for less disadvantaged regions.

Funding Structure typically includes grants, but can also involve blended finance depending on the specific project and region.

The European Energy Efficiency Fund is designed to support investments in energy efficiency and renewable energy projects, particularly in the public sector.

The Fund supports investments in energy efficiency improvements and renewable energy systems for heating and cooling in public buildings and infrastructure and focuses on projects that enhance energy efficiency across various sectors.

Eligibility Criteria

Projects must focus on energy efficiency, renewable energy, or clean urban transport and should demonstrate clear energy savings, emission reductions, or renewable energy generation.

Geographical Focus:

Projects must be located in EU member states or candidate countries..

Co-financing Rate & Financing Criteria

The EEEF provides up to 50% co-financing of the total project costs, depending on the project’s scope and expected impact. The funding structure can involve loans, equity investments, or guarantees. The exact structure depends on the project’s financial needs and risk profile.

Interreg is an EU funding programme that promotes cross-border, transnational, and interregional cooperation. It typically includes grants for project activities, with funding allocated to support collaborative efforts between regions. Interreg supports projects that develop and implement renewable energy solutions for heating and cooling across borders and regions. It typically includes grants for project activities, with funding allocated to support collaborative efforts between regions.

Eligibility Criteria

Projects must involve cross-border, transnational, or interregional cooperation and address shared regional challenges. Projects should involve partners from at least two different countries, typically EU member states or neighboring countries. The applicants include public authorities, private entities, NGOs, and other stakeholders involved in regional development and cooperation.

Co-financing Rate & Financing Criteria

Interreg provides up to 85% co-financing for eligible project costs. The co-financing rate can vary depending on the specific Interreg programme and region.

The Eureka Network is an international cooperation platform for market-oriented research and development. It supports innovative projects, including projects aimed at developing and commercializing new renewable heating and cooling technologies, by providing funding and facilitating collaboration among businesses, research institutions, and governments.

Eligibility Criteria

Projects must focus on R&D and innovation with clear market potential. They should aim to develop new products, processes, or services in the renewable heating and cooling sector. The applicants can be small and medium-sized enterprises (SMEs), large companies, research institutions, and universities. Projects should involve partners from at least two different Eureka member countries. The network includes over 45 countries, including EU member states and other associated countries.

Co-financing Rate & Financing Criteria

The co-financing rate varies by country and funding body. Each participating country funds its national participants according to its own rules and procedures, which can include grants, loans, and other financial instruments.

URBACT is a European Territorial Cooperation programme that aims to promote sustainable integrated urban development in cities across Europe. It facilitates the sharing of knowledge and best practices between cities to tackle common urban challenges, including those related to energy and climate. URBACT supports projects that integrate renewable energy solutions into urban heating and cooling systems, contributing to sustainable urban development.

Eligibility Criteria

Projects should address urban challenges and promote sustainable development, with a particular focus on innovation, efficiency, and renewable energy integration. Projects should involve cities or urban areas within EU member states and other eligible countries participating in URBACT. Applicants can include local authorities, municipalities, and other urban stakeholders. Projects often involve networks of cities collaborating on shared challenges.

Co-financing Rate & Financing Criteria

URBACT provides up to 70% co-financing for eligible project costs for cities in more developed regions, and up to 85% for cities in less developed regions. Funding is primarily provided as grants to support project activities, including planning, implementation, and knowledge exchange.

UIA is an initiative of the European Union that provides urban areas throughout Europe with resources to test new and unproven solutions to address urban challenges. The programme aims to identify and promote innovative projects that have the potential to be replicated in other European cities. UIA supports innovative projects that integrate renewable energy solutions into urban heating and cooling systems.

Eligibility Criteria

Projects should propose innovative solutions that have not been implemented before in the EU context. They should address specific urban challenges and have the potential for significant impact. Projects must be led by an urban authority from an EU member state and partners can include other levels of government, NGOs, research institutions, and private sector organizations.

Co-financing Rate & Financing Criteria

UIA provides up to 80% co-financing of eligible project costs. The remaining 20% must be covered by the project partners. Funding is provided as grants.

ESPON is a programme that supports the development of evidence-based policies by providing territorial evidence, data, and analysis. It aims to enhance spatial planning and development across Europe, focusing on territorial cohesion and sustainable growth. While ESPON itself does not directly fund implementation projects, it supports applied research and analysis that can inform and guide the development of renewable heating and cooling systems in various territories.

Eligibility Criteria

Projects must focus on applied research and analysis that contribute to understanding territorial dynamics and support policy development. This can include case studies, data collection, and scenario analysis related to renewable heating and cooling.

Co-financing Rate & Financing Criteria

SPON provides co-financing for research projects, typically covering up to 85% of eligible costs. The remaining costs must be covered by the project partners. Funding is provided as grants for applied research activities, including data collection, analysis, dissemination, and stakeholder engagement.

EIT InnoEnergy is part of the European Institute of Innovation and Technology (EIT) and focuses on fostering innovation in sustainable energy across Europe. It provides support for innovative projects, startups, and educational programmes aimed at accelerating the energy transition. It supports the development and commercialisation of innovative renewable heating and cooling technologies. This includes projects that enhance energy efficiency, reduce greenhouse gas emissions, and integrate renewable energy sources such as solar thermal, geothermal, and biomass.

Eligibility Criteria

Projects should involve innovative technologies or business models that have the potential to make a significant impact on the sustainable energy landscape. They should address specific challenges in renewable heating and cooling. Applicants can be startups, SMEs, large companies, research institutions, and universities. Collaborations and partnerships between different types of entities are encouraged.

Co-financing Rate & Financing Criteria

EIT InnoEnergy typically provides co-financing through investments, grants, and support services. The co-financing rate and structure vary depending on the project’s stage, risk, and potential impact. Support can include equity investments, convertible loans, and grants. EIT InnoEnergy also offers business development support, market access, and mentorship.

The Smart Energy Systems ERA-Net is a transnational initiative that supports research, development, and innovation projects focused on smart energy systems. It aims to enhance the integration of renewable energy sources and improve the efficiency and flexibility of energy systems across Europe. It focuses on projects that enhance the efficiency, flexibility, and sustainability of energy systems through digitalization, smart grids, and innovative energy management solutions.

Eligibility Criteria

Projects should involve innovative solutions that contribute to the development of smart energy systems and the integration of renewable energy sources. They should address specific challenges related to energy efficiency, flexibility, and sustainability. Projects must involve partners from at least two different countries participating in the SES ERA-Net. The network includes a wide range of EU member states and associated countries.

Co-financing Rate & Financing Criteria

The co-financing rate varies by country and funding agency. Each participating country funds its national participants according to its own rules and procedures, which can include grants, loans, and other financial instruments. The funding structure typically involves national funding for participants, coordinated under the SES ERA-Net framework. The funding structure depends on the specific national funding body and the nature of the project.

The CEF is the EU’s funding programme focused on financing key infrastructure projects across the European Union. The facility is divided into three branches. The energy branch, aimed at developing the Trans-European Network for Energy policy and reinforce the cross-border energy infrastructure and rehabilitate the existing ones. The transport branch will support the building of new or the refurbishing of existing transport infrastructure. The digital branch will finance digital connectivity infrastructure of common European interest.

The CEF disposes of around €33.2 billion; €25.8 billion for transport (€11.2 billion for Cohesion countries), €7.7 billion for energy, and €1.6 billion for digital. The facility provides grants to the eligible partners and through innovative financial instruments such as guarantees and projects bonds

Eligibility criteria

Only legal entities and joint ventures established in the EU or from third countries associated with the programme are eligible. Each call has further different eligibility criteria, according to the specific requirements of the project.

Co-Financing Rate and Funding Criteria

CEF has a maximum of 30% of the total eligible cost. This amount may be increased to 50% for studies, projects of greater priority, or civilian-defence dual-use projects. For projects in Cohesion countries, participation can increase up to 85% of the total eligible costs. Projects focused on enhancing the interconnectedness of transport, energy, and digital solutions across the member states will be considered for funding under the CEF.

The InvestEU programme provides the European Union with essential long-term funding by leveraging private and public capital to support Europe’s sustainable recovery. It mobilises private investments that will back the EU’s key policy goals, including the green and digital transitions, innovation, and social investments. The InvestEU comprises three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The fund is implemented through financial partners, supported by a €26.2 billion EU budget guarantee, which enhances their risk capacity and is expected to generate at least €372 billion in additional investment.

Eligibility criteria

To be eligible for funding, projects need to contribute to the EU’s policy objectives and be within the scope of the areas eligible for financing and investment. Moreover, the projects need to be consistent with the investment guidelines and comply with other conditions set out in the EU’s Financial Regulation document. The Member States as well as eligible third countries may apply for investment funding.

Co-Financing Rate and Funding Criteria

The co-financing of projects can happen in 4 different ways. It can be made through loans, guarantees or counter guarantees, capital market instruments, and equity, equity-type, and quasi-equity participations. The rate is variable according to the project, its risks, and requirements. In order to be eligible for the funds, the project must:

• Address market failures or investment gaps and be economically viable
• Need EU backing in order to get off ground
• Achieve a multiplier effect and where possible crowd-in private investment
• Help meet EU policy objectives

The Modernisation Fund is an EU programme aimed at supporting the modernisation of energy systems and improve energy efficiency in Bulgaria, Czech Republic, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovakia, and Slovenia. The programme is financed by the revenues of the EU ETS.

Eligibility Criteria

The Modernisation Fund will contemplate energy-related projects and investments. To be considered eligible, projects will need to be energy-related, especially for renewable energy generation, energy storage, improved energy efficiency, modernisation of energy networks, heating pipelines, and transmission networks, and support for coal-dependent region to transition out of the fossil fuel, including in programs aimed at reskilling and upskilling of workers, job-seeking initiatives, and start-ups.

Co-Financing and Funding Criteria

The Modernisation Fund can cover up to 100% for priority investments and up to 70% for non-priority investments. Each call has its specific criteria. The calls are organised by each EU country individually.

The RRF is a mechanism unveiled by the European Union to make its economy stronger and more resilient. It was created in 2021 during the economic hardships caused by the COVID-19 pandemic. The RRF borrows from the capital markets and allocates to the Member States the funds to implement key reforms related to greening their economies, support the digital transition, as well as for country-specific challenges.

The RRF has €648 billion allocated; €357 billion in grants and €291 billion in funds. To access these funds, however, Member-States need to achieve agreed milestones and targets to keep receiving funds from the mechanism.

Eligibility criteria

Each member state needs to submit to the commission their national recovery and resilience plan. Once approved by the European Commission, countries can request up to 13% of their allocated funds to kickstart the agreed reforms. Disbursements are normally made twice a year if the Member State is in line with the targets and objectives set out in its national plan.

Co-financing rate and funding criteria

The European Commission disburses the agreed amount to the Member State in the form of non-repayable financial support and loans. Each EU country has a different amount allocated for its RRF projects. Each payment can only be made after the Member State has reached an agreed milestone set out in its national recovery and resilience plan. The Commission is the one responsible for analysing each national plan, recommend changes, and check if the country documents are in line with the criteria specified in the regulations, such as inclusion of projects aimed at making economies more sustainable, job creation, and other requirements.