Stimulating the innovation potential of SMEs for a low carbon energy system Specific Challenge: SMEs play a crucial role in developing resource-efficient, cost-effective and affordable technology solutions to decarbonise and make more efficient the energy system in a sustainable way. They are expected to strongly contribute to all challenges outlined in the legal base of the Horizon 2020 Societal Challenge ‘Secure, Clean and Efficient Energy’[1], in particular with regard to Reducing energy consumption and carbon footprint by smart and sustainable use (including energy-efficient products and services as well as ‘Smart Cities and Communities’), Low-cost, low-carbon electricity supply (including renewable energy as well as CCS and re-use), Alternative fuels and mobile energy sources, A single, smart European electricity grid, New knowledge and technologies, and Robust decision making and public engagement. Scope:The SME instrument consists of