The 3rd Energy Package clearly boosts the development of an Integrated European balancing mechanism. In this context, ACER has in 2011 started the development of the Framework Guidelines on Electricity Balancing.It is expected from the ACER statements that Demand Response will play significant role in the future integrated balancing market allowing Virtual Power Plants, comprising Demand Response and Distributed Generation resources to compete on equal ground.Based on the above, the overall objective of the eBADGE project is to propose an optimal pan-European Intelligent Balancing mechanism, piloted on the borders of Austria, Italy and Slovenia, that is also able to integrate Virtual Power Plant Systems that can assist in the management of the electricity Transmission and Distribution grids in an optimized, controlled and secure manner. Even if the trans-national mechanism proposed by eBADGE will be tested with reference to a trilateral case (Austria, Italy, Slovenia), the approach and the modelling methodology is meant to allow a gradual extension to other countries in Europe (such as Germany in a second phase).The ICT development of the eBADGE project will be in line with the ACER Guidelines delivering the following five results:•\tSimulation and modelling tool for studying Integrated Balancing/Reserve Market allowing the participation of VPP at the distribution side;•\tUniform high performance message bus between Balancing/Reserve entities;•\tBusiness models between Energy, ICT and Residential Consumers sectors;•\tVirtual Power Plant as a Reliable Balancing Asset;•\tPilot eBADGE Cloud.Project objectives are:1.\tTo develop the components: simulation and modelling tool; message bus; VPP data analysis, optimisation and control strategies; home energy cloud; and business models between Energy, ICT and Residential Consumers sector;2.\tTo integrate the above components into a single system;3.\tTo validate these in lab and field trials;4.\tTo evaluate its impact.The Consortium will first design and implement the single components, which will be then individually tested and validated and finally, integrated. The validation of the individual components will be done using historical data and simulation (Simulation and modelling tool), expert knowledge in the Consortium (Message bus validation) using designed and developed scenarios and field trials (Home Energy Cloud and Pilot eBADGE cloud). The validation of the selected models for an Integrated Balancing/Reserve Market will also bring to a first rough assessment of the environmental and economic benefits.The consortium will promote a strong interaction and consultation with relevant stakeholders involved in Advisory Board. Achievements of the project eBADGE, if widely implemented, will also deliver synergies and efficient use of existing resources and infrastructure thus lowering daily costs for electricity users and increasing European welfare.