The Digital Demand-Driven Electricity Networks (3DEN) Initiative – an inter-agency initiative between UNEP, the IEA, and Italy’s Ministry of the Environment and Energy Security (MASE), receiving technical support from BASE – finalised the signature of grant agreements with 14 new projects aiming to leverage the power of digitalisation for energy and agri-food systems across 8 countries. This second phase builds on the previous achievements of the programme, which spanned from 2020 to 2024 and helped bring digital intelligence to enhance grid and energy system flexibility and resilience from Latin America to South Asia. Announced at Baku in 2024, this new chapter begins with a simple goal: scale what works in seven countries of Africa and in Brazil, and make the case for digital technologies in urban energy and agri-food systems.

A factual ode to digitalisation, the highway to system and energy efficiency

Digitalisation is quietly transforming the world’s energy systems, making grids smarter, more adaptable to renewable energy sources, factories leaner, and cities brighter with less power. The International Energy Agency (IEA) estimates that deploying digital technologies could save up to USD 1.8 trillion in grid investments by 2050, while the World Economic Forum sees digitalisation delivering up to 20 percent of the emission reductions needed in high-emitting industries.

In other words, in the global push towards decarbonization, digitalisation appears as one of the lowest-hanging fruits to achieve energy efficiency, which is in itself seen as the “first fuel” of the clean energy transition for its rapid implementability and cost-effectiveness.

That’s because digital tools give energy systems something they have long needed: awareness, thanks to better and quicker data.

Sensors, smart meters, and algorithms turn invisible flows of electricity into streams of insight, allowing people to see how energy is produced and consumed. If properly used, digital solutions can make every system and unit of energy deliver more. They fine-tune industrial processes, help utilities predict demand, and track waste in real time. A water utility can identify leaks before they happen; a solar plant can optimise its output minute by minute; a city can dim its lights just enough to save megawatt-hours without anyone noticing. These gains, multiplied across systems, mean less fuel burned, fewer emissions released, and more resources saved.

But the potential runs deeper than efficiency alone. Digitalisation expands access to energy services, especially where infrastructure is fragile or incomplete. With the right tools, rural communities can manage microgrids remotely, farmers can monitor irrigation pumps through mobile apps, and households can prepay for electricity in small, affordable increments.

It also redefines how energy is financed and delivered. By providing real-time data on usage and performance, digital systems make it possible to measure consumption precisely, manage payments automatically, and build trust between users and providers. This transparency enables the rise of pay-per-use models, where people pay only for the energy they use, therefore lowering barriers to entry and broadening access to clean technologies. That is the promise the 3DEN Initiative was created for. 

3DEN, a macro inter-agency initiative to pave the way

Launched by the International Energy Agency (IEA) and the UN Environment Programme (UNEP), with the support of the Italian Ministry of Environment and Energy Security, 3DEN helps countries harness digital technologies to strengthen their energy and agri-food systems. Its work focuses on translating digital potential into practice thanks to multi-million funding windows designed to pilot innovative ideas before they can scale.

In its first phase, 3DEN has worked with governments, utilities, and private companies to test diverse approaches in the field. The results are as follows:

• In Brazil’s Ceará state, a cutting-edge project combined data analytics and distributed renewable energy systems to lower both climate impact and bills. In Smart City Laguna –  recognised as the world’s first socially inclusive, affordable smart city – Planet Smart City and Energy of Things equipped 100 homes with rooftop solar panels, batteries, and smart meters connected to a digital platform that helps families optimise consumption. Residents now monitor usage through a mobile app, shifting demand to solar hours and reducing strain on the grid. Electricity bills have fallen by up to 70 percent, saving 79 tonnes of CO₂ annually and showing how data and community engagement can democratise clean energy.
• On the other side of the Atlantic, Morocco’s leading bottled water producer, Les Eaux Minérales d’Oulmès (LEMO), has embraced digital control systems to optimise energy use at its Tarmilate and Bouskoura plants. Through the 3DEN Initiative, the company installed smart meters and sensors to monitor electricity, fuel, steam, and water in real time, integrating artificial intelligence to predict consumption peaks and detect anomalies. Within a year, LEMO cut energy use by 5 percent and set a clear path toward a 20 percent reduction by 2030.

“We are elevating energy efficiency into a strategic lever for competitiveness, resilience and sustainability” said Asmae Tazi, Manager of Water, Energy and Climate Management at LEMO, illustrating how 3DEN pilots leverage digitalisation to turn efficiency from a technical goal into a lived reality.

These stories are no endpoints but beginnings, because pilot projects matter: they represent the riskiest stage of any innovation, often too early for commercial investors, yet essential for proving what works. Once these initial stages are funded and validated, they can provide the necessary confidence to attract private capital and open the way for scale. In a moment when international cooperation feels fragile and public funding for climate action is stretched thin, pilots represent a strategic priority for any grant-giving organisations. In this field, 3DEN stands as a rare exception as a growing government-led initiative.

Phase II, a new chapter to step up ambition and accelerate the transition

Indeed, building on these successes, the project has started a second phase in 2025, committing an even larger budget to bring more game-changing ideas harnessing digital technologies to life. 

Seeking to widen the portfolio of projects it finances and push the technical assistance further, BASE has been selected to provide end-to-end granting management support. Under Phase II, the BASE team acts as key implementing partner, covering multiple aspects of the programme from the launch of the call for proposals to funding disbursement and accompanying pilots rollout, integrating activities such as project selection and due diligence processes, grant agreement design, communications and impact reporting.

In November 2025, a first batch of 14 selected projects in Africa and Brazil was announced over COP 30 in Belem, comprising a diversity of promising solutions and illustrating the high demand for digitalisation support across continents and sectors.

• In São Paulo, Brazil, a selected initiative will introduce a digital platform for grid reliability and resilience in the city’s electricity distribution network. The integration of several technical modules, ranging from AI-Driven risk mapping to work-allocation optimisation systems, will enable predictive maintenance, outage prevention, and prioritised field deployment. This will introduce a data-driven approach that allows a shift from reactive maintenance to predictive planning, marking an important step forward in climate adaptation.
• In Tunisia, digital solutions such as real-time monitoring or digital twin simulations will enhance energy efficiency and cut emissions for multiple players in the dairy value chain. Local farmers will be equipped with a Decision Support System (DSS) while processors make use of an Energy Management System (EMS). The project aims to reduce energy use, optimise water consumption, expecting savings of up to 57,000 tCO₂ per year and up to 42 million m³ of water.
• The Grid Digitisation and Visualisation project in Nasarawa State, Nigeria, combines digital solutions to enhance grid visibility and enable energy loss detection, while supporting more accurate billing and forecasting. The digital platform offers strong scalability and replication potential across other utilities, accelerating Nigeria’s transition towards a more flexible, data-driven electricity grid.

In April 2026, a significant milestone was reached with the signing of all grant agreements. This followed an intensive contracting and negotiation phase that began late last year to ensure the quality and readiness of the projects and maximise the impact of the funding provided. Project implementation is expected to commence by summer 2026.

In parallel, the team behind the project initiated the development of a 3DEN digital platform, which will include both a public website and an internal intranet. The website will serve as the main portal to access key information about the 3DEN programme and apply to possible future calls for proposals. Additionally, a knowledge hub will centralise case studies and reports stemming from the initiative. The embedded intranet will provide a single platform for exchanges between the coordination teams, partners and applicants, enabling users to submit and track applications, network and exchange ideas, update project information, submit reports and supporting documentation during implementation and also facilitate matchmaking with a dedicated feature.

Stay informed about upcoming funding and new pilots by following the organisations behind 3DEN, and join the 3DEN community.