The United Nations Environment Programme (UNEP) and the International Energy Agency (IEA), with the support of the Italian government, launched on January the 20th the second phase of a successful initiative to digitalise power systems and lower their climate impact.
The effort will focus on Africa and widen its scope to back resource efficiency in agriculture.
Phase I of the Demand-Driven Electricity Networks Initiative (3DEN) was launched in 2021 to spread the use of smart technologies that optimise power use, saving energy and money, and preventing greenhouse gas emissions. During this phase, the Italian Ministry of Environment and Energy Security, in collaboration with UNEP, supported pilot projects in Brazil, Colombia, India and Morocco. These initiatives demonstrated innovative models, delivering tangible benefits to tens of thousands of consumers. Italy has contributed 20 million euros to the 3DEN initiative since 2020. The second phase is looking to fund projects that accelerate the digitalisation of agriculture and urban energy networks, starting with seven African nations – Ethiopia, Kenya, Morocco, Nigeria, South Africa, Tanzania and Tunisia – alongside Brazil. The projects will address infrastructure challenges, aim to improve digital literacy and ensure affordable access to digital tools.
BASE provides technical assistance with tendering, evaluation, contracting, and monitoring the next batch of projects. It will also conduct communications and knowledge management activities, including workshops and the publication of policy insights and lessons learned.
The project call for proposals was launched on January 13 2025 and is now open to receive applications for innovative projects. Candidates can learn more and access the application documents at the bottom of the initiative’s official website.
Why digitalisation matters
The power sector is the largest single contributor to carbon dioxide emissions at a time when greenhouse gas emissions need to be almost halved by 2030 to get on track for holding global warming to 1.5°C, as targeted by the Paris Agreement on climate change.
At the same time, 675 million people lack access to electricity and 2.3 billion still cook and heat with wood, charcoal and other unhealthy fuels. Resolving this issue of inequity, poverty and health will require new power capacity and infrastructure expansion.
As electricity demand increases, digitalisation can help reduce greenhouse gas emissions by enabling precise management of energy systems across sectors like agriculture and industry. According to the IEA, digitalisation could cut global energy consumption in buildings alone by up to 10 per cent by 2040.
Smart grids, real-time monitoring and data analytics also facilitate the integration of renewable energy into grids, helping officials anticipate and respond to climate-related disruptions while increasing system resilience and adaptability.
Digital approaches can be applied to other sectors to avoid the waste of natural resources such as water and land, which is why Phase II of the project is expanding beyond purely energy systems.
Digitalisation of urban energy systems
Urban energy systems are one focus of phase II, as cities in Africa face unique challenges, including rapid urbanisation and population growth, ageing infrastructure and limited access to reliable energy.
Some of the potential applications for digitalisation in urban energy systems include:
- Smart-grid integration: By adopting smart grid technologies, cities can reduce power outages, optimise load balancing and better manage electricity distribution.
- Demand response systems: Real-time communication between utilities and consumers enables peak load reduction and energy conservation.
- Distributed energy resource management: Integrating renewable sources, like solar and wind, within urban grids can help reduce dependence on fossil fuels, supporting a cleaner, more sustainable energy future.
Funding pilot agriculture projects
Phase II will also support the implementation of innovations that build resilience and profitability within the agricultural sector, enabling farmers and agribusinesses to make informed, data-driven decisions and minimise the use of valuable natural resources.
Examples of the kind of technologies 3DEN is looking to back are:
- Precision agriculture: By using sensors and data analytics, farmers can optimise crop yields and reduce resource use, minimising waste in inputs like water and fertiliser.
- Smart irrigation: Digital irrigation systems can adjust water levels based on real-time data, helping to conserve water, a crucial resource in many African regions.
- Digital marketplaces and blockchain: Digital platforms provide farmers with better market access and pricing transparency. Blockchain technology, for instance, can offer traceability, enhancing quality and safety standards across the supply chain.
Call for Proposals Launch event
The call for proposals was launched over an online event organised on Monday, 20th January.
We invite you to watch the webinar to learn more about Phase II and its scope.
By loading the video, you agree to YouTube’s privacy policy.
Learn more
Phase I achievements
Projects in Phase I revealed valuable insights and demonstrated benefits in reliability, cost savings and environmental impact. In India, a consortium developed a digital twin for electric distribution grids in partnership with Panitek Power and the Energy and Resources Institute. This tool enhanced operational reliability, improved outage management and reduced costs for 20,000 consumers. In Brazil, the pilot project empowered residents in social housing by using smart digital tools to manage their energy consumption, reducing costs and energy waste. In Morocco, the project supported Les Eaux Minérales d’Oulmès to implement advanced energy monitoring systems, reducing energy consumption by 25 per cent. In Colombia, the Enelflex project engaged over 100,000 users in a demand-response initiative, reducing power interruptions and emissions.
About the 3DEN Call for Proposal
Applicants can submit a project proposal for a maximum of USD 2,000,000, excluding co-financing. Pilot projects must be implemented within a 24-month timeframe and have a minimum of 30 per cent co-financing. Applications must be submitted electronically by email, ensuring that the submission is done before the deadline of 23rd May 2025.
For more information on the requirements and to access the Call For Proposal, click here.
