Electricity is the fastest-growing source of final energy demand, set to outpace overall energy consumption over the next 25 years. Without innovative approaches, the rapid electrification of economies could result in increased costs and missed opportunities for emissions reduction and energy efficiency improvements.
Digital technologies are key enablers of modern, dynamic, and resilient electricity systems, tackling the various inefficiencies current installations show. Distributed energy resources, such as energy efficiency measures, smart demand response, intelligent electric vehicle charging, building-level energy storage, and distributed solar photovoltaics, are becoming indispensable to power system flexibility and effectiveness. These resources help integrate variable renewable generation, making them crucial for countries aiming to expand their renewable energy mix.
Digital, demand-driven solutions provide significant benefits, including cost savings, emissions reductions, and enhanced energy efficiency. For example, global implementation of smart demand response could add 185 GW of system flexibility—equivalent to the installed electricity supply capacity of Australia and Italy combined—potentially saving USD 270 billion in infrastructure investments that would otherwise be required to meet growing electricity demand.
Achieving this transformation requires policy action, supportive regulatory frameworks, new business models, large-scale investments, and continued technological innovation and deployment. Building on these opportunities, UNEP and the IEA, with support from Italy, launched the first phase of the Demand-Driven Electricity Networks Initiative (3DEN) in 2021 to promote smart digital energy solutions.
The second phase of 3DEN, announced in 2024, expands the initiative’s scope to Africa, focusing on digitalising urban energy networks and agriculture systems. With Italy contributing €20 million since 2020, this phase will fund eligible projects in Ethiopia, Kenya, Morocco, Nigeria, South Africa, Tanzania, Tunisia, and Brazil. The initiative aims to support infrastructure development, improve digital literacy, and ensure affordable access to smart energy solutions. Key focus areas include:
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 20 2025 and is now open to receive applications for innovative projects. Candidates can learn more and apply on the initiative’s official website.
By enabling data-driven decision-making, the project aims to reduce energy waste, lower emissions, and enhance energy security in participating countries. Digital tools will help cities manage power distribution more effectively, while farmers will benefit from increased efficiency and profitability. The initiative builds on successful pilots from Phase I in India, Brazil, Morocco, and Colombia, which demonstrated improved reliability, cost savings, and environmental benefits. Through the 3DEN Call for Proposals, up to USD 2 million in funding per project will be allocated to innovative pilot projects, supporting a scalable and self-sustaining transition toward smart energy systems.
