The United Nations Environment Programme (UNEP) and the International Energy Agency (IEA), with the support of the Italian government, today launched the second phase of a successful initiative to digitalize 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 optimize 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 digitalization 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, improve digital literacy and ensure affordable access to digital tools.
“Action to address global warming and its impacts is not strong enough or fast enough,” said Dechen Tsering, acting interim Director of UNEP’s Climate Division. “Cutting emissions from the power sector is crucial to catch up and protect people and the planet, which is why 3DEN can make a real difference.
“Smart technologies allow greater efficiency in power systems and make it easier to integrate renewable sources into grids, which can deliver power to millions more people without increasing emissions,” Tsering added. “UNEP is grateful to Italy for its support and looks forward to delivering a stronger impact in the second phase, including by backing African farmers to grow more with fewer resources.”
"With the launch of the second phase of the 3DEN initiative, Italy reaffirms its unwavering commitment to fostering innovative, inclusive, and sustainable solutions for the energy transition,” said Alessandro Guerri, Director General for European and International Affairs and Sustainable Finance at the Italian Ministry of Environment and Energy Security. “This effort is strengthened by the pivotal collaboration of the International Energy Agency and the United Nations Environment Programme, whose expertise and leadership play a crucial role in shaping global strategies.
“Guided by our Piano Mattei, we prioritize multistakeholder collaboration, digitalization and investment to address the dual challenges of climate change and energy access, particularly for the world’s most vulnerable regions,” Guerri added. “This initiative underscores Italy’s dedication to advancing resilient, clean energy systems while building a sustainable future for all."
Why digitalization 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, digitalization can help reduce greenhouse gas emissions by enabling precise management of energy systems across sectors like agriculture and industry. According to the IEA, digitalization 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.
Digitalization of urban energy systems
Urban energy systems are one focus of phase II, as cities in Africa face unique challenges, including rapid urbanization and population growth, ageing infrastructure and limited access to reliable energy.
Some of the potential applications for digitalization in urban energy systems include:
- Smart-grid integration: By adopting smart grid technologies, cities can reduce power outages, optimize 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 minimize 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 optimize crop yields and reduce resource use, minimizing waste in inputs like water and fertilizer.
- 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.
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 for a maximum of US$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 on 23rd May 2025. For more information, click here.
About the United Nations Environment Programme (UNEP)
UNEP is the leading global voice on the environment. It provides leadership and encourages partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations.
