Digital Demand-Driven Electricity Networks Initiative

Digital Demand-Driven Electricity Networks (3DEN) is an inter-agency collaboration between the International Energy Agency (IEA), the Italian Ministry of Environment and Energy Security and the United Nations Environment Programme. It supports the acceleration of power system modernisation through digitalisation, smart grid solutions and demand-side resource integration to translate into tangible improvements in reliability, affordability, and inclusion for households, communities, and businesses.

The global initiative provides policy support, project finance insights, and regulatory guidance to help countries enhance energy efficiency, scale up renewable energy integration, and strengthen system resilience with a focus on affordability.

Under the 3DEN Initiative, the IEA will leverage analysis, case studies and experiences from across the Agency and the world to develop and disseminate actionable tools and guidance. UNEP leads the call for proposals and oversees the implementation of pilot projects to ensure practical, on-the-ground impact and generate proven, scalable data. 3DEN will engage with relevant organisations, bringing together diverse stakeholders to foster dialogue and share experiences.

The first phase of the programme (2020–2024) supported analytical work, regulatory frameworks, and pilot projects to promote adoption of digital energy solutions. Initial geographic focus areas included Brazil, Colombia, India, Indonesia, Morocco, South Africa, Tunisia, Latin America, Africa, and ASEAN.

Four pilot projects were completed in Brazil, Colombia, India, and Morocco. Collectively, they:

• Improved electricity reliability for over 320,000 people, including residents of low-income housing, small businesses, and critical community services such as schools and health facilities.

• Avoided nearly 3,800 tonnes of CO₂ emissions per year through renewable use, reduced losses, and demand-side flexibility.

• Deferred almost USD 60 million in infrastructure investment through digital tools and system optimisation.

• Enabled demand-side flexibility, reduced outage durations, and digitised over 60 GWh of industrial energy use.

• Engaged more than 650 people through local implementation, training, and digital participation, building local skills and awareness to sustain digital energy solutions beyond the pilot stage.

• Enabled the testing and validation of innovative, commercial business models, demonstrating the fiscal and energy savings generated through digitalisation.

These pilots demonstrate the practical value of digitalisation in enhancing system efficiency, reliability, and resilience, especially in emerging and fast-growing energy systems.

Announced at COP29 in Baku, the second phase of 3DEN will expand these efforts, aligning with global energy transition goals in regions experiencing rapid growth in electricity demand, particularly in urban centres and industrial zones. A key priority in this next phase is to ensure that digitalisation supports equitable access to reliable and affordable electricity, enhances the quality of service for end-users, and strengthens the capabilities of local actors to participate in modern energy systems.

The call for proposals for new pilot projects closed on May 23, 2025, and was open to applicants from eight priority countries: Brazil, Ethiopia, Kenya, Morocco, Nigeria, South Africa, Tanzania, and Tunisia. Altogether, nearly 100 applications were received and are currently under review. Successful projects will be announced later in 2025.

The 3DEN Initiative is structured around three core themes, each addressing critical aspects of power system modernisation and energy efficiency policy:

1. Technology

Demonstrate the benefits of digital infrastructure (such as affordability, resilience, and improved system operation) by showcasing smart grids, demand response, and distributed energy solutions, particularly in emerging economies.

2. Finance

Highlight strategies to scale power infrastructure investment through innovative business models, targeted funding mechanisms, and public-private partnerships that support digital energy deployment.

3. Regulation

Present policy and regulatory approaches that enable digitalisation and demand-side participation, and guidance on data governance, cybersecurity, and interoperability standards.

3DEN is delivered under the IEA Clean Energy Transitions Programme (CETP), which includes a broader set of activities and a larger number of focus target countries. The CETP leverages the IEA’s unique energy expertise across all fuels and technologies to accelerate global clean-energy transitions, particularly in major emerging economies. CETP activities include collaborative analytical work, technical cooperation, strategic dialogues, training and capacity building.

The IEA gratefully acknowledges the support of Italy’s Ministry for Environment and Energy Security.

For more information on 3DEN and how to get involved, please contact 3den@iea.org