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New investments aim to scale up digitalization of energy and agri-food systems

Press Release – Belém, Brazil, 19 November 2025 – Today at COP30, UNEP in collaboration with the International Energy Agency and supported by Italy’s Ministry for the Environment and Energy, announced the second phase of the Digital Demand-Driven Electricity Networks (3DEN) Initiative to advance 14 new projects across Africa and Brazil.

Phase II expands 3DEN’s work beyond the power sector into the agri-food system, where innovative digital tools can dramatically reduce energy use, improve water efficiency and strengthen climate resilience.

Renewables are now the cheapest source of electricity globally, but many countries are unable to use them effectively due to grid inflexibility, outdated infrastructure, and a lack of digital tools. 

3DEN supports countries to build smarter, more resilient and low-carbon energy and agri-food systems, enabling them to integrate higher shares of renewable power while improving efficiency, reliability and cutting system costs. Phase II of 3DEN will accelerate the digital innovation needed to modernize power and agri-food systems and fully harness the potential of renewable energy,

“We have the renewable resources and the technologies to decarbonize fast, but without modern grids, these solutions cannot deliver their full value,” said Martin Krause, Director of UNEP’s Climate Change Division. “3DEN Phase II fills this critical gap by helping countries upgrade the digital backbone of their power systems, ensuring clean energy is reliable, affordable and accessible to all.”

Backed by Italy with €23 million, Phase II will build on the successful model of Phase I, launched in 2021. 

“Italy,” said the Minister of Environment and Energy Security Gilberto Pichetto Fratin, “is proud to have conceived and funded 3DEN, in partnership with UNEP and IEA: now, with the same enthusiasm, it wants to support this new phase.” “The Italian experience, from smart meters to the integration of distributed renewables, demonstrates that digital technology is a factor of resilience, competitiveness, and equality,” Pichetto concluded. 

Phase I: a roaring success

Phase I of the 3DEN Initiative supported pilot projects in Brazil, Colombia, India and Morocco, deploying new digital tools for forecasting and system flexibility, strengthening regulatory frameworks to encourage demand-side resources, improving the integration of distributed generation and supporting utilities and system operators to cut financial losses and enhance resilience. 

In Brazil, a 3DEN-backed project equipped homes with solar panels, batteries and digital devices that allowed families to monitor and manage their energy use.  Households in the project cut electricity use by an average of 456 KWh a year. Families reported bill savings of between 60% and 70%. Batteries provided backup during outages, cutting average blackouts by 60%.

In India, the New Delhi initiative created a virtual replica of the physical grid in four areas to identify weak points, target repairs and reduce energy losses. By mapping consumer demand on each transformer, the digital twin technology has helped BSES Rajdhani Power- one of New Delhi’s major power providers- improve the management of its energy supply, avoid costly infrastructure upgrades, and save over US$ 3,600 per transformer each year.

Phase I shaped global guidance on digital power systems, demonstrating how smart investments can cut emissions, expand energy access, and drive climate and development goals. Through four pilots, it reached 340,000 people, added 26 MW of clean power, mobilized US$ 9.2 million, and reduced over 5,000 tonnes of CO₂—showing the power of digitalization in accelerating the energy transition.

NOTES TO EDITORS

Projects under Phase II were selected through an open call for proposals held from January to May 2025, which received 93 applications from eight countries. Following a rigorous and independent eligibility review and due diligence process, 14 projects were approved, representing a combined investment volume of US$ 28.6 million. These initiatives span both agri-food and urban energy systems, reflecting 3DEN’s expanded focus on digitalization across sectors crucial for climate resilience and sustainable development.

About the UN 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.

For more information please contact:
News and Media Unit, UN Environment Programme

Source : UNEP

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