Call for Projects: Digital Energy Challenge

The digital revolution is key to tackling energy access issues in developing countries. In Africa alone, 600 million people, 1 out of 2 people in sub-Saharan Africa, do not have access to electricity. Innovative technologies and new business models are making significant progress in energy access with on-grid and off-grid solutions in urban and rural areas.

Contributing to the United Nations Sustainable Development Goal of ensuring universal access to affordable, reliable, sustainable and modern energy, the AFD implemented the Digital Energy Facility, a programme co-financed by the European Union, with the participation of ADEME, to support the digitization and modernization of the energy sector.

The Digital Energy Challenge has two categories namely: Utilities and Start-up.

Themes

• Universal electricity access and mini-grids
  • Digital innovations in the field of mini-grids to maximize their efficiency and impact: energy management systems for the optimal use of clean and renewable energy; software and hardware technologies for an efficient integration of productive use assets; storage systems and algorithms minimizing the use of fossil fuel generators; tools to facilitate interconnections with the main grid and with other mini-grids; systems and algorithms for building-up nanogrids; geospatial data analytics for power demand evaluation and/or credit risk assessment.
• Efficient grid management
  • Digital services and products ensuring a proper operation of the power grid, with a focus on: information availability and communication systems; streamlining Business-As-Usual grid operational management practices of the power system; increased power availability and service quality.
• Resilience and decarbonation of power systems
  • Digital-based solutions enabling the development of a greener and more resilient power infrastructure (encompassing generation systems as well as the grid): additional renewable capacity; grid stability and flexibility; energy savings at the end-user level (Commercial & Industrial as well as households).

Benefits

• Each year the Challenge will award 2 to 3 utility and technology/service provider partnership projects and 5 to 8 start-up projects. An annual budget of €1.8 M will enable grant-based funding, technical assistance and strategic guidance.
• Digital Energy Challenge for Utilities
  • Financial support of up to €500K including: a grant to contribute to costs for equipment, software, products or services supplied by the innovative technology or service provider and training; technical assistance for project management support or strategic and technical expertise.
• Digital Energy Challenge for start-ups
  • Financial support of up to €150K including: Grant funding to contribute to costs for equipment, software, training and recruitment ; Technical assistance (awarded on a case-by-case basis), which could include project management support, strategic and technical expertise, and accounting/reporting assistance.
• Challenge winners can benefit from:
  • Technical assistance for all utilities and certain start-ups on a case-by-case basis, such as project management support, strategic and technical expertise, and accounting/reporting assistance
  • A bootcamp run by cross-sectorial experts to support project implementation, foster synergies between project winners and share best practices
  • Increased visibility for the project through widespread social media communication campaigns piloted by AFD during the selection phase, award ceremony, bootcamp and for a period of time after these events.

Who can apply?

• The 2024 Call for Projects targets projects based in Africa and owned by:
  • Start-ups in the pre-seed phase or with early-stage activities. NGOs can apply under the Start-up category.
  • Public utilities (public power utilities and public Independent System Operators, private companies under a public service concession, power pools, regional organisations, energy regulators, rural electrification authorities) in partnership with technology/service providers.
• Eligible countries
  • Algeria, Angola, Benin, Botswana, Burundi, Cabo Verde, Cameroon, Central African Republic, Chad, Comoros, Congo Democratic Republic, Congo Republic, Côte d’Ivoire, Djibouti, Egypt, Equatorial Guinea, Eritrea, Eswatini, Ethiopia, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, South Sudan, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia, Zimbabwe.

Eligibility Criteria

• Eligibility criteria for Digital Energy Challenge for Utilities
  • The project owner must be an African public power utility or organisation. This definition includes public ISO (Independent System Operators), private companies under a public service concession, power pools, regional organisations, energy regulators and rural electrification authorities.
  • The project owner must be in a partnership with a technology/service provider and meet the following criteria:
    • Less than 15 years existence and have already developed an innovative solution to be tested with the Challenge
    • National or international registered company
    • More than 5 employees
    • Annual turnover of less than €50M
    • Have already entered into business relations with an African utility, resulting in the signature – either effective or imminent – of a memorandum of understanding.
    • The collaborative project must have digital technology as a core element (telecom, computer or cloud-based technology); be innovative either intrinsically or in relation to the local market/country; and be local i.e. have project management activities in the country where the project is based.
• Eligibility criteria for Digital Energy Challenge for start-ups
  • The Start-up must meet the following criteria:
    • Created less than 10 years ago
    • Be in the pre-seed/early-stage financing phase i.e. less than €1M funding raised
    • Annual turnover of less than €1M
    • Employ between 1 and 99 people full-time.
  • NGOs can apply under the Start-up category if the project meets one of the additional following criteria:
    • The project is set up as a company as a branch of the NGO
    • The project has a dedicated team and business plan, and clearly targets business sustainability/profitability (e.g. plans to spin off as an independent entity).
  • Finally the Start-up’s project must adhere to one of the three above-mentioned themes and NGOs can apply under the Start-up category if the project meets one of the additional following criteria:
    • Digital i.e. based on a telecom, computer or cloud-based technology
    • Innovative, either intrinsically or compared to the local market
    • Local i.e. headquartered or with project management activities in the country of the project.

For more information, visit Digital Energy Facility.