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Digital Energy Challenge: innovative projects paving the way for Africa’s energy transition

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Kenya énergie
© Sarah Waiswa / AFD

With 600 million Africans lacking access to electricity, the continent’s energy transition is a critical issue. To help tackle this problem, in 2020, AFD launched the Digital Energy Challenge in partnership with the European Commission and ADEME. Its goal is to support the energy sector’s digital transition and increase access to electricity in Africa, in accordance with Sustainable Development Goal (SDG) 7.

Since the Digital Energy Challenge was launched, 30 projects have received support in 17 African countries. “We firmly believe that the development of the energy sector in Africa requires the implementation of digital solutions and a strong partnership between Africa and Europe,” says Cyril Renault, Program Manager for AFD’s Digital Energy Challenge. “Through our support, as part of the European Global Gateway initiative, we aim to accelerate access to electricity, reduce losses and promote rational energy use.” 

Discover the 11 award-winning projects in 2024

Two recent projects demonstrate the tangible impact and future potential of these efforts.

Reducing power outages in Nigeria: AEDC x Beacon Power Services

With a population of over 200 million, Nigeria is facing major energy challenges. Only 45% of Nigerians have access to electricity and the country’s power grid is prone to frequent outages. In an effort to mitigate this problem, in 2023, the Digital Energy Challenge pledged its support for a partnership between energy operator, the Abuja Electricity Distribution Company (AEDC) and the technology provider Beacon Power Services, an initiative that is already paying dividends. 

This collaboration has produced detailed mapping of 41,465 customers, 24,764 buildings and close to 12,000 elements of electrical infrastructure, introducing digital data management and analysis tools to detect outages in real time. As a result of this initiative, losses on AEDC’s power grid have dropped from 44% to 26% in just three months, making it less dependent on more polluting generators. “We are proud to offer our customers a more reliable service with fewer power outages,” says Bim Adisa, CEO of Beacon Power Services. “Increased visibility of the power grid and automated systems have also reduced our technical and commercial losses.” 

And the project is about more than quick wins. Having trained 100 AEDC employees and created a model that can be replicated across the entire country, this initiative aims to make long-term, sustainable improvements to the Nigerian energy sector.

See also: Third call for proposals for Academia Partnerships Africa-France projects: “Be creative, be original!”

Facilitating access to electrical appliances in Kenya: PowerPay by GIVE

While access to electricity is increasing year on year in Africa, citizens often lack the financial means to use this energy, particularly with the cost of home appliances. The Kenyan start-up GIVE has developed an innovative solution to overcome this challenge: PowerPay. 

This digital platform combines IoT (Internet of Things) technology and financing to help consumers buy appliances such as ovens and refrigerators. The use of polluting fuels is being consigned to the past: these appliances run on electricity, boosting demand for energy suppliers.

With support from the Digital Energy Challenge, GIVE ran a pilot project in Kenya, where 300 homes were supplied with smart appliances. The results have exceeded expectations. Joyce Kibe, co-founder of GIVE, says: “In total, 400 households, including 275 in rural areas, are now using appliances financed via our platform. Our solution not only improves quality of life for these households, but also increases demand for electricity. This benefits everyone, from consumers to energy suppliers.” Following its initial success, the start-up has launched a production line and registered its trademark in Kenya, Uganda and Tanzania, illustrating the project’s growth potential and its ambitions in the East African region.

These are just two examples of the many initiatives supported by the Digital Energy Challenge. 

See also: “More tech companies are developing in Africa than in the rest of the world”

Fostering collaboration for Africa's energy transition

The 2024 edition of the Digital Energy Challenge awards was held on November 28 in Brussels, honoring eleven winners in total. In addition to the ceremony, the day is focused on discussions, conferences, round-table sessions and networking between major energy players in Africa and representatives from the European Commission, ADEME and AFD. 

This movement to bring the different stakeholders together gained momentum with the launch of the Digital Energy Community back in 2023. Via this network, project leaders, national corporations and international partners can exchange ideas and share knowledge. The objective is clear: to ramp up the impact of digital projects and support a sustainable energy transition in Africa.

ELEVEN AWARD-WINNING INNOVATIVE PROJECTS IN 2024

CATEGORY: START-UPS

CATEGORY: ENERGY OPERATORS IN PARTNERSHIP WITH A PROVIDER OF INNOVATIVE TECHNOLOGIES AND/OR SERVICES