The Digital Energy Facility (DEF)

The Digital Energy Facility is an EU-funded programme, implemented by the Agence Française de Développement (French Development Agency).

The energy sector faces a major transformation from a centralised system to a decentralised network, mono-directional to multi-directional, carbon-based to decarbonised, infrastructure centered to consumer-centric network.

Digitalisation is crucial in this new flexible and decentralised energy network as it helps in managing the energy demand, improving grid planning and implementing new business models - such as mini-grids and other off-grid solutions, which contribute to an increased access to energy.

Thanks to the financing of digital innovation projects and products, the Digital Energy Facility aims to:

• Support the integration of intermittent renewable energy sources into the grid
• Increase energy access
• Improve the performance of utilities and reduce technical and commercial losses

Digital Energy Facility Objectives

The Digital Energy Facility has 3 main objectives:

1. Support innovative solutions for energy access in collaboration with the private sector, including start-ups and digital ecosystems active on energy access;
2. Support power utilities to develop comprehensive roadmaps and investment plans to improve their performance, by integrating smart grids and new digital solutions in their operations;
3. Support partnerships between utilities and the private sector to promote innovative solutions, harmonise technology use and share know-how. It is the first programme ever to support synergies between the digitalisation of utilities and innovative solutions developed by startups.

Expected results

The expected results include:

• 1 million people benefitting from secured electricity access;
• 50 companies (both public and private) supported thanks to seed capital and capacity building;
• 2 to 5 energy utilities implement performance improvement plans;
• 50 to 150 energy professionals trained;
• 100MW of additional capacity from renewable energy sources;
• 100 000 million tons of CO2eq avoided.

DEF’s 4 components and eligibility criteria

The programme will finance technical assistance and pilot investments to support the development of innovative solutions for energy access and utility performance improvement.

The programme has 4 components:

Funding instrument

DCI Contribution Agreement and PAGODA for Financial Instrument

Implementing organisations

Agence Française de Développement