The United Kingdom government has officially opened applications for the 2026 Digital Energy Challenge, a high-stakes competition offering €827,000 in total funding to African startups and small businesses.

Announced via the British High Commission in Nigeria on Monday, the initiative aims to spotlight Nigerian innovators capable of using Artificial Intelligence (AI) and digital technology to solve the country’s most pressing energy hurdles.

The program, co-funded by the UK and the European Union, is designed to bridge the energy gap in a nation where nearly 90 million people still lack reliable electricity. By integrating AI and digital systems—such as software, data-driven analytics, and cloud-based tools—the challenge seeks to improve the operational efficiency of power utilities and accelerate the transition to clean energy across the continent.

Applications for the 2026 cycle are split into two primary categories. The first, a Tech Accelerator, is open to innovative digital projects across 51 African countries. The second is a Partnership Challenge specifically tailored for collaborative projects in Nigeria, developed in conjunction with the Abuja Electricity Distribution Company (AEDC). This second track allows innovators to test their solutions in real-world conditions with an established utility provider.

Beyond the financial grants, which can reach up to €150,000 for startups and €400,000 for utility partnerships, selected participants will receive expert technical assistance and international visibility. The UK mission emphasized that the goal is not just to fund ideas, but to develop scalable, resilient models that can be replicated across other emerging markets.

Interested Nigerian entrepreneurs and tech firms must demonstrate that their solutions are beyond the concept stage and have already been piloted. The challenge places a heavy emphasis on research and development (R&D) value, community impact, and the feasibility of implementing the project within a 12-month timeframe. With the deadline approaching, this represents a significant opportunity for the Nigerian tech ecosystem to lead the charge in Africa’s digital energy revolution.