Current educational practices need to be overhauled to maximize the impact of students’ knowledge, skills, and values. Challenge-Driven Education (CDE) presents a promising approach for addressing societal challenges while fostering academic success. This study explores the application of CDE in solving power reliability issues by bringing together universities, government entities, and businesses through the triple helix model of innovation. Using a mixed research methodology, the study evaluates the effectiveness of CDE by assessing key parameters such as expectations, usefulness, satisfaction, ease of use, and enabling conditions. The findings demonstrate that CDE significantly enhances skill development, expertise, and timely completion of projects, allowing students to complete their research projects within established timelines. The collaborative involvement of academic institutions, businesses, and government entities in CDE showcases its potential to address pressing societal needs, particularly in the pursuit of clean energy. Students’ progress seamlessly through their studies and graduate promptly, highlighting the effectiveness of CDE in addressing challenges while supporting academic advancement.