The East London Industrial Development Zone (ELIDZ), a UNIDO-recognised Leading Eco-Industrial Park, has taken a significant step in advancing energy-efficient public infrastructure through the launch of South Africa’s first public lighting Energy Performance Contract (EnPC) under the Energy Efficiency in Public Buildings and Infrastructure Programme (EEPBIP).
Through Tender 372, ELIDZ is inviting proposals for the supply, installation, commissioning, operation and maintenance of smart LED street lighting infrastructure within the Zone under an Energy Performance Contracting model. The project will see approximately 415 conventional high-pressure sodium streetlights upgraded to modern LED luminaires supported by intelligent controls and a Central Management System for improved monitoring, management and optimisation.
While the lighting upgrade itself is important, the real significance of the project lies in the financing and implementation model behind it.
For many public institutions, energy efficiency projects are often delayed by funding constraints despite their potential to reduce operational costs and energy consumption. Energy Performance Contracting offers a different approach by enabling private sector investment to fund upgrades, with repayment linked to verified energy savings achieved over the contract period.
This means the upgrade can be delivered in a way that reduces the burden of upfront capital costs while using future savings to help fund long-term infrastructure improvement.
Developed with support from the Energy Efficiency Project Support Unit (EEPSU), housed within the South African National Energy Development Institute (SANEDI), the project has already attracted industry interest as a potential blueprint for future public sector energy efficiency interventions across South Africa.
ELIDZ Chief Executive Officer, Thembela Zweni, said:
“As a leading Eco-Industrial Park, ELIDZ is committed to identifying and implementing practical solutions that improve infrastructure performance, strengthen sustainability and support long-term competitiveness. This project is about more than upgrading streetlights. It is about showing how innovative financing and delivery models can help unlock infrastructure investment while delivering measurable operational and environmental benefits.”
The initiative aligns with ELIDZ’s broader commitment to sustainable industrial development and resource efficiency. It also supports national efforts to improve energy management, reduce greenhouse gas emissions and create new opportunities within South Africa’s growing energy services market.
As conversations around infrastructure funding, energy security and efficient public sector operations continue to evolve, the ELIDZ Smart Street Lighting EnPC project places the organisation at the forefront of testing practical solutions that can be replicated across municipalities and public entities nationwide.
For municipalities and other public institutions facing rising energy costs and infrastructure backlogs, this approach offers a practical example of how sustainability objectives can be linked to sound financial and operational planning.
More importantly, the project shows that innovation in public infrastructure is not only about technology. It is also about finding smarter ways to finance, deliver and manage infrastructure that creates long-term value.
Interested Energy Service Companies (ESCOs), technology providers and financiers are encouraged to review the tender documentation available on the ELIDZ website. The tender closes on 18 September 2026 at 12h00.
Issued by ELIDZ
For media enquiries:
Mr Siphosethu Tikana
Acting Manager: Marketing & Corporate Communications
Email: siphosethuti@elidz.co.za
Tel: 064 900 8392 / 076 800 5317