Energy efficiency and demand-side management programme



The Energy Efficiency Demand Side Management (EEDSM) programme is managed by the Department of Energy (DOE). The EEDSM programme supports municipalities in their efforts to reduce electricity consumption by optimising their use of energy. Selected municipalities receive grants for the planning and implementation of energy efficient technologies ranging from traffic and street lighting to energy efficiency in buildings and water service infrastructure. The estimated electricity saving potential for traffic lights is up to 80%; for street lighting between 40-70%; for office building 20-30%; and 15-25% for pumps that are used for water provision and treatment.

Municipalities interested in the EEDSM programme have to respond to the request for proposals issued by DOE in the beginning of October each year. DOE will evaluate these proposals based on their energy savings potential, cost and payback period. The selected municipalities will then receive grants.

The DOE Team managing the EEDSM programme is a group of officials based in Pretoria. The EEDSM programme is supported by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) through the South African-German Energy Programme (SAGEN).

Requests for proposals for the 2019/2020 financial year is now open click here

EEDSM Process

The EEDSM programme begins with a comprehensive baseline assessment of the energy consumption of public infrastructure within the participating municipality. The baseline assessment helps the municipality to get a deeper understanding of the potential energy savings that could be achieved through the EEDSM programme. It also assists in the assessment of the estimated cost to retrofit public infrastructures with energy efficient technologies. Based on the assessment and the municipality’s proposal, the Department of Energy, through the EEDSM programme, will offer the municipality a grant (or grants) to finance the planning and implementation of one or more of the following energy efficiency measures:

  • Energy-efficient traffic lights.
  • Energy efficient street lights and new LED lights on high masts.
  • Energy efficient building lighting, and heating, ventilation and air conditioning (HVAC).
  • Energy efficient water infrastructure (i.e. water pumps) and energy efficient wastewater treatment.

EEDSM Implementation Steps

Step 1 - Call for Proposal


  1. The Department of Energy issues a request for proposal (RFP) for the following financial year.
  2. Interested municipalities are invited to apply and submit completed RFPs before a certain date to the Department of Energy.
  3. Municipalities should complete the proposal application. This should include the:
    1. EEDSM RFP Excel report (example here)
    2. EEDSM RFP Narrative Report (example here)
  4. Project managers should ensure that the RFP excel report and RFP narrative report are signed by the Municipal Manager.
  5. The signed RFP excel report and the narrative report should be emailed to
Step 2 - Budget Allocation through the DORA
  1. Allocation of funding to the municipality is published in the Division of Revenue Act (DORA).
  2. The Department of Energy will communicate the status of the Municipality’s application to the Municipal Manager.
Step 3 - Procurement of EEDSM Support


  1. This is an optional step that is implementable if the municipality elects to procure consultants to assist with the management and implementation of the EEDSM program.
  2. Download an example of the EEDSM Technical Support RFQ here.


Step 4 - Energy Audit Report


  1. Develop an extended baseline which includes all possible EEDSM projects that can take place (example here).
  2. Shortlist priority projects from the extended baseline report which will form part of the current EEDSM financial year.
  3. Prepare detailed electricity baseline for short-listed interventions. To do this you may need municipal bills for energy data, asset register of key municipal infrastructure (example here).
  4. Combine extended baseline and detailed baseline into an Energy Audit Report (example here).
Step 5 - Business Plan Report
  1. Based on the Audit Report, prepare a Business Plan that will be submitted to the DoE (example here).
  2. Submit Energy Audit Report and Business Plan to the DoE for approval.
Step 6 - Contract with DoE
  1. Once the business plan has been approved then the formal contract with DoE should be signed (example here).
Step 7 - Monitoring and Verification
  1. Once the Business Plan is approved, it is important to get a monitoring and verification team on site as soon as possible. The DoE has an existing panel of monitoring and verification teams, and will allocate one to the municipality.
Step 8 - Procurement/Tendering


  1. Once the M&V has started, the tender for EEDSM implementation should be prepared and published.
  2. The tender can be for supply and install, supply only or install only depending on the situation within the municipality.


Step 9 - Monthly and Quarterly Reporting to DOE


  1. It is important to report monthly and quarterly to the DOE on the progress of the project starting from the first month (usually July of a particular year)
  2. You can use the Original Business Plan Template submitted to the DoE for monthly reports (this is the same report as the busines plan here).
  3. Submit monthly report signed by the Municipal Manager to the DoE at the end of each month.
  4. Request a copy of quarterly reporting template from DoE (example here).
  5. Submit quarterly report signed by the Municipal Manager to the DoE at the end of each quarter (September, December, March and June).
Step 10 - Managing Installation Process
  1. Once the services of a supplier and installer have been procured, the Municipality needs to develop an EEDSM workplan.
  2. Municipality to monitor installations and file all documentation such as invoices and contractors’ reports.
  3. Complete site inspection reports once installations have taken place (example here).
Step 11 - Energy Efficiency Awareness Campaigns
  1. There is a budget allocation for awareness raising and capacity building in the EEDSM application.
  2. Municipalities should, therefore, develop and implement energy efficiency awareness programs and materials (example poster here).
  3. Municipalities should procure awareness raising materials (example request for quotation for the design of posters here).
Step 12 - Project Close-out
  1. Once the project is completed, the Municipality should submit a close-out report to the Department of Energy (example here)
  2. The close-out report should be signed by the Municipal Manager and then sent to the Department of Energy.
  3. Once the project is completed, the Municipality may need to present the entire project to the DoE (presentation example here).

FAQs: Have more questions? See a list of FAQs about Municipal EEDSM