Industrial parks and Special Economic Zones (SEZs) are key drivers of South Africa’s industrial development, supporting manufacturing, exports, and job creation. At the same time, they are significant energy users and contributors to greenhouse gas emissions.
The SESID project supports the transition to low-carbon, energy-efficient industrial spaces by addressing both the supply and demand sides of energy systems within industrial spaces. It promotes integrated solutions that combine energy efficiency, renewable energy, and improved energy planning at the level of these spaces as opposed to company or tenant level only.
Launched in 2023, the project focuses on building practical pathways for decarbonising industrial parks and SEZs, while strengthening policy frameworks and unlocking investment opportunities. It is funded by the Global Environment Facility, implemented by UNIDO and executed by the National Cleaner Production Centre South Africa (NCPC-SA). The project will end in 2027.
Making a difference
The project promotes an integrated “industrial park-wide” approach to energy planning and decarbonisation, moving beyond individual facilities to optimise energy systems across industrial spaces. Through policy support, technical assistance, demonstration projects and investment facilitation, SESID is creating practical pathways towards low-carbon industrial development in South Africa.
The project also contributes to broader development impacts, as industrial park interventions generate downstream benefits for surrounding communities, municipalities, and local economies.
Strategic alignment
Aligned with:
- South Africa’s Just Energy Transition and climate mitigation commitments
- Industrial Park Revitalisation Programme (IPRP)
- National Treasury’s Cities Support Programme
- UNIDO Eco-Industrial Parks Programme (GEIPP)
Focus areas
- Decarbonisation of industrial parks and SEZs
- Integrated energy planning (supply and demand)
- Policy and regulatory frameworks for sustainable industrial energy
- Demonstration of low-carbon technologies in industrial zones
- Investment de-risking and scaling of sustainable energy solutions
Project components
- Enabling environment
- Strengthen coordination and policy frameworks for sustainable energy in industrial parks
- Support park management and local authorities in developing energy strategies
This is achieved through:
- Multi-stakeholder engagement with industrial park management, municipalities, industry and other stakeholders
- Establishment of communities of practice
- Technical workshops and capacity-building on sustainable energy solutions
- Knowledge-sharing events and conferences
- Demonstration projects
Pilot projects are being implemented in the following industrial parks and SEZs to showcase practical solutions for renewable energy, energy efficiency, and logistics:
- Phuthaditjhaba Industrial Park (Free State)
- Umbogintwini Industrial Complex (KwaZulu-Natal)
- East London IDZ (Eastern Cape)
- Coega SEZ (Eastern Cape)
- Atlantis SEZ (Western Cape)
- Ekandustria (Gauteng)
These pilot projects support the identification, assessment and implementation of practical renewable energy and energy-efficiency opportunities within the selected above-mentioned industrial parks and SEZs. Activities include technical feasibility assessments, grid integration studies, socio-economic analyses and implementation support for selected demonstration projects.
Lessons learned from the pilot projects will be shared through the development of case studies, technical guidelines and investment tools to facilitate replication.
- Scaling and investment
- Develop a pipeline of bankable projects
- Establish de-risking mechanisms for sustainable energy investments
- Support investment mobilisation and project preparation
- Support replication and scaling of successful solutions across industrial zones
Stakeholder engagement and knowledge sharing
The SESID project promotes collaboration among industrial park operators, SEZ management companies, municipalities, government institutions, industry representatives, investors and local communities. Through stakeholder engagement processes, technical workshops, communities of practice and knowledge-sharing events, the project supports the exchange of experience and practical solutions for sustainable energy transformation in industrial spaces.
This engagement helps strengthen local capacity, build partnerships and facilitate the replication of successful approaches across South Africa’s industrial parks and SEZs.
- For more information, refer to the following:
https://www.sustainableindustrialspaces.co.za/sustainable-energy-systems-for-industrial-development/ - Low-Carbon & Positive Energy Industrial Spaces (LC‑PEIS) project
Additional info
In South Africa, the Sustainable Energy Systems for Urban-Industrial Development (SESID) project launched in 2023 with a four-year duration, supports selected clusters through technical assistance, pilot low-carbon projects and de-risking strategies to build pipelines of bankable, investment-ready projects. Led by UNIDO, and implemented by the National Cleaner Production Centre South Africa (NCPC-SA) it is funded by the Global Environment Facility. The objective of the project is to reduce GHG emissions and accelerate the decarbonization of industrial parks and other related environmental impacts, by addressing both energy supply and demand side, through an approach that considers the “urban-industrial-energy nexus”. // the Sustainable Energy Systems for Urban-Industrial Development (SESID) initiative aims to accelerate the uptake of renewable energy solutions in industrial areas, helping businesses transition towards sustainable energy use. The NCPC-SA implements the Sustainable Industrial Spaces Programme with the support of the Department of Trade, Industry and Competition (the dtic) and the United Nations Industrial Development Organization (UNIDO)
