Up to 20,000 energy-saving street lights will be installed at a cost of around £6 million in a pilot scheme in Craigavon and Banbridge.
Work is expected to start by the summer and the new lights will replace existing ones, with the aim of reducing costs.
Regional Development Minister Danny Kennedy said, “Street lighting energy and maintenance costs are very significant, costing in excess of £13 million every year for my department. Over the last number of years, small pockets of LED street lighting have been introduced across Northern Ireland, such as the recent installation on the Knock dual carriageway.
“LED street lighting is relatively new technology and I now wish to trial it on a larger scale. There are considerable savings to be made in energy and maintenance costs from LED lighting.
“Units last longer and they consume less energy than conventional lanterns. Large sums of capital investment are required, however immediate returns on running costs are achieved - with a payback on the investment in around eight years anticipated.”
He said that, as his budget permits, he will continue to introduce similar schemes across Northern Ireland.
Jo-Anne Dobson MLA welcomed the announcement, saying LED lighting had delivered major benefits in other countries and regions, helping to improve road safety and reducing costs.