Comune di Rozzano is looking for partners to plan, finance and conduct works to modernise the local street lighting network under a 25-year concession.
As part of the €15.9m contract, the winner will also supply energy and operate the installations.
Siram, a Veolia subsidiary, proposed the feasibility study for the project.
The council is willing to reduce the contract term depending on the nature of received bids.
Firms have until 23 February to submit responses.
Meanwhile, Comune di Lizzano, in the Puglia region, has awarded a contract for a similar energy PPP.