PROMOTION & FINANCING OF INNOVATIVE GREEN TECHNOLOGIES
“STREET LIGHTING”
Leo McKenna
Chair, UNECE TOS PPP
International Centre of Excellence & Specialist Centres
Bishkek, 08 November 2012
Street Lighting DiscussionLeo McKenna
Street Lighting Discussion
1. Street Lighting in the UK
2. Typical Challenges
3. Potential solutions to address the challenges
4. Proposed Model
5. Case Study: Birmingham
6. Other Case Studies – including videos
Agenda
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1. Street Lighting in the UK
Agenda
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Street Lighting in the UK 1/4
OVERVIEW
Around 7.5 million Street Lights in the UK
A high profile front line public service Often taken for granted
Attracts attention when lights not performing or out
No legal duty to provide public lighting – BUT once lighting is provided (installed & in use) there is a legal duty to maintain it…
This is usually discharged by following recognised standards: British and European Standards;
Code of Practice / Well Lit Highways;
Good industry practice, etc.
Key increasingly is more effective Asset Management
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Street Lighting in the UK 2/4
OVERVIEW (Cont’d)
History of underfunding for lifecycle replacements (Major Issue) Legacy of old lighting and capital funding needs
Design life of typical lighting column is 25 to 30yrs. E.g: Stock of 50,000 units would require 2,000 replacements p.a.
Typical replacement cost = £1,000 / £1,500 per unit
Capital required (year on year) – £2m to £3 (every year)
Budgets unable to support this – Shortfall over many years
Strategic Asset Management key to managing and maintaining an effective and efficient service; become proactive not reactive
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Street Lighting in the UK 3/4
BENEFITS OF THE LED SOLUTION (LIGHT EMTITTING DIODE)
Compliant solutions - to standards
Better quality lighting solutions – “white light” / robust in-service life & performance
Better lighting level control – individual lights
Reduced energy requirement & carbon emissions – Delivery of cost savings & climate change commitments iro standard discharge lights
Reduced maintenance Outages
Detection
Vehicle Journeys
Replacement lamps & components
Reduced total cost of ownership
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Street Lighting in the UK 4/4
THE PPP MODEL
Successful model for Street Lighting in the UK Attracts major Private Sector Capital investment even in
challenging conditions (e.g. Birmingham and Sheffield PPPs)
Long Term Contracts Typically 25 years
Risk Transfer
Capex/Opex - Phases of the Contract Core Investment Period (CIP or Capex) – Initial 5yr major
investment
Post Core Investment Period (PCIP)
Opex – ongoing operation & maintenance
Output Specification (OS) with robust Performance Standards (PS)
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2. Typical Challenges
Agenda
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Typical Challenges 1/3
Increasing Focus on Asset Management Systems
Risk Management (Risk Assessments & Control Procedures)
Industry Guidance Institute of Lighting Professionals (ILP) Technical Report (TR22)
Health & Safety implications U-turn and lamps being turned back on (i.e. following road accident
deaths and attacks under switch off policy)
Duty of Care Legal/Cost Implications
Developing a replacement strategy
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Structural integrity of columns/poles: Risk of collapse
Typical Challenges 2/3
Continual annual price increases predicted for future Municipalities have seen Energy prices rising dramatically in recent years
Volatile & increasing supply & demand pressures – focus on reducing energy consumption (reduce base load)
Some authorities are considering drastic actions - such as switching off lights (part night lighting / selective switch off)
Global warming (UK Carbon Reduction Commitment – CRC) Carbon Tax Scheme (Legal requirement – £ Incentives & Penalties)
Local Authority Carbon Leadership
Commitment to Reduce Carbon Footprint (CO² emissions)
Modern Lighting Standards Better control of obtrusive light - LED
Increased energy consumption National review and Re-rating of existing discharge lamps
Energy crisis and environmental issues
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Typical Challenges 3/3
Funding - need to modernise old, out dated and expensive lighting systems
Spend to Save
Investment in more efficient equipment - luminaires, electronic control gear, more efficient lamps & new lamp technologies (LED)
Longer life columns (50yr design life) – extra over cost
Third party revenue generation initiatives Column advertising
WiFi on columns
Funding
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3. Potential solutions to address the challenges
Agenda
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Possible solutions to address the challenges 1/4
All municipalities should have a documented street lighting policy which sets out: How they intend to provide all aspects of the street lighting service
What levels of service they aim to achieve
Things to include in the policy documents: Light levels - careful selection of lighting levels utilising flexibility in new
standards (energy savings via lighting to lower levels when applicable)
Equipment selection incl. increased life i.e. columns and lanterns
Switch times, Dimming & Trimming regimes
Lamp technology (LED / white light)
All equipment to be switched i.e. signs and bollards, i.e. not “on” 24hrs
De-illumination of signs & bollards (specify when & where)
Careful consideration of light control (Glare & G)
Planning Ahead
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Possible solutions to address the challenges 2/4
Effective management systems (more proactive than reactive)
Accurate / detailed inventories (managed & maintained) How they intend to provide all aspects of the street lighting service
To support interventions (planning & budgets)
Maximise asset service life (asset sweating)
To support Municipal reports and Business Cases
To support customised maintenance regimes
Targeted replacements (on needs basis)
Identifying & sharing best practice With other municipalities & partners
More effective forward programming and planning Robust information to support budgetary needs
Effective Asset Management
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Possible solutions to address the challenges 3/4
Refined maintenance standards, systems & methods of working Lighting standards
Response times
Maintenance requirements & regimes
Trimming & Dimming (Dynamic control - Variable light levels) Trimming (Switch on later – Switch off earlier – 15mins each side)
Variable light management & control – reduce levels to suit traffic and activity levels
Review processes Reduce duplication & overlap
Use of Innovation – Intelligent Control System New techniques & technologies
Review Standards
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Possible solutions to address the challenges 4/4
Funding Prudential Borrowing - Accessed by Public Bodies
Green Investment Initiatives - Priorities towards Energy Efficiency and other renewables projects
IFIs – International Donor Community for capex
Energy efficiency debt/equity funds - This option could provide a quick and convenient financing route, although equity returns required may make this more expensive source than prudential borrowing
Corporate support - Part of an overall outsourcing delivery structure, where the private sector would pay for the assets and the Municipality would make repayments through a deferred payment plan
Funding Alternatives
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4. Proposed Model
Agenda
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Proposed Model
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Subcontracts
Replacements
Maintenance
Energy
Investments
Energy management
contract
Savings
Traditional Model Proposed Model
Transferred Risks
Investment Risk
Efficiency enhancement risk
Energy Contractor Guarantees
Brightness Level
Stable energy consumption
Management simplification
Availability commitment
On-going compliance with regulations
Economic, energy and carbon savings
5. Case Study: Birmingham
Agenda
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CASE STUDY - Birmingham PPP Contract
Overview
UK Largest Authority Highways PPP
£2.7 Billion, 25 Years, June 2010 start
Covers all roads, footways, lighting, trees, etc.
Lighting Requirements
Modernisation – to improve lighting through innovative solutions
Robust asset management
Effective & proactive energy management capability
Reduce crime, fear of crime & night time accidents
Improved service levels – reduce outages & public complaints
Sustainable solution – long life, low maintenance, reduced waste, etc
Local supply chain and increased local community involvement
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CASE STUDY - Birmingham PPP Contract
Core Investment Programme (Year 1 to 5)
Major Street Lighting Renewal: Remove & replace over 41,000 street lights with LED
Operational Maintenance (Year 1 to 25)
On-going operational maintenance:
Asset Management
Inventory updates
Planned Maintenance
Cyclic works
Periodic Electrical Testing
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Structural Assessments
Outages & Repairs
Emergency Attendance
Energy & Carbon Management
CASE STUDY - Birmingham PPP Contract
Key Features Of The Lighting Solution
Energy management, control and cost savings
“Harvesting” of energy – e.g. reduce over lighting & energy associated with maintenance factors.
Maintenance benefits from LED strategy & solution (Cost effective over life of contract)
Full flexibility, management & control through the City wide deployment of the CMS
Variable light output & levels using electronic dimmable equipment
High performance optics - high pressure sodium (initially on main traffic routes)
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CASE STUDY - Birmingham PPP Contract
Also LEDs for Major Tunnels & Traffic Routes
Continuous efficient LED lighting
Energy & carbon savings
Full, flexible control & management
Improved driver comfort
Low maintenance solution (long life, robust, reliability benefits….)
Reduced traffic disruption, vehicle related incidents & maintain traffic flow
Improved Road Safety
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CASE STUDY - Birmingham PPP Contract
Comparison
Sky glow
Light pollution
Obtrusive light
Light spill
Inconsistent & Variable (low) uniformity
Variable lighting quality
Improved visibility, light quality, robust service with major energy & carbon savings
Sustainable solution (long life, low maintenance)
Fully flexible responsive lighting system
Low overall circuit power
Improved service levels
Reduced vehicle journeys, lamp & component replacements
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BEFORE AFTER
CASE STUDY - Birmingham PPP Contract
Surveys
What do Birmingham Residents Think?
Overall very positive feedback
Light level perception improved
Safety perception improved
Light colour and appearance improved
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Conclusion
Carbon savings exceed Government targets for 2035
One of the most advanced lighting solutions in the world
Attracting widespread global interest & publicity
Helping Birmingham on the journey to being a “World Class” City
6. Other Case Studies
Agenda
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CASE STUDY – Sheffield Highways PPP
Project’s street lighting overview
Maintenance of more than 60,000 street lights
25 year contract
58,000 new street lights with LED
Improved visibility, light quality and service
Remote management system for individual lighting columns
Circa 80% energy savings
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CASE STUDY – Soto del Real (Madrid, Spain)
Project overview
Maintenance of more than 3,000 street lights
20 year contract
3,300 new street lights with LED
Improved visibility, light quality and service
Remote management system for individual lighting columns
Circa 80% energy savings
Tailored website for local community involvement
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CASE STUDY – Torrejón de Ardoz (Madrid, Spain)
Project overview
Maintenance of more than 13,000 street lights and 49 public buildings (50% of total)
20 year contract
4,500 new street lights, 2,500 with LED
Improved visibility, light quality and service
Circa 30% energy savings + 17% cost reductions
Full guarantee with just EUR 5M core investment
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THANK YOU FOR LISTENING
Leo McKenna
Chair, UNECE TOS PPP
International Centre of Excellence and Specialist Centres
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