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Introduction
Energy efficiency (EE) is at the heart of the EUs transition to a resource-efficient economy and the realisation
of its 2020 strategy for smart, sustainable and inclusive growth. This includes three complementary energy and
climate headline targets by 2020: to lower greenhouse gas emissions by 20% relative to 1990, to generate 20%
of primary energy from renewable sources and to achieve 20% primary energy savings relative to the 2007 pro-
jections for 2020. One key area for investment in EE is street lighting, where there are not only major opportu-
nities to significantly reduce electricity consumption, but also additional benefits associated with phasing out
environmentally harmful technologies, reducing maintenance costs and achieving much better overall control
of the street lighting environment.
However, many street lighting facilities are outdated and equivalent to 45 million barrels of oil equivalent or 11 mil-
therefore highly inefficient. This leads to higher energy lion tonnes of emitted CO2. McKinsey has estimated that a
requirements and levels of maintenance. For a number of city of one million inhabitants, which contracts the supply
municipalities which have outdated systems, street light- and maintenance of LED street lighting to a third party (e.g.
ing can account for as much as 30-50% of their entire power ESCO, see below), could generate energy savings of around
consumption. 22%, which at average rates would save such a city about
EUR 2.3 million annually.
Financial Drivers for Energy Efficient Street
Lighting Legislative Drivers for Energy Efficient
Street Lighting
With rising energy prices, energy efficient street lighting is
becoming a progressively more attractive proposition, which In general, local or regional governments as street owners
also contributes to the security of energy supply and tack- have a legal duty to ensure road safety and must ensure that
ling climate change. their lighting systems comply with various technical norms
and standards (including a number of EU directives). There-
The financial savings from efficient street lighting are based on fore, the imperative for compliance with current and forth-
the underlying technology and the related reduction of energy coming legislation within the lighting sector at the European
used and maintenance costs, relative to older street lighting level represents a key incentive for municipalities to renew
models. The majority of costs stem from the operation of the their lighting stock.
lighting system and not from the investment itself. The total
cost of a typical street lighting installation over a period of 25 A European Parliament and Council Directive on this issue
years is split approximately as follows: 85% maintenance/oper- (2009/125/EC) outlines eco-design requirements for energy-
ation (including power supply) and 15% capital cost. using products, focusing on energy consumption during
the entire product lifecycle including production, transport,
According to estimates made by Philips, Europe could save scrapping and recycling. One aspect of the directive is the
EUR 3 billion in energy costs per year by switching from phasing-out of high-pressure mercury lamps (HPM) by 2015
old to new street lighting technology. The energy saving is and of medium efficient metal halide lamps by 2017.
Energy Efficient Street Lighting
Lehrte Replacement of 4 500 street Energy savings of about 54%; cost sav- Operation and maintenance
(Germany) lights (of existing 6 570) ings per street light of about EUR 56/year
Surrey Replacement of 66 000 street Energy savings of over 5.3 GWh and over Energy supply
(UK) lighting columns 750 tonnes of CO2 emissions annually
U epec@eib.org
de/verdingungsunterlagen-beleuchtung (in German)
Disclaimer: The information contained in this document has been compiled by EPEC (www.eib.org/epec). Nevertheless no EPEC member, including the EIB and the Euro-
pean Commission, accepts any responsibility regarding the accuracy of the information contained in this publication or any liability for any consequences arising from the
use of this publication. Reliance on the information provided in this publication is therefore at the sole risk of the user.