Decision details

To approve the principle of converting the Council’s street lighting assets to LED.

To delegate to the Head of Highways and Transport in consultation with the Cabinet Member for Highways and Transport to issue a change notice under the Street Lighting PFI contract to complete discussions to implement LED.

RESOLVED:

That the Cabinet:

1.     Approves in principal the conversion of the Council’s street lighting assets to LED and delegates to the Head of Highways and Transport, in consultation with the Cabinet Member for Highways and Transport, the authority to issue a change notice under the Street Lighting PFI contract to enable the development of a detailed proposal. 

2.     Take a decision on whether to proceed based on a final detailed business case, including a technical solution and implementation programme, in Autumn 2018.

Reasons for Decisions

Energy price inflation is increasing at a significant rate (5%-14%) and to ensure lights are operational when needed, there is little opportunity for the Council to control or reduce its energy costs.

LED technology in street lighting has matured significantly in recent years while the costs have reduced. Many Highway Authorities have either embarked on an LED conversion programme or are in the process of planning to commence one within the next 2-3 years.

Converting to LED will reduce energy consumption by 60% delivering £2 million per year energy savings at today’s prices as well as reducing carbon impact by 6200 tonnes and avoiding the Carbon Reduction Commitment tax otherwise payable on the avoided consumption.

In addition to converting to LED street lighting and upgrading the Central Management System, Officers will be able to explore additional innovations now being used or being developed for use with street lighting such as:

·        Motion sensor controls to turn lights on in residential areas when people or vehicles approach and, off once they have passed

·        Providing real-time traffic movement data to help understand and ease congestion

·        Environmental sensors to detect and monitor air quality

The potential for these innovations may be in direct relation to street lighting (e.g. motion sensor controls) or in providing a communications network for other areas of the Council (and extending to partners in District and Borough Councils) to connect equipment to improve the services and outcomes they deliver. 

Furthermore, these innovations may present grant funding opportunities through central Government departments and the Local Enterprise Partnerships (LEPs) which would reduce the borrowing requirement for the Council.

The PFI contract allows for changes to the specification and service.  As explained in paragraphs 18-22, once a change notice is issued the process of identifying an appropriate solution to meet the Council’s needs begins which is expected to take 6-8 months to explore and agree before being presented back to Cabinet for approval, hence the reason for the 2 stage Cabinet approval.

[The decisions on this item can be called in by the Environment and Infrastructure Select Committee]