Agenda item

The Council currently spends £3.5 million each year on energy for street lighting.  Recent projections indicate energy costs for street lighting will rise by between 5% and 14% per annum over the next 10 years which could mean the annual cost increasing to nearly £13 million in that time and as high as £48 million per year in 20 years if prices rose by 14% each year.

By investing approximately £19.9 million over 3 years to convert the council’s 89,000 street lights to LED would reduce their consumption by around 60% saving approximately £2 million per year (at today’s prices).

This report seeks Cabinet approval for the conversion of street lights to LED.

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

RESOLVED:

1. That the conversion of street lights to LED be approved.
2. That authority be delegated to the Head of Highways and Transport in consultation with the Executive Director of Finance, Leader of the Council and the Cabinet Lead Member for Place to complete the negotiation of the contractual variation and authorise the execution of a Deed of Variation to the Street Lighting PFI contract.
3. That officers send the business case to Coast to Capital, EM3 and Local Enterprise Partnerships in order to seek funding opportunities for the LED conversion.

Reason for Decisions:

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

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

Converting to LED would 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.

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

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

·         Adjust lighting levels of traffic routes to suit actual traffic levels which would lead to additional energy savings

·         Environmental sensors to detect and monitor air quality

The potential for these innovations may be in direct relation to street lighting (e.g. dimming in response to traffic levels) 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 allowed for changes to the specification and service.  Following Cabinet approval in January 2018, a Change Notice had been issued under the contract and subject to this approval, officers will finalise the contractual documents and execute a Deed of Variation.

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

The Cabinet Member for Place introduced this report that detailed the benefits and costs of investing approximately £19.9 million over three years to convert the council’s 89,000 street lights to Light Emitting Diode (LED).

RESOLVED:

1. That the conversion of street lights to LED be approved.
2. That authority be delegated to the Head of Highways and Transport in consultation with the Executive Director of Finance, Leader of the Council and the Cabinet Lead Member for Place to complete the negotiation of the contractual variation and authorise the execution of a Deed of Variation to the Street Lighting Private Finance Initiative (PFI) contract.
3. That officers send the business case to Coast to Capital, EM3 and Local Enterprise Partnerships in order to seek funding opportunities for the LED conversion.

Reason for Decisions:

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

LED technology in street lighting had matured significantly in recent years while the costs had reduced. Many Highway Authorities had either embarked on an LED conversion programme or were in the process of planning to commence one within the next two to three years.

Converting to LED would 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.

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

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

·         Adjust lighting levels of traffic routes to suit actual traffic levels which would lead to additional energy savings

·         Environmental sensors to detect and monitor air quality

The potential for these innovations may be in direct relation to street lighting (e.g. dimming in response to traffic levels) 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 allowed for changes to the specification and service.  Following Cabinet approval in January 2018, a Change Notice had been issued under the contract and subject to this approval, officers will finalise the contractual documents and execute a Deed of Variation.