Sustainable procurement case study

Street Lighting
Developing a practical toolkit has revealed opportunities to improve energy
efficiency and deliver savings, while building relationships and expertise
across the Scottish public sector.

Background
Recognising the financial and carbon savings to be generated by introducing modern
technology to street lamps and central management systems, Scottish Futures Trust
(SFT) worked with East and West Dunbartonshire Councils to develop a pilot initiative
and a business case to test the feasibility of making a financial investment in new street
lighting technology.
Based on the pilot, delivered in 2012, the councils have since allocated budget from their
future capital investment plans to LED lighting. Importantly, with support from Scottish
Government and the Scottish Cities Alliance, SFT and the Society of Chief Officers of
Transportation in Scotland (SCOTs) developed a Street Lighting Toolkit to enable all
Scotlands local authorities to explore the investment required and the potential
savings1.
Following publication of the Toolkit, a Street Lighting Steering Group was established. By
bringing together technical experts in street lighting with those responsible for
procurement, a clear picture emerged of the potential for delivering savings as well as
carbon reductions across all Scotlands local authorities.

Anticipated benefits - Results of the initial analysis carried out by SFT

Analysis carried out by SFT forecast that an investment of 298m in LED street lighting
could generate savings in the region of 1.3bn over a 20 year operational period before
allowing for financing costs. The savings decrease to 900m if funded through the Public
Works Loan Board (assumed rate of 3.47%) and 780m if funded through private
finance (assumed rate of 6%).
The savings are generated from energy savings (62%), maintenance savings (36%) and
Carbon Reduction Commitment savings (2%). In addition, converting existing lighting to
LED would result in a 67% reduction in energy consumption and 1.35m tonnes of carbon
saved over the 20 year analysis period.

The Street Lighting Toolkit and worked-up examples of the financial model can be
found at: SFT Street Lighting Toolkit

The role of the Street Lighting Steering Group

The Steering Group comprises representatives of SFT, Resource Efficient Scotland,
COSLA, local authorities and Scotland Excel as well as the Chair of SCOTS Street Lighting
Group. Part of Steering Groups role is to help local authorities identify sources of
funding, including SALIX funding for energy efficiency measures.
Another role of the Steering Group is to identify opportunities for wider benefits including
social, such as Modern Apprenticeship opportunities.
The SCOTS Lighting Group includes two primary members from each council who meet
to share good practice and ideas. This forum provides an opportunity to explore a range
of subjects and to build capability. The Chair of the SCOTS Lighting Group is also a
member of a lighting board covering Wales, Northern Ireland and England so
experiences are shared and issues can be tackled across the four nations.
Procurement Approach
In order to capitalise on the commercial opportunities, Scotland Excel engaged closely
with potential customers to put in place a framework agreement for street lighting
materials.
The existing framework was due for renewal and the volume of business going through
the framework was approaching its limit due to the potential savings in electricity
consumption and carbon to be realised through renewal of street lighting.
This provided an opportunity for Scotland Excel to review the current specification with
the aim of developing, through Working Groups, a standard specification for the whole of
Scotland. Whilst this work is still on-going, early indications show strong support for the
approach from many local authorities.
Scotland Excels approach to testing the market has included a number of events to alert
potential suppliers of the requirements for the forthcoming framework and to seek
feedback from the supply chain.
Payback periods are of particular interest in the case of street lighting. While many
procurers focus on the likely product life, others are much more interested in the
payback periods and delivering value for money. While the electronics may last 10
years, for example, street lighting technology may have changed radically in that time,
so the Chair of SCOTS is looking for a payback period of four years.
Condition surveys
The Scottish Government has made 2 million funding available to local authorities to
carry out condition surveys on their existing street lighting. The expertise of Resource
Efficient Scotland (a programme of Zero Waste Scotland) and further funding of
350,000 is also available to local authorities to assist in this exercise.
Scottish Enterprise Market Research Report
SFT commissioned Scottish Enterprise to carry out market research on street lighting.
Arising from the report the following matters are under discussion with Scottish
Enterprise:
(a) The running of a Research & Development competition looking at retro fit
solutions for improving the energy efficiency in street lights.
(b) A proposal to the Small Business Research Initiative (Technology Strategy Board)
to take forward a bid in relation to Central Management Systems for street
lighting and other electrical street furniture and developing a standard protocol

and method of communications which could be used to stimulate the local market
to develop solutions/products to satisfy the need for competition in this area.
(c) The provision of eight Highway Electrical Modern Apprenticeships by Tayside
Contracts in partnership with Oldham College.
(d) Investigation into the possibilities of establishing street lighting recycling business
opportunities in Scotland.
An independent accredited testing facility is now being provided through LUX TSI, a
performance and safety testing services company. This will assist with the development
of a robust output specification. Procurers will be able to reserve the right to have the
quality of street lighting products independently evaluated.
Outcomes
Further work is now underway in many parts of Scotland, building on the successful pilot
projects in East Dunbartonshire and West Dunbartonshire.
Dundee and Perth and Kinross Councils (Tayside Contracts)
SALIX provided 500,000 of funding to Dundee and Perth and Kinross Councils to
replace their SOx 135w lanterns with modern LED equivalents in 2012/13. The
installation of 1,289 LED lanterns in Dundee and Perth and Kinross is now complete.
Glasgow City Council
Glasgow City Council will carry out the installation of energy efficiency works to
approximately 10,000 street lights on main routes during 2014, which coincides with
the 200th anniversary of the year when street lighting was first introduced in the city.
Glasgow is launching a rolling refurbishment programme which will see the majority of
the old lamps replaced by 2018.
It currently costs 8.5million a year to power and repair Glasgow's network of lights. The
new lamps are expected to use at least 50% less energy and over 20 years they will
reduce the council's carbon emissions by 52,329 tonnes.
Fluorescent and LED lamps use less energy and provide more controllable,
white light. The first 10,000 lamps are expected to cost around 8.6m to install and will
pay for themselves through the savings generated.
The National Outcomes addressed through this forthcoming framework agreement
include:

We realise our full economic potential

We live in well-designed, sustainable
with more and better employment
places where we are able to access the
opportunities for our people.
amenities and services we need.

We are better educated, more skilled

We take pride in a strong, fair and
and more successful, renowned for our
inclusive national identity.
research and innovation.

Our young people are successful

learners, confident individuals, effective

We value and enjoy our built and

natural environment and protect it and

contributors and responsible citizens.

enhance it for future generations.

We reduce the local and global environmental impact of our consumption and
production.

Quote from Morag Wallace,

Scottish Futures Trust:

The work of SFT and our partners is making it

as easy as possible for all local authorities to
assess what levels of investment they need to
make to reap the financial and environmental
benefits from investing in new street lighting
technology. Its a win-win for everyone

Key lessons

The sharing of good practice across public sector bodies

Development of a new street lighting toolkit
Results of street lighting pilots including potential savings to be achieved
Collaboration on the development of a robust LED specification
The role of the specialist Steering Group in the sharing of learning and expertise
and the development of appropriate specifications.

Next steps
Current and future activity for the Street Lighting Steering Group members include:
-

Development of the specification for LEDs.

The University of Dundee is the lead partner in a consortium which has recently been
awarded a 12 million grant from Europe for research into the development of new
LEDs.
For more information contact: Morag Wallace, Associate Director, Scottish
Futures Trust Morag.Wallace@scottishfuturestrust.org.uk

Key Actions:

Development of the Street

Lighting Toolkit
Dissemination of potential
benefits of LED street lighting
Establishment of a Steering Group
to coordinate activity
Early engagement with the
market

Key Benefits:

Carbon Footprint reduced

Modern Apprenticeship
opportunities created
Shared learning amongst lighting
engineers
Waste diverted from landfill
Promotion and sharing of good
practice and toolkits