E-Street project

Financing

Investments to improve the uptake of energy efficient lighting are among the most cost effective and practical energy efficiency measures and offer the EU one of the most immediate and effective opportunities to increase the security and reliability of energy supply.

Pilot Cases financial instruments

The proposed Directive on the final energy efficiency and on energy services in EU (Energy Service Directive ESD) aims to stimulate the final energy efficiency, the programmes and measures of energy efficiency. The ESD will stimulate and facilitate cost-effective investment in energy efficiency of different sectors like buildings and lighting.

 The public owners of street lighting systems have the duty to keep the systems in order to ensure road safety and to fulfil the other functions of public lighting. The lack of public budget has led to a stagnation of investment in energy efficiency of the public street lighting, now there is a critical situation with regard to high operating costs and large refurbishment necessities without public funding possibilities. There is a “drive” towards cost reductions and outsourcing of these services, and such Public-Private-Partnership (PPP) models like Contracting and especially Performance Contracting can be successful tools to save energy costs and guarantee quality standards and maintenance of the street light systems. The study gives an overview on the two basic forms of Contracting with the focus on Performance Contracting (EPC). It includes short descriptions of examples projects with different Contracting models of street lighting in the study. Such examples can support municipal decision makers to start with such projects and will help to develop the ESCO market in Europe.

 In the total lighting sector there is a large energy saving potential, the EU could save 4.3 billion euro in running costs through energy efficient lighting each year. Alone in Germany in total 9,125 Mio. lighting points illuminate the public streets of the 14.000 municipalities. The study summarized the results of market analysis for some example countries.

Besides the existing saving potential the development of the ESCO market including the clearance of obstacles of frame conditions and the providing of standards and model contracts are crucial for the implementation of Contracting solutions for street lighting in the European countries. The study describes the key issues, barriers and obstacles in general for the main Contracting models, the frame conditions in countries with developed Contracting markets and for most of the other European countries.

 Finally the needs of developing new standards with implementation of new technical specifications and norms, of more efforts regarding the convincing of the public owners of street lighting, transfer of Know-how and dissemination of information and experiences are summarized in the conclusion. For such countries with low level of ESCO market development and experiences in this field it is suggested to start with capacity building measures and first easy pilot projects for street lighting Contracting.