Large potential in total modernization to LED streetlights

Transcription

1 Large potential in total modernization to LED streetlights Region Zealand By modernizing streetlight infrastructure with LED, the energy consumption will be reduced with 50%. Further reduction (20-30%) can be achieved when introducing control systems for light control. Furthermore are operational and maintenance cost reduced. Payback time is usually 6-8 years. Baseline: street light units in total in Region Zealand s 17 municipalities. 23% are with LED technology (2015) GPP tender potential LED modernization realized for units. Region Zealand still have a potential for upgrading street light units with LED. Results Energysaving: MwH/year CO 2-emission reduction: tons/year Costsaving from O&M: /year Better control, monitoring and flexibility This template is developed by GPP 2020 and modified by PRIMES. For more information about GPP 2020 check out

2 2 PRIMES case study on LED street lighting Introduction to case 1.1 SUMMARY 2 Region Zealand has 17 individual municipalities and estimated a total of street light units. Since 2012 a modernization of street light units to LED has taken place. It is estimated that 23% of the units equal to units now are with LED. Especially the last years has shown an increase in LED light. The replacement in Region Zealand has led to considerable environmental and economical savings. Key figures from implementation of unit documents that each unit saves approximately /year in energy cost and reduced maintenance and the average energy saving per unit is 167 kwh/year. A replacement of units so far provides an energy saving of MWh/year and cost saving of The business case is generally attractive with a pay back time of 6-8 years depending on the existing infrastructure. 1.3 CASE CONTENT AND CASE ISSUE To gain benefits of the last decade s development in the LED light solutions, a number of municipalities have improved their street light infrastructure to different types of LED systems. Some of the units are more than 40 year old. The tenders differs in terms of models and structure, however most municipalities need to buy back their infrastructure from energy companies to accelerate the modernization. The tenders are characteristic by an extensive preparatory work that analyse the relevant financial data for operation and replacement and the estimated saving potential. 1.4 SOLUTIONS APPLIED The specific solutions depends on the particular functional needs and architectural requirements but basically all the modernizations includes new mast, LED technology and light control system. The average cost per unit is approx. 130 /year and the average saving per unit is estimated to approx per unit per year. A general figure are 50% energy saving by shifting to LED, and further 30% energy saving and operational cost saving by introducing light control system.

3 PRIMES case study on LED modernization of street lighting in Region Zealand Contract tendered The tender vary in time periods but are usually 4 years or longer with options for prolonging the period. The tender typically includes both operation and maintenance of specified units/geographical areas. Operation and maintenance covers all types of cost such as energy cost, maintenance cost, cost for control system maintenance and development, waste management etc. 3 Further the tenders specify modernization of old streetlights. Modernization is usually a full outsourcing and covers all types of cost to e.g. construction work, waste management, equipment, planning etc. a. Subject Matter: Operation, maintenance and modernization of street lighting equipment by upgrading to LED and eventually intelligent control b. Value: The total investment volume for new LED streetlights is estimated to The average unit price is c. Type of contract: The contracts comprise operation, service, maintenance and modernization of specified units including disposal of existing units, constructionwork and installation of new units, reestablishment, monitoring and administration. Procurement objectives The procurement objective is usually motivated by a need for reducing operational cost from street lighting through modernizing the infrastructure by introducing energy efficient LED eventually with light control systems and through this at the same time reduce the CO2 emission.

4 4 PRIMES case study on LED street lighting The specific energy saving potential depends on existing infrastructure, but experienced savings from replacing street lights of various conditions and age, is 40% average. Savings from more efficient operation and maintenance was further 16%. The total financial saving was 56% in average from units. 4 Beside the overarching objective, the implemented projects are flexible system working effectively within various areas of the city as well as on the countryside. In some cases, the procurements have been organized as joint procurement with other municipalities to save administrative resources. Procurement approach Usually the procurement is restricted tenders and comprises an operation period of 4-6 years. The tender used standard eligible criteria for financial, legal and technical capacity. In relation to technical capacity, bidders should a.o. document experience from similar projects within the last 3 years. Relevant award criteria is lowest price with a divided weighting for Operation and maintenance Modernization to LED and eventually intelligent control systems With regard modernization, the central green criteria are accomplished by choosing LED with light control systems. If bidders choose not to use LED in the project, they have no chance to be competitive on lowest price. Investment in new LED streetlight appliances, power switches, control systems etc. can be granted loan from KOMMUNEKREDIT (state loan for energy investment repaid be energy saving). It improves the liquidity.

5 PRIMES case study on LED modernization of street lighting in Region Zealand Criteria development It should be a precondition for the tender to provide detailed specific data including age, product names, logs, district and placement, energy consumption etc. for the units comprised the. To assure a continuous implementation of best available technology and a fair price sharing if conditions are changing, following clauses can be included in contracts: Proposals for technology improvement: To assure continuous use of best available technologies, it is included in the contract that supplier shall offer such technology developments to the municipality following a specified procedure starting with a proposal and a investment plan from the supplier, and if municipality agree, cost saving will be shared equally between supplier and municipality. Thus, the supplier is always assured at least same overhead as originally agreed. 5 Savings from lower market prices: To gain equally, if market prices for equipment are reduced over time, it is included in the contract that cost saving will be shared equally between supplier and municipality. Thus, the supplier is always assured at least the same overhead as originally agreed. Results Investment volume ( ) Energy savings and operationa savings ( /year) CO 2 reduction (tco 2e /year) Payback time ( ) Lot Total Text Text The yearly energy saving per unit is 167 kwh/year similar to an average saving of 40% and the CO2 emission reduction is 68,9 kg/year. Investment cost per unit is

6 6 PRIMES case study on LED street lighting These key figures are the results form implementation of units in various conditions. Energy saving per unit is 51,3 /year and savings from maintenance is 16,2 year. Total yearly saving per unit is 67,5. 6 Region Zealand still has an extensive potential for further energy savings and CO2 emission reduction. Considering all remaining streetlights upgraded to LED ( units), the CO2 emission can be reduced with further tonnes/year with a cost saving of /year. Despite the potential is obvious attractive, the relative high investments in the short term constitute a barrier for the regions municipalities for accelerate an implementation. Investment volume is an average of the total investment cost in new infrastructure. Lessons learned Pre-study report with data for existing infrastructure and estimation of potential savings is an important basic for the tender proces Buy back/ownership of infrastructure is often a preconditions for fast track in implementation of new technologies and related energy and cost savings Even newer units (after year 2000) can be modernized with good pay back profiles Light control system is important feature to reduce energy consumption while light need can be maintained individual but also for reduction of maintenance cost because monitoring can be made centralized This case can be replicated to all entities responsible for operation and maintenance of streetlights.

7 PRIMES case study on LED modernization of street lighting in Region Zealand Contact Lærke Møller Toftlund, Gate 21, About PRIMES Across six countries in Europe; Denmark, Sweden, Latvia, Croatia, France and Italy, PRIMES project seeks to help municipalities overcome barriers in GPP processes, many of which lack capacity and knowledge. 7 PRIMES aims to develop basic skills and provide hands-on support for public purchasing organisations in order to overcome barriers and implement Green Public Purchasing. This will consequently result in energy savings and CO 2 reductions. About GPP 2020 GPP 2020 aims to mainstream low-carbon procurement across Europe in support of the EU s goals to achieve a 20% reduction in greenhouse gas emissions, a 20% increase in the share of renewable energy and a 20% increase in energy efficiency by To this end, GPP 2020 will implement more than 100 low-carbon tenders, which will directly result in substantial CO 2 savings. Moreover, GPP 2020 is running a capacity building programme that includes trainings and exchange.

8 8 PRIMES case study on LED street lighting 8 The sole responsibility for the content of this case study lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein. Disclaimer The above text contains general information on the referred procurement procedure. This information is for general guidance only and shall not be treated as legal advice. In case you have any questions related to the procedure please contact the partner as indicated in this document.