6
LIGHTING
Estimated Capital Costs of Large- Scale Replacement Programme |
Estimated Energy Savings ( based on typical costs of all charges proportional
to energy consumption of
|
Estimated Maintenance Savings ( based on 50 %+ reduction in current spot and bulk maintenance costs ) |
Total Estimated Energy and Maintenance Savings |
Simple Payback Period |
Net Present Value ( at 4 % discount rate over 15 years including initial capital cost and savings ) |
|
$ 0.15c / kWh ) |
|
|
|
|
$ 1.1 billion $ 180 million / yr $ 60 million / yr $ 240 million / yr 4-5 yrs $ 1.6 billion
Table 1 : Overall Investment Performance of Accelerated LED Replacement if Only Electricity and Maintenance Savings Counted
The wide ranging benefits available suggest the need for a street lighting strategy that leverages a whole-ofgovernment approach . Overall , the business case for a national LED replacement programme is summarised in Table 1 which only values capital cost and the energy and maintenance cost savings . ( see Table 1 above )
Programme Deliverables
In this Roadmap , IPWEA is proposing an ambitious twoyear programme of deliverables to address the barriers to rapid deployment of LEDs and smart controls , including :
• Policy Engagement – Identifying possible legislative , regulatory policy and standards changes for detailed stakeholder consultation ;
• Model Documents – Preparing model LED street lighting , smart controls specifications and other documents to improve market efficiency ;
• Training – Developing website , webinars , workshops and other tools to educate all stakeholders .
Risk
The first group of risks are to IPWEA and SLSC Programme stakeholders , that :
1 . Councils may be under-resourced and lacking sufficient internal expertise to optimise the potential and benefits of the SLSC Programme ;
2 . Government department silos may be a barrier in achieving a whole-of-government solution ;
3 . The complex regulatory issues require high level interventions and may not receive sufficient priority over other reform activities .
The second group of risks is for the lighting asset owners and stakeholders , and these are that :
1 . Incremental change to business-as-usual approaches to procurement , specifications and tendering processes will not be sufficient and there may be reluctance to take the ‘ clean-sheet ’ approach required to preemptively mitigate project risks ;
2 . Wider strategic opportunities for major improvements in amenity , safety and revenue generation may be overlooked as the easy wins of energy and maintenance savings appear adequate in themselves . Lack of appetite for significant reform risks missing a major opportunity to do so .
GOVLINK » ISSUE 1 2017