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This page highlights the various regulatory structures for public lighting internationally as well as examples of significant international initiatives to advance the sustainability and efficiency of public lighting. (Note: Many overseas case studies of measures by individual local governments are hosted within the Technologies and Taking Action sub-sections of this website).
New Zealand
Following economic reforms in the mid-1980s there were concerns that network operators were able to extract additional profits by re-valuing their network assets and justifying price increases of electricity distribution (see Bertram & Twaddle 2005). The light handed regulatory environment has made it difficult for councils to negotiate with the 28 distribution businesses and thus the transition to energy efficient public lighting has been slow. 1
USA
Electricity distribution in the United States is regulated on a state-by-state basis. Some cities own and operate their own power generation facilities, electricity distribution networks, as well as public and traffic lighting assets. This case study of Detroit in Michigan illustrates that even with direct control over public lighting assets, the city faced major challenges and required external consultancy services to overhaul their management and delivery of public lighting.
United Kingdom
In the UK there is no specific legislation stating that roads must be lit, however the Highways Act 1980 provides the legal basis that allows councils and other authorities to deliver this service to major and minor roads. Various codes exist to guide councils in crime prevention, vehicular accident reduction, maintenance and amenity use.
Councils are able to negotiate a Standard of Service with the Distribution Network Operator in order to specify such things as timescale of work conducted, types of equipment used, mechanisms for pricing and penalties for performance failures.
The UK regulator, Ofgem, promotes fair competition and practice amongst energy distributors and sets revenues for five-year periods through a Distribution Price Control Review. This is based on financial and non-financial information on performance and investment plans.
European Union
Following market deregulation for electricity distribution across the European Union in the 1990s a common legislative framework provided consistency in the way public lighting is regulated. This article from the Centre of Economic Policy Research in Europe elaborates on this process.
There are two key Directives that govern the energy distribution sector in the European Union. The first, Directive 2003/54/EC, regulates the operations of distribution businesses and states that national regulatory authorities are to “ensure that transmission and distribution tariffs are non-discriminatory and cost-reflective”. Notably this directive also states that “the distribution system operator shall maintain a secure, reliable and efficient electricity distribution system in its area with due regard for the environment”.
The other Directive that guides this market is specifically focused on energy efficiency. The EU Directive 2006/32/EC aims to enhance the cost-effective improvement of energy end-use efficiency in the member states. It obliges member states to set targets, in the form of an Energy Efficiency Action Plan, and remove market barriers to efficient end-use of energy. It also compels energy distribution businesses to provide detailed statistical information on energy use.
European Standard EN 13201 series guides the design and standard for public lighting in the EU. The standard specifies three categories for public lighting- motorised traffic areas, conflict areas and pedestrian areas.
An interesting example of a regulatory tool designed as a response to the natural monopoly of the energy distribution sector is Sweden’s ‘yardstick’ regulation, which compares the operations of distribution businesses against fictitious networks. The paper, ‘Reference Models and Incentive Regulation of Electricity Distribution Networks: An Evaluation of Sweden’s Network Performance Assessment Model’, provides a thorough discussion of this approach.
1Bertrand, G. and Twaddle, D. (2005). Price-Cost Margins and Profit Rates in New
Zealand Electricity Distribution Networks Since 1994: The Cost of Light Handed
Regulation, Journal of Regulatory Economics; Vol. 27:3 281–307.
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- The EnLight project (Europe)- focuses on outdoor lighting in urban areas, the project is supported by the SAVE II Programme of the European Commission. The project objective was to provide decision makers with the necessary practically applicable tools and best practice examples to be able to analyse, plan and implement energy saving measures in outdoor lighting. Project results from eight countries are captured in a series of project case studies.
- The E-Street project (Europe)- ran from 2006 until 2008 and involved partners from 13 organisations in 12 European countries. The project focused on ‘intelligent’ street lighting, which describes a total system with dimmable luminaires. The project scope was ambitious, aiming to demonstrate adaptive lighting, increase its market potential, address international standards and develop a business case. The project report [pdf 5.2MB] states that based on existing installations across Europe the project will potentially save 38 TWh of electricity. Outcomes of the project were the development of a new standard for adaptive street lighting, installation of over 20,000 new street lights and the development of a financial model for change-overs.
- Latvian ESCO project [PDF 258KB] - commenced in Tukums municipality in December 2001 and will run until 2012. The project involves retrofitting streetlighting systems using efficient lighting technology. Notably, the project uses an ESCO (Energy Service Company) as a third party financing model that can repeat across municipal boundaries. The project has achieved energy savings of 630 000 kWh/year and CO2 emission reduction of 365 t/year. It has also assisted to rectify a number of design, efficiency and maintenance issues. It has also seen a change in attitude by Latvian municipalities towards energy efficiency projects and an increased of awareness of third party financing options.
- New Zealand Efficient Lighting Strategy - although the strategy mainly focuses on the residential sector, it does aim to phase out mercury vapour street lights and increase efficiency in design and control.
Internal links
The following pages have additional examples of public lighting trials and initiatives occurring internationally:
On/Off Controls- examples of dimming and switching off public lighting
LED- examples of trials and initiatives involving light emitting diodes
Emerging technologies- details a USA based invention incorporating dimming with moonlight availability
Regional action groups- describes groups in New York and Toronto working to increase demand for sustainable public lighting technologies
High Pressure Sodium- details trials in New Zealand and Indonesia
Induction- details of a trial in Kapiti Coast District Council in New Zealand
Waste and recycling- describes the position of lamp recycling internationally
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