Energy-Efficient Street Lighting—Implementation and Financing Solutions The World Bank Report No: AUS7490 Republic of India Energy-Efficient Urban Street Lighting India: Energy-Efficient Street Lighting—Implementation and Financing Solutions June 2015 GEEDR SOUTH ASIA Document of the World Bank 1 Energy-Efficient Street Lighting—Implementation and Financing Solutions The World Bank Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. 2 Energy-Efficient Street Lighting—Implementation and Financing Solutions The World Bank India: Energy-Efficient Street Lighting— Implementation and Financing Solutions June 2015 3 Energy-Efficient Street Lighting—Implementation and Financing Solutions The World Bank CONTENTS UNITS OF MEASURE .................................................................................................... 8 ACRONYMS AND ABBREVIATIONS .................................................................................. 9 ACKNOWLEDGMENTS ................................................................................................. 11 ABOUT THE MANUAL ................................................................................................. 12 Structure of the Manual .............................................................................................. 12 Energy Efficiency in Street Lighting—Identifying the Need ............................................. 14 Barriers to Accelerating Energy Efficiency in Street Lighting .......................................... 15 Energy Efficiency Policy and Regulatory Landscape in India ........................................... 17 1 OVERVIEW OF ENERGY-EFFICIENT STREET LIGHTING ................................................ 20 1.1 Components of Energy-Efficient Street Lighting ..................................................... 20 1.1.1 Structural Systems: Poles ........................................................................................................... 20 1.1.2 Optical Systems: Luminaires ....................................................................................................... 20 1.1.3 Electrical Systems: Lamps and Ballasts ........................................................................................ 21 1.1.4 Features of Effective Street Lighting Systems ............................................................................... 21 1.2 Standards Relevant for Street Lighting ................................................................. 22 1.3 Types of Lamp Technologies ................................................................................ 27 1.3.1 Types of Lamp Technologies ....................................................................................................... 30 1.3.2 Magnetic Induction Lighting ........................................................................................................ 30 1.3.3 Life Cycle Analysis of the LEDs .................................................................................................... 31 1.4 Building Intelligent Street Lighting Systems .......................................................... 32 1.5 Key Steps towards Implementing Energy Efficiency Street Lighting Projects............ 34 2 IMPLEMENTATION MODELS FOR STREET LIGHTING PROJECT ....................................... 35 2.1 What Is an ESPC? ............................................................................................... 38 2.2 Model 1: Municipality Borrowing from External Sources for Implementing EE Projects ..................................................................................................................... 40 2.3 Model 2: Public-Private Partnership (PPP) Models in EE Street Lighting ................... 41 2.3.1 ESPC Shared Saving Model ......................................................................................................... 41 2.3.2 ESPC Guaranteed Saving Model .................................................................................................. 42 2.3.3 Annuity-Based Deemed Saving Model .......................................................................................... 43 2.4 Other Instruments for Financing Energy Efficiency in India .................................... 47 3 INVESTMENT GRADE AUDIT (IGA) FOR EE IN STREET LIGHTING ................................ 51 3.1 Self-Assessment and Walk-through Energy Audit (WTEA) ...................................... 51 3.2 Investment Grade Audit (IGA) ............................................................................. 52 3.3 Technical Scope of Work for an IGA ..................................................................... 54 3.4 Baseline Development ......................................................................................... 55 3.5 Methodologies for Developing Baseline ................................................................. 55 4 Energy-Efficient Street Lighting—Implementation and Financing Solutions The World Bank 3.6 Key Steps to Consider for Baseline Development ................................................... 57 4 SECTION 4: PROCUREMENT AND CONTRACTING ........................................................ 60 4.1 Turnkey Contracts for ESCO or Energy Service Provider (ESP) ............................... 61 4.2 Request for Expression of Interest (EOI) .............................................................. 61 4.3 Request for Proposal (RFP) .................................................................................. 62 4.4 Contract to Undertake an IGA .............................................................................. 62 4.5 Energy Savings Performance Contract (ESPC) ....................................................... 62 5 SECTION 5: MONITORING AND VERIFICATION PROTOCOLS ........................................ 66 5.1 International M&V Guidelines ............................................................................... 67 5.2 M&V Methodology for Energy-Efficient Street Lighting Program ............................. 67 5.3 Who Conducts the M&V? ..................................................................................... 70 6 SECTION 6: TOOLS AND MATRIX ........................................................................... 71 6.1 Financial and Economic Analysis Tool ................................................................... 71 6.2 Project Appraisal Matrix ....................................................................................... 74 6.3 Vendor Qualification Matrix .................................................................................. 75 6.4 The SEAD Street Lighting Tool ............................................................................. 77 7 SECTION 7: TRAINING AND CAPACITY BUILDING ..................................................... 78 7.1 Capacity Building Needs of EE Street Lighting Stakeholders ................................... 78 7.2 Stakeholder Capacity Building .............................................................................. 79 7.3 How to Design Capacity Building Programs ........................................................... 79 8 SECTION 8: SELECT CASE STUDIES ON STREET LIGHT ENERGY EFFICIENCY ................... 81 8.1 International Case Studies ................................................................................... 81 8.1.1 United Kingdom—Private Finance Initiative (PFI) .......................................................................... 81 8.1.2 Street Lighting in Germany ......................................................................................................... 82 8.1.3 City of Los Angeles, United State of America ................................................................................ 85 8.1.4 Australia, City of Sydney ............................................................................................................. 86 8.1.5 Street Lighting in Latin America .................................................................................................. 87 8.1.6 Street Lighting in Mexico