Energy Efficient Street Lighting, Silistra, Bulgaria - ENNEREG Good Practice in Energy Efficient Products

A project for street lighting improvement was implemented in Silistra Municipality in year 2001. The initiative was part of a bigger project including also refurbishment and improvement of space heating systems of municipal buildings and financed through a bank loan and Development Credit Authority of USAID.

Summary

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Aims & Objectives of this Sustainable Energy Action

The main aim was to replace the obsolete and inefficient mercury street lamps with new ones with reduced energy consumption increasing at the same time comfort levels for the citizens. Lamps replacement Combined with optimization of street lighting by automatic controls and introduction of double-tariff this can lead to more than 50 % saving in electricity consumption for street lighting.

Apart from energy and cost savings the objectives included also protection from car accidents and reduction of crime rate due to low illumination of the streets in Silistra town.

Results and Impacts

Project outcomes in terms of ENNEREG’s performance indicators:

Start Date: summer of 2001
End Date: end of 2001
Cumulative investment made by stakeholders in sustainable energy (kEuro): 220
Renewable energy production (toe/year): n.a.
Primary energy savings (toe/year): n.a.
Reductions of greenhouse gas emissions (t CO₂e/year): 3491

Cost-benefit analysis:

2,53 years discounted pay-back;
61,1 % IRR;

Other relevant project outcomes / impacts:

Increased comfort for citizens;
Reduction of car accidents and crime rates;
Reduced energy consumption for street lighting by 59 %

Technical and Financial Implementation

Optimization and renovation of street lighting was done by means of replacement of nearly 65 % of existing luminaries with new high-pressure sodium lamps as well as by redesign of the system, installation of double-tariff electricity meters and automatic controls.

The consultancy company Electrotek Concepts provided detailed feasibility assessments, cash-flow projections and risk analysis of the project and assisted in business plan preparation to be put forward for bank loan financing.

The total project costs amount to 279 000 USD or about 220 000 Euro of which 71 % debt and 29 % equity financing. The initiative was financed through Bulgarian Municipal Energy Efficiency Program (MEEP) sponsored by USAID. The loan was provided by United Bulgarian Bank (UBB) with 50 % loan guarantees through USAID's Development Credit Authority (DCA).

Project economics (worst case scenario): discounted payback - 2,53 years; IRR – 61,1 %

The Partners and Stakeholders

Silistra Municipality is the project owner;
Electrotek Concepts provided technical assistance in feasibility assessments and business plan preparation;
Bulgarian Municipal Energy Efficiency Program provided loan guarantee through the DCA sponsored by USAID;
United Bulgarian Bank provided the loan for street lighting refurbishment.

Lessons Learnt

The project showed that social actions and energy efficiency improvements can also be economically viable and produce economic benefits on top of social benefits achieved.

It is good for municipalities to have access to technical assistance in project documents preparation and economical viability assessments when commercial financing is sought. Electrotek Concepts provided valuable assistance to Silistra Municipality in securing the bank loan and the guarantee of DCA.

How this Action could be Replicated

Street lighting has a high potential for energy savings in Bulgaria as it is present in all municipalities and in most cases features obsolete lamps and inefficient energy characteristics. The most frequently applied measure is replacing the old mercury lamp luminaries by high-pressure sodium lamps while observing the standard for lighting indices. Implementation results show a potential of reducing installed street lighting capacity by 2,5 to 3,9 times.

Related Information on the Regions 202020 Website:

Sustainable Energy Theme(s): Energy Efficient Products
Region(s)/Community(ies): BG: Silistra
Country(ies): Bulgaria

Last updated: 24/04/2013 7:45pm - Contact: Ivanka PANDELIEVA -