1. Streetlighting Contestability
Victoria’s Experience
Victor Waveluk

2. The Sustainable Energy Authority Of Victoria
Statutory semi-government body
Objectives are to:
facilitate energy efficiency and the development and use of renewable energy
achieve environmental and economic benefits for the Victorian community
contribute to the reduction of Greenhouse gas emissions

3. Genesis / Lightlab Report
“Energy & Cost Savings Opportunities In Streetlighting” – August 1999
Commissioned by SEAV and SEDA
Technological options available
Conclusion: astronomical scope for improvement

4. Report Key Findings
Illumination quality (light colour and useful light) is much lower than can be achieved
Low energy efficiency
Consumption can be at least halved!

5. Report Key Findings (cont.)
More efficient lamps (eg mercury vapour Vs metal halide and modern fluoro’s)
More effective lanterns (eg reflector design, diffuser losses, better light distribution)
More efficient ballasts (eg electronic)
Better control of on/off times (eg PE cells rather than cadmium sulphide cells)
Better application of light types (depreciation and programmed lamp replacement)

6. Case Study 80W mercury vapour Vs 35W metal halide
60% reduction in energy use
74% return on initial premium (takes into account equipment life, efficacy, electronic ballast, depreciation and PE cell)

7. 3 Distinct Types of Public Lighting Services
Supply of Electricity - fully contestable -Constitutes approx 30% of bundled price
Use of Distribution System (DUoS) - regulated
Ongoing operation, maintenance and replacement (OMR) – regulated if owned by DB, fully contestable if owned by council (ie new installations)

8. Major Issues to Overcome
Bundled tariff – price fixed, is not transparent, not cost reflective
Which components are contestable and to what extent
Audits of lights - inventory
Non-standard lighting installations
How to treat unmetered supplies
Who owns infrastucture

9. Public Lighting Reference Group
Responsible for the development of the new public lighting framework
Convened by ORG as a result of lobbying by SEAV and MAV
Comprises DB’s/retailers, MAV, VicRoads, SEAV and DNRE

10. Market Preparation Inventory (No., type, location, infrastructure?)
Ownership (contest?)
Cost of Public Lighting ($ pa, billing history, capital contributions)
OMR service levels (design, efficiency, maintenance, replacement time/strategy, records, data up-dating)

11. Market Preparation (cont.)
New lighting schemes (design std, service levels, performance measures)
Market knowledge (other providers apart from DB’s)
Nature of contract for energy and/or OMR issues

12. Public Lighting Code Released Sept 2001 by ORG
Facilitates the negotiation of Public Lighting services
Obliges a DB to make “fair and reasonable” offers
Specifies minimum service standards
Only applies to monopoly DB’s
Free to depart from Code by negotiation

13. Public Lighting Code - Shortcomings
Does not “drive” energy efficiency & innovation
Sets minimum standards only
No environmental considerations
Does not allow for equipment selection

14. Opportunities
Capex premium for energy efficient lights is small and justified by very high returns
Upgrade cost low because most Vic/NSW minor road lights are due for replacement now or next 3 years

15. Buying Options
Single council (all contracts for all energy with one supplier)
Joint tender – individual contracts (group of councils)
Cooperative – joint venture (one contract for all councils)
Broker (negotiates on behalf of councils; councils have principal agreement with broker)

16. Information Day - MAV 1 August 2001; energy charges only - not OMR
“Energy Brokers” invited by MAV
Maps, Trans-Tasman, Energetics, NUS and UMG
Maps & Trans-Tasman: “no obligation” public tender
Maps (Energex): 53, TT (Citipower): 17 out of 78
50% savings ($60/MWh peak, $30/MWh off-peak

17. Information Day - Outcomes
Total streetlighting load: 250MW
25% purchased as Green Power and growing
$30/MWh Green Power premium
Reinvestment of savings
Dandenong 100%, Manningham 50%, Geelong 35%, Melbourne 30%

18. MAV Survey 2001 - General 78 Vic councils; 73 responded
Total council PL expenditure $40M
Average expenditure $0.5M
1.1% of annual budget
Councils with PL policy: 36%

19. MAV Survey – Retail Contestability
100% entered contestable market
89% purchased through buying group
44% based on “Information Day”
97% satisfied with buying group offer
20% average savings, $120Kpa, 3%-40%

20. MAV Survey - Greenpower
4% of respondents bought Greenpower prior to purchase
Increase to 40% after purchase
Average Greenpower purchased: 19% (3.5% - 100%)

21. Inventory - Consumption
Inventory Working Group established by ORG
Needed to “unbundle” energy consumption of light fittings from OMR components = Load Table
Historical SECV research and further tests by NATA lab
Accepted by Metrology Coordinator – Policy Division of DNRE

22. Inventory - Infrastructutre
No. of lights
Location of lights
Type of lights
Type of asset on which lights are fixed
All of the above are critical

23. Suggested Actions
Develop guidelines and a recommended process for councils
Prepare info for councils from which to negotiate with DB’s
Identify purchasing options available to councils
Identify buying groups
Prepare detailed spec ie data format, services, billing terms, etc.

24. Suggested Actions (cont.)
Develop purchasing strategy for all new installations
Consider contract duration (eg 2 yrs + 2yrs at council discretion)

25. Field Trials Necessary for the development of a “Technical” Code
Nationally coordinated approach is needed
Trials to cover: type of area serve, lamp height, lamp/luminare type, lamp spacing, lighting levels, area specific issues

26. Field Trials – Expected Outcomes
Lighting set-ups measured, monitored and analysed for: light output, lighting effectiveness, energy efficiency, running/capital cost
Generation of model specification

27. Issues to Consider
The capacity of councils to choose and specify non-standard fittings
Ownership of assets if councils pay capital costs
Ensure no barriers to the provision and increase of energy efficient PL
Promote regulatory and competitive regime which fosters innovation