Barking and Dagenham Council has secured a £6.8m loan from the Green Investment Bank (GIB) to finance the replacement of nearly 15,000 traditional streetlights with energy-saving LED alternatives.
The east London council expects the project to halve its 7 GWh annual electricity consumption from streetlights, saving £400,000 per year in energy costs for the 30-year life of the loan. The agreement will also finance the refurbishment of 3,300 streetlight columns and the installation of a new central management system.
Councillor Darren Rodwell, leader of Barking and Dagenham Council, said: “This is a great deal for council taxpayers and residents. It means we replace expensive old streetlights with low-carbon, energy-saving ones. It’s another sign of the council delivering its ambition to provide value for money for residents and make a greener, better Barking and Dagenham.”
Edward Northam, head of investment banking at GIB, said: “Replacing traditional streetlights with LED lamps and installing central management systems can make public sector lighting stock more efficient, cost-effective, environmentally friendly and easier to manage.”
Installation work, which will be staggered over a two-year period, is due to commence early next year. VolkerHighways has been commissioned to carry out the work following a competitive tendering process.
The council is the first London borough and the fifth local authority in the UK to secure a Green Loan from GIB. Similar funding arrangements are already in place with Glasgow City Council, Southend-on-Sea Borough Council, Stirling Council and Kent County Council.