Stirling gets £9.87m loan from GIB for LED street lights
The Scottish council plans to install 12,000 LED lamps and 4,000 lamp-posts, borrowing £9.87m over four financial years using the GIB’s Green Loan. The project is expected to save the local authority £31m over the next 30 years, while also reducing lighting power consumption by 63 per cent.
Greenhouse gas emissions are predicted to drop by the equivalent of 14,400 tonnes over the lifetime of the project, a yearly decrease equal to the amount of electricity consumed by 850 homes, with the scheme aiming to replace existing sodium light bulbs.
Scotland’s Energy Minister, Fergus Ewing, believes the project is another good example of investment by the GIB in energy efficiency.
“The Scottish Government has designated energy efficiency as an infrastructure investment priority that looks to build on our track record in renewables in demonstrating the multiple benefits from investing in low carbon infrastructure,” he said.
Stirling Council will make use of the Green Loan, set up by the GIB to help local councils reduce their streetlight electricity bills by up to 80 per cent, while also offering UK local authorities a low, fixed-rate financial arrangement over a period of up to 30 years, with the loan specifically designed to finance public sector energy efficiency projects where repayments are less than the savings realised.
Edward Northam, Head of Investment Banking at GIB, said: “Replacing its existing streetlights with more efficient and cost effective alternatives will see Stirling Council make immediate budget savings while contributing to the wider movement to decarbonise our economy.
“There are signs that more and more local authorities are considering the benefits of the spend-to-save approach, with Stirling becoming the third UK council to opt for a Green Loan.”
Stirling Council’s project follows similar schemes carried out in Glasgow and Southend-on-Sea to use a Green Loan in order to replace inefficient and costly old street lamps with modern, energy efficient models, making it the third of its kind in the country.
Robert Steenson, Director of Housing and Environment at Stirling Council, said: “We are investing in the LED streetlights both to save money and make sure that Stirling Council provides high-quality services that are as sustainable as possible. We are very pleased to have worked with the UK Green Investment Bank on this deal.”
Scotland Office Minister, Andrew Dunlop, added: “This is an excellent initiative and I commend Stirling Council for being part of it. This scheme will deliver a triple-whammy – safe, brightly-lit streets for Stirling, a long-term cash saving for the council and a significant reduction in greenhouse gas emissions in the area.
“Stirling has now joined Glasgow in taking advantage of this opportunity and it is something I hope other Scottish local authorities will look at closely too.”
