PROJECT TYPE Modernization of public lighting
Place of investment Hungary - Hódmezővásárhely
Investor / owner Municipality of Hódmezővásárhely County Town
Project cost 90 million in HUF
Financial sources Third party financing with the 100% ownership of the municipality
Starting and completion date 2005
Contractor Zöld F Kft.
Energy consumption before the project 1404 MWh/year*
Energy consumption following the project 1063 MWh/year**
Energy saved 341 MWh/year**
Annual saving 8,931 million HUF**
Annual return (in years) 11 years*
* consumption in 2005
** The figures given for the project in 2006.
THE PROJECT

The modernization of public lighting in Hódmezővásárhely was started in 1996. During the first phase the lamps and the lighting sources were replaced. Later on other reconstructions were carried out, installment of the voltage control system and voltmeters serving for the clearing in the whole municipal area. The installed voltage control system was introduced in 42 transformer districts and it meant one- and three-phase voltage controls in the areas with high pressure lighting sources. The importance of three voltage control is that after 10 p.m. – when the voltage increases due to the overcharge of the electricity system, and when the traffic decreases as per experience – the voltage of the public lamps decreases to 205 V while the lighting do not decrease substantially providing almost the same quality. By this procedure a significant energy and cost saving can be generated, e.g. in the first 11 months of 2006 it was 23%. The increase of the lamps’ life span also contributes to the cost saving, having less dark areas. By the installment of the voltage control system and the voltmeters clearing, the settlement of the public lighting consumption is done according to the measures and not by the public lighting calendar. As a result the service is paid according to the real consumption. This latest change helped to gain the citizens’ support of the project.


ECONOMIC ASPECTS

The project was urged by the citizens’ constant complaints of the dark lights, the expected reduction of the electricity use of the city, the transparent settlement of the public money, and the financial savings reached this way. By the installment of the voltage controls, the consumed energy for public lighting decreased almost one forth (with 23%) in the following year compared to the previous year. The project was completed with third party financing, so the municipality could start the project without investing its own capital, thus reaching significant cost and energy saving. The municipality pays for the project from the savings gained from the difference of the electricity bills before and after the modernization, so not having further costs. Based on calculations the investment costs return in 11 years having considered the energy prices of 2005. The saving practically covers the retaliation of the 9-year lease contract. Third party investment means that a contractor designs, finances (or invites a “third party”, e.g. a bank) and carries out the energy saving projects. This type of investment worked well in several countries of the EU, especially for municipalities having shortage of capital, such as the western counties of Germany. In the latest years such financing has become more and more frequent in Hungary as well, when talking about energy saving reconstructions of buildings.

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SOCIAL EFFECTS

The modernization brings its positive effect for each citizen of Hódmezővásárhely, having almost 50,000 citizens, while it covers the whole city. Besides the significant energy savings, the well lighted streets increase public safety. The initiative was greatly motivated by the citizens, while the municipality did its best to continuously inform a wide circle of people. At the start of the project, the local energy expert informed the public in the local television. The related general meetings were also public and the local TV reported without cutting. Moreover much information was published in the electronic media, and several presentations were given on the project at conferences.

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ENVIROMENTAL EFFECTS

Production of electricity is only possible by using different types of primer energy sources. To supply the annually saved 341 MWh that was reached by the reconstruction in 2006, 3898 GJ must be produced. To have such amount of energy almost 91,93 tons of high quality crude oil, or 102 082 m3 natural gas, or 133 tons of high quality coal should be burnt in power stations. Thanks to the project the before mentioned quantities can be saved from the scanty and not renewable energy sources. The final energy saving should be estimated by considering the whole electricity system. By looking at the average reduction of emission throughout several years (411,23 kg CO2/MWh) it can be stated that with this project almost 140 tons of CO2 is emitted in the air per year.

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DIFFICULTIES, PROBLEMS

Since the energy supplying companies are not always for the support of energy efficiency projects, the main problem was the electricity service company giving incorrect data. Due to the difficulties in the cooperation with the service company, the contractor had to face problems several times.

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FURTHER INFORMATION

Ms. Ilona Fazekasné Czakó
Energy expert of Hódmezővásárhely Municipality
www.hodmezovasarhely.hu
E-mail
+36-62-530-165

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Examples to Follow - Successful and Sustainable Energy Investments in the Central-Eastern and South-Eastern European Region - Energia Klub
2009