Guideline on finding a suitable financing model for public lighting investment: Deliverable D.T2.3.2 Analysis of funding sources

Upgrading street lighting infrastructure to improve energy efficiency is an investment that reaps rewards in the form of substantial energy savings and reductions in carbon dioxide emissions. In addition, it is highly cost-effective and has a short payback period. In several European countries, infrastructure must be improved. Budget constraints on infrastructure owners—often municipalities—are commonly cited as the reason for inaction. Creative business models are required in order to attract additional investors and reduce the significant upfront costs that discourage investment.

This report summarizes the results of research into potential funding sources for energy-efficient street lighting projects. The analysis focusses primarily on the countries of Central Europe, namely Austria, Croatia, the Czech Republic, Germany, Hungary, Italy, Poland, Slovakia and Slovenia. It reviews available EU funding and assistance programmes, national public funding sources, multi- and bilateral financial intermediaries and private sources. All of these are assessed using a common framework. The report examines objectives, financial instruments, funded activities, beneficiaries and the application process for public sources.