Financial Viability Study on the Modernization of the Public Lighting Infrastructure in the Casablanca-Settat Region

The International Finance Corporation (IFC) is supporting Morocco’s Council of the Casablanca-Settat Region in planning on introducing energy efficient street and public lighting services on a large scale across the region (including in currently underserved areas) by mainly using the light-emitting diode (LED) technology and making necessary upgrades and expansions of related infrastructure. As part of this assignment, Econoler worked to (1) assess the financial viability of this IFC initiative aimed at enhancing access to energy efficient public lighting services by introducing energy efficient LED public lighting technology in the region and (2) work on identifying suitable financing and business models to be recommended.  

Econoler was hired to carry out the following activities:

• Conducting a high-level review of public lighting technologies by focusing on LED and comparing LED to the predominant traditional lighting technologies being widely used in Morocco;
• Carrying out a baseline assessment of the public lighting systems across the region, including existing institutional and regulatory frameworks, as well as operational and performance data;
• Conducting a high-level cost-benefit analysis by examining several technical scenarios associated with a potential public lighting modernization program to be implemented across the region;
• Analyzing and comparing at least six representative international case studies regarding LED public lighting refurbishment programs, with at least two of these cases featuring solar PV;
• Developing and providing recommendations on how to develop a suitable business model for implementing energy efficient LED public lighting in the region;
• Delivering a one-day workshop to discuss results and the draft report;
• Supporting the IFC in preparing for and participate in a workshop in Arabic in the Casablanca-Settat region to provide participants with key information about the public lighting upgrade program;
• Developing a plan for implementing the business model, including: a proposal of the minimal technical specifications and pricing guidelines for the relevant new infrastructure required, risk analysis, identification and selection of private partners, a high-level overview of key contracts, preparation of a detailed work program.

  As part of this assignment, Econoler provided the IFC with the following main outputs: (1) an assessment of the financial costs and benefits of installing energy efficient LED public lighting; and (2) a strategy and a business model (including an implementation plan) for introducing LED public lighting across the region by taking into consideration the unique local economic and institutional circumstances.