Development of a Financial and Economic Model to Implement EE projects in Street Lighting

EXPERTISE : /Facilitation of project implementation
SECTOR : , Public


Inter-American Development Bank (IDB)


project description

Pursuant to the positive results of the Emerging Sustainable Cities (ESC) program in Mexico, the Inter-American Development Bank (IDB) approved a technical assistance (TA) mandate in 2017 entitled the Energy Efficiency in Cities Project. Under the framework of this project and based on the results of the ESC program as well as an energy assessment and audit, the IBD mandated Econoler to develop a financial and economic model for the implementation of energy efficiency projects for street lighting and public buildings in Xalapa, Veracruz. The municipality maintains approximately 30,000 street lighting luminaires and approximately 10 municipal buildings.


To achieve the objectives of the assignment, Econoler carried out the following tasks:

  • Reviewed and analyzed the results of the previous audits under the ESC program TA for Xalapa, as well as the municipal/state context that could impact project implementation, such as: (1) legal framework; (2) institutional structure; (3) municipal budget, funds and other financing sources; (4) municipal plans concerning energy efficiency in buildings and street lighting.
  • Evaluated the technical, legal, and financial aspects of projects identified under the ESC program TA, as well as potential projects identified by the municipality and established which would be prioritized for implementation in collaboration with municipal authorities. Moreover, the team elaborated business cases for the following projects:
    • Replacing high-pressure sodium luminaires in the street lighting network with LEDs;
    • Replacing fluorescent luminaires with LEDs, as well as air conditioners, and installing solar panels on various public buildings.
  • Developed a road map that will enable the successful implementation of selected projects. The road map included all the technical, financial and legal requirements for the different project implementation phases for two options:
    • Own implementation
    • Implementation by an ESCO.
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