Long-Term Success
Over the past ten years, Auckland Transport, the owner and manager of the largest street lighting system in the Southern Hemisphere, has implemented a renewal and modernization program aimed at making Auckland “the world’s most livable city.”
(This article is a translation of an original piece in Assets, the membership magazine of the Institute of Asset Management, by Ashley Barratt, Meliorate, and David Dick, Auckland Transport.)
Auckland Transport owns and maintains over 110,000 streetlights—about a third of New Zealand’s total lighting assets and the largest source of direct electricity consumption among Auckland Transport’s facilities.
Most of the region’s streetlights are being converted from amber-yellow to white light. International experience has shown that white light helps prevent crime, enhances comfort and safety, and improves visibility and reaction times for drivers and pedestrians, leading to fewer accidents and injuries.
Following a policy shift, an accelerated LED upgrade and renewal program was launched, providing all municipal governments with access to capital for such projects.
The renewal and retrofit project by Auckland Transport was carried out in two phases. Phase 1 was approved in October 2014, during which 44,000 high-pressure sodium (HPS) streetlights were replaced with energy-efficient LEDs over five years. As a result, Auckland Transport achieved energy savings of 11.2 GWh and an estimated $1.7 million in annual reductions on electricity bills.
Additionally, LED technology saved Auckland Transport $1.2 million per year in maintenance costs. The project is expected to generate net savings of $32 million over the LEDs’ 20-year lifespan.
Phase 2 of the streetlight retrofitting will replace an additional 49,000 HPS lights over five years. This phase is expected to save another 16.3 GWh, reducing costs by $2.6 million annually. Maintenance costs will also drop by another $1.3 million annually.
Upon completion, the energy saved from the LED streetlight upgrade will be sufficient to power more than 3,500 homes annually.
All LED streetlights are connected to a central management system (CMS). This system can provide contractors with a daily report on any network issues, which reduces the number of calls to Auckland Transport’s call center.
Moreover, the CMS can dim light levels as needed. This feature allows for reduced nighttime lighting and additional energy savings during off-peak hours.
A clear asset management strategy was essential to the project’s success. This strategy provided several advantages:
- It allowed us to stay focused on our goals throughout the project’s extensive timeline.
- It facilitated critical decisions to integrate stakeholder involvement.
- It enabled us to maximize value.
“Quick Wins”
The project spanned a significant period. A key lesson for asset managers is that so-called “quick wins” are often achieved over a prolonged timeline. The feasibility and study phases accounted for half the project’s total duration. The time invested in these phases was crucial for the project’s success; had they been shortened or omitted, the project’s benefits would not have been realized.
Increasing commercial value and effectively managing Total Cost of Ownership (TCO) were essential in defining and executing the project. These metrics were vital in aligning key stakeholders with the project goals.
The concept of economic value creation delivered impressive results in operational cost savings. Both capital and operating costs set new standards, with overall costs declining even as benefits and performance improved—a perfect result for any project!
In public projects, options and outcomes are often scrutinized externally. In this case, Auckland’s own community was actively involved, and the transformative impact on Auckland’s goal of becoming the world’s most livable city was evident.
The project applied innovative techniques in both technical design and deployment methodology. Close collaboration among delivery partners and an open technology path that embedded innovation ensured improved quality methods, appropriate technology, and operational scalability.
A project of this scale, conducted over an extended period, clearly offers many learning opportunities.
For example, we learned that developing a business case often takes longer than anticipated. The project’s development was iterative and involved input from numerous stakeholders. In the end, the right outcome was achieved, but balancing efficiency and effectiveness requires skill and sound judgment. Seek advice from others and structure your approach to achieve the right result, even if it takes time.
Drawing insights from data also requires careful attention.
It’s often said that we drown in data but lack insight. In this case, considerable effort was devoted to improving asset condition data through on-site inspections, only to conclude that data quality advancements weren’t sufficient to meet project goals. Beware of the false premise that improving data quality is simple. Think clearly about your objectives and seek advice.
Consider alternative approaches.
The strategic development of a stakeholder ecosystem and fostering its ability to contribute to value creation was a clear success of this project. We embraced collaboration, respecting both the challenge and the broader perspective it brought to project execution. Specific efforts were made to encourage “open source” thinking regarding technology to counter vendor lock-in. All parties were encouraged and expected to collaborate across boundaries.
The lessons learned and techniques applied in this project can now be transferred to other projects within Auckland Transport.
The results of the project are reflected in Auckland Transport’s code of practice.
ASHLEY BARRATT
Transformational Leader | People Evangelist | Strategic Thinker | Optimistic Futurist | Global Citizen
Ashley has 15+ years record building successful organisations, delivering superior results and actively securing business growth. He has significant experience in all aspects of project development – strategy, business planning and execution – in the Energy, Infrastructure, Utilities, Tech and Built Environment sectors at a national and international level. Ashley is passionate about building successful people, teams and organisations, his professional expertise is centred on organisations which make long-term decisions with significant investments in human and financial capital and in doing so shape the world around them. Ashley approach centres on building strong strategic vision, transformational strategies and operational plans. Acting globally he has extensive experience working with people from different nationalities and cultures: he sees diversity as an essential component to organisational success. Focus areas: Business Strategy, Project Development, Organisational Transformation, Knowledge Management, Asset Management