Kentucky has awarded Siemens Building Technologies a contract for a six-year project to retrofit the traffic signals on all state-maintained roads which is expected to save the state $1.7 million annually or a total of $10.2 million over the duration of the contract by replacing standard traffic signals with energy-efficient light emitting diodes (LEDs). Additionally, the performance contract will allow Kentucky to make the upgrades with no upfront capital expenditures, since the funding will come exclusively from the energy cost savings resulting from the upgrades.
Siemens will begin retrofitting every traffic signal, flashing beacon and school flasher on state-maintained routes in Kentucky with LEDs this month. The installation of the modules at some 3,000 intersections throughout the state is scheduled for completion by the end of June.
A standard traffic signal bulb burns 168 watts of energy each time it is illuminated. In contrast, a LED module uses between six and 20 watts, representing a reduction in energy consumption of nearly 90 percent. The Kentucky Transportation Cabinet estimates that a typical utility bill for a signalized traffic intersection currently is about $63.00 a month. After Siemens completes the installation, the cabinet estimates that the cost will drop to a little more than $12.50 per intersection. In addition, the average useful life of an LED module is eight to 10 years, compared with 10 to 11 months for an incandescent bulb.
Under the terms of the contract, Siemens will manage the equipment purchase and turnkey installation of the LED modules at all signalized intersections and guarantee the state of Kentucky $1.7 million in annual energy cost savings over six years. In addition, the longer-lasting LEDs will save Kentucky more than $1.5 million a year in anticipated maintenance costs.
