Analysis of the current situation and future prospects of the street lighting industry

The street lighting industry is currently facing the dual challenges of reform in the municipal public utilities sector and the institutional reform of public institutions. The trend towards marketization and diversification of investments in the public utilities sector is unstoppable. These two major reforms involve deep-seated issues such as institutional frameworks, supporting policies, funding guarantees, and operational mechanisms in the street lighting industry, with no precedent and limited references.

1.Understanding the Situation of Institutional and Public Utilities Sector Reforms
The outdoor lighting industry in cities is mainly under the jurisdiction of the power supply and construction systems. Within the construction system, it may be under the construction bureau, municipal public utilities bureau, or urban management bureau, most of which are part of the public sector. As the reform in the municipal public utilities sector accelerates, and the transformation of public institutions progresses,

Currently, the main approaches to the reform of public institutions are twofold: restructuring and innovation to strengthen management. Nationally, public institutions can be classified into three categories: those directly responsible for government administrative functions, those involved in public service development for society, and those serving as intermediaries facilitating interactions between the market and enterprises. The street lighting industry falls into the second category. Based on the actual needs of the industry, the existence of street lighting public institutions is necessary to achieve social public interests. Unlike gas and water services, street lighting has unique characteristics as it does not involve direct fees. With high investment costs and a lack of direct economic returns, diversifying investments presents certain difficulties. The operation, monitoring, and management of street lighting networks require specific expertise, with safety being paramount.

2.Current Situation of the Street Lighting Industry
Firstly, historically, street lighting has been subsidized for maintenance and repairs through construction income to address the insufficient financial investment from the government, resulting in an integrated approach of “management, maintenance, and construction.” Under the “management and construction integration” model, there has been a bias towards construction, neglecting planning, acceptance, and other professional management functions. For a long time, the role of street lighting management has been misunderstood as a simple construction unit, and its professional management functions have not been fully utilized. The “management and construction integration” model has created the impression of being both a referee and a player in one entity. Some even suggest transforming street lighting management units into entirely commercial enterprises.

Secondly, the development of urban public lighting has expanded the concept of “street lighting,” encompassing various aspects of urban public lighting such as landscape lighting, architectural illumination, advertising signage lighting, etc. Urban public lighting involves knowledge from various scientific fields such as electricity, optics, aesthetics, mechanics, architecture, machinery, and computers, with higher requirements in planning, design, materials, construction, and safety. People now have more interactions with street lights and lighting facilities in their daily activities, making network operations and electrical safety more critical. From a professional perspective, the street lighting industry requires a focus on the principle of “people-oriented” and a greater emphasis on safety issues.

Thirdly, there is a lack of professional supervision. In the process of urban development, Wuxi also explored and experimented with marketization. Due to misconceptions about the professional management of street lighting and the industry’s focus on construction, there is a lack of professional and standardized management and monitoring in the street lighting market, leading to certain issues. Many construction companies without construction qualifications have entered the street lighting market. Construction workers hired by unqualified or low-qualified enterprises or subcontractors lack electrical expertise, work without proper certifications, engage in unauthorized operations, and use substandard electrical products. There is a lack of comprehensive and systematic supervision over the quality and safety of lighting projects. Market operations are not standardized. Media reports and street lighting industry conferences have revealed frequent incidents of electric shock injuries and fatalities in major cities across the country. Therefore, while embracing market openness, it is essential to have comprehensive understanding and recognition of the role of professional supervision in the street lighting industry management and monitoring.

3.Practice and Exploration

（1）Illumination Operation Comes First in Practice
As urban development continues to progress, the government has realized the importance of professional management and established the Urban Illumination Management Office in the Street Lighting Management Department in Wuxi. The Illumination Office is responsible for the overall planning, construction management, operational supervision, and specific coordination functions of the city’s illumination work. For us, the construction and operation of illumination present a new challenge, and we have engaged in some practice and exploration. In terms of approach, we have utilized standardized market methods; in operational aspects, we have gradually explored “how to strengthen professional management”; in work methods, we emphasize both service and management. Following the requirements of the municipal party committee and government for the marketization of illumination construction, market mechanisms have been introduced into illumination project construction, and construction funds are implemented through market operations. To ensure illumination effectiveness, the Illumination Office strengthens supervision in aspects such as “planning, design, construction, materials, acceptance, and safety” based on urban illumination professional planning. Illumination construction units must have the relevant qualifications, and construction workers must possess operating permits. Through professional management, we have unified control and supervision over illumination across the city. It can be said that illumination operation and management have provided us with a grand stage for practical reform, offering us a valuable learning opportunity to change our mindset and determine future development directions.

（2）Legislative Reform Precedes Development
Most street lighting units have a long history, but their positioning has been unclear for a long time, with undefined functions. Even the personnel within the street lighting industry are unsure of their own functions and responsibilities, and there are no clear laws and regulations to provide guidance. This lack of clarity poses challenges when coordinating with relevant departments. Therefore, legislative reform should precede development to address existing issues and alleviate the difficult situation in which street lighting units currently find themselves. Just like any major national reform, legislative and institutional construction is a prerequisite. Similarly, the reform of the street lighting industry must first advance the development of relevant regulatory systems, establish clear rules of the game, and lay a solid legal foundation for regulating the market. Marketization is not simply about opening up the market; market liberalization must be based on standardization and fairness. Only by first completing industry legislation can regulatory efficiency be ensured. Only through standardized management and lawful governance can the market gradually become regulated.