Law firm Shepherd and Wedderburn has advised the UK Green Investment Bank (GIB) on the development of its new product, the Green Loan and advised the bank in relation to its first deployment of the Green Loan in the pathfinder LED street lighting project with Glasgow City Council.
The Green Loan is being used to finance the first wave of the council’s plan — the replacement of 10,000 street lanterns along its main arterial roads, leading into the city – at an expected cost of £6.3 million.
The new low-energy streetlights will pay for themselves through energy savings while generating further carbon savings for the city.
Glasgow council is the first UK local authority to utilise the UK Green Investment Bank’s specially designed loan to finance the switch to the low-energy lighting solution. The initiative, if adopted by other local authorities, is one that could help them save millions of pounds every year through a drastic reduction in energy and maintenance costs. The Green Loan will make it easier for local authorities across the UK to make the switch.
The Shepherd and Wedderburn team, led by partner Clare Foster, worked with GIB to document the Green Loan product and advised the bank in connection with the provision of the Green Loan to Glasgow City Council.
Gregor Paterson-Jones, Managing Director of Energy Efficiency at GIB, commented: “The Glasgow transaction is a major milestone in the development of the LED street lighting market and the use of the GIB Green Loan to fund these projects in a way that provides a real spend to save.
“Shepherd and Wedderburn have been instrumental in the project reaching financial close and developing the Green Loan and the standardised legal documentation.”
The new lights are expected to use at least 50% less energy than the old versions and will cut the council’s carbon emissions by in excess of 18,000 tonnes over the next 18 years. The energy saved by the LEDs is equivalent to the total electricity saved by 1,250 households.
Clare Foster, Partner in the Finance and Restructuring Team at Shepherd and Wedderburn commented: “By using the “spend to save” model, the Green Loan not only provides a flexible financing option for local authorities across the UK but also provides a powerful tool to facilitate energy efficiency measures.”