City Council must approve LED capital account with DKK 30.6 million underspend

On Wednesday 4 November 2026, Aarhus City Council will consider the capital account for Energy renovation of street lighting – Part II. The Technical and Environmental Committee recommends that the account be approved and that the operating budget for street lighting be increased by DKK 2.25 million annually for the remainder of the financing period.

What this means for you

Approx. 23,000 street lights have been switched to LED. Night-time switching off of every other lamp has ended on the last half of the municipality’s lighting installations. The municipality estimates annual energy savings of approx. 5 million kWh. At the same time, funds are released for ordinary operation of street lighting. That spending must be prioritised within the service framework in the coming years.

Background

The project replaced the remaining energy-inefficient street lights in Aarhus Municipality with LED lighting. It also included Lys på Aarhus, with special lighting projects in selected urban spaces focused on safety, identity and experience value. The capital project was completed in 2026 and exceeds DKK 50 million. Under the municipality’s accounting instructions, the account must therefore be handled as a separate City Council recommendation.

In 2021 the project was financed as operationally financed capital expenditure based on savings on electricity consumption. Because the project ends with remaining budget, annual operational financing is reduced by DKK 2.25 million for the rest of the 20-year repayment period. The released funds return to ordinary operations. The Municipal Executive recommended on 27 October 2026 that the byråd (city council) endorse the recommendation of 1 October 2026. Rådmand (alderman) for the Municipal Executive department for Technical and Environmental Affairs Nicolaj Bang and rådmand for Culture and Citizen Service Jesper Kjeldsen were unable to attend the Municipal Executive’s consideration.

Figures and facts

• Net expenditure: DKK 99.1 million; capital appropriation: DKK 129.9 million; underspend: DKK 30.6 million after correction for shortfall in income of DKK 0.15 million (Appendix — Recommendation)
• Underspend compared with available appropriation: DKK 32.2 million; the difference is due to price projections (Appendix — Recommendation)
• Approx. 23,000 street lights replaced with LED; annual energy savings estimated at approx. 5 million kWh based on comparison of electricity consumption in 2020 and 2025 (Appendix — Recommendation)
• Appropriation date 25.03.2021; end date and accounting closure 31.12.2025; expenditure DKK 99,124,832 against appropriation DKK 129,943,000 (variance −23.7%) (Appendix — Appendix 1: Overview of timing, substance and financial matters)
• The underspend of DKK 32.2 million is returned over the financing period 2026–2042; with a calculation interest rate of 2%, the annual return is DKK 2.25 million (Appendix — Recommendation)
• Supplementary appropriation T-26-200-001 reflects, among other things, −DKK 32,229,000 on capital in 2026 and +DKK 2,255,000 annually for Traffic and Road Operations 2026–2030 (Appendix — Appendix 2: Supplementary appropriation T-26-200-001)

What happens next

The City Council will consider the recommendation on Wednesday 4 November 2026. The Technical and Environmental Committee recommends that the capital account be approved with the stated variances from the appropriation and that the operating budget for street lighting be increased by DKK 2.25 million annually for the remainder of the financing period. When the capital project is completed, it transfers to ordinary operation of street lighting, with follow-up through ongoing financial monitoring.

Sources

• Agenda — Capital account for Energy renovation of street lighting, Part II
• Appendix — Recommendation
• Appendix — Appendix 1: Overview of timing, substance and financial matters
• Appendix — Appendix 2: Supplementary appropriation T-26-200-001
• Aarhus Municipality meeting documents — meeting
• Aarhus Municipality