Optimal contracting strategies for public-lighting asset management:A case study from Iran

Public-lighting is a prominent subsector of the electricity distribution network. Removing upcoming challenges of the public-lighting system is an important necessity in network expansion planning. The public-lighting management structure is composed of three main participants: the regulatory unit, lighting managers, and private contractors. Each participant faces challenges in achieving its aims. This study investigates challenges in the areas of human resource management, cost estimation, price assignment, and time scheduling for private-sector contracting. Applying the reliability model of public-lighting lamps, the health status of lamps during the system operation is forecasted. In addition, to give a comprehensive solution for the mentioned challenges, the proposed strategies are optimized in terms of cost and risk. The results of this case study of the public-lighting system demonstrate the efficiency of the proposed method in alleviating the challenges of public-lighting managers, including optimal assignment of price and duration of contracts. In addition, the operating cost of the public-lighting system, an important challenge for lighting contractors, is minimized via a human resource management scheme. •Challenges facing the public-lighting system management has been investigated.•The management strategies with minimum cost and risk are proposed.•The contract timing strategies are introduced to minimize the contract pricing.