Good news! Nearly 1.5 million public institutions are set to undergo lighting upgrades.

Recently, the State Administration of Government Offices and the National Development and Reform Commission jointly issued the “Work Plan for Energy Conservation and Carbon Reduction in Public Institutions during the 15th Five-Year Plan Period” (hereinafter referred to as the “Plan”). Several measures outlined in the Plan will create opportunities for the lighting industry within the public‑institution sector, driving comprehensive upgrades across lighting products, project models, and corporate capabilities.

Key Contents of the Plan

The Plan sets targets based on 2025 levels of carbon emissions and energy/resource consumption: by 2030, carbon emissions per unit floor area in public institutions will decrease by 8.5%, energy consumption per unit floor area will drop by 5%, and per capita water usage will fall by 3%. Furthermore, total carbon emissions from public institutions are expected to peak as early as possible before 2030.

The Plan specifies five key areas of action—advancing and achieving carbon peaking in public institutions, promoting efficient and intensive resource use, accelerating the adoption of green production and lifestyles, strengthening support and safeguards for energy conservation and carbon reduction efforts, and fostering collaborative implementation—and lays out 16 supporting measures.

The Plan calls for bolstering institutional frameworks and standards, revising the Regulations on Energy Conservation in Public Institutions where necessary, refining the management system and standards for energy conservation and carbon reduction, and expediting the issuance of physical quotas and service standards for energy‑using equipment. It also emphasizes reinforcing measurement and statistical foundations, upgrading energy and resource metering systems, and iteratively enhancing the National Comprehensive Information Platform for Energy and Resource Conservation in Public Institutions. Additionally, the Plan advocates expanding market‑based mechanisms, actively yet prudently promoting contract‑energy‑management models such as energy‑cost outsourcing, and improving professional competencies through enhanced training and theoretical‑practical research.

In the area of intensifying energy‑conservation and carbon‑reduction retrofits, the Plan proposes ongoing upgrades to the envelope, heating, air conditioning, lighting, elevators, power distribution, and computing infrastructure of existing public‑institution buildings, along with comprehensive energy‑system improvements and targeted energy‑efficient equipment upgrades. It encourages the installation of energy‑management systems and stricter operational oversight of key energy‑using devices.

Under the heading of promoting green office practices, the Plan urges increasing green procurement, prioritizing the purchase and use of energy‑saving, water‑saving, land‑saving, material‑saving, and mineral‑saving products, equipment, facilities, and services that help protect the environment.

Regarding strengthening institutional frameworks and standards, the Plan calls for establishing a streamlined, logically coherent, and practically effective management system and set of standards for energy conservation and carbon reduction in public institutions, while expediting the release of physical quotas and service standards for energy‑using equipment.

On the front of expanding market‑based mechanisms, the Plan recommends actively yet prudently promoting contract‑energy‑management models such as energy‑cost outsourcing, refining standard templates for outsourcing contracts, and organizing outsourcing services in an orderly manner.

Unlocking Benefits

According to official statistics from the State Administration of Government Offices, in 2023 there were approximately 1.499 million public institutions nationwide, including Party and government agencies, schools, hospitals, research institutes, cultural and sports venues, among others. These institutions feature large building footprints and stable energy‑consumption profiles. In 2022, the State Administration of Government Offices, together with the National Development and Reform Commission and the Ministry of Finance, issued the “Opinions on Encouraging and Supporting Public Institutions to Adopt Energy‑Cost Outsourcing Services.” Since then, public institutions across the country have implemented a cumulative total of 736 new energy‑cost outsourcing projects, with contracted values exceeding RMB 22 billion, effectively boosting the development of the energy‑conservation industry and expanding domestic consumer demand.

Over the next five years, many public institutions will enter a systematic renovation window, generating sustained and steady demand for lighting fixtures and control systems. Moreover, specialized lighting needs—particularly in hospitals and cultural/sports venues—are substantial, benefiting lighting companies that have deep expertise in engineering channels and produce dedicated lighting solutions. At the same time, lighting equipment used in public institutions will be brought under quota‑based management, further standardizing related products and engineering services. Additionally, the Plan encourages energy‑cost outsourcing and contract‑energy‑management models, allowing lighting retrofits to be bundled into energy‑outsourcing projects. This opens up new growth opportunities for services such as energy audits, project construction, and post‑installation maintenance, enabling lighting firms to expand into energy‑saving services and project‑operation outsourcing, thereby broadening their revenue streams and transitioning the industry from simply selling products toward providing holistic energy‑conservation solutions.

This latest Plan serves as a guiding document for energy conservation and carbon reduction in the public‑institution sector, marking a shift from “voluntary guidance” to “rigid constraints.” As a result, it will unlock fresh growth potential for both lighting engineering and the specialized lighting market. Moving forward, the public‑institution lighting segment is poised to leave behind low‑price bidding and loose competition, embracing a new phase of high‑efficiency, intelligent, service‑oriented, and compliance‑driven quality development. Companies that persist in technological R&D, possess robust system‑solution and project‑operation capabilities, and rigorously adhere to product‑efficiency standards will be well positioned to seize the benefits of this policy cycle.

Source: China Lighting Association