Thursday, 23 July 2026Madrid 39°/ 23°

madridred

Breaking

Madrid awards €96 million for the modernisation of public lighting and tunnels

Madrid City Council awards a €96 million framework agreement to renew public lighting, tunnels, and fountains with LED technology and smart systems.

Javier MolinaJavier Molina· · 4 min read

Madrid City Council has awarded a framework agreement worth 96 million euros to renew public lighting, tunnels, service galleries, and ornamental fountains. The contract is divided into three lots and will allow for more agile action on urban infrastructures.

The City Council of Madrid has greenlit an ambitious plan to modernise its urban infrastructures. Through a framework agreement valued at 96 million euros (excluding VAT), the Council aims to renew and expand public lighting, urban tunnels, underground service galleries, and ornamental fountains in the capital. The award, structured in three lots, will expedite the planned actions for the coming years, avoiding the individual processing of each project.

The framework agreement, a contracting figure that reduces administrative burden, responds to the high volume of investments that the City Council has planned for these systems. Many of these actions, according to municipal sources, stem from participatory processes and territorial rebalancing policies. Instead of tendering each intervention separately, the new instrument will allow for contracts to be awarded more quickly and efficiently.

The city of Madrid currently has over 254,000 light fixtures, 40 urban tunnels with centralised security systems, 170 kilometres of service galleries, and around 440 ornamental fountains. The magnitude of these figures explains the need for a large-scale renewal plan.

Three lots for three areas of action

The framework agreement is divided into three lots, defined by both territorial criteria and the type of installations. Lots 1 and 2, each endowed with 24 million euros, focus on public lighting. Lot 1 covers the area inside the M-30 ring road, that is, the central core of the city, while Lot 2 refers to the area outside this ring road. Lot 3, with a budget of 48 million euros, covers the entire city and deals with urban tunnels, service galleries, and ornamental fountains.

For Lot 1, the award has gone to the UTE formed by Aceinsa, Urbalux, and Etralux. Lot 2 has been awarded to the UTE Ferrovial-FCC. And Lot 3, the largest, has been awarded to the UTE Serveo-FCC-Tunelia. The tender was published in March 2025, and several companies competed for each lot.

LED renewal and ALAVEF system

The main objective of Lots 1 and 2 is the gradual replacement of old sodium vapour light fixtures with new equipment based on LED technology. This measure will not only improve the quality of lighting but will also result in significant energy savings. Additionally, the supports will be adapted to the current conditions of the roads, and accessibility in public spaces will be improved by relocating and reorganising columns and cabinets associated with lighting.

Another notable innovation is the implementation of the ALAVEF (Advanced Efficient Lighting) technological system, developed by the City Council of Madrid itself. This system incorporates advanced functionalities for managing street lighting and will help increase the energy efficiency of the entire installation. Residents of the capital will notice a more uniform and adaptive light, with lower consumption.

Smart tunnels and safer fountains

Lot 3, the largest, focuses on enhancing safety and modernising urban tunnels, underground galleries, and ornamental fountains. Planned actions include improving coatings, optimising access, and adapting emergency exits. But the most innovative commitment is the incorporation of new technologies: surveillance cameras with analytical capabilities using artificial intelligence will be installed, along with improved ventilation solutions, adaptive lighting, variable dynamic signage, and access control and mobility management systems.

There are also plans to install higher-capacity communication networks and measures aimed at strengthening the cybersecurity of these critical infrastructures. All this aims to make the tunnels safer and more efficient for both drivers and pedestrians. Ornamental fountains, for their part, will also benefit from improvements in their operation and maintenance.

The City Council of Madrid hopes that this framework agreement will allow for the works to be carried out swiftly over the coming years, minimising disruptions to citizens. The actions will be announced as planning progresses, prioritising those areas with the greatest need for renewal. The capital is thus moving towards more efficient lighting and safer, more modern underground infrastructures.

Javier Molina

Written by

Javier Molina

Redactor

Graduado en ADE por la Carlos III y coleccionista de podcasts de economía que nunca termina. Madrugador, corredor de metro a metro y fan de los gráficos; escribe de economía, empresas y vivienda en Madrid.