Skanska has been awarded a 12-year lighting contract to replace 55,000 street lights with energy-efficient LED lanterns.
Gloucestershire County Council has handed Skanska the contract which is expected to save £22m in energy costs over 12 years.
The work is also expected to cut carbon emissions by 7,000 tonnes each year.
The initial installation will take place over four years, followed by a maintenance period. Together, the phases have a combined contract value of £32-41m, depending on additional work.
In addition to the LED conversion, central management systems will be installed within every lantern, enabling engineers to monitor the performance of specific lights, make adjustments to brightness and detect faults quickly.
Works on the installation are set to begin in November and conclude in March 2019.
Skanska will also carry out maintenance of the units from April 2016 until March 2027.
Skanska Operations Director James Holmes said: "The council's investment in LED street lighting will pay large dividends over the coming years, both in terms of carbon efficiency and value for money. At a time when local authorities are seeking better value, LED conversions are bound to become the norm."
(LM)
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