The US has plans to replace traffic signals with low energy LED technology and UK-based LED lighting system supplier, Dialight has won a contract to supply the state of New Mexico with over 8,000 individual LED-based traffic signals.
This is the start of a significant $3bn programme to replace the incandescent lighting currently used in traffic intersections across the state. The grant is part of the President Obama's recovery and reinvestment federal stimulus package.
Last week, President Obama invited LED technology firms, including Cree, to the White House on a fact-finding mission.
"This contract is a further example of how the US has a firm commitment to LED lighting in the future," said Dialight CEO, Roy Burton.
A number of US states are expected to use stimulus package funds to invest in its LED programmes.
"We should see greater momentum in agreements of this nature from other state governments across the US," said Burton.
Dialight claimed the LED technology delivers potential energy savings of over 90% per signal compared to the traditional incandescent bulbs.
This means the state of New Mexico to save an estimated $500,000 per year in electricity costs.
The US is also looking at using rebate programmes for making the switch to LEDs.
There are currently 38 states offering LED rebates or incentives for direct retrofits of red, green and yellow traffic lights, and many have proposed projects for utilising the US stimulus package.