Hirosaki City and Aomori City in Tohoku, Japan, faced challenges to improve security and energy-efficiency on streets. They have been proactively replacing conventional streetlights with LEDs since 2010. Due to the limited budget, the cities adopted an Energy Service Company (ESCO) model for installing, maintaining, and financing the LED street lighting service. This model allows local governments to benefit by commissioning the energy service to private business operators through an energy saving performance contract.