NICTA's Smart Transport and Roads Project (STAR) is developing systems that manage traffic lights more on the basis of 'traffic' moving through a network rather than what is stopped at red lights, according to project manager Geoff Goeldner.

Goeldner said NICTA will be wirelessly enabling several sets of traffic lights for the pilot project, but did not reveal exactly where.

"The good thing about working with the RTA is the sensors are already out there and the traffic control systems are collecting a lot of data," he said. "We immediately have the opportunity to compare our results with theirs. So when we start using this technology to improve the traffic flows we will really be able to measure our success both on historical and real-time data."

The potential for the technology is multifaceted, according to Goeldner, as lease line costs run into the millions of dollars every year and if traffic is streamlined the fuel savings will be even greater.

"There are four and half million cars in Sydney, so if we can knock off one percent off the fuel bill the maths are fairly straightforward," he said, adding the savings could run into half a million dollars a day.