My last Christmas BOTM entry used a lot of special light effects.
https://gametechmods.com/TournamentFiles/botm/dec11/003.wmv (https://gametechmods.com/TournamentFiles/botm/dec11/003.wmv)
(https://gametechmods.com/TournamentFiles/botm/dec11/003.jpg)
The red lights on the disc "rotate" around the edge, the green lights on top "move" up and down, and the light on top changes colors.
You can easily make "lights" that are always on using a reflection map and additive transparency, but I needed to make a custom .py for that bot in order to make them turn on and off, which won't work for any other bot.
So, to answer you question, it's possible, just not practical.