How exactly does the engine actually do that? Is every single shot really a light source? I cannot believe that

To me, it looks like it is only every third or forth one when firing something fast. And how could it be? I mean, when hundreds of shots and missile are flying around it would be overkill for the rendering loop. And, aiming to avoid loops in shaders, one would have to swap out the shaders constantly, depending on the number of light sources.
I know the OpenSource concept but really, I have never looked into the FS2 code before and thus I think it is probably faster if I just ask this question here.
How does the SCP engine handle the dynamic light source thing?