Energy Efficient Lighting Solutions – LED‟s get started - A Triple Win for End-users, Environment and Economy - Harry Verhaar Sr. Director Energy & Climate Change – Philips Lighting NordLED 2010 – Copenhagen, November 11 2010 Enabling health and well-being Where we live, work and play Global trends and relevance Population rise & Urbanization Environmental awareness Cities want to establish identity Governments are tightening regulation Energy Efficiency through Lighting Four drivers for action • • • • Rising Energy prices Climate Change Security of Energy Supply Economic Growth Our value proposition Energy Efficient Lighting Solutions 19% Potential savings 40% 81% Lighting Europe Global Electricity cost/yr (Bio €) 28 128 CO2 emissions/yr (Mio tons) 98 670 Power plants (at 2TWh/yr) 141 642 Cars (Mio at 10k mile/yr) 38 260 Other electricity use • Global: 19% of all electricity 9 Shaping the Lighting (R)Evolution Lighting is evolving beyond offering products Integrating in Resource Efficient Eco-systems Leading EE lighting Solutions Offering Lighting Products Phasing-out of in-efficient products Energy Efficient Solutions Energy Infrastructure in Buildings & Cities 5 What might it cost? EE Lighting one of the most attractive ways to cut cost & save energy Source: McKinsey/Vattenfall 6 Energy efficient lighting: a triple win • End-users: lower costs, better quality light • Environment: lower energy usage, lower emissions • Economy: lower costs, greater competitiveness, green jobs 7 Legislation global phase-out incandescent lamps [Announced Russia] 2011-2014 [Approved CAN] 2012-2014 [Announced JP] 2012 [Approved EU27] 2009-2012 [Approved California & Nevada] 2011-2013 [Approved USA] 2012-2014 [Announced TUR] 2009-2012 [Approved CU] 2005 [Approved CO] 2011 [Announced Sri L] 2008 - 2010 [Announced KO] 2013 [Announced TW] 2008 - 2012 [Announced Phi] 2010 - 2012 [Announced Br] 2013 [Approved AUS] 2008-2010 [Approved AR] 2011 [Approved NZ] 2009-2011 Residential lighting represents 25% of lighting electricity consumption Philips extensive LED lamps portfolio €40 MASTER LED 7-50W GU10 dimmable €30 MASTER LED PAR 30 PAR 38 11-75W 16-80W MASTER GLOW 12-60W dimmable MR16 10-50W*MASTER LED spot MASTER LED PAR 20 7-50W 7-35W GU10 dimmable MASTER LED NR 63 7-50W dimmable MR16 7-35W €20 MASTER LED Perfect Fit GU10 3-35W Econic Perfect Fit GU10 3-35W MR16 4-20W MASTER LED Perfect Fit GU10 MR11 3-35W 3W €10 9 AccentColo r spots / reflectors MASTER LED 6-25W dimmable performance MASTER GLOW 8-40W dimmable Econic bulb 5-25W Novallure Candle Novallure Lustre 3-15W dimmable 3-15W dimmable Novallure Lustre Novallure Candle 2-10W 2-10W decorative AccentWhit e AccentWhite bulbs AccentColor candle & lustre Philips award winning product designs 10 best products > quality design menu Philips is leading in Innovation Time magazine - The 50 Best Inventions of 2009 • 10W LED (25,000 hours) replacement for 60W light bulbs => 50% of domestic incandescent market • Electricity savings enough to light 17.4 million Households 11 Cities and buildings The opportunity Cities are responsible for 75% of global total energy consumption Public and commercial buildings represent 60% of lighting electricity consumption Street lighting 15% of lighting electricity consumption 12 Renovation is vital! Energy efficient lighting in new buildings is not enough • 80% of lighting in buildings is old technology • Only 1% uses lighting controls: presence detection, daylight controls 99% of opportunities are in existing buildings 13 Philips supports renovation Assessment tools & methodologies • • Energy assessment by Philips staff Certified ESCO audit Products & system solutions • • • Lighting design Product portfolio Installation; maintenance Financial packages • • • • Financing Utility rebate assessment Tax documentation Cost segregation 14 Education - Lighting for learning “At first, I was skeptical, but now I can teach my classes more successfully. The students are much more focused and less distracted.” Michaela Schwindt, Teacher 15 Marriott Custom House Tower - Boston, USA Requirements for lighting: • Restore night time image of landmark building • Maximize energy efficiency while minimizing maintenance Solution: • 125 LED luminaires Philips Color Kinetics eW Blast Powercore and eW Graze Powercore • Metal halide fixtures from Philips Lightolier Energy savings of 67% eW Blast Powercore eW Graze Powercore 16 Bullring centre, Birmingham, UK Lighting requirements: • Promote the centre‟s public image • Create an entertaining shopping experience Solution: • eW Cover Powercore (White) • iColor Cove QL (RGB) • LED City Wing 85% reduction in energy consumption eW Cove Powercore iColor Cove 17 Sainsbury‟s Supermarkets - United Kingdom Freezer lighting in 350 UK stores Requirements for lighting: • Reduce energy costs • Good quality lighting positively influencing shoppers‟ buying decisions • Uniform lighting in line with brand values and company image Solution: • Affinium LED Freezer Modules Energy savings 75% ( >1 ton CO2 / year / freezer) Affinium LED freezer modules 18 Generali office building, Champs Elysées, Paris Requirements for lighting: • Improve users‟ well-being • Innovative design • Reduce operating costs Solution: • 422 recessed LED luminaires • Spot LED 1x K2 • Spot LED 3x K2 World’s 1st building lit entirely by LED Spot LED Spot LED III 19 Outdoor LED application coverage Breakthrough in 2010…now it’s time to convert to LED… PEDESTRIAN AREAS Pedestrians streets, paths, cyclepaths < 45/50 W 2009 STREETS Residential streets > 45/50 W ROADS Mixed traffic, commercial streets in urban areas Rural roads <150W Motorized traffic Motorways, roads in urban areas Highways, Express ways, ringroads < 250 W 2010 > 250 W Outdoor Lighting Putting light to work when and where it makes sense The LED-Inroad in Outdoor goes at a tremendous speed. The crisis year 2009 cleary was the tipping point globally. LED-systems are now being applied on a large scale driven by its innovative character, its energy saving potential, the political and legislative pressure and governmental stimulus programs. The serviceable LedGine is Marseille, France an upgradable light engine combined with the Philips LED Green service program. It offers the best balance between initial investment and energy savings over the lifespan of your installation. 21 Project examples - all LED-based Projects realized together with cities: •Madrid •Rotterdam •Berlin •Frankfurt •Tilburg •Brussels •Rome •Marseille •Firenze •Lille •Lyon •Copenhagen •Valladolid •Granada •Murcia •London •Grenoble •Bilbao •Zaragoza •Other… Available Financing Solutions Basic propositions Including a payment solution in the customer offering enables the customer to spread the investment costs in time Eventually, it boils down to the following 2 propositions: - New lighting without additional costs this applies to those cases where the monthly energy savings are equal or in excess of the monthly project payments - Buy now and pay in installments acquiring the lighting project does not immediately dig a large hole in the budget, but by spreading the payment over a number of years, the budget impact is softened Lighting Financing Customer benefits A payment program enables the customer to: • gain access to new or latest product solutions • overcome budget or cash-flow constraints no or minimal upfront investment payments for products & installation is “financed” by energy savings • realize one total solution using one single contact • place an order that is larger and/ or accelerated 24 Lighting financing Examples of Philips payment programs 25 Lighting financing The Payment Program Case example for hotels: Pay what you save Number of lighting points Current Lighting Philips Light Lease 50W Halogen MASTER LEDspot 7W 100 100 Monthly Energy Savings 90% = € 235 Monthly all-in Payment (in the first two years) € 142 Net Monthly Savings (in the first two years) € 93 Monthly Saving (after year 2) € 235 26 27 28 29 LED Lighting for Buildings and Cities Setting the scene Respecting the planet Energy efficiency Better experiences. Better lives. Dedication to preservation. Doing more. Helping people use less. 30 Simply enhancing life with light Together we transform environments, create experiences and shape identities With light… we uplift and inspire we comfort and heal we create safety and spectacle Philips Lighting Conclusion - LED‟s get started • Lighting (EE / LED) can play a big role in sustainable development The time to act is now • Key Success Factors – Communication • Highlighting the benefits – Implementation • From „best practice’ to „common practice’