About Benefits instead of Products
Accelerating Adoption of LED street lighting
NLC, Austin TX– November 20, 2014
Niels Van Duinen
Head of Business Development
Philips Lighting Solutions | Global Lighting Systems
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“Cost and quality of LED lights have
improved dramatically in recent years, and
lighting companies like Philips are providing
lighting-as-a-service…”
Chicago Infrastructure Trust, RFI Chicago Street Lights, 2014
3 | Philips Lighting | Global Systems | November 2014
Top barriers to energy efficiency
Capital availability most significant challenge in EU, US, Australia.
2013, Institute for Building Efficiency; 2013 Global Energy Efficiency Indicator Survey
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Customer Value Drivers and Benefits
No investment,
Low OPEX
• Improved lighting quality & controls
• Productivity, well-being, safety
• Lower energy consumption, depreciation & maintenance costs
Hassle-free
Performance
• Turn-key solution including audit, design, consulting, finance, tax,
build, commissioning, maintenance & operation
• Performance options regarding lighting, energy, end-of-life, etc.
Maximum
Sustainability
• Increased energy efficiency (lower CO2)
• Increased material efficiency (Circular Economy; lower waste)
• Optimized maintenance efforts
Leading by
Example
• State-of-the art technology and applications
• Forward looking urban planning
• Connected lighting as a platform
5 | Philips Lighting | Global Systems | November 2014
Lighting Service Business Model
Cost
Net-present value of efficiency improvement to fund upgrades
Initial customer savings; 5% to 15%
Savings at end of
contract; ~30%
Maintenance
Costs
Lighting Operator Fees
Maintenance Costs
Maintenance
Costs
Energy Costs
Energy Costs
Energy Costs
Service contract period:8 to 15 years
Time
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6
Lighting-as-a-Service
Products, systems and services to jointly fulfilling a user's needs
7
Service
Contract
Ownership
Additional
Services
Residual Value
& Reverse
Logistics
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Stages of Engagement
Scoping / Quick Scan
• Inspire the possibilities
• Aligning on expectations
Scoping
Lifecycle Services
Performance contract
to guarantee:
• Uptime
• Quality of light
• Energy savings
Support
Survey
Advisory Services
• Lighting audit
• Design
• Business case
assessment
Realization
Project Services
• Take away hassle
• project management
• Installation &
commissioning
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Design
Finance
Philips Capital
• cash-flow-friendly
payment program
Public Lighting Liability Models
Typical Risk Sharing Models 1)
Risk Type
Public
Traditional Utility
Dedicated Service
Provider (PFI)
Dedicated Service
Provider (EPC)
Fed/State/Muni
Municipality
Service Provider
Service Provider
Asset
investment
$
Operations
$
Utility
Energy
consumption
kWh
Fed/State/Muni
Energy Supply
$
Fed/State/Muni
1) Typical models; broad range of variations can be found in the market today
Source: Humatica
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Data-enabled Lighting Management
Hardware and Software for online lighting asset management
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Focus: Catania (Italy)
Energy Saving Contract
• Energy performance contract in a
partnership between the Italian ESCO
GEMMO and Philips.
• Gemmo for 9 years responsible for overall
management of public lighting
installations, including energy supply.
• More than 20.000 luminaires replaced by
connected LED luminaires.
• Philips delivers lighting, consultancy and
lifecycle services while arranging the
complete financing.
• Payback of less than 5 years for improved
livability and safety for the citizens.
13 | Philips Lighting | Global Systems | November 2014
1
Focus : WMATA (USA)
Complete turnkey lighting solution
• Positive net cash flow; operation and
maintenance (O&M) of the lighting and
controls for 10 years, and technology
future proofing, savings guarantee
•
•
•
•
•
25 Parking Garages at Metrorail Stations
37,086 Parking Spaces
13,000,000 Square Feet
13,005 Fixtures
68% reduction in energy used per year
• Brighter & safer garages for a lower price
to the customer and the environment.
14 | Philips Lighting | Global Systems | November 2014
Focus: NUS (UK)
“Lighting as a Service” solution.
The new office of the National Union of
Students (NUS) using Philips LED lighting under
a 15 year contract period.
• Guaranteed lighting performance and asset
management.
• Newest LED technology upgrades.
• Highest energy saving opportunities
• 784 light points, just 5.9W/m2.
• “As a registered charity we didn’t want to
own services like the lighting; our priority
was to ensure the lighting performed as
required in terms of light levels and energy
consumption.”
• Environmental & Environmental Manager, NUS
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“I’m not interested in the product,
just the performance. I want to buy
light, and nothing else.”
Thomas Rau, RAU Architects
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Back-up
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Business
models
Enablers
Reverse
Logistics
Design
Collaboration
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WMATA in Focus
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LED lighting is not sufficient
Adaptive lighting is the next phase
• Although switching to LED lighting alone
results in 40-60% energy savings, it is still
not sufficient to meet global targets for
savings and sustainability.
• Adaptive and interoperable lighting is
essential to bring cost and performance
improvement to a next level.
• Enabling LEDs to dynamically change
lighting levels in response to local
conditions, the total system energy
savings can easily reach up to 80%.
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Connected Lighting
Unlocking hidden efficiencies
• Next-generation lighting technology to
improve sustainable health and wellbeing
in our cities today and in the future.
• Fully interoperable, and adaptive urban
lighting systems for smart and meaningful
lighting applications.
• IP-connectivity and interoperability to
maximize public lighting’s contribution to
livable, sustainable and economically
sound environment.
24 | Philips Lighting | Global Systems | November 2014