The Climate Group No Need to Wait: Accelerating Adoption of LED street lighting National League of Cities: Austin, TX. 20th November, 2014 Solution Session: LED Street Lighting Dr Ben Ferrari, Director, The Climate Group — Introduction to The Climate Group — LED consultation 2014 Dr Peter Curley, Technologist, The Climate Group — Global LED Consultation findings – localised issues and shared learning opportunities — Framing LED street lighting options for cities Flexibility towards ‘Smart city’ concepts — What adoption barriers are you facing ? Niels Van Duinen, Philips Professional Lighting Solutions — Challenges to move forward – Transfer of Risk — New Business Models – ‘Lighting as a service’ The Climate Group – Who we are Our goal is a prosperous, low carbon future. We believe this will be achieved through a ‘clean revolution’: the rapid scale-up of low carbon energy and technology. The Climate Group – Who we are We work with leaders from governments and corporates in three ways: • We convene key decision makers to inspire leadership and innovation; • We provide evidence of low carbon success that enables ambitious action; • We develop practical projects to scale up and replicate transformational low carbon solutions. International NGO - we operate offices in USA, Europe, China, Hong Kong and India. States & Regions Alliance Members Energy Efficient Lighting: Motivation is clear Why focus on LED Street Lighting ? LED Benefits - More energy efficient lighting Efficient delivery light reduced light pollution Longer operational lifetimes less maintenance Improved lighting quality / colour / colour temperature Flexibility in lighting – dimming, smart controls Enhancement of Cities - Modernised city environment ‘smart city’ concepts Enhanced living experience and well-being Socio economic benefits – regeneration / business development Road safety and perceived safety at night Energy efficient LED solutions ready to go... Energy Efficient Lighting: A typical LED Luminaire LED Package Final LED luminaire Ref: Dubai Workshop - Abdo Rouhana – May 2014 LED Trials - Lightsavers and City Reports The Climate Group / ‘Lightsavers’ Trials: 12 Major Cities 15 Trials 27 Products 500+ Lights Individual City – LED Trial Reports Lightsavers Lightsavers Summary Report Technical Report Technology mature, energy savings confirmed…..no need to wait. Cities LED scale-up: We are seeking to accelerate adoption. Many cities yet to make the LED transition. What local barriers remain ? Global Consultation: Local Events Key consultation dates: Consultation Materials Jan 2014 Jan ongoing April 28th May 29th Wk2. Sep Sep 22nd Launch - WEF, Davos Consultation Outreach London Roundtable Dubai Roundtable Sao Paulo / Rio de Janeiro Climate Week NYC 2014 Nov 20th USA - Austin TX Nov 25th Dec 11th Early 2015 Singapore and Malaysia Beijing India LED Adoption Barriers - USA A survey of 300 mayors released this week shows that switching to LEDs is a high priority (82%), second only to public building retrofits. LEDs and other energy-efficient lighting are the "most promising technologies" for reducing energy use and carbon emissions, they say. The most significant barriers are budget constraints (84%) and upfront costs (71%). So is finance always the critical barrier …..? Jan 2014 http://usmayors.org/pressreleases/uploads/2014/0122-report-energyefficiency.pdf A Fundamental Barrier: Stakeholder Alignment The best technology will stay on the shelf if key stakeholders do not benefit. The business case for LEDs involves longer operating time, reduced management, servicing, maintenance and replacement costs, and significant energy savings. BUT:—Utilities / asset owners and energy providers may see less revenue. —Utilities may have spare generating capacity at night ideal for street lighting —City lighting managers may have to downsize their lighting crews. Revenue Regulation and ‘decoupling’ policies —Decoupling rates from sales —Challenges of upgrading transfer of ownership, new rate settings —Driving supporting policy change – more is needed: ‘local champions’ still needed —Cities consider exploring taking ownership back from the utilities Consultation: Framing LED Options for Cities We recognise cities have unique history, lighting infrastructure, service agreements etc. Cities face a key decision; what is the appropriate LED upgrade approach ? Scale: Small / fast Scale: Large / long term — New options for street lights – eg. dimming, part lighting, smart trigger sensors ? — Identifying best business cases and suitable finance options — Procurement LED Quality Thresholds helping the decision process — Evidence to address remaining public perception issues of LEDs and dispelling myths — Assessing the additional socio economic benefits most relevant to them. Consultation: Framing LED Options for Cities Energy Savings Core Energy Savings CMS future proofing Consultation: Framing LED Options for Cities Pre-Programmed ‘Intelligent’ luminaires —Light control and dimming can be pre-programmed in an ‘intelligent’ luminaire. —Many cities trialling dimming, during the early hours of the night eg. 2am-5am. —Some cities are simply turning street lights off ! Luminaires with ‘smart’ sensors – detect motion and turn ON the LEDs —‘Off’ or dimmed most of the time. Not suitable for all locations. —Suitable for parks, walkways used infrequently at night. Extreme savings are possible (!) —Adaptive lighting in areas rather than individual poles. Eg. Lighting adapts to traffic volume. Centralised Management System (CMS) —Full flexibility, rescheduling, dimming / trimming, performance monitoring, maintenance —Future proof solution smart city links LEDs can be adopted now with a CMS, or with options to allow future upgrade to link to a CMS Centralised Management and Future Proofing Cities can exploit LEDs to achieve significant energy savings now. Planning LEDs + CMS together Helps future proof for links to: - Developing ‘Internet of Things’ - Evolving ‘Smart’ City concepts PEDESTRIAN MONITORING TRAFFIC FLOW MONITORING CCTV SECURITY MONITORING EVENT RESPONSE EMERGENCIES WEATHER SENSORS POLLUTION MONITORING RADIATION MONITORING OTHER Eg. GUNSHOT TRIANGULATION SMOKE / FIRE SENSORS Future Smart Cities and Data services - Potential source for generation of future revenues - Business models, standards, customers undefined STREET LIGHTING CMS Future SMART Motion and light sensors could be installed on selected poles LED Consultation: Examples of COMMON issues Developing business case —Each city’s circumstances are different - unique history, variety of stakeholders —Low energy prices and subsidies can weaken business case —Limited availability of local funding – new business models ? Local product sourcing —Many cities want to source from local suppliers – Setting quality thresholds are critical. ‘’by the time the LED trials were completed more than 30% of suppliers had gone out of business.” Complex Asset Ownership / Stakeholders —Consensus between municipalities, utilities and service operators can be difficult —Existing agreements, contracts may force municipalities along restricted decision paths LED Consultation: Examples of COMMON issues Deciding Smart / Intelligent / adaptive light solutions with CMS options? —Cities may want to develop a flexible, fully controlled, city-wide lighting systems with smart grid links, prospect of future data services etc….. “We are offered 50+ different LED lighting options by manufacturers. We only need 3 or 4 !” In residential areas…‘we simply need the lights to go on and off’ and save energy…’’ ‘We do not plan to dim the LEDs, residents want the streets well lit’’ Timing of the upgrade(s) — Existing agreements or infrastructure may still have remaining ‘life’ — Securing funding for LEDs based on energy savings is easy. — Securing funding for options that are difficult to monetize can be problematic. LED Consultation: Examples of COMMON issues Power Consumption (kW) Demand for real world data Not projections HPS General LED example for cities LED(i) LED(ii) DOE(link) Time of day (Hours) Bespoke On/Off Smart Sensor Solution LED Consultation: Examples of COMMON issues High energy efficiency claims. .. LED Street Lights Transform California City’s Streets, Cut Energy Use by 65% LED street lighting trial in 12 of world's largest cities shows up to 85% energy savings LEDs could slash street light energy usage by 97% Broad energy savings Using smart configurations Extreme optimistic predictions Numbers could be for a fixed luminaire, a dimmed LED, smart triggered LED… ….. or one that is ‘off’ for 99% of the time …. Clarify the operational context underlying ‘extreme savings’ claims. LED Consultation: Examples of COMMON issues Evidence Building: Addressing health questions, remaining myths IEA Report – Solid State Lighting Annex Sep 2014 DoE - USA EU, IEA, etc. LED Consultation: Examples of REGIONAL issues China Hong Kong Australia Gulf Region Canada USA CEE UK /EU What adoption barriers are you facing – right now !? Facilitating LED adoption: New Business Models ‘Lighting as a Service’ New business models needed ? “This is driven by the market,” …. Niels Van Duinen …customers want LEDs and controls, but they don’t have the knowledge or the in-house resources” to develop the end-to-end system and get financing. http://www.greentechmedia.com/articles/read/washington-metro-will-install-leds-at-zero-cost The Climate Group and LED Lighting Consultation The Climate Group Link - Main Website Climate Week New York 2014 Link – Main Event Page LED Consultation Announcement Link – Main Announcement at Davos LED Consultation Web Page Link – Main Summary Web Page Link: Consultation Handout Summary For further information please contact: Dr Ben Ferrari, Climate Group; Email: bferrari@theclimategroup.org Peter Curley, Climate Group Email: pcurley@theclimategroup.org Niels Van Duinen Email: niels.van.duinen@philips.com EXPLOIT LED EFFICIENCY, USING ON/OFF CONTROLS ‘INTELLIGENT LUMINAIRES’ – PROGRAMMED. ON/OFF TIMERS PRE-SET DIMMING etc. + Fixed bespoke smart sensors – where appropriate CENTRALISED MANAGEMENT, FLEXIBLE OPERATION, DIMMING, MONITORING, FUTURE-PROOF LIGHTING LINKED OTHER CITY SENSORS AND SERVICES ‘IoT’, ‘Smart City’