Post on 01-Aug-2018
1 | Philips Lighting | Global Systems | November 2014
About Benefits instead of ProductsAccelerating Adoption of LED street lightingNLC, Austin TX– November 20, 2014
Niels Van DuinenHead of Business Development
Philips Lighting Solutions | Global Lighting Systems
3 | Philips Lighting | Global Systems | November 2014
“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
4 | 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
5 | Philips Lighting | Global Systems | November 2014
Customer Value Drivers and Benefits
• Improved lighting quality & controls
• Productivity, well-being, safety
• Lower energy consumption, depreciation & maintenance costs
No investment, Low OPEX
• Turn-key solution including audit, design, consulting, finance, tax, build, commissioning, maintenance & operation
• Performance options regarding lighting, energy, end-of-life, etc.
Hassle-free Performance
• Increased energy efficiency (lower CO2)
• Increased material efficiency (Circular Economy; lower waste)
• Optimized maintenance efforts
Maximum Sustainability
• State-of-the art technology and applications
• Forward looking urban planning
• Connected lighting as a platform
Leading by Example
6 | Philips Lighting | Global Systems | November 2014
Lighting Service Business ModelNet-present value of efficiency improvement to fund upgrades
6
Energy Costs
Maintenance Costs
Energy Costs
Maintenance Costs
Initial customer savings; 5% to 15%
Lighting Operator Fees
Energy Costs
Maintenance Costs
Service contract period:8 to 15 years
Savings at end of contract; ~30%
Time
Co
st
7 | Philips Lighting | Global Systems | November 2014
Lighting-as-a-ServiceProducts, systems and services to jointly fulfilling a user's needs
7
Service Contract
Additional Services
Ownership
Residual Value & Reverse Logistics
8 | Philips Lighting | Global Systems | November 2014
Stages of Engagement
Scoping
Survey
Design
Finance
Realization
Support
Lifecycle ServicesPerformance contract to guarantee:• Uptime• Quality of light• Energy savings Advisory Services
• Lighting audit• Design• Business case
assessment
Philips Capital• cash-flow-friendly
payment program
Project Services• Take away hassle• project management• Installation &
commissioning
Scoping / Quick Scan• Inspire the possibilities• Aligning on expectations
9 | Philips Lighting | Global Systems | November 2014
Public Lighting Liability Models
Typical Risk Sharing Models 1)
Energy consumption
Energy Supply
kWh
$
Asset investment
Operations
$
$
Risk Type
Fed/State/Muni
Municipality
1) Typical models; broad range of variations can be found in the market todaySource: Humatica
Utility
Fed/State/Muni
Public Traditional UtilityDedicated Service
Provider (PFI)Dedicated Service
Provider (EPC)
Fed/State/Muni Service Provider Service Provider
12 | Philips Lighting | Global Systems | November 2014
Data-enabled Lighting ManagementHardware and Software for online lighting asset management
13 | Philips Lighting | Global Systems | November 2014
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
14 | Philips Lighting | Global Systems | November 2014
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.
15 | 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
16 | Philips Lighting | Global Systems | November 2014
“I’m not interested in the product,just the performance. I want to buy
light, and nothing else.”
Thomas Rau, RAU Architects
19 | Philips Lighting | Global Systems | November 2014
Enablers
Business models
Design
Collaboration
Reverse Logistics
23 | Philips Lighting | Global Systems | November 2014
LED lighting is not sufficientAdaptive 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%.
24 | Philips Lighting | Global Systems | November 2014
Connected LightingUnlocking 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.