An expert workshop to explore emerging issues

New Delhi, July 22, 2015

FUTURE OF ENERGY

Global LED scale-up:

Accelerating adoption of LED street lighting

Sao Paulo: World Bank Presentation – 1st June 2016

The Climate Group - an international NGO Our goal is a prosperous, low carbon future for all. We believe this will be achieved through the rapid scale-up of low carbon energy and technology.

Our Policy / Corporate Reach The Climate Group

Global Reach - States and Regions Members The Climate Group

Lighting Objective: Accelerate LED scale-up One of The Climate Group’s core programs

Lighting accounts for nearly 6% of global CO2 greenhouse gas

emissions. We can make a considerable dent in carbon

emissions if we make lighting more energy efficient..

LED lighting: The global potential

LED scale-up

A global switch to LED lighting could save:

1400m tons of CO2

avoid 1250 power plants

€ 272bn in energy savings

Source: LED Revolution Booklet Link

245m tons of CO2

avoid 221 power plants

€ 21bn in energy savings

In ALL sectors:

Outdoor lighting:

(1 Euro = 4 BRL)

Early work: The Lightsavers trials (2009-12) LED scale-up

12 Major Cities 15 Trials 27 Products 500+ Lights

Global trials of LED lamps to evaluate the technology performance, reliability, and assess public acceptance.

12 Individual City – LED Trial Reports

LINK TO REPORT

Technical Report

LED scale-up Early work: The Lightsavers trials results (2012)

LEDs • Energy efficient lighting Savings potential

Reduced CO2 emissions • Efficient delivery light Reduced light pollution • Long lifetimes Reduced maintenance • Improved lighting Various colour temps. • Flexibility in lighting Adaptive, smart • Ease of connectivity Remote controls

Central asset mangmt. Socio Economic Benefits • Opportunity to modernise city environment • New reliable lighting capabilities / services • Potential to drive regeneration / business investment • Enhanced public sense of safety and well-being • Improved road safety at night, and crime reduction. • Role in development of wider smart city concepts.

LED scale-up BUT: Majority of cities not yet switched to LED

The Climate Group set out to discover why: In 2014, supported by Philips Lighting and Prince Albert II of Monaco Foundation we launched a global consultation process with the aims; • Highlighting cities and regions which have shown

leadership in adopting energy efficient lighting, and lessons learned,

• Identifying and helping to address remaining regional barriers to LED adoption and

• Sharing common challenges, knowledge and experiences

to help accelerate scale-up of energy efficient lighting around the globe.

Global City Consultations - ongoing LED scale-up

DAVOS

LONDON

DUBAI NEW DELHI

BEIJING

SAO PAULO

NEW YORK

TEXAS

SINGAPORE

WASHINGTON PARIS

KOREA

Original Lightsavers Trial Cities

KOLKATA MUMBAI

Toronto

Adelaide

Guiyang

Thane Haldia

Sydney

Tianjin

Quezon City

Hong Kong

Consultation Handout

Consultations: Highlight Leadership LED scale-up

City of Los Angeles Over 165,000 street lights upgraded to LED units

(2015/16) - ‘Smart’ upgrade to existing system. Demonstrates interoperability between different suppliers. New York City To replace 250,000 street lights with LED

Chicago … the city launches an ambitious initiative to replace 85% of its public outdoor lights with whiter LED models….the Smart Lighting Project, plans to upgrade ~ 348,500 lights (Ref:

Curbed Chicago)

Improved lighting reliability a key driver Birmingham, UK First major UK commitment to 95,000 LEDs as part of a city-wide infrastructure upgrade. Taiwan, British Columbia, Madrid, Phoenix, Buenos Aires..

BY 2017 NYC WILL BE SAVING

$14 MILLION IN ENERGY AND

MAINTENANCE COSTS

Consultations – Highlighting Supporting Policy LED scale-up

India to save up to $6 billion from LED lighting upgrade Under the Domestic Efficient Lighting Programme (DELP) scheme, India is planning to replace with LEDs* by Mar 2019:

• 770 million incandescent bulbs and • 35 million conventional streetlights.

The Prime Minister of India is aggressively promoting Make in India campaign support domestic LED bulbs manufacturers. High level support for nationwide LED adoption can be key in driving alignment of key stakeholders, local market development, and increase finance / investor confidence. BUT a critical need to ensure services are in place to identify low quality products and enforce standards on ongoing basis.

*Link

http://bizled.co.in/indian-govt-will-save-rs-455-billion-under-led-program-by-2019/

The initiative is already way ahead of schedule.

Consultations – Initial Findings LED scale-up

The Big Switch (2015)

Findings from the ongoing global city consultations are presented in The Big Switch report: • The vast majority of cities report wanting to upgrade to

LEDs and technological barriers largely overcome.

• Cities want to follow best practice and successful city examples – ideally in their region, and with local suppliers

• Cities have limited flexibility on discretionary funding.

Business cases must be compelling. • New financing mechanisms for city infrastructure

upgrades are needed – for both developed / developing regions. Eg. where credit ratings may prohibit loans / and loans serviced from future energy saving.

• Manufacturers must now develop more standard offerings and approaches to accelerate adoption.

Consultations – Examples of Regional Issues LED scale-up

Dubai / Middle East • “LED adoption at tipping point Middle East”. Questions over

high Wattage LED reliability in high desert temperatures. USA – Utilities • Ownership: up to 60% of cities’ lighting assets may be

partly owned by commercial investor owned utilities – how best to incentivise to become energy efficient ?

Singapore • Queries over smart cities and future proofing – eg. Key

questions around future proofing and socket specifications. India • City cabling infrastructure may be old and unreliable. • Examples where projected savings were not as high as

expected. (Focus on asset inventory) China • Many past, low quality LED failures. Recognition for need to

ensure LED product quality and QA enforcement. EU/Asia • Lingering health questions on blue light emission –

Preference for warm white LED.

*Link

Consultations – Common barriers LED scale-up

Each city has a unique history, infrastructure and financing capability. Limited staff capacity for business case development remains a key challenge and factor for delay. Cities urgently seek guidance • Assessing lighting needs and scale of city upgrade

Retrofit (vrs) Replacement (vrs) Full Upgrade

• Assessment of lighting needs OR simple replacement • Selecting color Temperature eg. (2700 – 4500K) • Phased installations or single-step upgrade • Options of adaptive (dimming) and trimming • ‘Intelligent’ or ‘Smart’ Luminaires • Connected lighting and centralised / remote controls • Future-proofing, and links to smart city services

All impact on analysis of finance options, and finalising tender process & procurement checklist

LED scale-up Consultation – Framing City LED Options

Connected ‘future-ready’ Lighting and Future Proofing capability. Centralised management asset management and focus for future systems and services.

4

FROM LED EFFICIENCY ONLY – ON/OFF CONTROLS

‘INTELLIGENT’ LUMINAIRES – BENEFITS FROM OPTIMISED LED TRIMMING, WITH FIXED ON/OFF TIMERS AND DIMMERS, NO CENTRALISED CONTROLS

CENTRAL CITY eg. ‘WIRELESS’ CONTROLS: FLEXIBLE DIMMING STRATEGIES, PERFORMANCE MONITORING ASSET MANAGEMENT AND LINKS TO OTHER SERVICES

ADDITIONAL SERVICES POSSIBLE WITH LIGHTS LINKED TO TRAFFIC / PUBLIC SENSORS / WEATHER, ETC. (MANY FUTURE SERVICES STILL UNDEFINED)

Basic Example of LED / Smart Sensor Lighting LED scale-up

Bespoke

On/Off

Smart

Sensor

Solution

General LED

example for cities

HPS High Pressure

Sodium lamps

Time of Night / Hours

8pm Turn On

Po

wer

Co

nsu

mp

tio

n (

kW

) Graph comparing power consumption for different street lamps

Shaded Area = energy used

LED scale-up Consultation – Smart & Connected Lighting

‘Smart’ approaches can mean different things to different people Do we link lights to new services ? • Wifi, Lifi • CCTV tracking • Traffic, parking space tracking • Emergency service guidance • Etc…. Discussion around ‘Big Data’ opportunities with promises of ‘potential’ for future revenues…...?

CMS

STREET LIGHTING

PEDESTRIAN MONITORING

CCTV SECURITY

MONITORING

WEATHER SENSORS

RADIATION MONITORING

SMOKE / FIRE SENSORS

TRAFFIC MONITORING

EVENT RESPONSE

EMERGENCIES

POLLUTION MONITORING

Eg. GUNSHOT TRIANGULATION

Smart Lighting….

Smart City…..

Feedback from Cities : Some ‘Smart’ confusion LED scale-up

‘SMART CITY’ concepts – Avoid confusion linking possible future revenue streams, links to weather sensors, ideas of LiFi, linked data services etc… as a way to finance upgrades.

“Services may NOT yet be ready, but we want to be ABLE to test and adopt new opportunities in the future.”

Seek Simplified offerings - Manufacturers seek to differentiate offerings but…“We are offered 50+ different LED lighting options and sensors by manufacturers. We only need 3 or 4 !” ‘SMART’ sensor triggered lighting - only needed in locations where smart is needed.

“Our LED roll-out has halted.” We are now undertaking an 18 month review. We are having ongoing discussions on ‘Smart’ and what it means. Who owns gathered data, are there reliable revenue streams linked to lights…?

Framing LED Options – Future Proofing LED scale-up Procurement decisions often driven by available finance. What to install now, what to install later ? • If you want adaptive (dimming) capability – install

dimmable drivers – OR have a modular luminaire installation that can be upgraded at a later date.

Suggested minimums; • Seek ‘connected lighting’, or ‘connected capability’ and

‘future-proofed’ for CMS connectivity. • If you want upgradeable, and interoperability – consider

non proprietary sockets. Centralised Management Systems (CMS) could act as primarily interface to future services and aid in key asset management, added lighting service flexibility etc… Optimise your lighting needs FIRST – be careful of letting additive UNDEFINED ‘future technologies’ define your lighting roll out…..

Open tendering Some cities may seek to upgrade in stages but if they buy now – how can they protect themselves for the future ? City managers want to have multiple approved LED suppliers, and demand equipment inter-operability.

Feedback from Cities : Beware comparisons LED scale-up

Every city is unique and may have specific circumstances and requirements. Beware of commonly quoted PAYBACK PERIODS; • Payback depends on the scale of installation !

• 100, 5000, or 250,000 LEDs ? • Was the project upgrading the lights + highway + … • Did they retrofit luminaires or replace poles. • Did they add CMS, Wifi and additional functionality ? • Did they part-finance the deal themselves ?

Beware of commonly quoted SAVINGS; • Are they using LEDs !! ? • Are they applying dimming and trimming ? Can you ? • Are they part-night lighting (eg. off 2am – 6am) ? • Are they using smart sensor triggers ? • Etc…..

We had a payback period of 2 years….. We took a linked loan with a highways upgrade that included the lights…. “We envisage full system payback in 15 years……” We saw 90% savings…..(in a city park, with the lights only triggered when pedestrians walked past).

New Upgrade Approaches: Transfer of Risk LED scale-up

Fundamental new procurement and management approaches are being explored for city lighting. • Can LED manufacturers / service providers offer

complete LED city solutions. • Managing financial as well as technical issues ?

• ‘Lighting As a Service’ model – there is interest to explore

if cities can simply ‘procure light’. • Option to help keep options open • ‘Control’ of lights transferred to service provider. • Help to transfer risk around future city services • Will involve commitment to a manufacturer / service

provider over an extended period • Service providers could be better equipped to

manage risk, both technical and financial • Offer new products and services / revenue sharing

How do I plan to provide connections and power to street poles for every future possible smart sensor and service technology that is available now, and those being projected…..? What data can I gather legally ? What data can I sell in the future?

Feedback from Cities - Positioning Smart LED scale-up

Vrs

http://www.wired.com/2012/11/streetlights-smart-cities/

Connected lighting, CMS and Smart technologies offer great flexibility and opportunities for the future. SMART technologies: Use where needed, where they are most applicable and add value. Future proofing helps to keep options open.

Smart Poles: Eg. Major city Centre / tourist

centre – multi-sensor/media/Wifi

“95% of my street lights are in quiet residential areas – I don’t need all smart technologies….”

but want to keep options open”

Vigilence on Quality Enforcement LED scale-up

Poor quality products in the market remain a real risk Many early failures of LEDs damaged the perception of the technology, through poor product quality, or in appropriate specifications. LED product quality thresholds must be set appropriately – and enforced, through standards, testing and penalties for non-compliance. Senior policy officials of states and regions are in the best position to drive the demand for robust large-scale enforcement of product quality, and to become models for others to follow.

*Link

http://bizled.co.in/indian-govt-will-save-rs-455-billion-under-led-program-by-2019/

Call to action: Sept 2015

The drive for energy efficient should not be at the expense of LED

luminaire quality, nor result in the inappropriate replacement of

traditional fixtures or lack of flexibility in light adjustment…….

LED scale-up

Supporting LED campaign / Initiatives

LED – ‘Lower Emissions Delivered’ to run parallel with our city consultation events to support

stakeholders to achieve the 2025 adoption target

LED scale-up

We also work alongside related joint LED initiatives: • UNEP/U4E: Task force on energy efficient lighting • US DoE – Exploring standards and quality thresholds • IEA – 4E; Product Quality and Performance Tiers • Global Lighting Challenge: to deploy 10bn efficient LEDs • CLASP: Award scheme for the top-quality LED products

For further information on our LED work please contact:

Dr Peter Curley, The Climate Group

Email: pcurley@theclimategroup.org

Dr Ben Ferrari, The Climate Group

Email: bferrari@theclimategroup.org

Arianna Tozzi, The Climate Group

Email: atozzi@theclimategroup.org

Questions and Follow Up

Appendix Slides/questions

29

23

Related Links – The Climate Group

Lightsavers Global trial report

LED consultation Handout

LED Website – The Climate Group.

30

LED scale-up

LED upgrades also provides cities a unique opportunity: 1. Review ‘Smarter’ approaches to lighting • Opportunity to revisit lighting approach

• What is actually needed, and where ? • Light pattern / coverage may be different ?

• Different colour temperatures • May appear brighter and allow ‘lower’ light levels • Higher Cool White LED versus yellow (HPS)

• Can dimming / trimming* / phasing be applied in locale ? • Address light pollution / dark sky concerns / glare • Trials and consultations aid procurement specification.

*Specifying appropriate LED wattages, and adjusting ‘new’ LED drive current

down, can help avoid over-lighting.

Consultation – Reviewing Lighting Needs

Our Global Programs The Climate Group

LEADERSHIP

Climate Week NYC - US Business & Climate Summit - London Off Grid Energy Summit - India Clean Tech Summit - China

SMART BUSINESS

LED scale-up RE 100 EP 100 EV 100 Home 2025

POLICY

States & Regions Alliance Compact of States & Regions

FINANCE

Bijli – Clean Energy for all Off-Grid energy finance

Our Global Offices The Climate Group

LONDON NEW YORK

BEIJING NEW DELHI

HONG KONG

• Bijli • Rooftop Solar • EP100 - LEDs • Off Grid Energy

• S&R • RE100 – EP100 • LEDs • Home 2025 • BCS

• Climate Week NYC • Policy Innovation • S&R • RE100 - EP 100 • LEDs – US Utilities

• Clean Tech Summit • Transition Hub • Accelerator 100 • LEDs On/Off Grid

Key events

The Climate Group

2015 Climate Week NYC: TCG annual headline event, highlighting leadership for business, states and regional governments in the low carbon sector

COP21 - Paris: TCG impact • 3rd most influential NGO • 11th most influential brand during the negotiations

Source: Onalytica, Link

Key Area of Focus: LED Financing

WHAT WE AIM TO DO:

Explore new finance models applicable to street lighting

infrastructure projects – including potential opportunities to

manage territory and investee credit risk, drive investor

confidence and demonstrate successful roll-outs.

ACTIVITIES:

• Initial rountable at Climate Week NYC 2015 with WB/IFC,

Philips Capital, UN foundation, Munich Re, Pegasus etc

• Follow-up meetings in Brazil, India, UK, North America

LED scale-up

EXPLORING EXISTING AND NEW FINANCING SOLUTIONS AND OPPORTUNITIES TO UNLOCK WIDER SOURCES OF FINANCE FOR LARGE SCALE LED INFRASTRUCTURE PROJECTS; PARTICULARLY IN DEVELOPING COUNTRIES

“If development banks, bilateral-aid organizations, and climate-finance groups dedicated $10 to $15 bn/yr to finance energy efficiency, that could increase the value of energy-efficient infrastructure by up to $176 bn/yr” (*)

(*) Source: McKinsey 2016. Link

Key Area of Focus : LED adoption by Utilities LED scale-up

WHAT WE AIM TO DO:

Accelerate adoption agenda by show casing cities and utilities

where progress is being made on energy efficient lighting,

and exploring initiative and policy recommendations to create

mutually beneficial solutions to adoption and scale up.

IDENTIFY OPPORTUNITIES, SUPPORTING POLICIES TO DRIVE ADOPTION OF ENERGY EFFICIENT LIGHTING BY UTILITIES.

(*) Source: Boston Globe, 2015 Link

At least 60% of the 26 million streetlights in the US are owned/operated by the private sector, who may not be incentivised to adopt LEDs (*)

TCG CALLS ON CITIES AND UTILITIES TO PUBLISH THEIR INTENTIONS TO EXPLORE THE BENEFITS OF ENERGY EFFICIENT STREET LIGHTING BY THE END OF 2016

ACTIVITIES:

• Initial rountable at Climate Week NYC 2015 with NARUC, EEI

• Follow-up meetings/roundtable in US under discussion

Key Area of Focus: Off Grid LED street lighting

IDENTIFY AND HIGHLIGHT OPPORTUNITIES FOR OFF-GRID

STREET LED LIGHTING SOLUTIONS FOR CITY AND RURAL

LOCATIONS

LED scale-up

‘1.3 bn people around the world lack access to electricity, more than 95% live in either sub Saharan Africa or developing Asia’ (*)

(*) Source: IEA, 2015 Link

WHAT WE AIM TO DO: The Climate Group is committed to contribute to fighting light poverty around the world by promoting sustainable off grid LED lighting solutions as part of our ongoing LED consultation

ACTIVITIES:

• Off Grid energy summit India – August

The Climate Group – Who we are

An international NGO - offices in North America, China, India and Europe

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.

www.theclimategroup.org 38

2

Many US Cities want LED options

In 2014: A Conference of Mayors survey …. shows that switching to

LEDs is a high priority (82%), second only to public building retrofits.

Lighting

39

10

Climate Week NYC: 2014

In 2014, Climate Week NYC generated in excess of 1 billion media

impressions worldwide and showcased the unique perspectives of world

leaders including UN Secretary-General Ban Ki-moon, World Bank

President Jim Yong Kim, US Secretary of State John Kerry and CEO of

Apple, Tim Cook, on building a vibrant, low carbon economy. 40

24

Appendix: Related Links - DoE

“US President Obama announced an acceleration in the “Presidential Challenge for Outdoor Lighting” program that is being administered by the US Department of Energy (DOE) under the Better Buildings program. (Jan 2015)

Obama had earlier called for 500,000 poles to be retrofitted with energy-efficient lighting, primarily LED-based fixtures, by 2016. On Friday, Jan. 23,

2015 at the US Conference of Mayors meeting, the President upped the goal to 1.5 million LED street light poles by May 2016, citing the interest from

states and cities as the reason for the raised goal.”

Ref: Link

US government accelerates LED street light push in DOE program

41

27

Global LED & controls deployment

lights k lights k lights k

1. Taiwan 692 17. New Brunswick Power, Canada 72 33. Rotherham & Barnsley, UK 36

2. Georgia Power 400 18. Sheffield, UK 68 34. Austin, US 35

3. British Columbia, Canada 360 19. Leicestershire, UK 67 35. Leicester, UK 33

4. New York City, USA 250 20. Municipal Assoc of Victoria, Aus 65 36. Doncaster, UK 33

5. Madrid, Spain 225 21. Detroit 65 37. Boston, US 32

6. Los Angeles, USA 154 22. California Dept. of Transport, USA 52 38. Oakland, US 30

7. Milan, Italy 147 23. Mississauga, Canada 49 39. Plymouth, UK 29

8. Kent, UK 120 24. Guangdong, China 48 40. Salford, UK 26

9. Birmingham, UK 95 25. Gloucestershire, UK 46 41. San Antonio, US 25

10. Networks NSW, Australia 95 26. Vadadara, India 45 42. Portland, US 25

11. Visakhapatnam, India 92 27. Northumberland, UK 44 43. Columbia, Columbia 25

12. Buenos Aieres, Argentina 91 28. Auckland, NZ 42 44. Gateshead, UK 22

13. Phoenix, USA 90 29. Hertfordshire, UK 40 45. Sunshine Coast, Aus 22

14. LAS / Ontario, Canada 90 30. Las Vegas, USA 42 46. Beibei, Chongquing, China 20

15. Nova Scotia Power, Canada 85 31. Seattle, USA 41 47. Copenhagen, Denmark 20

16. Florida Power & Light, USA 75 32. CentrePoint Energy, USA 39 48. Heredia, Costa Rica 19

Telensa projects other controls

Sources: Next Energy (Road Lighting conference Auckland March 2015); Telensa estimates

Ref: Assessing the Merits of Smart Lighting Controls Alongside LED Street Lighting, Will Gibson, Telensa, Nov 2016

LED lighting: What is a white LED ?

LED scale-up

Source: LED Revolution Booklet Link Ref: DigiKey.com

Cool White

Warm White

Neutral White

Feedback from Cities : Examples/Opportunities LED scale-up

Views are varied on Adaptive Street Light (Dimming) • Additional savings can be significant in cities where

lighting levels can be adjusted. • Some cities report only marginal additional savings. • Adaptive street lighting is not always welcomed,

needed or legal. • Public acceptance of adaptive lighting can be an issue. • Some cities have already rejected its use.

Support for CMS and future-proofing: • “We cannot afford a CMS/wireless controls now….”

but want to have options in the future. • Each procurement process must be open tender, so

capability for wider acceptance of inter-operability between manufacturers is urgently needed.

“If we dim lights in our city do we need to fit external metering, so more cost….. ……… “if LEDs are so reliable why do I need an expensive monitoring system now..” … we have to justify the cost of CMS and wireless asset management system to measure what we are saving….”