About Benefits instead of Products - The Climate … · 1 | Philips Lighting | Global Systems | November 2014 About Benefits instead of Products Accelerating Adoption of LED street

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



“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


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


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


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


Lighting-as-a-ServiceProducts, systems and services to jointly fulfilling a user's needs

7

Service Contract

Additional Services

Ownership

Residual Value & Reverse Logistics


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


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




Data-enabled Lighting ManagementHardware and Software for online lighting asset management


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


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.


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


“I’m not interested in the product,just the performance. I want to buy

light, and nothing else.”

Thomas Rau, RAU Architects


Back-up


Enablers

Business models

Design

Collaboration

Reverse Logistics


WMATA in Focus




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%.


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.

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About Benefits instead of Products - The Climate … · 1 | Philips Lighting | Global Systems | November 2014 About Benefits instead of Products Accelerating Adoption of LED street