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1 | Philips Lighting | Global Systems | November 2014 About Benefits instead of Products Accelerating Adoption of LED street lighting NLC, Austin TX– November.

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Presentation on theme: "1 | Philips Lighting | Global Systems | November 2014 About Benefits instead of Products Accelerating Adoption of LED street lighting NLC, Austin TX– November."— Presentation transcript:

1 1 | Philips Lighting | Global Systems | November 2014 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

2 2 | Philips Lighting | Global Systems | November 2014

3 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 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 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 6 | Philips Lighting | Global Systems | November 2014 Lighting Service Business Model Net-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 Cost

7 7 | Philips Lighting | Global Systems | November 2014 Lighting-as-a-Service Products, systems and services to jointly fulfilling a user's needs 7 Service Contract Additional Services Ownership Residual Value & Reverse Logistics

8 8 | Philips Lighting | Global Systems | November 2014 Stages of Engagement ScopingSurveyDesignFinanceRealizationSupport Lifecycle Services Performance 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 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 today Source: Humatica 1) Typical models; broad range of variations can be found in the market today Source: Humatica Utility Fed/State/Muni Public Traditional Utility Dedicated Service Provider (PFI) Dedicated Service Provider (EPC) Fed/State/Muni Service Provider

10 10 | Philips Lighting | Global Systems | November 2014

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12 12 | Philips Lighting | Global Systems | November 2014 Data-enabled Lighting Management Hardware and Software for online lighting asset management

13 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 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 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 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 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

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18 18 | Philips Lighting | Global Systems | November 2014 Back-up

19 19 | Philips Lighting | Global Systems | November 2014 Enablers Business models Design Collaboration Reverse Logistics

20 20 | Philips Lighting | Global Systems | November 2014 WMATA in Focus

21 21 | Philips Lighting | Global Systems | November 2014

22 22 | Philips Lighting | Global Systems | November 2014

23 23 | Philips Lighting | Global Systems | November 2014 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%.

24 24 | Philips Lighting | Global Systems | November 2014 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.


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