Energy Efficient Lighting An economic and ecological opportunity with benefits for a wide range of stakeholders. Peter Maskell CEO Philips UK

Transcription

1 Energy Efficient Lighting An economic and ecological opportunity with benefits for a wide range of stakeholders Peter Maskell CEO Philips UK

2 Royal Philips Electronics Founded in 1891; headquarters in Amsterdam, The Netherlands One of the largest global diversified industrial companies with sales in 2007 of almost EUR 27 billion Multinational workforce of over 134,000 employees (March 2008) R&D expenditures EUR 1.6 billion; owner of 60,000 patents Number 42 of the world s most valuable brands Sector leader in Dow Jones Sustainability Index 2

3 We are everywhere you go on the planet Philips is the worlds largest Lighting company. We light 65% of world s top airports, 30% of offices and hospitals, and landmarks such as the Eiffel Tower, the Sydney Opera House, the Great Pyramids 70% of the top-50 US hospitals have chosen Philips solutions for cardiology One-in-three cars worldwide uses Philips automotive lighting Each day more than a million of our consumer lifestyle products are purchased 3

4 Lighting trends rising energy costs, increasing awareness of climate change, product innovation Energy costs are rising across the globe, driven by high oil prices Oil at a historical high, yearly average price (US dollar) * Increased awareness/legislation around climate change is driving a reduction in CO 2 Atmosphere-creating and safetyenhancing lighting solutions increasingly become part of individual and community well-being Huge potential for energy saving Demand for (energy-efficient) lighting in emerging markets continues to grow Future LED solutions: application IP and luminaries will be key Area of lighting Road lighting Shop Lighting Office & Industrial Lighting Home Lighting LEDs Energy saving 57% 80% 61% 80% 80% CO 2 savings per lamp per year 132 kg CO kg CO 2 93 kg CO 2 41 kg CO 2 41 kg CO 2 * Source: OPEC Reference Basket (ORB), 4

5 Energy Efficient Lighting - Presentation overview Opportunity background facts Overcoming barriers Supportive policy measures/legislation Lighting Solutions, facts and figures General Lighting Street Lighting Office Lighting Home Lighting Conclusions 5

6 Philips Green Ambitions Double investment in Green Innovations to 1 billion in the next 5 years Philips aims for 30% of total revenues to come from Green Products by 2012 Philips will further increase its operational energy efficiency by 25% by 2012 Philips Green Products show a significant improvement in : 6

7 Energy saving opportunity general lighting An achievable energy saving of up to 40% on all the lighting currently installed globally would save: EUR 106 billion in energy costs per year This equates to: 555 million tonnes of CO2 per year 1.5 billion barrels of oil per year Annual output of 530 medium sized power 2TWh/yr 7

8 What is the opportunity background facts Lighting consumes 14% of all electricity within the European Union Lighting consumes 19% of all electricity in the world (source IEA) Lighting 19% Key issues Rising energy prices Global climate change Security of energy supply Economic growth Other electricity uses 81% Value proposition = Energy efficient lighting 8

9 What is the opportunity background facts (cont.) There has been a revolution in lighting technology during the past years. Switching the older lighting to the latest technology will bring huge savings in energy costs and CO2 emissions. Approximately 2/3 of all lighting currently installed in the European Union is based on older, less energy efficient technology (developed before 1970) Our current changeover rate to new lighting technologies is simply too slow: e.g. for street lighting the changeover rate is 3% per year, for office lighting 7%. 9

10 Background to the EE Lighting Opportunity Up to 75% of all lighting currently installed is old less energy efficient New energy efficient solutions exist for all segments Tomorrow we will have even more solutions (LEDs, OLEDs) But: The current market renovation rates are too slow! (e.g. Street lighting 3%, Office Lighting 7% etc) Acceleration needed to capture ecological & economical benefits 10

11 Barriers and Initiatives Hurdles Lack of awareness Investment (initial; renovation) Acceleration of switch over via: Awareness Campaigns (public / private) New legislation (e.g energy-certification for buildings) 11

12 Upcoming legislation (EU) 1. EUP - Energy Using Products Directive being developed by EU will effect Road lighting, Office lighting, Home lighting 2. ESD Energy Services Directive The mandatory development of National Energy Efficiency Action Plans (NEEAPS) All EU member states have to submit plan by June Update Buildings Directive being planned (EPBD)

13 Political, Corporate & Public Awareness Energy Efficient Lighting Solutions High political and public awareness achieved and policy measures being defined 13

14 Lobby External Commitment to phase-out incandescent lamps Countries United States European Union China Brazil Australia, New Zealand, Canada, Cuba, Argentina, South Africa Many others Political Platforms; NGO`s and Int. Organizations UNEP; UNDP IEA; ELC; NEMA; NRDC WWF; Greenpeace, ASE; and many other NGO`s 14

15 Philips Lighting Approach New technology offers huge energy savings and also means more safety on roads Energy saving opportunities in home lighting 100W incandescent light bulb 20W Energy saving CFL light bulb 50% energy saving better quality light Electricity costs per year: Up to 15 Average lifetime: 1 year Electricity costs per year: 3 Average lifetime: 6 year 100W light bulb 1000 hours per year 0.15 p/kwh Potential energy savings Offices & Buildings Up to 12 euro saving per year or 72,-during 6 years Research shows EE Lighting, UNFCCC - Bali, December EE Lighting, UNFCCC - Bali, December % of office lighting is based on outdated and energy inefficient lighting systems (less than 1% use controls) New lighting systems provide energy saving and state-of-the-art lighting quality EE Lighting, UNFCCC - Bali, December

16 Examples New technology offers huge energy savings and also means more safety on roads EU Road Lighting - potential savings 3.5 Million tons of CO 2 16

17 Outdoor: street lighting Save energy by using Telemanagement and dimming when low traffic Kala Lumpur, Malaysia 17

18 Outdoor: street lighting Save energy by using Telemanagement and dimming when low traffic Kala Lumpur, Malaysia 18

19 Outdoor: street lighting - Pay Back improvement High Pressure Mercury 125W vs Cosmo White 60W Pay back 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 0,10 0,12 0,16 0,2 0,24 Energy Price Number of lamps 100 Burning hours 4000 Pay back in years; system renovation Pay back in years system + controlled dimming Pay back in years; lamp&gear only Acceleration of renewal rate at shorter pay back periods Pay-back times are becoming more attractive with increasing energy prices 19

20 Examples - New research on EU office lighting Less than only 25% of Europe s office lighting is energy efficient And complies with quality standards for office workers (EN ) Opportunity Office Lighting Barriers Policy/ Legislation Summary 20

21 Examples - EU lighting in buildings Old Technology New technology Old fluorescent lamps Passive Analogue drivers High efficiency TL5 fluorescent lamps Active electronic drivers Lighting control systems Energy savings of up to 75% are possible with new Lighting technology which also provides better quality light Opportunity Office Lighting Barriers Policy/ Legislation Summary 21

22 EU home lighting EU27 Currently approx 2.1 billion incandescent light bulbs are sold in EU 27 each year Installed base 3.6 billion Household penetration CFL lamps in EU approx 15% Market adoption CFL slow although increasing recently Global Global annual incandescent sales volume around 12.5 billion (8 times CFLi) Installed incandescent base approximately 15 billion Two thirds of all lamps volume within 10 years all (new & available) alternatives can replace installed GLS base Opportunity Home Lighting Barriers Policy/ Legislation Summary 22

23 Home lighting: more energy saving options Major improvement of light quality of energy savers 1. Compact Fluorescent Lamps 80% Energy Savings Major improvements last few years (size; light; cost;..) Need to balance demand and global industry capacity 2. Eco-Classic: Energy Saving Halogen Up to 50% Energy Savings; brilliant, high quality light Replacement range in launch phase 3. Solid State Lighting (LED`s) Currently for decorative replacements Today limited but fast improving light output 23

24 Energy saving opportunities in home lighting 100W incandescent light bulb 20W Energy saving CFL light bulb Electricity costs per year: Up to 15 Average lifetime: 1 year Electricity costs per year: 3 Average lifetime: 8 year 100W light bulb 1000 hours per year 0.15 p/kwh Up to 12 euro saving per year or 96, -during 8 years Opportunity Home Lighting Barriers Policy/ Legislation Summary 24

25 52 Million Philips Energy Saving Lightbulbs 25

26 Technology management from the LED to the Luminaire As the world s leader in Lighting, Philips is driving the switch to energy-efficient solutions, as well as shaping the future with exciting new lighting applications and technologies. 26

27 Bosporus Bridge Lighting load reduced by 50% 27

28 Bosporus Bridge and you can change the colour! 28

29 Landmark less than 3kW or 29

30 Halley VI UK Antarctic Research Station Lit 100% with Philips LED solutions 30

31 Sainsbury s ECO store, Greenwich 31

32 Sainsbury s LED Upright Freezer Lighting Benefits 10 year operational life Maintenance free Illumination levels 125% + Energy reduction 75% Instant start in frozen temps Significant Co2 emission reduction Visual improvement speaks for itself > Increased sales!!!! 32

33 Helping to reduce the electricity bill by 100, per annum 33

34 Conclusions Energy efficient Lighting New lighting technology exists now, and current adoption rate is accelerating This technology offers a unique Triple Win 1. Users/tax payers save costs & have better light quality 2. The environment benefits from lower energy/co 2 emissions 3. Business / country competitiveness is strengthened Legislation plays a crucial role in realizing lighting`s savings potential Energy efficient Lighting is a public and private opportunity for all Countries and will equally benefit its population as well as its future competitiveness 34

35 Conclusions Philips Lighting Globally Philips, a strong industry-trusted Brand, is the Global Leader in Lighting Lighting is one of three core sectors in which Philips is investing for the future As shown, Philips Lighting offers the full range of innovative products & solutions to move from incandescent to energy-efficient lighting Philips has already built up a strong presence across the complete Solid State lighting value chain including IP to drive the future lighting solution The Lighting sector is expected to show average sales growth of 6% and an EBITA profitability of 12-14% by year

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