Energy saving through high quality
lighting
OECD workshop on Environmental Innovation and Global
Markets, Berlin 20-21 September 2007


I. Snijkers-Hendrickx
Development Manager, Advanced Development Lighting, Philips Lighting
Increasing Stakeholder Awareness




                                   2
Climate change or global warming…




Source:
Climatic Research Unit of the University of East Anglia and the Hadley Centre of the UK Meteorological Office
                                                                                                                3
...and is now at the top of political agenda...
             “Probably, long-term the single most important
             issue we face as a global community.”
             Tony Blair, UK Prime Minister ahead of the G8
             summit at Gleneagles

             October 2006 - New EU Energy action plan 20%
             Energy saving target by 2020
             EU Commissioner, Andris Piebalgs in charge of
             energy


             Brussels Europena Council, 8/9 march 2007
             The European Council: invites the Commission to rapidly
             submit proposals to enable increased energy
             efficiency requirements

                                                                  4
Background to our opportunity
                                                                                 Energy saving            CO2 savings
                                                 Area of lighting
                                                                                                        per lamp per year
•    Lighting uses 19% of all electricity        Road lighting      23%              57%
                                                                                                            109 kg CO2
     consumption world wide - source IEA                                  HPL
                                                                                     80%
                                                 Shop Lighting      11%                                     115 kg CO2
                                                                          Halo                   CDM
•    Up to 75% of all lighting currently         Office & Industrial                 61%
     installed is old less energy efficient      Lighting         46%     TL8                    TL5
                                                                                                             77 kg CO2

                                                                                     85%
                                                 Home Lighting                                               34 kg CO2
                                                                    23%   GLS                    CFLi
•    Research on Office Lighting in Europe
                                                                                     82%
     Less than 25% in Europe’s Office Lighting   LEDs
                                                                          GLS                    LED
                                                                                                             34 kg CO2

     is energy efficient

•    New energy efficient solutions exist
     for all segments, tomorrow we will have
     even more energy saving solutions available (LEDs, OLEDs)


But:
                                                                                  Significant growth
    The current market renovation rates are too slow !
    (e.g. Street lighting 3%, Office Lighting 7% etc)                                 potential

                                                                                                                      5
…Although new technology offers even more
safety on roads




                                                 50%
                                             energy saving


EU Road Lighting - potential savings 3.5 Million tons of CO2

                                                               6
What is preventing the growth rate…
• The environmental benefits of energy efficient lamps speak for
themselves... but the market doesn’t always follow
• Purchase price and functional performance often take precedence
over environmental concern in our society -> Lobbying
    • Functional performance has mainly addressed by most
    manufacturers but… still huge number of cheap products imported
    in EU which do not conform CE marking
    • Most significant inhibiting factor is the high purchase price
    • Lack of consumer understanding of the overall but long-term
    benefits =Total cost of ownership benefits




                                                                      7
What needs to be done….




                          8
What needs to be done…
1. by stimulating DEMAND - Energy service directives
       - Public awareness and education (PLA)
       - Green Procurement
       - Allocate financial Incentives (eg. Street lighting)

 2. by restricting AVAILABILITY - EUP Directive – Implementing
 measures
        - Amended Energy label, Standardization
        - Market restriction on certain lamp and Luminaires
        (not on flux but on lumens)
        - Ban of high energy consuming lamps
        (incandescent)




                                                                 9
Supportive Policy Measures
                      Suggestions to accelerate market uptake of more
                                     efficient products



1.   Green Procurement

2.   Financial incentives


3.   Disallowing old inefficient products
     Philips is part of European lobby to ban incandescent
     Gives also “pain” in the organization to make the shift

4.   Environmental performance targets
         cooperate in defining and implementing standards,
         guidelines, legislation
                                                                        Page 17
ELC070222 IEA Workshop Paris                                               10
ELC Publications
www.elcfed.org
   ELC Position Paper on EUP Directive
   Make the Switch Roadmap & Did You Know papers




                                                   11
Summary

New, higher quality, lighting technology available:

This energy saving technology offers a unique triple win
1. Users / tax payers save costs & have better light quality
2. The environment benefits from lower energy/CO2 emissions
3. European competitiveness is strengthened

A triple effort needed
1. Accelerate the switch to new energy saving lighting solutions
2. More awareness and partnership between stakeholders
   including financial institutions
3. Implement new legislation
                                                                   12
New lighting technology saves energy,
some figures,….
(1kw energy = 0.42kg CO2)

Old Technology               New technology




• Old fluorescent lamps      • High efficiency TL5 fluorescent lamps
• Passive Analogue drivers   • Active electronic drivers
                             • Lighting control systems


                                                                   14
Energy saving opportunities in home lighting
 100W incandescent light bulb    20W Energy saving CFL light bulb




   Electricity costs per year:     Electricity costs per year:
   Up to € 15                      €3
   Average lifetime: 1 year        Average lifetime: 6 year

                                   Up to 12 euro saving per year
100w light bulb 1000 hours         or € 72,-during 6 years
per year 0.15 p/kwh
                                                                    15
More than 14 billion Euro savings in energy
Untapped potential of existing lighting technology

                                         59 million tons CO2
                                         67 x Power stations
                                         200 million barrels of oil eq.




                                                                    16
Who is the ELC?


    We represent the leading lamp manufacturers in
    Europe
        95% of total European production

        50 000 employees in Europe

        €6 billion European Turnover




                                                     Page 2
ELC070222 IEA Workshop Paris                           17

Philips Lobbying Presentation

  • 1.
    Energy saving throughhigh quality lighting OECD workshop on Environmental Innovation and Global Markets, Berlin 20-21 September 2007 I. Snijkers-Hendrickx Development Manager, Advanced Development Lighting, Philips Lighting
  • 2.
  • 3.
    Climate change orglobal warming… Source: Climatic Research Unit of the University of East Anglia and the Hadley Centre of the UK Meteorological Office 3
  • 4.
    ...and is nowat the top of political agenda... “Probably, long-term the single most important issue we face as a global community.” Tony Blair, UK Prime Minister ahead of the G8 summit at Gleneagles October 2006 - New EU Energy action plan 20% Energy saving target by 2020 EU Commissioner, Andris Piebalgs in charge of energy Brussels Europena Council, 8/9 march 2007 The European Council: invites the Commission to rapidly submit proposals to enable increased energy efficiency requirements 4
  • 5.
    Background to ouropportunity Energy saving CO2 savings Area of lighting per lamp per year • Lighting uses 19% of all electricity Road lighting 23% 57% 109 kg CO2 consumption world wide - source IEA HPL 80% Shop Lighting 11% 115 kg CO2 Halo CDM • Up to 75% of all lighting currently Office & Industrial 61% installed is old less energy efficient Lighting 46% TL8 TL5 77 kg CO2 85% Home Lighting 34 kg CO2 23% GLS CFLi • Research on Office Lighting in Europe 82% Less than 25% in Europe’s Office Lighting LEDs GLS LED 34 kg CO2 is energy efficient • New energy efficient solutions exist for all segments, tomorrow we will have even more energy saving solutions available (LEDs, OLEDs) But: Significant growth The current market renovation rates are too slow ! (e.g. Street lighting 3%, Office Lighting 7% etc) potential 5
  • 6.
    …Although new technologyoffers even more safety on roads 50% energy saving EU Road Lighting - potential savings 3.5 Million tons of CO2 6
  • 7.
    What is preventingthe growth rate… • The environmental benefits of energy efficient lamps speak for themselves... but the market doesn’t always follow • Purchase price and functional performance often take precedence over environmental concern in our society -> Lobbying • Functional performance has mainly addressed by most manufacturers but… still huge number of cheap products imported in EU which do not conform CE marking • Most significant inhibiting factor is the high purchase price • Lack of consumer understanding of the overall but long-term benefits =Total cost of ownership benefits 7
  • 8.
    What needs tobe done…. 8
  • 9.
    What needs tobe done… 1. by stimulating DEMAND - Energy service directives - Public awareness and education (PLA) - Green Procurement - Allocate financial Incentives (eg. Street lighting) 2. by restricting AVAILABILITY - EUP Directive – Implementing measures - Amended Energy label, Standardization - Market restriction on certain lamp and Luminaires (not on flux but on lumens) - Ban of high energy consuming lamps (incandescent) 9
  • 10.
    Supportive Policy Measures Suggestions to accelerate market uptake of more efficient products 1. Green Procurement 2. Financial incentives 3. Disallowing old inefficient products Philips is part of European lobby to ban incandescent Gives also “pain” in the organization to make the shift 4. Environmental performance targets cooperate in defining and implementing standards, guidelines, legislation Page 17 ELC070222 IEA Workshop Paris 10
  • 11.
    ELC Publications www.elcfed.org ELC Position Paper on EUP Directive Make the Switch Roadmap & Did You Know papers 11
  • 12.
    Summary New, higher quality,lighting technology available: This energy saving technology offers a unique triple win 1. Users / tax payers save costs & have better light quality 2. The environment benefits from lower energy/CO2 emissions 3. European competitiveness is strengthened A triple effort needed 1. Accelerate the switch to new energy saving lighting solutions 2. More awareness and partnership between stakeholders including financial institutions 3. Implement new legislation 12
  • 14.
    New lighting technologysaves energy, some figures,…. (1kw energy = 0.42kg CO2) Old Technology New technology • Old fluorescent lamps • High efficiency TL5 fluorescent lamps • Passive Analogue drivers • Active electronic drivers • Lighting control systems 14
  • 15.
    Energy saving opportunitiesin home lighting 100W incandescent light bulb 20W Energy saving CFL light bulb Electricity costs per year: Electricity costs per year: Up to € 15 €3 Average lifetime: 1 year Average lifetime: 6 year Up to 12 euro saving per year 100w light bulb 1000 hours or € 72,-during 6 years per year 0.15 p/kwh 15
  • 16.
    More than 14billion Euro savings in energy Untapped potential of existing lighting technology 59 million tons CO2 67 x Power stations 200 million barrels of oil eq. 16
  • 17.
    Who is theELC? We represent the leading lamp manufacturers in Europe 95% of total European production 50 000 employees in Europe €6 billion European Turnover Page 2 ELC070222 IEA Workshop Paris 17