LEDS in public lighting Energy Efficiency in Municipalities Dr Ben Ferrari, Director of Partnerships, The Climate Group 10th September 2014, Brazil Agenda - Introductions AGENDA SUMMARY Aline Barabinot - Orbiz Opening Address Opening Address The Climate Group Overview of the global work of The Climate Group Dr Ben Ferrari, Director Partnerships The Climate Group – Who we are The Climate Group is an award-winning, international non-profit. 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. The Climate Group – What we do We work with leaders from governments and corporates in three ways: • We convene key decision makers to inspire leadership and innovation; • We provide evidence of low carbon success that enables ambitious action; • We develop practical projects to scale up and replicate transformational low carbon solutions. We operate from offices in North America, Greater China, India and Europe. Transformative actions North and South America China India Europe Australia 25 member governments from all continents representing: China Finance – a $243 billion funding gap Funding Gap 2000 1500 1000 500 0 2012 2020 2050 [Annual cost in USD billion/per year] Coalition Partner – ‘We Mean Business’ "We Mean Business" is a group of some of the world’s most influential business coalitions working to drive climate action. We are joining together to encourage businesses to go further - and create bold new initiatives that will reduce emissions and strengthen adaptation. And we are calling for national and international policies that will continue to scale-up clean energy and energy efficiency, unleash low carbon innovation and send the right price signals to drive investment in clean technologies. Secretaria do Meio Ambiente / Governo do Est. de Sao Paulo Oswaldo Lucon [Speech] Apresentacao dos participantes Introductions of the Participants Moderated by Aline Barabinot LED Street Lighting Consultation LED STREET LIGHTING Presentation: Global LED Street Lighting consultation Dr Peter Curley Case for energy efficient LED lighting Lighting accounts for 19% of global electricity use 19% 81% Growing Migration to White light LEDs • Significant energy savings potential • Enhanced visibility (public safety / crime reduction ) Lighting Other electricity use • Faster reaction time (increased road safety) • Improved sense of comfort, safety and security • Future city development smart city concepts It’s time to flick the switch – LED procurement Urgent need to cut energy costs Aging city lighting infrastructure Demand to build modern ‘smarter’ cities Reducing central government funding Range of services competing for budgets Removing barriers to scale-up Regional challenges / Asset Ownership Improved access to external financing ‘Intelligent’ and ‘Smart’ Technologies International standards, and warranties Building trust / Assuring Quality Global LED roll outs – and Lightsavers Trial Cities + + + + + + + + ++ + Lightsavers LED Trials Cities + Adelaide, Australia Guiyang, China Haldia, India Hong Kong, China Kolkata, India London, UK Mumbai, India New York City, USA Sydney, Australia Tianjin, China Toronto, Canada LED Trials - Lightsavers and LED City Reports The Lightsavers LED Trials were undertaken: • • • • In 12 Major cities 15 Trials 27 Products 500+ Lights Main Lightsavers Report LEDs achieved the expected 50%-70% energy savings, and reach up to 80% savings when coupled with smart controls. Individual City LED Reports USA Conference of Mayors – Prioritizing LED lighting Jan 2014 LED Consultation: What adoption barriers remain ? CONSULTATION PROCESS • Key decision in the consultation process ‘not to be another survey on LEDs’ Areas of focus and barriers • Our goal is to identify the local barriers and help identify localised solutions and a forum for shared experiences and learning. Roundtables and Workshops Outcomes and Summaries Final Report Global / local findings and recommendations • We use a combination of research, interviews and meetings around local events. • Seek to link like-minded cities, shared learning and identify solution options. LED Consultation: Events 2014 Key dates: The Climate Group is aiming to help ‘accelerate the decision making process’ Jan 2014 Jan ongoing April 28th May 29th Sep 10th Sep 22nd Nov Nov TBC Dec Jan 2015 Launch - WEF, Davos Consultation Outreach London Roundtable Dubai Roundtable Sao Paulo Climate Week NYC 2014 North America Beijing Singapore and Malaysia India Interim report - WEF, Davos Consultation: Mapping issues – linking cities / partners Adoption Issues / Barriers / Opportunities Cities / Regions LED Consultation: Examples of Focus Areas LEDs - Technology • Performance, options, future trends • ‘Intelligent’ and ‘Smart’ Luminaires • Centralised Management Systems LED Business Case options • • • • • Ownership / responsibility Retrofit, replacement, or system upgrade ? Smart controls, smart cities, future-proofing Options of dimming and trimming Socio economic benefits of LEDs LED Financing and Risk Allocation • Financing options / payback • Sources of finance • Etc. Procurement • • • • • Tender process, quality thresholds Procurement checklists Product warranties International and local standards Approaches to trialling LEDs Public perception • Lingering health questions • LED myths Parallel Policy Activities • Driving parallel local and national government policy on energy efficient lighting, and • Complimentary energy efficiency initiatives An Unexpected Barrier: LEDs provide significant energy and cost savings; with longer operating time, flexible lighting capabilities, less servicing and fewer replacements. Not ALL stakeholders will be motivated — Utilities/asset owners/energy providers may see less revenue from their street lighting contracts. — Utilities may have spare capacity and maintain pwr station operations at night street lighting. — Lighting managers may have to downsize their maintenance and operations crews. Who builds the LED business case ? — Do they they risk losing revenues, losing staff or their own jobs ? (Do turkeys like Christmas ?) Supporting policies must ensure that adoption of much needed energy efficiency measures benefits all, and does not end up penalising the stakeholders expected to adopt them. Broad stakeholders support is key to accelerating approval / adoption of LEDs. LED Consultation: Common Adoption Barriers Recognition that every city/municipality has unique history, lighting stock, service agreements. Cities face a key decision; which lighting option is most appropriate ? Eg*. $0-2m Eg*. $5-10m Eg*. $50m+ *Dependent on scale: For illustration only — Identifying which option, business case(s) and the most appropriate finance option(s) — Will they operate the street lights as before – eg. or will they use new dimming strategies ? — Will they use ‘Smart’ or ‘Intelligent’ LEDs – with a Centralised Management Systems (CMS) ? — What LEDs to buy ? Procurement checklists Deciding LED quality thresholds — Standards and warranties – ‘what is realistic for ‘complete luminaire’ 5yrs, 10yrs ? — Planning the change to new technology, and new ways of working — Trials and the need to address any public perception issues of LEDs and dispelling myths Discussion we will cover technical issues - At 11:30am Examples of common issues: — LED Performance: Efficiency, future trends, lumen depreciation….. — Project selection: Retrofit / Replacement / System Upgrade — ‘Intelligent’ and ‘Smart’ technologies — Centralised Management Systems — Standards and warranties Centralised Management and Smart LED options Framing LED options LEDs IN Brazil – Case Studies LEDs in Brazil – Case Studies —Orbiz —World Bank / IFC —University of Sao Paulo / USP —AES Servicos Consulta no Brasil: Objetivos: Entender e barreiras (universais LED desafios na Iluminação Públicae particulares ao contexto brasileiro) Conhecer casos de sucesso (no Estado de São Paulo) Apresentar casos internacionais inspiradores Explorar conceitos e soluções usados internacionalmente (técnicos, padronização, soluções financeiras, soluções agregadas) Workshop: Reduzido para facilitar interação Geração de relatório e estudo dos casos brasileiros em nível internacional Verificar necessidade de aporte da experiência internacional Portuguese version only Iluminação Pública - Contexto brasileiro Consumo da classe iluminação pública por subsistema elétrico, região geográfica e unidade da federação (GWh) – 2012 GWh Cres 12/11 Part. IP no Consumo* Brasil Sudeste 12.916 5.859 3,5% 2,7% 2,9% 2,5% São Paulo 3.072 2,1% 2,3% Fonte: Anuário Estatístico EPE, 2013 * Consumo cativo mais livre Part. no Cons. Nacional 100,0% 45,5% 52,4% do sudeste 24% do Brasil O Estado de São Paulo é membro do The Climate Group (bem como o Estado do Rio de Janeiro) Soma IP + Poder Público + Serviço Público = 8,4% do consumo. Melhoria da iluminação nessas três classes, com real redução no consumo: Economia real e grande exemplo para a sociedade Portuguese version only BuscaIluminação por soluções inteligentes e econômicas Pública - Contexto brasileiro Necessidade de redução no consumo global (economia de recursos, sustentabilidade e crise na oferta energética) Novos paradigmas na Iluminação: proibição progressiva da produção, importação e comercialização das lâmpadas incandescentes. A intenção é que até 2017 não exista mais a iluminação incandescente no país (Portaria interministerial nº 1.007, de 31 de dezembro de 2010) -> Alinha o país com o Plano Nacional de Eficiência Energética e com regulação da Agência Internacional de Energia. Transferência dos ativos das concessionárias para as prefeitura Debate sobre Contribuição de Iluminação Pública (CIP)/ Contribuição para custeio do serviço de iluminação pública (COSIP). Portuguese version only Realidade do LED na IP no Estado de LED já percebido por muitos como alternativa econômica e viável. SP Projetos piloto com uso de LED na Iluminação Pública em alguns municípios do Estado de São Paulo, como São Paulo, Santo André, Sorocaba, Campinas, Limeira, Santos, entre outros. Em geral, pilotos existentes são de escala reduzida. Já os estudos em andamento, em alguns casos, tem dimensão bastante interessante. Ainda há muitos questionamentos e entraves à adoção do LED Muitos municípios não querem tratar a questão tecnológica antes de resolver por completo o desafio da transferência dos ativos Portuguese version only Principais questionamentos identificados nos municípios interrogados Dificuldade nas especificações técnicas - falta de padronização; Dúvidas sobre a tecnologia e qualidade da iluminação; Custo da tecnologia Definição do modelo de negócios a ser adotado. Preocupação: descolamento do debate de transferência de ativos do debate sobre tecnologia Portuguese version only