The path to energy efficiency
Approximately 35 per cent of the world’s lighting points are still conventional. In Europe and the US, which lag much of Asia in the switch to greener lighting, this figure is even higher at 50 per cent. What this demonstrates, though, is the huge potential for transition in the coming years.
If we apply the 10/20/70 model, where 10 per cent of our efforts are inspiration, 20 per cent aspiration, and 70 per cent perspiration, the time has come to give full focus to perspiration and getting the job done. At COP27, a financing agreement for climate loss and damage was agreed but without an increase in the speed and urgency of climate action, the loss and damage suffered will be beyond what anybody can afford.
With the adoption of technology such as smart LED lighting, cities are not only taking immediate action to improve the quality of their environment, they are providing greater social, financial and ecological benefits in the future. For example, World Council on City Data shows LED implementation can reduce night-time traffic incidents by about 30 per cent, and reduce street crime by 20 per cent.
Business models for technology suppliers into cities also need to shift, from invoicing for hardware to leasing hardware and services and taking away much, if not all, of the upfront costs that can prove prohibitive to green lighting projects. Lighting-as-a-service, for example, brings forward lifetime benefits that are divided over a certain number of years through a service agreement, reducing the need for big upfront capital investment and budget requirements. These service agreements illustrate that it’s as important that the business model is sustainable for the long term as the product is.
With the EU’s Green Deal, the UK’s ten-point plan and other equivalent strategies emerging around the world, there is a lot of focus currently on what I’d call “the supply side” – the supply side of the energy mix, where there are calls for alternative gas, the scaling of renewables, and even nuclear and hydrogen (though it will take longer to come to fruition). This is important for heavy industry, where we need energy-intensive sectors to keep investing in the markets they’re in, rather than move out to geographies where fossil fuels are cheaper.
I believe there must be more focus on the demand side itself where the potential for quicker acceleration on efficiency exists. Importantly, the demand side industries provide both active and passive energy efficiency technologies and solutions. Lighting companies like Signify or building management sensor companies, are facilitating the green transition with active digital technologies that will help us finally make the shift away from fossil fuel. They are also the drivers of economic growth and the green economy. But as well as the digital solutions, it is important to recognise the part played by the demand-side industries in the more passive parts of the efficiency process such as insulation and triple-glazing. These will similarly drive growth and provide many jobs for the future, particularly around retrofitting.