November 14, 2023
Connected technologies can create the momentum needed to mitigate climate change
Avoiding a global energy crisis
Stable energy supplies drive interwoven global economies even through the worst weather conditions and geopolitical instability. Without dependable and affordable heating and lighting, the physical and mental well-being of individuals at home or in the workplace suffers. Highly volatile energy costs force household utility costs higher, harm factory output, cause shutdowns, and increase risks to economic activity. Although direct assistance, capped prices, or subsidies to energy companies may seem to soften the hit on consumers, those moves only increase demand and accelerate inflation.
In contrast, reliable heating and lighting relieve stress and contribute to comfort whether at home, in the office, or at a manufacturing facility. Affordable heating and lighting allow families to accumulate savings and to purchase goods while enabling businesses to protect earnings and secure planned investments.
Lessons learned lead to progress
The 2022 energy crisis and the continuing war in Ukraine have triggered renewed interest in methods for achieving energy efficiencies and a greater emphasis on energy policies. For example, member countries of the European Union agreed on voluntary targets for efficiencies aimed at reducing gas and electricity demand. The countries also instituted specific goals for the increased use of renewable energy resources and decreased energy consumption.
LED lighting serves as a crucial linchpin for energy efficiency
In late 2023, we haven’t yet reached the necessary levels of energy conservation. Even as the transition from conventional bulbs to LEDs increases lighting efficiency, an IEA report shows that electrical consumption and carbon emissions for lighting increased slightly during 2022.
This imbalance occurred for several reasons. A significant number of warehouses, factories, and schools continue to rely on conventional lighting. On a global scale, more than one-third of the world’s lighting points continue to use conventional lighting technologies. In Europe, approximately 50% of currently installed lighting relies on the same type of conventional lighting technologies.
Other breakthroughs have occurred through the intersection of technologies. The greater efficiency offered through new ultra-energy saving lights produces multiple benefits, not the least of which is freeing up energy that could be used for other purposes. By switching to highly energy-efficient LED lighting, for example, a 100,000 m2 manufacturing facility can save €0.8 million in energy costs, 2.4 GWh in energy consumption, and 627 tons of CO2 annually. The freed-up electricity is enough to power the production of 54,000 pairs of jeans or 371 tons of recycled paper every year.
The potential for zero-energy buildings continues to gain attention with more commercial building upgrades featuring LED lighting networked with other managed systems. Managing and connecting LED systems along with other services that include HVAC, space allocation, and other systems can reduce the energy consumption of a commercial building by 80% and result in a significant reduction of carbon emissions.
Each step towards the use of renewables and energy conservation represents a gradual progression for mitigating climate change. However, the stability and resiliency of world economies requires greater, more sustainable actions. Achieving sustainability goals can only occur through international commitments to reducing energy, continued technological innovation, and through consumers, businesses, and municipalities embracing energy efficient technologies.
Save energy and keep the lights on
Some municipalities have tried to save energy by turning their lights off altogether, but this is not a viable solution for several reasons. Streets need illumination at night for safety, schools need light so that students can learn, hospitals need light for treatment and recovery, and public and commercial buildings need light so that people can perform their jobs properly and productively.
LED lighting with the right controls can maximize the energy-saving potential of digital light with dimming schedules and lighting behaviors that deliver light only when and where it’s needed. As the infographic below illustrates, the energy-saving potential of switching to efficient lighting is enormous without plunging the city into darkness.
Digital information technologies can drive long-term sustainability
The success of future sustainability efforts rests on the intersection of digital information technologies. Within this combination of artificial intelligence (AI), the Internet of Things (IoT), and 5G networks, wireless devices connected to the IoT monitor energy demand.
Technologies based on artificial intelligence analyze data to predict the supply and demand of energy in real time and provide decisions for optimizing renewable energy sources. With this approach to an intelligent grid, all consumers gain access to affordable and reliable clean energy. to execute functions that minimize energy consumption, energy waste, and carbon emissions.
Harry Verhaar
Head of Public & Government Affairs, Signify
Seven years is a short time
Without urgent action during this decade on moving away from fossil fuels, reducing energy consumption, and cutting carbon emissions, extreme weather conditions and weather-related disasters will become the new normal. The consequences of inaction will impact global economies and endanger the most vulnerable in society.
2030 is only seven years away. Achieving the 1.5oC climate pathway within those seven years requires immediate action by policymakers at the national, regional, state, and municipal levels. Their actions can begin with participation in the 3xRenewables by 2030 Campaign. Doubling down on energy efficiency, tripling the total renewable energy capacity, and transforming energy systems by 2030 will cut GHG emissions and limit global warming.
While policy decisions can drive the transition to clean energy, progress also depends on the support given by industry, investors, and individuals. Support entails accelerating the development and addition of solar, wind, hydropower, geothermal, and other forms of renewable energy generation.
Signify Global Media relations - Professional Lighting
Claire Phillips
Tel: +44 7956 489081
Email: claire.phillips@signify.com
Signify (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things. Our Philips products, Interact systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We have been in the Dow Jones Sustainability World Index since our IPO for seven consecutive years and have achieved the EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent of companies assessed. News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram. Information for investors is located on the Investor Relations page.