MUNICIPAL COST SAVINGS THRU ENERGY EFFICIENCY

LED STREET LIGHTING FOR SMART CITIES IN INDIA

Infrastructure Modernisation Business Plan

Executive Summary
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Version 1.1 / 11 November 2016

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1. Infrastructure Enhancement and Cost Saving Opportunity

Sustainable development and energy efficiency are global initiatives born out of the challenge
of climate change. Energy efficiency in lighting has been made possible due to the disruptive
technology of LED (Light Emitting Diode) lamps and the continuous progress in luminous
efficiency achieved by the LED industry.
Urban street lights are a prime opportunity because of the long hours they burn each day and
since a large number of street lights are under a single management. Los Angeles anticipates
saving 8 MUSD a year, after installing more than 150000 LED Street lights since 2011. New York
City hopes to recover 14 MUSD a year by replacing the citys 250,000 street lights with LEDs.
In India, the drive to retrofit conventional HID (High Intensity Discharge) street lights with LED
street lights is urgent because of the shortage of electricity as well as the heavy carbon-intensity
(0.82 kg CO2e per kWh) of the electricity generated from coal. The initiative has been given
recent impetus since it is integrated in the national Smart City programme.
LED Street lights have already been installed in Ahmedabad, Bangalore, Chennai, Coimbatore,
Mumbai and New Delhi, and in several other tier-1 and tier-2 cities in India.
LED Street Light retrofitting can be easily done on existing infrastructure to result in immediate
performance enhancements as well as energy cost savings for the local community. It can also
be considered for greenfield projects as well as in combination with solar electricity generation.
The salient features of this initiative are:
Zero upfront capex requirement from local bodies
European technology and European investors
Energy cost savings of up to 70%
Ecological benefit in terms of CO2 emission reduction
Energy Service Contract (ESCO) tenure of 5 years, 7 years or 10 years
Built-in infrastructure backbone to offer civic amenities including public Wi-Fi services
2. Target Market
There are 35 million street lights in India. Switching them from conventional High Intensity
Discharge (HID) lamps such as High-Pressure Sodium Vapour (HPSV) lamps and Metal Halide
(MH) lamps to energy efficient LED lamps represents a total investment potential of 4.3 BUSD,
an annual energy savings potential of 14 million MWh and a yearly reduction in CO 2 emissions
to the tune of 11.6 million tonnes. This represents the power generated by a 8600 MWp Solar
PV Power Plant, requiring in excess of 35000 acres of land.
It is estimated that only 5% of the energy efficiency market in India has been tapped through
the Energy Service Contracting (ESCO) mode of operations. The concept of performance
contracting implemented through Energy Service Contracting is being increasingly considered as
the optimum and speedy mechanism to overcome the sluggishness in the market created by
lack of awareness, lack of expertise and the barrier of upfront capex investment.
The primary focus is on Urban Local Bodies (ULBs) with a) a population of 2 lacs and more, as
well as b) an excellent credit rating.

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3. Local Equipment Providers and the ESCO Model in India

While there are several players in the Indian market, the main bottlenecks are in the availability
of financing for the projects that are heavy in capex, as well as in local manufacturing capacity.
Local Tier-1 suppliers include Philips Lighting (Dutch), Schreder (Belgian), Osram (German),
Zumtobel (Austrian), GE (US) and Lighting Technologies (Russian). Philips and Schreder are also
the leaders in the European market.
Tier-2 suppliers include Bajaj Lighting, Havells, Surya and several local brands. Additionally,
there are several local players in the Tier-3 category with little or no R&D, limited
manufacturing capacity and questionable quality.
The consolidated manufacturing capacity is estimated to be under 1 million luminaires per year.
EESL (Energy Efficiency Services Ltd.) is a public sector undertaking that provides LED Street
Lighting retrofits on an ESCO model to Urban Local Bodies. The ESCO business model is offered
by over 120 companies that are registered with the Bureau of Energy Efficiency (BEE). However,
their reach is often limited by the availability of financing and the regional limitation of their
operations.
4. Unique Selling Proposition
The USPs of this project consist of:
European technology delivered through a Swiss brand, SwissLED
European investors with a track record in the renewable energy and energy efficiency
Local team with 10+ years of experience in contract negotiation/management and
infrastructure project implementation and maintenance, including LED Street Lighting
International project management experience
5. Project Development Timeline
The typical timeline for project development, execution and commissioning is 6 months:
Project Development and Contract Negotiation with
Investors and ULB Clients (3 Months)

Procurement
(1 Month)

Execution, Testing, Commissioning

(2 Months)

6. Project Team
The project is developed, managed and executed by a team of professionals with a robust
background in international project development, infrastructure project execution, contract
negotiation and LED Street lighting projects. A special strength of the team is that it is based in
Europe and in India.
Project Director brings with him 24 years of international experience in the semiconductor
industry, and in technology, R&D and customer program management. He has been active
developing projects in the renewable energy and energy efficiency space in Switzerland and in
South Asia since 2009. He is based in Altendorf, close to Zurich, Switzerland, and Chennai, India.

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Operations Director is an industry veteran with over 20 years of experience in managing,

implementing and maintaining large infrastructure projects. He is responsible for the project
execution and for operations and management of the LED Street lighting project. He is based in
New Delhi and in Kolkata, India.
Finance Director has over 10 years of experience in the contract management divisions of
Larson & Tubro and Cairn India. He also has experience in negotiating and delivering projects for
Urban Local Bodies. He is responsible for the client interface, for contract negotiation and for
project finance. He is based in New Delhi, India, and in Dubai, UAE.
Technology Director is an LED systems expert with experience in executing LED Street lighting
projects for Osram in India. He was responsible for an LED Street lighting project in Ahmedabad
with 15000 luminaires. He is based in New Delhi, India.
Quality and Reliability Consultant is a semiconductor specialist with over 25 years experience
in power electronics and power management with Philips Semiconductors and Philips Lighting.
He is based in Eindhoven, The Netherlands.
This team is further supported by a team of experts in LED lighting, driver electronics and
lighting management systems in the forefront of cutting-edge technology in Europe.
7. Technology Sourcing from Leading Edge European Vendor
Technology sourcing is from a reputable vendor with a 48
year tradition in the street lighting industry within the
European Customs Union. They boast an internationally
accredited in-house test facility and R&D cooperation with
LED chip majors such as Philips Lumiled, Osram and Samsung.
They are present in 53 markets worldwide and have
successfully competed with Philips Lighting, Schreder, Osram
and GE for street lighting projects worldwide. The LED Street
light luminaires aresupplied under the brand SwissLED.
The Lighting Management System for control automation, energy measurement and system
monitoring is provided by an industry leader based in
Europe and with over 100 cities under the control of
their systems.
Hence, a European pedigree can be claimed for the
luminaires, the control system hardware as well as the
software.
The lighting management system has the potential to
provide the information backbone for additional smart
city features. These could include information panels,
electronic advertisement hoardings, integration with
public transportation and other civic amenities such as security and safety infrastructure, and
public WiFi services.

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8. Financial Benefit for the Local Community

This is an Energy Efficiency project that brings in investors on the basis of an energy
performance contracts (EPC). The project invests in LED street lighting retrofits that provide
significant reduction in energy costs and operational costs for the local community. Investors
collect their capital and returns from a portion of the savings that the local community realises.
The lifetime of the project can be five, seven or ten years. Additional extended warranty is also
possible. The below illustration indicates the savings of a ULB with 21000 street lights.

Public WiFi
Service!!!
Immediate
Savings

Long-Term
Savings

The benefits for the local community are:

Improved lighting performance and road security in public roads and spaces
Immediate reduction in energy costs between 5 and 20%
Up to 70% drop in energy and operational costs as of 6th year
Savings of 1000 MWh to 2000 MWh of electricity for every 5000 LED street lights.
Simultaneous reduction is carbon emissions of between 1000 and 2000 tonnes of CO 2e
per annum for every 5000 LED street lights.
9. Risk Management
Several risk parameters relating to contractual risks, technology risks, operational risks and
commercial risks have been considered in developing the project:
Contractual risk mitigation:
o Energy Performance Contract (EPC) between investors & local government body
o JV Agreement between swissmango GmbH and O&M associates in India
o Cooperation Agreement with technology supplier
Technology risk mitigation:
o European supplier with close to 50 year track-record and presence in 53 markets
o 5 year warranty (can be extended to 10 years)

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Operational risk mitigation:

o Past experience with LED Street lighting projects
o Vast experience in execution and maintenance of infrastructure projects
o Lighting management system under operation in over 100 cities
o Local spare parts for near-zero down-times
Commercial risk mitigation:
o ESCO (Energy Service Contracting) and EPC (Energy Performance Contracting) are
established models for energy efficiency projects in India
10. Benefits of LED Lighting
LED Street lighting provides several advantages over conventional HID street lighting.

Reduced energy consumption: LEDs consume a fraction of the electricity typically needed to
operate traditional lighting solutions, making them up to 75 percent more efficient. The
potential benefits of widespread LED adoption are dramatic. By 2030, solid-state lighting,
including LED technology, could potentially reduce national lighting electricity use by nearly
half.
Reduced maintenance: It is estimated that LED streetlights operating up to 12 hours a day
should last up to 10 years. In contrast, a typical high-pressure sodium lamp has a rated life of
2024,000 hours, which is the point at which half of the lamps would burn out. This means
about half of the lamps would require replacement within 5 years. LEDs are solid-state devices
that utilize semiconductor material instead of a filament or neon gas. Consequently, they can
withstand much more demanding environments than traditional solutions - including shock,
vibration, and extreme temperatures. These capabilities contribute to the long operational life
of LEDs, which can greatly reduce expenditure on the unsightly distractions of ongoing
maintenance with service personnel replacing lamps that burn out frequently.

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Reduced light pollution and wasted energy: LEDs are designed to be highly directional and
controllable, and can be engineered to provide light only where it is needed in applications such
as streets and sidewalks. LEDs also reduce the amount of undesired light, such as the night sky
and neighbouring properties. Through these capabilities, LED technology can optimize street
lighting systems by reducing light pollution and wasted energy by providing accurate, targeted
illumination.
11. LED Lighting Defined
Lumens measure light output. The higher the number, the more light emitted
Lumens per watt (lm/W) measure efficiency. The higher the measurement, the more
efficient the product
Illuminance (foot-candles or lux) measures light delivered to the roadway surface
Luminance (candela/m2 or candela/ft2) measures light reflected from the roadway surface
Watts measure the energy required to light the product. The lower the wattage, the less
energy used
Correlated color temperature (CCT) measures light color. Cool colors have higher Kelvin
temperatures (45006000K), and are usually better for visual tasks. Warm colors have lower
color temperatures (27004400K), and are usually better for living spaces
Color rendering index (CRI) measures the ability of a light source to render the true color of
an illuminated object. The higher the number, the truer the appearance of the light on objects
LED lumen maintenance measures the percentage of lumen output, as compared to initial
output, remaining at a given time
Spatial distribution of light measures light distributions to provide a means of comparison
and ensure the lumens produced are directed where they are needed
Uniformity of light distribution by a street lamp can be measured and engineered during the
installation process. Uniformity depends on optical properties of the light source, quality of the
luminaries reflectors, and overlapping areas between luminaries. Uniformity of light
distribution can be calculated in several ways, including:
Average to minimum luminance or luminance ratio
Maximum to minimum luminance or luminance ratio
Maximum to average luminance or luminance ratio
For further information please contact:
Arun Amirtham, Managing Director
Swiss Solar Technology Consortium
Mob: +41 79 282 72 54 or +91 7708 345 401
eMail: arun.amirtham@swiss-mango.com

SwissLED is a quality brand brought to you by

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Technology for sunstainable development