'Largest Street Lighting Upgrade' Signed by Philips

The Spanish capital city of Madrid is having its entire street lighting system replaced by Philips, a total of nearly a quarter of a million luminaries are to be upgraded.

Lighting up Madrid Since Philips announced their split in late 2014 their lighting division's annual sales have fallen by 3% to a mere $6.9 billion for the last year. CEO Frans van Houten has commented to investors that the North American division's performance was 'unsatisfactory' and because of this he has appointed Amy Huntington as the new head of North America's lighting business. He also commented that China's sales had also dropped due to deteriorating market conditions. This is different to the wider divisions performance which has continued to grow rapidly due to selling of LED-based solid-state lighting products in addition to a contract to replace the entire street lighting system of Madrid. Philips is also planning to sell the automotive lighting unit in addition to Lumileds, the LED chip making branch. Lumileds commented that, 'The company is in discussion with external investors for the combined Lumileds and automotive lighting businesses and expects to complete translation in the first half of 2015.' These two divisions composed of 8300 employees have delivered sales of $1.4 billion. Madrid project Philips has estimated that the market for high-power LEDs will grow at an annual growth rate of 17-21% up to 2018, whilst the growth of the the overall lighting market is estimated to be 3-5%. The lighting industry is rapidly transforming from inefficient products to highly efficient goods and now demands extreme innovation. The CEO has claimed that Philips is outlaying over 30% more than its closest competitor in research and development to set a higher pace of technological advancement. Van Houten expects that the emerging market of data-enabled lighting systems will expand the overall market by roughly $1 billion in the next few years. Whilst all this is going on, Philips have undertaken a monumental project to replace street lighting in Spain, Van Houten commented that, 'We signed a contract to provide the city of Madrid with what is the world's largest street lighting upgrade to date, involving the replacement of 225,000 luminaries.' He also commented that the new system would create a saving of 40% in energy which would mean the installation cost would be paid back almost instantly and mean no extra cost to Madrid's citizens. The new system is said to feature an 'integrated command centre' which means that the entirety of the street lighting system could be controlled by a single control point. Another project that is set for the future will see the distribution of 1.5 million Philips LED lamps in India to over a million households. This should cut lighting energy consumption by 80% and would save 80 MW in electricity generation. With these projects Philips lighting is looking to have a prosperous year ahead but 2015 will present challenges due to the $400 million in costs due to the split and reconstruction of the company.

Nationwide Street Lighting Debate Latest- Kent Police oppose street lighting switch off in their county.

The UK debate on how best to save energy and cut carbon in street lighting continues. Counties involved in the debate are now concerned with the issue that turning off street lighting may increase crime levels. 

Exeter's plan is to turn of lights between 12:30am and 5:30am on minor, less busy roads. Loughborough followed suit by switching off around half of all its streetlights from midnight to 5:30am as part of the Leicestershire county attempt to cut energy costs. 
Instead of turning its lights off, Gloucestershire county council has indicated that it is moving ahead with a plan to install LED street lighting across the county. The county council stated on its website that, 'Approval was given for the council to go to the market and invite proposals for a 12 year contract to replace our street lighting with LED technology.'

Gloucestershire has made other attempts to save energy on its street lighting. By dimming lights on main roads and implementing partial night lighting it is working towards reducing the annual £2 million that its 60,000 street lights consume in electricity, but it believes that using LED street lighting will include further benefits such as, 

- 'Up to 50% reduction in energy usage.'
- 'They can also be dimmed to any level of light output with a corresponding decrease in energy use.'
- 'Low usage- 70% reduction in street light lamp maintenance costs.' 
- 'Better quality of light.'
- 'Fewer faults.' 
- 'Less light pollution.' 

Wigan, has become the latest UK municipality to switch street lighting to LED, now joining with Liverpool and Glasgow.  The borough is investing £11 million to replace 31,000 lights with LEDs.

'I know some councils are switching lights off to save money but I don't think that's something people would want in Wigan Borough,' Wigan Council Leader Lord Peter Smith said in a press release. 'We’ve instead come up with a new scheme to replace our existing lights with LEDs which will still offer the same service the public expects but will be considerably cheaper.'

Wigan has opted for Philips LEDs and control systems, and is counting on Philips to cut their electricity bill by 60%, save them £1 million a year and provide lighting that will last for twenty years plus. 

Whilst several areas have decided to replace their street lighting with LEDs, most of the counties involved maintain that turning off the street lights during the early hours will make a long term energy saving, most probably to avoid paying the initial costs of LEDs. What  cannot be overstated is how much energy, money and time LEDs would save the councils but finding a spare £11 million like Wigan, is a mean feat for most councils. 

The debate over street lighting is now concerning other issues than its costs, worryingly, taxi drives in Chepstow are showing their dissatisfaction with the street lighting being switched off for several hours in the night by claiming that it will increase their chances of running over hard to see drunkards!

 Chepstow have already started turning off street lights between midnight and 5 in the morning in an effort save £180,000, a mere fraction of the money that could be saved by switching to LEDs. 

Meanwhile, Kent County council have promoted that switching off street lighting in the dark hours is 'safe and sensible' but the resident backlash has stated that switching of street lighting is anything but. Kent police are backing residents, they suggest that street lighting has proven to cause reductions in crime levels.
Kent began switching off street lighting in quiet areas from 1am to 6:30am and Police have been monitoring the crime levels in such areas since. They confess its too early to tell whether crime levels have indeed increased but its concerns are partly based on a report from the professional association, the College of Policing. 

And so, the debate continues...