How the lighting sector can save even more energy

A recent study by independent energy consultancy and assurance provider DNV, in partnership with utilities and program administrators from across the US and Canada, has revealed lighting opportunities that could lead to savings of more than 3,700,000 MWh.

These findings might seem surprising, given commercial and industrial (C&I) lighting — once the core of energy efficiency savings portfolios across the region — is no longer a major focus now that LEDs have reached the late majority stage of market adoption.

In the study, undertaken in partnership with 11 organisations* across the US and Canada, DNV collected data and insights from vendors, manufacturers and lighting contractors — in addition to industry perceptions provided by the sponsors. With this information and other data, DNV developed a bottom-up stock turnover model to provide an accurate characterisation of the lighting market across North America.

“Lighting has long been a staple of energy efficiency programs, providing a low-cost and -effort means to reduce energy consumption for homes and businesses,” said Richard S. Barnes, region president, Energy Systems North America. “However, the widespread availability and adoption of LEDs has eroded this savings potential,” he explained.

“This study outlines new ways that lighting can be used to provide customers and utilities with deeper energy savings while using established and effective utility energy programs.”

The study identified six separate “next-generation” commercial lighting opportunities that are either most likely to produce significant program savings or are gaining traction in the market. It graded these opportunities according to the potential size of the market, potential to deliver meaningful program savings, and ease of delivery.

Three opportunities — higher-efficacy LEDs, advanced lighting controls, and redesigned LED-to-LED retrofit — were considered to have mass market potential, with the ability to fit into established energy management programs or to be capable of being scaled. The other three opportunities — demand management, germicidal UV, and tunable lighting — were identified as niche market initiatives that apply to specific conditions and customers; while having the ability to provide energy savings, they are not suited to broad adoption.

While all the opportunities have potential, only one was given an ‘A’ grade: replacing existing LEDs with newer, higher-efficacy products. DNV commented that the market potential for this opportunity is enormous, as older LEDs inevitably burn out and need to be replaced. There are many replacement options on the market, but there is a 20% increase in energy savings when using the highest-efficacy LED products vs baseline products, with a negligible cost differential. Implementing this option is relatively easy, as utilities can use already established energy programs, specifically those targeted to the consumer or retailers.

Advanced lighting controls, which enable building owners to fine-tune lighting based on occupancy and other factors to reduce energy use, also offer high potential energy savings. However, this was given a B grade, as the applicable market is smaller than the previous opportunity — and the cost is higher, given networking electronics and intricate commissioning and installation. Additionally, the payback is best realised in a larger facility, which also limits the market.

While these next-generation opportunities offer the potential for unexpectedly large energy savings in an area that is considered fully tapped, there still remain more traditional lighting upgrade opportunities in harder-to-reach populations or areas. These include smaller businesses, often located in under-served communities which have not made the switch from CFLs or similar to LEDs for a variety of reasons, including lack of funding. Combined with the next-generation opportunities highlighted in the study, there are still considerable energy savings to be made from lighting.

To access a copy of the report, click here.

_{*Sponsors/participants were: Ameren Illinois, Ameren Missouri, Avangrid, Consumers Energy, Energy Trust of Oregon, Focus on Energy, IESO, Rhode Island Energy, Tacoma Power, Xcel Energy and lead sponsor ComEd.}

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