LIGHTSAVERS SEMINAR ON LED LIGHTING: PERFORMANCE & PRACTICAL TIPS ON APPLICATION

Transcription

1 SUPPORTED BY: LIGHTSAVERS SEMINAR ON LED LIGHTING: PERFORMANCE & PRACTICAL TIPS ON APPLICATION 24 April 2012

2 Supported by 支持機構 : MARGARET LO 羅嘉琳小姐 Senior Program Development Manager, The Climate Group 氣候組織高級項目發展經理

3 COSTS OF LED Lamp Type 2010 Price ($/klm) Incandescent Lamp (A19 60W high efficiency) $0.50 CFL 13W $2.00 Fluorescent Lamp and Ballast (F32T8) $4.00 CFL 13W, dimmable $10.00 LED Lamp (A19 60W equivalent, dimmable) $50.00 Source: US DOE, SSL Research and Development: Multi-Year Program Plan, March times more expensive than incandescent lamp 5 times more expensive than dimmable CFL

4 COSTS OF LED Lamp Type Source: Vrinda Bhandarkar, LED Lighting Market Trends, Presentation to Strategies in Light conference, Santa Monica, February 2011 Source: US DOE, SSL Research and Development: Multi-Year Program Plan, May 2011 LED Cool White Efficacy (lm/w) LED Cool White Price (US$/klm) LED Warm White Efficacy (lm/w) LED Warm White Price (US$/klm) $13 $6 $2 $ $18 $7.5 $2.2 $1

5 ADDRESSING FINANCIAL COSTS Where retrofits work best Fixtures operate for more than 12 hours a day Electricity costs US$0.1/kWh or above High maintenance costs for current fixtures Best fixture candidates: MR16s, PAR, incandescent, HPS, metal halide, T12

6 CASE STUDY - PARKING GARAGE IN NEW YORK PARAMETERS DETAILS PROJECT SITE 7 STOREYS + ROOFTOP MULTI-LEVEL CAR PARK ORIGINAL LIGHTING TOTAL: 1,052 METAL HALIDE LAMPS STAIRWELLS: 28 X 95W (REPLACED BY 44W LED) ROOF POLE TOPS: 22 X 295W (REPLACED BY 97W LED) ROOF PERIMETER WALL PACKS: 4 X 295 W (REPLACED BY 53W LED) PACKING DECKS: 1,000 X 19OW (REPLACED BY 54W LED) ELECTRICITY CONSUMPTION ANNUAL OPERATING TIME: 8,760 HOURS AVERAGE ELECTRICITY COST: US$0.18/KWH LAMP/BALLAST REPLACEMENT LABOR COST: US$30/HR AVERAGE ANNUAL LAMP FAILURE RATE: 54% AVERAGE ANNUAL BALLAST FAILURE RATE: 14% UTILITY ANNUAL INFLATION RATE: 5% PROJECT COSTS COST OF FIXTURES: US$433,389 COST OF INSTALLATION: US$62,700 SALES TAX (8%): US$34,671 SHIPPING (US$4/UNIT): US$5,016 PROJECT MANAGEMENT FEE: US$53,578 TOTAL COST: US$589,354 ENVIRONMENTAL BENEFITS 66% LOAD REDUCTION ANNUAL ELECTRICITY SAVING OF 1.25 MILLION KWH ANNUAL CARBON REDUCTION OF 727 TONS

7 CASE STUDY - PARKING GARAGE IN NEW YORK FINANCIAL DETAILS OPTION 1: BALANCE SHEET OPTION 2: BORROWING OPTION 3: LEASING/HIRE PURCHASE INITIAL COST US$589, YEAR TOTAL ANNUAL PROJECT SAVINGS US$288,443 US$289,597 US$294,212 US$323,057 US$333,882 US$334,013 US$344,482 US$354,951 US$365,419 US$375,888 US$3,303,944 DEBT PAYMENT US$93,926 US$93,926 US$93,926 US$93,926 US$93,926 US$93,926 US$93, CASH FLOW US$194,517 US$195,671 US$200,286 US$229,131 US$239,956 US$240,087 US$250,556 US$354,951 US$365,419 US$375,888 LEASE PAYMENT US$259,599 US$259,599 US$275, CASH FLOW US$28,844 US$29,998 US$18,944 US$323,057 US$333,882 US$334,013 US$344,482 US$354,951 US$365,419 US$375,888 TOTAL COST US$589,354 US$657,482 US$794,466 SAVINGS US$2,714,590 US$2,646,462 US$2,509,478 FINANCIAL PERFORMANCE BENEFIT 1.78 YEARS PAYBACK WITH IRR OF 54% OVER 10-YEAR PERIOD (WITHOUT CONSIDERING REBATES) LEAST ADMINISTRATIVE COST DOES NOT INCREASE DEBT LOAD LEVERAGED IRR OF 177% (ASSUME 80% LEVERAGE AT 10% INTEREST RATE & 20% DOWN-PAYMENT) POSITIVE LEVERAGE FOR CREDIT-WORTHY BORROWER NET PRESENT VALUE OF US$3,456,165 AFTER 7 YEARS (ASSUME 8% DISCOUNT RATE & 8% CAPITALIZATION RATE) OFF BALANCE-SHEET NO ADDITIONAL LIABILITY

8 LIFE CYCLE COST ANALYSIS Capital cost of new fixtures and project management costs Cost of installing the new luminaires, including cost of roadway closures to accommodate crews Maintenance cost of replacing luminaire components when they burn out or fail, including cost of roadway closures to accommodate crews Energy costs estimated during the lifetime of the luminaire, incorporating an estimated inflation in the utility rate over that time Useful lifetime of the existing and the new luminaires

9 CASE STUDY: LOS ANGELES Source: Clinton Climate Initiative, City of Los Angeles LED Street Lighting Case Study, 2011

10 CASE STUDY: LOS ANGELES Source: Clinton Climate Initiative, City of Los Angeles LED Street Lighting Case Study, 2011

11 CASE STUDY: LOS ANGELES IRR of 7.4% at 12 years, at 50,000 hours of operation Interest rate paid by L.A. on the investment capital is 5.25%, hence the project appears profitable Source: Clinton Climate Initiative, City of Los Angeles LED Street Lighting Case Study, 2011

12 FINANCIAL ANALYSIS TOOL Developed by MSSLC (Municipal Solid-State Street Lighting Consortium) in collaboration with Clinton Climate Initiative/C40 Available at Assessment on Project cost analysis - non-discounted Project environmental impact analysis Project finance analysis

13 PROJECT INPUTS Different for each utility due to different fuel mix

14 TECHNOLOGY SPECIFIC INPUTS Including wattage of ballasts

15 TECHNOLOGY SPECIFIC INPUTS

16 MAINTENANCE (OPTIONAL)

17 SCHEDULED MAINTENANCE

18 SCHEDULED MAINTENANCE

19 SCHEDULED MAINTENANCE

20 PRE-FINANCE RESULTS SUMMARY Expected lifetime of LED lighting

21 EXPENDITURE SUMMARY

22 SIMPLE CASH FLOWS

23 CASH FLOWS

24 ENVIRONMENTAL SAVINGS

25 FINANCING

26 FINANCING

27 CASH FLOWS

28 CASH FLOWS

29 CONCLUDING REMARKS LED lighting retrofit can yield a positive return on investment Comprehensive life cycle cost analysis Choice of financing options Identify potential incentives & future risks