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Every highlight on this map is a streetlight in the city. At the Frankfurt Lighting Fair, the largest event in the global lighting industry, an instructor is demonstrating remote control of urban streetlights. This is where we are now, we are all circled and then closed. The three street lights at the top of the booth were extinguished.
This technology comes from Philips' CityTouch intelligent lighting management system, which allows each street lamp to be programmed and remotely controlled. Combined with LED lights, this system can save 70 energy for urban lighting.
For Philips, however, the ambitions in urban lighting are not limited to remote control and energy savings. At this year's show, Philips showed us the possibility of a connected city. Through the lighting management system, the lights are becoming a network connecting the cities. Based on this management system, Philips is also connecting the product value chain. In addition to the traditional equipment supply and software development, it also develops financing services. New business model.
More than 200 CityTouch systems are installed in 27 countries around the world, so we will continue to improve the system to make it more user-friendly and generate more data; constantly pay attention to installation and commissioning costs and tap more with this product line. A related source of value, Philips professional lighting solutions CEOAmelia Huntington said.
Data Visualization Managing Urban Lighting Compared to other competing products, one of the big selling points of the CityTouch system is that it is completely network-based rather than being installed on a computer as a piece of software.
The user can control the city lights by simply opening the web page and logging in to the control system like logging in to the mailbox. However, although this design is convenient for users, it puts higher requirements on system security. If the system is hacked to control the lighting system of the entire city, its impact will not be estimated. Safety is a place we pay great attention to. We have set up multiple security measures to ensure system security. At the show, the CityTouch system interpreter responded.
Innovation is not limited to this. In the era of big data, data analysis and visualization have become an important means to improve efficiency. Through detailed understanding of the equipment, CityTouch system can divide different models and years of lamps into different colors on the map. The cost comes from lighting in public spaces, but the energy efficiency of these lightings needs to be improved. About one-third of the approximately 200 million street lamps in the world use the high-pressure sodium lamp technology invented in the 1930s.
Fortunately, city managers are aware of the importance of LEDs for building an environmentally friendly city. In fact, in a US survey, 82 US mayors believe that LED is the most promising technology for energy conservation and carbon reduction. Amelia Huntington said.
Undoubtedly, the potential of urban lighting management is huge, and thus has become the focus of attention of various lighting manufacturers. In addition to the traditional hardware equipment provided, software services have become a key step for all parties to compete for the market.
In the Philips CityTouch system, users can see the details of all street lights on the city map, including the model and usage status of each street lamp. By simple mouse circle selection, the administrator can realize various operations such as opening, dimming, and closing the city lights, thereby achieving precise illumination according to needs, and optimizing lighting functions such as crime prevention and energy efficiency improvement.
Such data comes from the automatic identification of hardware. We are the first company to use CityTouchlightwave to provide mobile internet technology for urban lighting. As an illumination point, the LED street light is instantaneously connected to the system when it is powered on, without debugging. The street light and its identification data will also automatically appear in the correct location on the CityTouch map. With just a few clicks, you can start managing and controlling this lighting point. This is a completely plug-and-play, scalable system, Amelia Huntington said.
The new business model provides financing for the Argentine capital of Buenos Aires is one of the users of this system. Previously, the Buenos Aires government announced a partnership with Philips to upgrade the city's streetlights with the Philips LED lighting system and CityTouch. In the next three years, Buenos Aires will have more than 91,000 active street lights upgraded, saving more than 50% of electricity per year and significantly reducing CO2 emissions.
However, for urban managers, although LED upgrades are a significant and effective energy-saving solution, the use of new lighting facilities is bound to require more capital investment, and budget issues make decision-making more difficult.
Faced with this challenge, Philips said it has developed a variety of new business models to help cities cope with budgetary issues.
We have introduced a new business model that uses lighting as a service. Amelia Huntington explained to 21st Century Business Herald that many cities are now facing a huge budget squeeze, and people are asking for how the government spends money, so the government is under strict supervision. Therefore, Philips adopted this model in Washington, DC: to help Washington Metro management to raise funds for funding.
For example, when we reached an agreement and decided to implement the system, the government did not have to bear the cost of the upfront capital. They are like repaying loans, and they start paying fees after one year, and they pay less than the cost they save each month from lighting. The contract we signed was ten years, so the annual fee to be paid is expected for them, and the cost saved by the lighting system is enough to cover this cost.
Amelia Huntington said it is not easy to say which other cities have adopted a similar model, but this model is a trend.
As a global leader in the lighting industry, we want to help cities connect to funding channels, and with our partnerships with other institutions, we can help cities do this and help them find solutions within their budget.
So, will this model be extended to Chinese cities?
Amelia Huntington said that because of some cultural differences, it is difficult to simply say whether this model can operate in China. If such cooperation is to be achieved, it must be creative, but the benefits of transforming from traditional lighting to LED lighting are all The city is the same.
However, as early as 2013, Philips and China Electronic Information Industry Group (CEC) announced the establishment of a joint venture to develop urban road smart lighting business in China, and CityTouch is also among the products it is expected to promote.
According to the website of the Ministry of Commerce, the Dutch “Daily News†reported that the Chinese government is paying close attention to the development of energy-saving cities, vigorously supporting the upgrading of urban road lighting to LEDs and the promotion of intelligent lighting management systems. Philips Greater China CEO Patrick Kung said that Philips is responding to the Chinese government's call to develop more environmentally friendly and smart city solutions through LED technology. The establishment of the joint venture will enable Philips to better serve local customers.