BusinessDay , By Siseko Njobeni: Philips Lighting Solutions, a subsidiary
based in Johannesburg, will target energy-efficient lighting opportunities including LED retrofits, PHILIPS has launched a new business, Philips Lighting Solutions, which will target energy-efficient retrofit lighting opportunities including light-emitting diode lights for public and private sector buildings. This comes as the cost of consuming electricity is poised to increase significantly in the next few years, a factor that will substantially affect the
operating costs of companies. Philips Lighting Solutions will be based in Johannesburg and is a subsidiary of Philips SA. Speaking at the announcement of the new company yesterday, Philips Lighting Solutions GM Megan Louw said energy and carbon would be key cost drivers for companies. Competitiveness hinged on them managing those factors, Ms Louw said. Assuming a 25c/kW hour unit price in 2009 and 25% annual electricity price increase, the cost of consuming 1MW of electricity could increase from R250 to R760 in 2014 or to R808 if the planned carbon tax is included. "Cost savings and policy are driving energy efficiency up the management agenda," she said. According to the 2011 Johnson Controls Institute energy efficiency indicator, which measures the attitudes of South African executives and building owners to energy management, 77% of the executives polled believed that energy efficiency was relevant to their business. Ms Louw said factors preventing investment in energy efficiency included technology barriers. Rapidly evolving technology discouraged investment. In some instances there was doubt about the business case for energy efficiency. The required capital investments could also be a barrier. With SA facing constrained power supply in the next few years until the commissioning of additional power from new power stations, Eskom wants consumers to reduce their power consumption to ease the pressure on the national electricity grid. Eskom says energy efficiency is the most practical option to ensure security of electricity supply. Source: BusinessDay
