Page 13 - Respond 2019 Magazine

Respond

Figure 1. Global EV Electricity Demand: Base Case vs. Aggressive Case
Signify (Euronext: LIGHT) is the world
leader in lighting for professionals and
consumers and lighting for the Internet
of Things. Our Philips products, Interact
connected lighting systems and data-
enabled services, deliver business value
and transform life in homes, buildings
and public spaces. With 2017 sales of
EUR 7.0 billion, approximately 32,000
employees and a presence in over 70
countries, we unlock the extraordinary
potential of light for brighter lives and
a better world. News from Signify is
located at the Newsroom, Twitter and
LinkedIn. Information for investors can
be found on the InvestorRelations page.

well as more comfortable driving). Because Figure 1 shows that ambitious deployment manufacturing and implementation) and
the vast majority of EVs are charged at of Electric Vehicles (EVs) with 90% of indirectly (e.g., by freeing up disposable
home or at the workplace, this growth car sales being electric by 2040 requires income). Investments in local construction
in EV adoption represents incremental an additional 3000 TWh of electricity, enable direct capture of energy cost
growth in building electricity use. The which is more than the whole of Europe savings and returns on retrofit investments
accelerated deployment of energy efficient consumes per year today. Increasing by local residents and businesses, whereas
technologies in buildings (where most of building renovation rates from the current investments in electricity generation
our electricity is consumed) is by far the 1% to between 3 and 5% per year (with the facilities will divert returns elsewhere, with
most cost-effective way to accomplish this. 5% rate estimated at current practice of less immediate benefit to the community.
30% efficiency improvement, and the 3%
The base case scenario predicts that EVs renovation rate requiring approximately a A third linkage between buildings and EVs
will comprise 55% of annual vehicle sales 50% efficiency improvement) will prevent (see Figure 2) is that most if not all new
by 2040 (with 50 million EVs sold in the the need to build and invest in new efficient technologies – like LED lighting
year 2040) and 33% of total cars on the power generation. Furthermore, another – are digital, and thus our buildings can
road worldwide (reaching 550 million total important practical relationship between become smart buildings connected to
EVs). This case represents Bloomberg New buildings and EVs is that the EV charging the Internet of Things following these
Energy Finance’s (BNEF’s) 2018 EV outlook, points can be included in the building renovations. This will enable smart
which is based on current projections of (residential, commercial or public sector charging and load management that can
EV adoption from public goals, targets and building) as part of the renovation. After further reduce power demand on the grid!
sales trends. We view BNEF’s prediction as all we will charge our cars while we are at In the case of grid-interactive efficiency
a realistic representation of EV adoption work or at home. The economic argument investments in building controls, smart
based on current trends. To determine for increasing building energy efficiency LEDs, and smart appliances (among
the upper limits of EV adoption, Rocky retrofits rests on the fact that there are others) make demand flexible, thereby
Mountain Institute designed an aggressive numerous market-ready technologies promoting grid stability. When paired
scenario to represent what effect rapid that can be deployed with short payback with the deployment of smart EV charging
adoption of EVs would have on electricity periods, and that building retrofits create infrastructure to enable EVs as distributed
demand. EV adoption rates are much more local economwic development than energy resources, this can help to balance
higher in this scenario and reach 90% the construction of additional power loads and better harness renewable
of annual vehicle sales by 2040 (with 63 generation. For reference, according to energy generation. As an example, Figure
million EVs sold in the year 2040) and a 2013 Ecofys report investing in energy 3 illustrates the impact of widespread
43% of total cars on the road worldwide efficiency measures could create 380 jobs deployment of fast payback measures,
(reaching 830 million total EVs). This per TWh of electricity saved, whereas including LED retrofits, appliance
scenario represents RMI’s most aggressive investing in coal-fired power plants replacements, and retro-commissioning
outlook based on internal research looking creates 110 jobs per TWh of electricity across the state of California. These
at continued commitments, cost declines generated. Job creation from energy measures have a payback of less than four
and infrastructure rollout goals. years and achieve about a 7% reduction
efficiency can happen both directly (e.g., in
in statewide hourly electricity use. Paired

11