GCL Investment Transformation Mall LED Lighting

Investing in transforming LED lighting into New World shopping malls, GCL Smart Energy expects to benefit from the savings in electricity bills, depending on the quality of Philips LED products.

For department stores that consume millions of kilowatts of electricity each year, LED lights are an obvious choice - compared to traditional incandescent lamps, each LED lamp can usually save about 70% of the electricity consumption, and use Longer life. But so far, the domestic market that uses LED lamps as lighting equipment is rare.

“We knew a few years ago that if we were to retrofit the LED lighting system of the store, we could save a considerable amount of electricity and maintenance costs. But let us hesitate to purchase lighting fixtures and light source equipment for renovation. The stores will require one-time investment ranging from 1 million to 3 million, and the renovation of 40 stores across the country will add up to a huge investment,” said Wang Ying, general manager of North China Region in the North District of New World Department Store. What's more, we haven't tried LED products before, and we can't determine whether the energy-saving effect after the transformation can really achieve the expected results."

Like the New World, the investment required for the transformation and the actual energy-saving effect are also concerns for most commercial sites.

However, New World Department Store did not abandon the light transformation in this regard, its approach is to introduce Philips and Shenzhen GCL Smart Energy Co., Ltd. to jointly carry out this transformation. Shenzhen GCL Smart Energy Co., Ltd. (hereinafter referred to as “GCL”) is part of the GCL Group, a diversified environmental energy and new energy company.

Finally, in March 2013, the lighting transformations of 13 stores in New World Department Store, including Beijing, Shenyang, Mianyang, Ningbo and Nanjing, were all completed, and the New World did not pay for it.

New World Department Store has already begun to enjoy the energy-saving effect brought by the lighting transformation. In the stores that have completed the transformation of the lighting system, the average annual power saving has reached 55%. In New World Department Store Beijing Chongwenmen, the original annual electricity consumption of 6.69 million degrees has dropped to 2.63 million degrees, energy consumption has been reduced by 60%, and electricity cost savings have reached 2.0231 million yuan. Moreover, since Philips provided GreenSpace's second-generation LED downlights for this transformation, its service life reached 30,000 hours, and Chongwenmen Store is expected to save 247 million yuan in light source replacement costs and 900,000 yuan in the next six years. Management costs.

“Not only is the electricity bill saved, LED lights have also allowed the overall brightness of the shopping malls to increase, and some temperatures have been lowered, making the shopping experience of consumers in New World Department Store more comfortable.” said Wang Ying. Chongwenmen New World Store has no data on changes in consumer shopping behavior before and after lighting transformation. However, according to Philips' research on the LED retrofit project of the Plus supermarket in the Netherlands, after using LED lights, the length of stay of customers in the store is extended by 5% to 6%, and the amount of consumption will increase by 2%.

As a supplier of LED lights, Philips has obtained revenue from the renovation of each mall. A mid-market LED lighting transformation will require several thousand to 10,000 LED lamps. This is a big order. And, by testing at these 13 stores at different times, temperatures, areas, and humidity conditions, Philips LED lights have shown good results.

Shinsegae Department Store conducted a lighting renovation of the mall without payment, and Philips sold a considerable number of LED lamp products. Of course, GCL will not indulge in this project.

In 2011, Philips and GCL cooperated to set up a program called EMC (Energy Management Contracting) in order to allow the lighting transformation business to run, allowing NWDS to invest zero in the early stage. Complete the transformation of LED lighting in public areas of shopping malls. Contract energy management is a market-based energy-saving mechanism that has been operating since the 1970s. Essentially, it is a financial management method that reduces energy costs.

In 2011, Philips, GCL and New World Department Store jointly signed an LED lighting renovation contract: GCL initially undertakes all retrofit investment and construction, and purchases Philips LED lamps and equipment to complete the New World Department Store. Lighting renovation of the store; After the renovation is completed, there will be a sharing period between the mall and GCL. During this period, the mall needs to return the actual electricity cost saved by the new lighting system to GCL, according to the contracted ratio, until GCL recoups the cost of the previous transformation investment and obtains the basic income. After the sharing period is over, the mall can enjoy the benefits of electricity savings alone.

The contracts signed by Philips, GCL and New World Department Store under the EMC model cover the public area lighting system renovation of 13 stores across the country. Before this, GCL has completed energy audits and energy conservation assessments for these 13 stores, and designed a energy-saving retrofit program for stores together with Philips. In this renovation project, the lighting transformation of all the stores of New World Department Store will try to ensure that the original line has not been made great changes, and choose the same with the size of the traditional lamps and wiring positions, wattage of LED products, do May reduce project construction costs.

According to the previous evaluation and plan, the three parties agreed in the contract the amount of store investment, pre-energy saving effect and investment return period.

However, the key to this contract is that the LED lamp can run to the contractual age under the premise of ensuring the brightness. Zhu Wenjing, director of commercial lighting at Philips Lighting in China, told CBN Weekly that even though Philips had introduced LED products many years ago, products that can actually be applied to the EMC model have only appeared in recent years. Zhu Wenyu's products that can be applied to the EMC model need long enough life, high energy efficiency, and lower prices.

“The typical investment recovery period for EMC projects is three to five years. If the product is broken during this period, it will require repeated investment; if the energy efficiency of the product is not enough, it can not save enough electricity according to the requirements of the contract. It will also result in the failure of timely recovery of investment.” Zhu Wenxuan said that from a technical point of view, Philips’ LED products have already reached the two indicators of useful life and energy efficiency, but product prices have not been reduced to a suitable value in previous years. Interval.

As the only input party in this mechanism, GCL returns the investment in the form of a "conservative electricity fee," such a weak constraint. To ensure that payments are collected on time and in volume, they need to conduct comprehensive commercial assessment and assessment of energy-saving users in advance. "You must consider the business reputation of energy-saving users." Zhang Jianyuan, general manager of GCL, said that they also adopted financial and insurance measures to control investment risks.

Since the old stores had achieved significant energy savings after being retrofitted with LED lighting, New World Department Store decided in 2012 to let the two newly-built stores directly purchase Philips LED lighting solutions, even though the purchase cost is nearly 40 times higher than the traditional lighting system. %. "It is expected that in the next one or two years, we will still adopt the EMC model and complete the LED lighting system upgrade for all 40 stores in the country," said Wang Ying.

Wang Ying’s colleagues have also begun to find Philips and GCL, hoping to switch to a free LED retrofit through the EMC model. "Our one of our important tasks this year is to develop a product that is both an LED lighting product and an EMC model in every Philips lighting product line." Zhu Wenxi thinks that it is now EMC. As a Philips product promotion and sales channel, it is a good opportunity to promote the sales of LED products across the board.

LED retrofit "EMC" solution

01 GCL is paying for the purchase of LED lights and shopping lights.

02 Philips sells LED lights and guarantees that product quality can run up to the contract year.

03 After gaining a free LED retrofit, New World Shopping Mall will return some of the electricity cost savings to GCL.