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  2. Sherlock Holmes
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  4. Sunday, 21 April 2019

Fortune magazine named Philips CEO Frans van Houten as one of the world’s top 25 ‘eco-innovators’. Here was why:

Schiphol airport pay for luxThe Challenge

Amsterdam’s Schiphol Airport, like any other real estate manager, was interested in reducing its utility bill. With lights on 24-7 this could be a big thing. Going to LED lighting would not only substantially reduce the utility bill but would also reduce other costs such as maintenance and inventory of lighting products given the much longer life of LED lighting. But best of all, the savings would be perpetual! But there was significant Capex involved and there were myriad other demands for it.

The Input

Philips, a manufacturer of lighting and other electrical products, was interested in the LED business this would generate and Cofely, an energy services company, would love some demand side management (now called Demand Response) to optimize its load and capex forecast. Philips and Cofely offered Schiphol a deal – “Light as a Service” that Schiphol just could not refuse.

The Output

Philips and Cofely would be jointly responsible for the performance and durability of the system and this included installation, maintenance and ultimately end of life re-use and recycling. Schiphol would only pay for the lux it used and nothing else. Philips will retain ownership of all the equipment and lease it with full service to Schiphol over the life of the contract.


By using energy-efficient LEDs, the airport expects to cut its energy consumption in half, compared to a conventional system. Philips also provided low maintenance and more efficient fixtures reducing material costs as well. Schiphol management were happy to bring to its Board, large Opex savings instead of a large Capex request! For Philips and Cofely, the payback was handsome and replicable elsewhere. The Metro in Washington has since also adopted this pay for lux model.

Source: Lux Reviews

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