LED technology for urban public lighting

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LED technology for urban public lighting
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Business Model Description

Invest in the replacement of energy-intensive public street lighting (mercury and high-pressure sodium lamps) with more efficient LED technology, recouping capital from savings costs - model can be a direct investment through a concession or in a blended transaction

Expected Impact

Lower municipalities' energy bill and improve the quality and durability of public lighting

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11) Responsible Consumption and Production (SDG 12) Reduced Inequalities (SDG 10) Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8) No Poverty (SDG 1)
Sector Sources
  • 1) Bertelsmann Stiftung, 2019, https://dashboards.sdgindex.org/#/BRA 2) World Bank, 2019, https://www.worldbank.org/en/news/feature/2019/06/19/lifelines-for-better-development?cid=ECR_LI_worldbank_EN_EXT 3) Globo, 2019, https://g1.globo.com/economia/noticia/2019/02/10/investimento-do-governo-em-infraestrutura-no-ano-passado-e-o-menor-em-dez-anos.ghtml 4) Correio Braziliense, 2018, https://www.correiobraziliense.com.br/app/noticia/economia/2018/11/02/internas_economia,717118/novo-governo-planeja-viabilizar-investimentos-e-r-180-bi-na-infraestr.shtml 5) OECO, 2012, https://www.oeco.org.br/noticias/26650-brasil-perde-20-de-energia-nas-linhas-de-transmissao/ 6) Correio da Bahia, 2018, https://www.correio24horas.com.br/noticia/nid/mais-de-50-dos-municipios-baianos-tem-problemas-de-saude-por-falta-de-saneamento/ 7) Agénor, Pierre-Richard, and Otaviano Canuto. 2013. “Gender Equality and Economic Growth in Brazil.” The World Bank, https://ems.gtc.ox.ac.uk/sites/ems.gtc.ox.ac.uk/files/EP109.pdf 8) Associação Nacional dos Consumidores de Energia, 2016, http://www.anacebrasil.org.br/noticias/grandes-apagoes-viram-rotina-no-brasil/ 9) BNDES, 2018, https://web.bndes.gov.br/bib/jspui/bitstream/1408/16040/3/PRLiv214078_Visao_2035_compl_P.pdf
IOA Sources
  • 10) World Bank ESMAP, 2017 https://openknowledge.worldbank.org/bitstream/handle/10986/29537/ESM-P150942-PUBLIC-LightingBrazilianCitiesReportENGLISHFINAL.pdf?sequence=1&isAllowed=y 11) SX Lighting, 2017, https://sxlighting.com.br/en/blog/cresce-demanda-por-luminarias-led-no-brasil/ 12) SX Lighting, 2017, https://sxlighting.com.br/en/blog/brasil-tem-avancos-em-tecnologias-de-iluminacao-led/ 13) World Bank, 2018, https://www.worldbank.org/en/news/feature/2018/07/27/eficiencia-energetica-fundamental-futuro-ciudades-sostenibles 14) Globo, 2019, https://g1.globo.com/economia/noticia/2019/01/21/bolsonaro-herda-69-projetos-do-ppi-de-temer-e-quer-ampliar-privatizacoes.ghtml 15) Associação Nacional dos Consumidores de Energia, 2016, http://www.anacebrasil.org.br/noticias/grandes-apagoes-viram-rotina-no-brasil/ 16) World Resources Institute, 2019, https://wriorg.s3.amazonaws.com/s3fs-public/shifting-currents_0.pdf?_ga=2.165667197.35428254.1559688164-1749031158.1557484742 17) Aneel, 2016, http://www.aneel.gov.br/conteudo-educativo/-/asset_publisher/vE6ahPFxsWHt/content/composicao-da-tarifa/654800?inheritRedirect=false 18) Tracking SDG7: The Energy Progress Report. “Brazil | Tracking SDG 7.” https://trackingsdg7.esmap.org/country/brazil. 19) United Nations Global SDG Database. “SDG Indicators.” https://unstats.un.org/sdgs/indicators/database/.