The third progress report refers to months M12-M16 in the project execution. The reported period includes activities associated to work packages WP2, WP3 and WP4. The main focus of the partners was the development of an initial prototype for the i-Light system, aiming towards deploying and demonstrating the functionalities of this initial platform in a pilot site. Thus, the activities during this period were directed both towards designing the hardware components (intelligent luminaire, including the lighting module, sensor module and communication interface) – activities led by the Spanish partner INN, and towards the development of the necessary software modules (for interior localization, data transmission, user interface) – activities performed by the Romanian partners PUB and IW. The first parts of milestones M2 (“First CPS prototype”) and M3 (“First i-Light software tools”) were completed: the initial prototypes for the hardware components of the system were developed, as well as the required software applications. Furthermore, all developed components and modules were integrated into a first prototype of the i-Light platform.