Power Min promotes biz model to procure LED bulb & sell at cheaper price
Updated: Oct 08, 2014 02:29:30pm
New Delhi, Oct 8 (KNN) Promoting LED bulbs in India to cut the energy efficient source of lighting to its usage to 1/10th to that of a normal incandescent bulb, the Bureau of Energy Efficiency (BEE) together with EESL (Energy Efficiency Services Limited) have worked with electricity distribution companies to develop a business model under which EESL procures LED bulbs in bulk and sells them to households at Rs 10 instead of the market price of Rs 400.
EESL is a joint venture of 4 power sector central PSUs.
All lighting manufacturers have established manufacturing facilities for LED-based lighting system in India, and have started training programmes for lighting engineers and demonstration programmes in various buildings to showcase this technology, the Ministry of Power said in a release.
Increase in domestic demand would further reduce cost of LED bulbs with larger production capacities getting created in India. Also, along with standardisation and awareness generation, bulk public procurement could also spur demand and lead to price reduction in an accelerated manner.
Light Emitting Diode (LED ) are emerging as the most energy-efficient source of lighting, with a LED bulb using 1/10th as much energy as a normal incandescent bulb and half as much energy as a Compact Fluorescent Lamp (CFL) to produce the same amount of light.
However, the major challenge has been its high cost. The first LED lamp made in India, in 2010 was sold for Rs 1200.
BEE under the Ministry of Power initiated a systematic process to exploit the energy saving potential of LEDs, and to bring them into large scale use as soon as possible.
Consequently, a roadmap was prepared, in close cooperation with the lighting industry, which sought to - ensure the quality and reliability of LED lamps; reduce the price of LED lamps, initially through large scale public procurement and then through a labelling programme; and facilitate awareness and demonstration of this lighting through its technology.
BEE simultaneously promoted demand for LED bulbs and for LED streetlights by providing financial support to all states to set up demonstration projects to highlight the lighting quality and energy savings of this technology.
At the same time, a number of electricity distribution companies have also entered into agreements with LED manufacturers for the supply of LED bulbs at preferential prices to their consumers.
All lighting manufacturers have established manufacturing facilities for LED-based lighting system in India, and have started training programmes for lighting engineers and demonstration programmes in various buildings to showcase this technology.
“BEE together with EESL have worked with electricity distribution companies to develop a business model under which EESL procures LED bulbs in bulk and sells them to households at Rs 10 instead of the market price of Rs 400,” said the release.
Recently in August this year, following the signing of MOU between EESL and Government of Andhra Pradesh, EESL completed the procurement process of 20 lakh LED bulbs last week.
The rapid price reduction as a result of aggregation of demand augurs well for promoting energy efficiency in lighting sector with the state of the art LED technology. At a price of Rs 204, LED are just 30-40 per cent costlier than CFLs. As compared to CFLs, LEDs are 50 per cent more energy efficient apart from not using mercury as is the case with CFL.
Also, LEDs have life that is 4-5 times more than CFLs and therefore are cheaper option on life cycle cost basis. A barrier of use of LEDs in household sector is the lack of standardisation and awareness. BEE will now be launching a labelling programme, coupled with an outreach and awareness campaign, to drive the LED demand significantly.
The present demand of ICLs and CFLs is more than 1.1 billion units every year. (KNN/SD)
EESL is a joint venture of 4 power sector central PSUs.
All lighting manufacturers have established manufacturing facilities for LED-based lighting system in India, and have started training programmes for lighting engineers and demonstration programmes in various buildings to showcase this technology, the Ministry of Power said in a release.
Increase in domestic demand would further reduce cost of LED bulbs with larger production capacities getting created in India. Also, along with standardisation and awareness generation, bulk public procurement could also spur demand and lead to price reduction in an accelerated manner.
Light Emitting Diode (LED ) are emerging as the most energy-efficient source of lighting, with a LED bulb using 1/10th as much energy as a normal incandescent bulb and half as much energy as a Compact Fluorescent Lamp (CFL) to produce the same amount of light.
However, the major challenge has been its high cost. The first LED lamp made in India, in 2010 was sold for Rs 1200.
BEE under the Ministry of Power initiated a systematic process to exploit the energy saving potential of LEDs, and to bring them into large scale use as soon as possible.
Consequently, a roadmap was prepared, in close cooperation with the lighting industry, which sought to - ensure the quality and reliability of LED lamps; reduce the price of LED lamps, initially through large scale public procurement and then through a labelling programme; and facilitate awareness and demonstration of this lighting through its technology.
BEE simultaneously promoted demand for LED bulbs and for LED streetlights by providing financial support to all states to set up demonstration projects to highlight the lighting quality and energy savings of this technology.
At the same time, a number of electricity distribution companies have also entered into agreements with LED manufacturers for the supply of LED bulbs at preferential prices to their consumers.
All lighting manufacturers have established manufacturing facilities for LED-based lighting system in India, and have started training programmes for lighting engineers and demonstration programmes in various buildings to showcase this technology.
“BEE together with EESL have worked with electricity distribution companies to develop a business model under which EESL procures LED bulbs in bulk and sells them to households at Rs 10 instead of the market price of Rs 400,” said the release.
Recently in August this year, following the signing of MOU between EESL and Government of Andhra Pradesh, EESL completed the procurement process of 20 lakh LED bulbs last week.
The rapid price reduction as a result of aggregation of demand augurs well for promoting energy efficiency in lighting sector with the state of the art LED technology. At a price of Rs 204, LED are just 30-40 per cent costlier than CFLs. As compared to CFLs, LEDs are 50 per cent more energy efficient apart from not using mercury as is the case with CFL.
Also, LEDs have life that is 4-5 times more than CFLs and therefore are cheaper option on life cycle cost basis. A barrier of use of LEDs in household sector is the lack of standardisation and awareness. BEE will now be launching a labelling programme, coupled with an outreach and awareness campaign, to drive the LED demand significantly.
The present demand of ICLs and CFLs is more than 1.1 billion units every year. (KNN/SD)
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