How LED Lighting Breaks Industrial Development

In mid-February, the National Development and Reform Commission and other ministries jointly announced the “Semiconductor Lighting Energy-Saving Industry Plan” and clearly stated that by 2015, incandescent lamps of more than 60 watts will stop production and sales; the average annual output value of LED lighting industry will increase by about 30%. This year will reach 450 billion yuan, of which LED lighting applications will reach 180 billion yuan.

For a time, the domestic LED lighting industry is full of joy, as if already ushered in the "best time" of LED lighting industry.

Is it really so simple? Can a plan break the bottleneck in the development of this industry? In fact, only when this industry breaks a number of flaws in development can it be possible to usher in the spring.

The status quo of the current price is too expensive as a bottleneck green lighting does not call the LED lighting products, "Gate of Life" is also very obvious, that is, the price is too expensive. The reporter learned from the lighting shop of a large-scale decoration city in Suzhou City that an 8W energy-saving lamp with a Jiangsu subsidy brand with a retail price of 8.6 yuan was used. If it catches up with subsidies for financial subsidies, local residents can also purchase less than half the price. 10 energy-saving lamps; and the same brand 3W specifications of the LED lamp brightness is almost the same, the market retail price is about 50 yuan, the price of the two light sources is quite disparity. "8W energy-saving lamp homes generally use one or two twenty, one lamp is more than thirty or forty dollars, one investment is still quite 'biting' in the decoration," the salesperson told reporters, "LED lights are power-saving, can be Residents buy light saved money when the electricity fee I do not know how long it can be used.” The brand lighting dealers revealed that at present, their sales in the Suzhou market, traditional energy-saving lamps accounted for nearly half, and LED lights less than 10%.

The applause may not be appeased, and it is not uncommon for technology-leading products to be shunned in the market. It is more environmentally friendly, more energy-efficient, and more beneficial to the overall operation of the society—this feature of LED lamps is called “positive externality” in economics. If it is regulated by the market alone, “positive externalities” will Make the amount of market production less than the amount of social hope.

Cost Strategy Breakthrough Xinnajing Breaks Through Industry Challenges Has industry passed the "inflection point"?

LED lighting leading enterprises in Suzhou --- Suzhou Xin Nano Crystal Photoelectric Co., Ltd. has announced that they produce LED light-emitting chip luminous efficiency of 180 lumens per watt!

Xiao Hongqing, a professor at Taiwan University of Science and Technology and a well-known scholar in the LED industry, asserted that when the LED chip's luminous efficiency reaches 180 lumens per watt, it will usher in the “inflection point” of the entire LED lighting industry. Because after achieving this efficiency, it means that the “extra” design that was previously performed to ensure heat dissipation will become history, and the production cost of LED lighting will be reduced step by step.

Apart from the bottleneck related to the development of its own technology, another reason for the high cost of LED lighting products lies in the lack of integration and concentration in this industry. At present, Suzhou has a total of 102 LED lighting production enterprises. The number of patent applications has reached 2,240, and 1,182 LED patents have been granted, ranking among the top cities in China. However, from the distribution of 32 major LED lighting manufacturers in Suzhou City in the industrial chain, nearly 80% of the companies focused on the middle and lower reaches of the device and integrated applications, and the size of the company is generally small. A near-cruel fact is that about 80% of the power LED chips in Suzhou still need to be imported from foreign countries and Taiwan.

Xinhuajing general manager Wang Huaibing told reporters that Xinnajing will purchase 20 sets of MOCVD (the key equipment for LED chip production) for the first phase, and the annual production value is expected to reach 500 million yuan after full production. The advantages for the entire LED lighting industry in Suzhou will be integrated. Bring positive influence. In the next step, Xinnajing will also actively carry out the vertical integration of the LED industry-related industry chain, thereby further reducing production costs.

Now, local leading companies have announced high-profile announcements that breakthroughs have been made in key technologies, and the local industrial chain is rapidly expanding from the application end to the front end. Suzhou City Economic and Information Commission in a research report on the status quo of the LED lighting industry describes: "LED lighting products generally appear 'two 20%', that is, product performance and quality indicators have an average annual increase of 20%, the average annual price of products About 20% decline." "Inflection point" is as expected? We may as well wait and see.

Operational Innovation LED Street Lights Cost of Restructuring 6 Years Can Contract Energy Management Realize “Win-Win”?

If the innovation of market operation mechanism can solve the cost problem of “positive externality” products, it is undoubtedly the most ideal answer. It is under such expectations that the contract energy management model has become a market-oriented solution that concerns all parties.

Suzhou City Economic and Information Technology Commission randomly selected Sanxiang Road for the simulation transformation measurement in the investigation. A lighting company in Suzhou City produced a LED lighting transformation plan. After the transformation, it will save 191,600 kWh of electricity, equivalent to 80.6 tons of standard coal. Each year, the electricity cost is reduced to 178,000 yuan, and the contract energy management model is adopted. The cost can be recovered in less than 6 years. Although the road segment selection is random, the company still believes that implementing contract energy management is entirely feasible.

Obviously, with this management approach, the energy saving effect of LED lighting can be fully converted into economic benefits. Suzhou Federation of Industry and Commerce proposed suggestions on the development of LED lighting industry. It is necessary to establish an online service platform for contract energy management to solve the bottleneck problem caused by technical and credit breakdowns in the promotion of the model. Through the implementation of LED green lighting pilot demonstration projects, the contract was adopted. As for energy management, a group of public facilities was selected to carry out pilot projects. During the two sessions of the city this year, the Municipal Federation of Industry and Commerce submitted the relevant proposal to the CPPCC.

Policy support "tangible hand" guide effect for all to see Home LED lamps to enjoy the subsidy is still time how to make those lighting lighting large electricity users switch to LED lights? To solve this problem, open up the development of LED lighting products themselves, but also Can not be separated from the government's "visible hand" and the market's "invisible hand" together to promote.

First look at the "visible hand" - the guiding role of government financial subsidies policy. The government’s financial subsidies mean that taxpayers share the use costs of products with “positive externalities”, or that the benefits of energy conservation and environmental protection are internalized into consumer individuals, thus promoting the popularization of related products. The piloting effect in the promotion process of energy-saving lamps replacing halogen lamps has been proved.

According to the Energy Conservation and Comprehensive Utilization Department of the Suzhou Economic and Information Commission, the current state of the government's office buildings, office buildings (office building renderings) and other large-scale indoor lighting and roads, streets, squares and other outdoor lighting projects, as long as the tender using the designated brand For LED lighting products, the central government subsidizes 30% of the supply price of the bid agreement. In the newly issued "Semiconductor Lighting Energy-Saving Industry Plan," it is clearly stated that "we should gradually increase the financial subsidies for the promotion of LED lighting products." However, the current national finance has no subsidy program for ordinary household LED lamps. The "home" huge market is included in the subsidy category, I am afraid that the majority of LED lighting companies dream.

Of course, we must calmly see that fiscal subsidies have both advantages and disadvantages for the development of an industry. Only relying on financial subsidies can not prop up an industry. In the past few years, another "stunt" of the solar photovoltaic industry, a strategic emerging industry, has left an unforgettable lesson for the Chinese industry.

In addition, there are many ways to regulate through "tangible hands", such as the administrative restrictions on the elimination of technology, and the collection of heavy taxes, such as support for emerging industries, such as fiscal and taxation preferences. In short, how can the “tangible hand” play its role and thus maximize the “technical spillover effect”? These are left to the decision-makers' careful consideration and the game of all parties.

Establishing the asymmetry of rules information leads to whether “bad money drives out good money” and “industry alliance + industry standard” can save itself in the LED lighting industry. Some unscrupulous manufacturers have embarked on a “road” to reduce costs and win market – cut corners . The tragedy is that in today's market with asymmetric information such as LED lighting products, "good money" has repeatedly lost in the competition, and the last disorderly market may have only "bad money."

In response to the “chaos” in the current LED lighting product market, the Suzhou Industrial and Commercial Association proposed in its proposal: “To encourage leading enterprises in this city to initiate the establishment of LED green lighting industry organizations as soon as possible, and to quickly study and formulate regional industrial standards for LED lighting products. "The Municipal Commission of Economic and Cultural Affairs in the research report submitted to the municipal government is clearly put forward the countermeasures:" establish the city's LED lighting industry alliance "," as soon as possible to establish Suzhou City, LED green lighting association; accelerate the formation of industrial alliances, tracking domestic and foreign industrial research and development , testing and industrial development trends, promote the development of regional technology and product standards, intellectual property protection, and form a competitive advantage in LED lighting enterprise clusters in our city.”

Through the establishment of industrial alliances and industry standards, the disorder is changed in an orderly manner, and information asymmetry becomes transparent, which is undoubtedly the most effective breakthrough point for cracking down on the market dilemma of “bad money drives out good money”.