India's energy revolution
India is looking at an "energy revolution", and Light Emitting Diode (LED) technology will be at the heart of it, according to research from Frost & Sullivan. Currently, 20 percent of building electricity consumption can be attributed to lighting systems.
The market in India is dominated by compact fluorescent lamps and T5 fluorescent lamps. LEDs have yet to make significant inroads due to their high upfront costs; the absence of standards, testing, measurement and verification protocols; and lack of awareness.
In spite of this, LED lighting systems are predicted to play significant role in reducing India's overall energy requirements when used in street lighting in conjunction with Integrated Lighting Management Systems.
Driving India's revolution are new norms for energy efficiency in new facilities, support for energy-efficient project incentives, and the phase out of energy-inefficient lighting products.
In the past three years, prices of LED lighting systems have fallen by more than 30 percent due to increasing adoption and manufacturing technology improvements. Mass commercialization and acceptance will lead to a further decrease in prices, which will make these products more affordable for commercial segments as well as low and middle-income households in the residential segment, according to Frost & Sullivan.
Further, with India being a growing market for LEDs, many overseas companies are setting up manufacturing plants in the country that cater to the growing needs of commercial, municipal, and residential customers.
Some energy companies are bundling energy saving performance contracts (ESPC) along with their lighting products and energy-efficient solutions as a way to diversify their revenue stream. Implementing ESPCs for residential and commercial segments and integrating LED lighting controls and systems with building management systems will further lower building energy costs.