标签：LED city lighting

South Korea: target to 100% LED city lighting penetration

Seoul City government had launched very active LED universal policies. From 2007 to 2009, 23 billion won has been put into this area, replacing 156,000 transportation lighting applications and 38,000 building lighting applications with LED lamps, consequently saving electricity of 42,400 MWh (1.6 billion won).

 

In 2012, on the basis of these policies, the Seoul Metropolitan Government announced a number of additional measures to speed up the process of 100% LED city lighting penetration.

 

In 2012, on the basis of these policies, the Seoul Metropolitan Government announced a number of additional measures to speed up the process of 100% LED city lighting penetration. The local government announced in June of 2012, public institutions should be responsible for introducing LED lamps in new buildings and facilities. By the end of June of 2012, the utilization rate of LED lamps in public institutions reached 10%. It is reported that this plan will be further expanded in the future, aiming at a 50% LED lighting utilization rate in public building by 2014, and 100% in 2018. It is estimated that, at such speed, the 100% LED city lighting penetration can be realized by 2030.

 

Before 2014, there are 7.8 million lamps need to be replaced, while the forbidden of incandescent lamps will speed up this process, 50% of public institution lighting, 25% of civil lighting. According to the local government’s projections, if it is realized in the future, they would save approximate 1100GWh per year, reducing 120 billion won electricity cost annually.

 

Public institutions include: Seoul Metropolitan Government Building, 25 Districts, 17 offices, 218 subway station facilities, 20 underground shopping streets, ranged widely. All lamps used in these places will be replaced by LED lighting products. This plan has been steadily implemented.

 

In addition, Seoul City local government intended to cooperate with KLEDA to promote led tunnel light technology in underground parking lots. Seoul City government and KLEDA released in May of 2012 “the popularization plan of LED city lighting business in apartment underground parking areas and large-scale commercial facilities underground parking areas”. This support policy was put into force since June this year. In fact, before this, a similar policy has executed in Gyeonggi and Daegu City in February 2011, Seoul is the expansion of this plan.

 

Under the encourage of government’s support policies, underground parking lots of apartments and large-scale commercial facilities in Seoul can import LED lights for free. Although individual introductions are not included into the “free” range, buyers still can enjoyed a 40% discount in the form of government subsidies.

Seoul lighting target: the 100% LED city lighting project

In 2006, South Korea announced a plan for popularizing LED city lighting “15/30 (the penetration LED lighting applications in Seoul should reach 30% by 2015)”. This project will be start with traffic lights, outdoor displays and billboards, replacing traditional incandescent lamps with LED lighting technology. Therefore, a large number of companies considered this as a good opportunity to expand their business and swarmed into this emerging market.

 

In 2006, South Korea announced a plan for popularizing LED city lighting “15/30 (the penetration LED lighting applications in Seoul should reach 30% by 2015)”.

 

But the truth is LED lights were not widely promoted as expected. Through large-scale investments from several electronics giants, South Korea’s upstream LED chip industry grew rapidly and became the second largest provider in the world in a short term. In the field of downstream LED application manufacturing industry, in addition to large makers, small and medium sized LED companies also showed a positive response to exploit the international market. But too many enterprises have involved into this business, plus the continuous dropping of unit price, making these companies entered a difficult period in advance.

 

What is worse is that the stagnated pace of the popularity of the Korean LED lighting industry. in 2010, the total occupation of LED products among all lighting technologies is around 2.5%, this value only grew by 1.5% by the end of 2011 (6% in Seoul). The government worked to support these enterprises by implementing a couple of LED city lighting projects. However, in order to realize the object of “15/30” plan, from 2012, the popularity of LED lights should be at a rate of 6.5% per year. For now, it is difficult for the South Korean Government to achieve the target.

 

The constant low level of domestic LED penetration will undoubtedly impact negative influences on their international market plans. More and more Korean enterprises will lose their competitiveness in overseas markets. Accordingly, the government, local government of Seoul City and the LED industry group Korea LED Association (KLEDA) stood in their respective positions, introducing measures for further promotion of LED lamps. In order to head the call, Seoul local government began local led tunnel light city lighting projects from themselves, using LED lamps in their new government buildings: the external glass can change the building appearance through its internal mounted LED lamps (dimming and color mixing).

 

LED city lighting: who are playing this game?

According to 2008-2010 statistics, it is expected that by 2012, the market size of outdoor LED lighting applications will be 6.4 billion $, in which 4.3 billion $ are from LED lights.

 

According to 2008-2010 statistics, it is expected that by 2012, the market size of outdoor LED lighting applications will be 6.4 billion yuan, in which 4.3 billion yuan are from LED street lights.

 

In LED city lighting area, the government was always a supporter. Surveys reflected an upward trend in the percentage of LED lighting applications used in city lighting projects. “This is a huge cake, a 100-billion-size of cake, how to share it evenly? If it is possible, than each exiting domestic LED producers will become a billionaire. For me, the answer is no, they will never carve up this cake evenly, the market is a battlefield.” Said one CEO of a LED company in China. Currently, there are about 1000 LED lighting manufacturers (large scaled) in the mainland. Indeed, if the 100-billion-size market is shared evenly, each one of these manufacturers can obtain at least one billion $. However, it is no difficult to find out that manufacturers “really involved in the LED city lighting projects” are always a few familiar faces.

 

In fact, LED lighting applications and related control systems applied in the Beijing Olympics and Shanghai World Expo are all from several well-known international brands, like Philips, OSRAM, Bridgestar, etc. while other complementary products were all provided by large-scaled domestic lighting enterprises, like NVC, Starlight, TCL, Lonon, Simon Electric, Xinwen Line, CH Lighting.

 

“We have no quality for national lighting projects. For local municipal lighting projects, we cannot afford. In spite of participating every competitive tenders, only those who done a good job in public relations can finally win. ” implied this CEO in a helpless manner. Indeed, in China, usually those giant companies with considerable strength and deep local background can win in LED city lighting project biddings. In Dongguan, whenever there was a bid, there must be Kingsun (the largest LED lighting manufacturer in Dongguan) and always won the final bidding.

 

Municipal lighting project is a game with few players, and always those few players. Said the CEO from another small sized LED company. But like thousands of small and medium-sized LED lighting business owners, he was a veteran in the war of the competitive tender of municipal lighting projects, filling with hopes for the future market and the development of his company. They not only concentrated on city lighting projects, non-government commercial project is another big cake for them.