Jinan enterprises look forward to funding policy to support the LED industry bottleneck needs to be broken

In recent years, the LED industry as a green lighting has been increasingly recognized internationally and domestically. In this context, many companies are involved in the LED industry. Compared with the continuous expansion of domestic and especially southern LED brands, the pace of development of Jinan's LED industry has been slow, and most urban road lighting is still using high-pressure sodium lamps that consume high power and are not environmentally friendly. Industry experts said that the industry's high entry threshold and lack of policy funding support are the bottlenecks that Jinan's LED industry needs to break through.

Jinan LED street light penetration rate is very low

In March 2010, the street lights of the 2.9-kilometer section of the open source road in Licheng District were replaced by high-pressure sodium lamps to LED super bright low-carbon environmental street lamps. The road became the first LED lighting demonstration road in Jinan City. In 2013, thousands of street lamps in the 13-kilometer section of Jinan Second Ring Road were replaced by high-pressure sodium lamps. This is one of the few sections in Jinan that use LED lighting. The reporter learned from the construction of the streetlights that only 13 kilometers of LED street lights can save 7 million kWh in 5 years.

What are the advantages of LED lamps compared to traditional energy-saving lamps or high-pressure sodium lamps? Relevant research institutions show that LED lighting lines are of high quality, radiation-free, reliable and durable, and maintenance costs are extremely low. Its use time is also relatively long. Under normal circumstances, LED lights can be used for more than 50,000 hours, which is more than half of the energy saving of traditional energy-saving lamps. In addition, the most prominent advantage of LED lights is environmental protection. For example, replacing 48-watt LED street lamps with traditional 150-watt high-pressure sodium lamps can reduce carbon dioxide emissions by about 1.8 tons per year.

Despite this, in Jinan, in addition to a few roads such as the 2.9-kilometer section of the open source road in Licheng District and the 13-kilometer section of Jinan Second Ring Road, Jinan city road lights have not widely popularized LEDs. A related practitioner calculated an account for the reporter. “To calculate the maintenance cost of the high-pressure sodium, which is the type of mainstream street lamp currently used in the city, the maintenance fee for each street lamp is about 300 yuan, and the city has a total of 160,000 yuan. Street lamps, maintenance costs in the past five years is more than 10 million." Under the conditions of obvious disparity between the two, although the LED maintenance costs are relatively low and environmentally friendly, they did not rely on their own advantages to enter the mainstream market in Jinan.

As with the current popularity of LED lights in the Jinan market, the number and innovation capabilities of local LED companies are also lagging behind. A person in charge of the Jinan energy-saving industry executive unit once expressed the feeling: "The majority of the brands that can be cited in Jinan are from the South. The large orders of local enterprises can't be done, and small orders are not willing to do." This practitioner is quite helpless: "Involving the interests of the department, the official threshold is high, and private enterprises can't get in."

Compared with the relatively developed LED industry in Europe and the United States, the application of domestic LED lighting products is relatively difficult. Statistics show that the penetration rate of energy-saving lamps such as LEDs in China is still very low. At present, the annual sales volume of incandescent lamps is still about 2 billion. The proportion of incandescent lamps used by small and medium-sized cities is generally over 30%.

LED environmental advantages are obvious

The lighting industry has always been valued by developed countries in Europe and America. LED is called the fourth-generation illumination source or green light source. Some developed countries in the world have launched a fierce technical competition around the development of LED. The United States has invested $50 billion since 2000 to implement the National Semiconductor Lighting Program. The European Union also announced the launch of a similar "Rainbow Program" in July 2000. Australia stopped using ordinary incandescent lamps in 2010 and replaced them with LED lighting lamps, making it the first country in the world to ban the use of traditional incandescent lamps.

With the support of the “863” program, the Ministry of Science and Technology of China first proposed the development of semiconductor lighting plans in June 2003. Over the years, LED lighting has been valued by the state and governments at all levels for its energy-saving and environmental protection advantages. Various localities have introduced relevant policies and measures to accelerate the development of LED lamps. China started the implementation of green lighting project in 1996, and launched financial subsidy efficient lighting product promotion work in 2008. In 2009, it issued the "Opinions on the development of semiconductor lighting energy-saving industry". In 2011, it released the "China's phase-out plan for incandescent lamps" to promote lighting. Industrial structure optimization and sustainable development. According to estimates, if we replace all the incandescent lamps used in China with energy-saving lamps, we can save 48 billion kWh per year, equivalent to nearly 48 million tons of carbon dioxide emissions.

Throughout the country, NVC, Opp, Foshan Lighting, etc. have become the domestic brands that are "sounding" in the ears of Chinese people. Nowadays, LED has been widely promoted in cities such as Wuxi, Nanchang, Xiamen, Shenzhen and Fuzhou. Weifang and Qingdao in the province have also joined the list of “Ten Cities and Ten Thousand Cities” demonstration cities.

In 2013, the document of the “Shandong Provincial People's Government on Implementing the Document on the Implementation of Document No. 19 [2012] No. 19 to Further Accelerate the Development of Energy Conservation and Environmental Protection Industry” was issued. Subsequently, the "Implementation Opinions of the General Office of the People's Government of Shandong Province on Accelerating the Development of Energy Conservation and Environmental Protection Industry" was promulgated. An unnamed industry insider said that at present, although there is provincial document support, Jinan has not yet issued a guiding document.

Enterprises look forward to funding policy support

How to develop the LED industry? Many companies said they hope to get more support from government policies. A Jinan lighting company said: "In addition to several meetings organized by the municipal energy conservation authorities each year, there are no specific documents issued in Jinan. I hope that relevant government departments can issue relevant guidance documents as soon as possible to support the development of the LED industry."

In addition to policies, financing is also a problem for companies engaged in the energy industry. According to industry insiders, energy companies can operate in the form of contract energy management or PPP (public-private partnership mode) in addition to the traditional way of producing products and selling products. Among them, contract energy management refers to energy-saving service companies and energy-using units to agree on energy-saving targets for energy-saving projects in the form of contracts. Energy-saving service companies provide necessary services to energy-using units to achieve energy-saving targets, and energy-using units pay energy-saving services with energy-saving benefits. The company's investment and its reasonable profit energy-saving service mechanism. The advantage of this model is that the government or users do not have to invest directly in building equipment, only paying reduced energy savings to energy-saving companies. For contract energy management companies, the return cycle of such a contractual energy management model can take up to several years.

This new business model also creates difficulties for companies that can provide energy-saving services. “Investing in the construction of LED street lights on a section of roads requires millions or even tens of millions. Corporate financing has become a problem. Most local banks are worried about a long return on investment. Once a company goes bankrupt, it will not be able to repay bank loans. Or a real estate license, or a loan.” A person in charge of the provincial energy-saving enterprise told reporters that “the People’s Bank of China has issued relevant documents and asked local banks to give green light to energy enterprise loans, but many local enterprises have not yet enjoyed it. This convenient condition."

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