The International Energy Agency will replicate the Indian LED lighting replacement model in Indonesia and welcome new opportunities in the Southeast Asian market.

Opportunities in overseas markets are constantly fermenting. Not only developed countries such as Europe and the United States, the potential of the lighting market in Asia, especially in Southeast Asia, cannot be underestimated. In the past few years, the Southeast Asian market is also attracting more and more LED manufacturers to enter.

Most of the countries in Southeast Asia except Singapore are relatively backward. However, abundant human resources and natural resources make Southeast Asia one of the most dynamic and potential areas for the development of the world economy today. In the new world politics and economic structure in the future, the role and strategic position of Southeast Asia will become even more important. In addition, Southeast Asia is China's southern neighbor. With the bilateral and multilateral friendship between China and Southeast Asian countries, the cooperative relationship will also enter a period of continuous development and closer history.

The overall electricity price in Southeast Asia is relatively high, and the high electricity bills have made the demand for lamp replacement in Southeast Asian countries particularly obvious. With the rapid improvement of the economic standards of other countries in Southeast Asia, the per capita lighting demand will also increase accordingly. The resulting awareness of energy conservation and the growth of demand will surely enable the LED lighting industry to rapidly spread and grow in Southeast Asia. In addition, Southeast Asia's infrastructure investment is large and its policies are very attractive, so it is becoming an emerging market that is favored by domestic manufacturers.

Compared with mature markets such as Europe and the United States, the Southeast Asian market has low requirements for indoor LED product specifications and certification. For example, the demand for LED bulbs is more biased towards low lumens, basic functional, and cost-effective products.

In 2014, the Indian Energy Efficiency Agency, Energy Saving Services Co., Ltd. (EESL) and the power distribution company jointly developed this business model, enabling EESL to purchase LED bulbs in large quantities and sell them to the masses at low prices. It will be repaid to EESL in phases over the next five to eight years with the saved electricity costs.

Recently, the International Energy Agency (IEA) announced that it intends to try to replicate the implementation of the Indian LED bulb policy in Indonesia to reduce the cost of efficient lighting technology. India has launched a nationwide LED upgrade program through state-supported utility company Energy Services (EESL).

“The EESL LED program has been successful and the IEA is working with it to bring the program to the world.” IEA Deputy Director Paul Simons said at the World Summit on Sustainable Development, “We want to try this model in Indonesia, We think this is a best practice case that must be shared.

EESL India has been buying LED bulbs in bulk to reduce prices and distribute bulbs in accordance with the government's UJALA program, which has led to a steady decline in LED bulb prices over the past few years. The company purchased LED bulbs in 2014 at a price of 310 rupees (about 4.65 US dollars), and in March 2016 it plummeted to 55 rupees. Compared with two years ago, the production capacity of LED bulbs has increased from one million to 40 million. LED lights save 80% compared to incandescent bulbs.

The Minister of New Energy and Renewable Energy (MNRE) Upendra Tripathy said at the meeting: "In 2022, India's goal of achieving 175 billion watts of renewable energy will not be a problem."

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