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Dec 14,2012
The Guangdong Provincial Government has issued the 'Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province', requiring that all public lighting projects funded by government finances or state-owned capital must use LED lighting products.
A large supermarket's underground parking lot in Foshan has also replaced its entire lighting system with LED. Surprisingly, the property management company did not spend a penny.
Foshan is promoting the municipal and commercial application of LED lighting through the EMC (Energy Management Contract) model while integrating the LED industry chain's production capacity to reduce LED production costs and accelerate market penetration. According to a relevant official from the Foshan Science and Technology Bureau, all lights in Foshan New City will be converted to LED according to the provincial promotion plan.
Energy-saving replacement
EMC model signs a billion yuan LED order
It is understood that in 2010, Foshan was rated as a 'Comprehensive Demonstration Zone for LED Product Application and Industry Development in Guangdong Province'. Based on this, Foshan and its five districts have each proposed implementation plans to subsidize LED demonstration projects and enterprises.
The subsidy policy, in conjunction with the 'Ten Thousand Families, One Billion Lights' project, has rapidly expanded the LED streetlight renovation projects across Foshan's five districts. However, in the commercial market, Foshan's LED industry has been exploring promotion models.
Foshan Kaixiao Lighting Co., Ltd. (hereinafter referred to as Kaixiao Company) is the supplier of LED lighting fixtures for the aforementioned parking lot. After calculating the average lighting electricity costs from previous years, they replaced the lights with LEDs for free, and the property management company pays the savings from the electricity costs to the company for a period of five years.
'The property management company not only spends no money, but we will also return a certain proportion of the saved electricity costs to them,' said Wu Yulin, general manager of Kaixiao Company. The savings from LED electricity costs are very significant; for this parking lot, it saves about 1,000 yuan in electricity costs per month, allowing the cost of the LED fixtures to be recovered in the second year.
Due to the outstanding energy-saving effects of LEDs, this energy replacement model has currently become an effective business model for Foshan's LED enterprises. In March of this year, ten LED companies in Foshan jointly signed LED procurement orders worth over 100 million yuan using the EMC model, creating the largest procurement scale for commercial LEDs in Foshan.
Five districts working together
Integrated industry chain reduces popularization costs
Data shows that in 2011, there were over 200 LED enterprises in Foshan, achieving a total industrial output value of about 36.4 billion yuan, with the industry scale ranking among the top in the province, forming a development pattern led by three listed companies: Foshan Lighting, Shelly, and Nationstar Optoelectronics, with the five districts working together.
In May of this year, the Guangdong Provincial Semiconductor Lighting Industry Joint Innovation Center, with an initial investment of 120 million yuan, was completed in the Guangdong New Light Source Industry Base. Foshan has initially formed a complete LED industry chain from LED epitaxial chips, packaging, to lighting application R&D and production.
Breakthroughs in core technologies have directly resulted in a significant reduction in the production costs of LED lighting products. For example, the sapphire substrate laser stripping patent technology developed by Xurui Optoelectronics in Nanhai District can reduce the cost of high-power LED chips by 70%.
The LED industry chain in Foshan's five districts develops in a complementary manner, with Chancheng District focusing on LED packaging, applications, and lighting fixtures; Nanhai District extending to MOCVD and LED chip manufacturing in the mid-to-upstream industries; Shunde District focusing on traditional lighting fixtures and OLED industries; Gaoming District relying on the listed company Foshan Lighting and companies using LED solid mercury as raw materials, having a latecomer advantage; and Sanshui District accelerating the integration of the solar photovoltaic industry with the semiconductor lighting industry.
At the same time, Foshan has made attempts in standardization to reduce the difficulty of LED popularization. In January of last year, seven companies in Foshan jointly released the LED downlight alliance standard, setting standards for indicators such as luminous efficacy and lifespan of LED fixtures. In March of this year, Foshan companies jointly released the 'Foshan Alliance Standard for LED Lighting Product Packaging Labels', clearly stating a three-year warranty commitment on the packaging.
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