In April last year, the Ministry of Science and Technology launched the pilot project of “Ten Cities and Ten Thousands†semiconductor lighting application engineering, which drove the rapid development of LED lighting; not only the LED concept was dyed in the capital market, but also related companies were interested in M&A. Or expansion. A year later, the National Semiconductor Lighting Engineering R&D and Industry Alliance began to investigate the progress of the pilot work of the “Ten Cities and Ten Thousand Cities†pilot cities since last month. Although the survey results have not yet been released, the reporter learned that many companies that started with LED street lights in the past, even if they did not close down, the street lamp project itself is a loss. At the "2010 LED Illumination China Tour - Nanjing Station Seminar" held by Gaogong LED, Liu Lei, chief engineer of Nanjing Street Light Management Office, pointed out the bottleneck of LED streetlight promotion: current high-power LED lamps and high-pressure sodium lamps Compared with the road lighting, the energy saving effect is not obvious; and the LED street lamp is an electronic product, the life fluctuation is large, the maintenance is difficult; the technical bottleneck is difficult to break; the economic return is poor. These issues are common in streetlight projects across the country. The implementation of "Ten Cities and Ten Thousand Cities" can be said to have encountered a flaw. In this case, the emergence of contract energy management (hereinafter referred to as EMC) makes the LED lighting market expected to gradually shift from the government-oriented to the market behavior, which seems to provide a smooth implementation of the next phase of the “Ten Cities and Milesâ€. Solutions. "Ten Cities and Ten Thousands of Miles" Why "Do Not Say Good" In April last year, the Ministry of Science and Technology approved 21 cities as “Ten Cities and Ten Thousand†semiconductor lighting application engineering pilot cities. The purpose is to use LED in the application demonstration project of municipal lighting as a carrier, and to promote semiconductors in a group of basic cities. Lighting exploration experience. And this set off a burst of LED wind. Many cities that failed to qualify for the first batch of pilots are also promoting LED lighting projects in their own way. In the wave of “changing lightsâ€, many unqualified companies have launched LED production lines. “We surveyed 40 LED streetlight companies in China, and nearly one-third of them started to produce LED street lights within one year.†Zhang Xiaofei, CEO of Gaogong LED, pointed out that “many technology-hard companies have got the project by relationship.†According to data from the High-tech LED Industry Research Institute, a total of 222,000 LED street lights were installed in 21 pilot cities last year; the LED street light production line has a loss rate of 70%. The reason for this result is related to the blind project of the enterprise, but more importantly, the source of funds for the implementation of the “Ten Cities and Ten Thousand Cities†has never been resolved. Liu Lei, chief engineer of Nanjing Street Light Management Office, calculated an account for Nanjing. He pointed out that because high-efficiency high-power white LED application products almost all rely on imported high-end epitaxial chips, the price of better quality LED street lamps remains high. Based on the current urban lighting facilities in Nanjing, if all LED products are replaced, it needs 8-10. Billion. Under the impetus of Nanjing's green lighting work, even if all the street lamps in Nanjing are closed to save electricity, it will take 22-27 years to recover the investment. A representative of an LED company that did not want to be named said frankly that the Ministry of Science and Technology mainly gave policy but did not issue funds. It is very difficult to promote LED street lights by local finance alone. “In some places, there has even been a problem of defaulting on LED enterprise projects.†This is the case, why should enterprises still like this to the "Ten Cities and Ten Thousand Cities"? Zhang Xiaofei said, "The profits of government projects are still high. Now the basic price is around 20-30 yuan / watt. If you use ordinary chips, the whole If the lamp does not pursue high quality, the cost can be half, and 100% of the profit.†He admits, “This kind of project still has great appeal. If a powerful company looks at the space in this market, it will still do it. ." EMC solves the funding problem Nowadays, the introduction of the state's support for the EMC policy may help the smooth implementation of the “Ten Cities and Ten Thousand Citiesâ€. The so-called EMC, "contract energy management", is a new model of the energy-saving service industry. That is, the professional energy-saving technology service company accepts the entrustment of the customer (energy-saving owner enterprise), signs the energy service contract with the customer, and implements the energy-saving project with its own funds to provide customers with one-stop services such as equipment, technology and capital necessary for energy-saving improvement. The energy costs saved by customers are profitable. This is the new model that local governments hope to adopt in promoting the “Ten Cities and Ten Thousand Cities†plan for LED lighting. In the implementation of LED lighting "Ten Cities and Ten Thousands", EMC is divided into two forms. One is that the saved energy revenue is directly returned to LED companies in the form of installments; however, there are some problems with this approach. Zhang Xiaofei said that compared with high-pressure sodium lamps, the actual energy-saving effect of LED street lamps has reached 40%. It is quite good. If 250-watt LED street lamps are used instead of 400-watt high-pressure sodium lamps, it will take more than 8 years to recover the cost according to the current electricity tariff level. With the subsequent maintenance costs, this model has great risks for enterprises and is difficult to implement. The second EMC implementation method is also a business model that is more widely adopted today. That is, the bank or other financial institution will pay for it and the government will provide guarantee. This form of profit may not be too high, the bank has a certain interest conversion formula; but for the enterprise, you can get the money first. This is actually the risk that the bank bears, but it also solves the problem of financial expenses. Last month, as the “National First†city-level city equipped with LEDs, Qufu’s streetlight project adopted this model. Destar Optoelectronics Lighting Technology Co., Ltd. (hereinafter referred to as “Destidaâ€) has obtained a street lamp project with a production value of more than 16,000 baht and its output value of tens of millions through its agent Shenzhen Fengguanghong Energy Saving Technology Co., Ltd. After the energy-saving renovation of the street lighting and lighting project in Qufu, Destar will directly buy out the ownership of the project and the payment of the power saving rate to the bank. The original capital required is provided by the investment company that the company cooperates with. "In fact, it is very simple. The project must be accepted before it can be transferred to the bank. But no company has such a large amount of money to do this, so we just made a technical transfer." Xing Yingxiang, general manager of Deshida pointed out. But he also stressed that the government's financial guarantee is a must. For the Qufu government, after the completion of the project, the annual electricity consumption will be 2,354,432.24 degrees, the savings will be 511,288.61 million yuan, and the power saving rate will reach more than 70%. Xiong Yingxiang said frankly that this is the first time the company has adopted EMC. After this case is successful, the company will try its best to use this model to undertake EMC solutions in other places. It is reported that during the year, Guangzhou, Guizhou, Zhejiang and other places will also start LED street lighting projects in the form of EMC. Traditional lighting enterprise test water LED Zhang Xiaofei said that in fact, many large enterprises that have done traditional lamps have the ability to participate in street lighting projects. On the one hand, they have great experience in the design of light. On the other hand, their relationship with street lamps cannot be ignored. The only drawback is that it is slightly weaker in LED technology. According to the statistics of the High-tech LED Industry Research Institute, the installed capacity of LED street lamps in the first half of 2010 was 200,000 baht. It is expected that the installation volume in the second half of the year will be 300,000 baht, and the annual level will reach 500,000 baht. The installation volume of LED street lamps in this year and next year has actually increased steadily and steadily, with an increase of about 120%. Nowadays, large traditional lighting companies that have seen this market space are also cautiously testing the LED street light market. Shi Yongjun, director of NVC Lighting Marketing, revealed in an interview that NVC Lighting is negotiating a local streetlight project with Huizhou, Guangdong, and is currently discussing specific cooperation models. He said that NVC Lighting is more cautious in the LED lighting market, and has paid attention to R&D and manufacturing, but it has not been applied on a large scale. “LEDs have good prospects in government projects, but it is still not realistic if they are to completely replace traditional civilian energy-saving products. Because the technical indicators of LEDs and the properties of traditional energy-saving products are still very different, whether it is technology research or development. Cost control is not mature enough; in addition, traditional energy-saving lamps are closer to natural light when used, and are more comfortable in the civilian field, and more users will consider energy conservation on this basis," he admitted. In addition to NVC lighting, Foshan Lighting, TCL Lighting, Tongshida and other companies are also cautiously involved in the LED market. Foshan Lighting recently announced that the company and the United States Bridgelux (Puri) Optoelectronics Co., Ltd. reached a preliminary cooperation intention for the LED project, in cooperation with China to develop high lumen LED bulbs, lamps production and sales. Provided by Puri, the patented high-lumen LED light source module, heat dissipation and driver technical support, combined with Foshan lighting LED bulbs, lamps (including MR16 spotlights) series of products manufacturing technology, research and development of LED application products Cooperation. Under the condition of satisfying certain sales volume, the above series of product solutions provided by Preh Company are only available to Foshan Lighting in China. One of the senior executives of traditional lighting companies told reporters that the current LED streetlight market is less involved in large enterprises, and small businesses are more active. However, small enterprises can't get into the market within three years. In the future, the possibility of mergers and acquisitions by large enterprises is not ruled out. At the same time, the “Foshan Lighting†model is also very effective – large traditional lighting companies can cooperate with international companies with advanced technology, or through integration. The acquisition of small enterprises with channel advantages to complement the superior resources to intervene in the LED street lamp market. The involvement of traditional enterprises has caused small and medium-sized LED companies to feel a great threat. It is understood that a number of medium-sized LED lighting companies such as Nanjing Henderson Semiconductor Lighting and Jiangsu Shifu Photoelectric are currently approaching investment institutions to find financial support to invest in streetlights on a larger scale, breaking through the status quo of geographical segmentation of streetlight projects. And fight for listing. “Enterprises are very anxious, because once others get the money, they will be very hard on their own. Because the company has greater requirements for funds, but the return period is longer, and the interest in 'quick' PE is not great, VC venture capital The business also feels that the investment amount is too high and the risk is too large. Therefore, there is not much suitable capital matching opportunity." Zhang Xiaofei pointed out. From this point of view, capital will determine the industrial landscape of LED lighting in the future, and enterprises will face more severe competition and industry reshuffle.
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