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SPVSPV--LED APPLICATIONSLED APPLICATIONSAND MARKET IN THE NEARAND MARKET IN THE NEAR

FUTURE FOR INDIAFUTURE FOR INDIA

M.Siddhartha Bhatt,M.Siddhartha Bhatt,

Additional DirectorAdditional Director

CENTRAL POWER RESEARCH INSTITUTE,CENTRAL POWER RESEARCH INSTITUTE,BANGALOREBANGALORE--560080560080

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REPLACEMENT OF KEROSENEREPLACEMENT OF KEROSENELAMPS BY SOLAR PVLAMPS BY SOLAR PV--LEDLED

LANTERNSLANTERNS

A 5 W solar PV powered LED can be aA 5 W solar PV powered LED can be apreliminary substitute for a kerosene lamppreliminary substitute for a kerosene lamp

with much better distribution ofwith much better distribution ofilluminance across the room.illuminance across the room.

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1 2 3 4 5 6 7 8 9 10 1101

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Figure1D: Illuminance (lux) distribution-daylight

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Figure 3K: Illuminance (lux) distribution- kerosene lamp

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1 2 3 4 5 6 7 8 9 10 11

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Figure 4L: Illuminance (lux) distribution - 5 W LED

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Figure 5L: Illuminance (lux) distribution- 10 W LED

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PORTABLE LED LANTERNSPORTABLE LED LANTERNSCHARGEABLE THROUGHCHARGEABLE THROUGH

GRID/SOLAR PVGRID/SOLAR PV

The replacement of CFLs by LEDs has alreadyThe replacement of CFLs by LEDs has already

penetrated into the Indian market in the form ofpenetrated into the Indian market in the form ofportable lamps and table lamps in electrifiedportable lamps and table lamps in electrifiedhouses. The zero watt incandescent lamp hashouses. The zero watt incandescent lamp hasalready been phased out by LEDs. There is aalready been phased out by LEDs. There is a

very high potential for 5very high potential for 5--10 W LED lamps in10 W LED lamps inelectrified Indian households. Because of theirelectrified Indian households. Because of theirportability they can be moved to locations ofportability they can be moved to locations ofinterest.interest.

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A smart grid is an electric grid using digital technologyA smart grid is an electric grid using digital technologyfor duplex (two way) communication between thefor duplex (two way) communication between thevarious entities like generators, end users and gridvarious entities like generators, end users and grid

managers. The benefits of a smart grid are thatmanagers. The benefits of a smart grid are thatbecause of the sourcebecause of the source--load communication energy isload communication energy isintelligently generated distributed and used. Theintelligently generated distributed and used. Thesmart grid aims at minimization of the usual sourcesmart grid aims at minimization of the usual source--

load (generatorload (generator--end user) mismatch such as peaksend user) mismatch such as peaksand uneven behaviour of the load curve, manages endand uneven behaviour of the load curve, manages enduse requirement through demand side managementuse requirement through demand side management(DSM) techniques and injects renewable energy(DSM) techniques and injects renewable energy

components.components.

INTEGRTION OF LEDINTEGRTION OF LEDTECHNOLOGY INTO SMARTTECHNOLOGY INTO SMARTGRID CONFIGURATIONGRID CONFIGURATION

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Some of the requirements of aSome of the requirements of asmart grid are as follows:smart grid are as follows:

Self healing ability- auto reclosure, networkre-configuration, renewable switching torestore power disruption under faultconditions.

High level of involvement of end users in the

grid operations. Presently, end users areignorant of the load curve and the griddemand-supply dynamics. Involvement of endusers through knowledge based planning of

activities involving energy load would help tomanage and smoothen the demand.

Strengthening the security aspects of the gridthrough protection from cyber and physical

attempts to disrupt the grid operations.

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Improvement of power qualityImprovement of power quality(frequency, voltage, power factor,(frequency, voltage, power factor,harmonics) and reliability of supply toharmonics) and reliability of supply to

much higher levels.much higher levels. Operation under multiOperation under multi--source, multisource, multi--

voltage level injection (33 kV, 11kV,voltage level injection (33 kV, 11kV,0.415 V), bi0.415 V), bi--directional flow of power indirectional flow of power in

the 11 kV and 0.415 kV system; andthe 11 kV and 0.415 kV system; andabsorption of excess power generatedabsorption of excess power generatedby end users through their captiveby end users through their captiverenewables.renewables.

Some of the requirements of a smartSome of the requirements of a smartgrid are as follows:grid are as follows:

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Introduction of a dynamic market mechanismIntroduction of a dynamic market mechanismfor time of the day transaction of powerfor time of the day transaction of powerbetween various entities.between various entities.

Enhancement of energy efficiency of the gridEnhancement of energy efficiency of the gridand minimization of the losses due toand minimization of the losses due toexcessive capacity (iron losses in transformers)excessive capacity (iron losses in transformers)and point to point losses (copper losses).and point to point losses (copper losses).

Enhancement of renewable energy componentEnhancement of renewable energy componentand gradually decreasing fossil/carbonand gradually decreasing fossil/carbon

components. The fossil component is nearly 60components. The fossil component is nearly 60% with 5 % renewable, 5 % nuclear and 30 %% with 5 % renewable, 5 % nuclear and 30 %hydro. This has to gradually decrease to zerohydro. This has to gradually decrease to zerothrough enhancement of solar PV and windthrough enhancement of solar PV and wind

components.components.

Some of the requirements of a smartSome of the requirements of a smartgrid are as follows:grid are as follows:

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The LED technology is naturallyThe LED technology is naturallysuited for smart grid environmentsuited for smart grid environment

because:because:

It is a solid state digitally controllableIt is a solid state digitally controllabletechnology unlike incandescent, fluorescenttechnology unlike incandescent, fluorescent

and ballasted technologies which needand ballasted technologies which needadditional controller. The drivers are alreadyadditional controller. The drivers are alreadya part off the LED system.a part off the LED system.

It can be seamlessly integrated into theIt can be seamlessly integrated into the

smart grid structure because ofsmart grid structure because ofprogrammable and intelligence features ofprogrammable and intelligence features ofLED drivers.LED drivers.

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It is continually evolving in energyIt is continually evolving in energy

efficiency and reliability. It is an idealefficiency and reliability. It is an idealend use device in the lighting sectorend use device in the lighting sectorwhere the light peak in India iswhere the light peak in India isaround 30 GW and the lighting energyaround 30 GW and the lighting energy

consumption is nearly 18 % of theconsumption is nearly 18 % of thetotal energy generated. It is a goodtotal energy generated. It is a goodtechnology for DSM.technology for DSM.

The LED technology is naturallyThe LED technology is naturallysuited for smart grid environmentsuited for smart grid environment

because:because:

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The integration of LEDs into smartThe integration of LEDs into smartgrid structures enters through thegrid structures enters through the

following ways:following ways:

DSM measure to reduce the grid peak duringDSM measure to reduce the grid peak duringthe evenings as LEDs have lower powerthe evenings as LEDs have lower power

ratings than other lighting systems. LEDratings than other lighting systems. LEDtechnology enables demand modulation andtechnology enables demand modulation andenables demand response to change in loadenables demand response to change in loadpatterns in the grid.patterns in the grid.

Renewable energy integration with solar PV.Renewable energy integration with solar PV.Solar PVSolar PV LED are naturally compatibleLED are naturally compatibletechnology.technology.

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Automation and control of lighting. TheAutomation and control of lighting. TheLED being a solid state device is easilyLED being a solid state device is easily

controllable via the driver forcontrollable via the driver forillumination intensity, on/off operationsillumination intensity, on/off operationsand colour rendering. The light outputand colour rendering. The light output

itself is now being explored as a possibleitself is now being explored as a possiblecommunication medium between thecommunication medium between theend use equipment and electrical source.end use equipment and electrical source.

The integration of LEDs into smartThe integration of LEDs into smartgrid structures enters through thegrid structures enters through the

following ways:following ways:

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CAPITAL COST FACTOR The capital cost of incandescent lamps is Rs. 1/W whileThe capital cost of incandescent lamps is Rs. 1/W while

that of fluorescent lamps is Rs. 5that of fluorescent lamps is Rs. 5--10/W. The cost of 1 W10/W. The cost of 1 Wunbranded LED is Rs. 250unbranded LED is Rs. 250--450/W while for that of450/W while for that ofbranded LED it is Rs. 800branded LED it is Rs. 800--1000/W. The cost of branded1000/W. The cost of brandedbare LED is around Rs. 100bare LED is around Rs. 100--150/W (upper end) while150/W (upper end) whilethat of unbranded it is around Rs. 55that of unbranded it is around Rs. 55--80/W. The cost of80/W. The cost of

the bare LED forms 50+ % of the product cost. Thethe bare LED forms 50+ % of the product cost. TheLED market has adapted itself by reducing the wattageLED market has adapted itself by reducing the wattageby equivalence ratio typically (60by equivalence ratio typically (60--100 W incandescent100 W incandescent4040--50 W TFLs50 W TFLs 2020--30 W CFLs30 W CFLs 99--11 W LEDs).11 W LEDs).Bulbs are available in 1 W and 3 W. Significant costBulbs are available in 1 W and 3 W. Significant cost

reduction is anticipated in near future based on thereduction is anticipated in near future based on thetrends and factors like the indigenous manufacturingtrends and factors like the indigenous manufacturingcapability, production volumes, etc.capability, production volumes, etc.

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MARKET POTENTIAL FOR LEDS

IN NEAR FUTURE

The lighting market is worth Rs. 7,500 crores ofThe lighting market is worth Rs. 7,500 crores ofwhich CFL market is around Rs. 2,000 crores andwhich CFL market is around Rs. 2,000 crores andincandescent lamp market is around Rs. 60 crores.incandescent lamp market is around Rs. 60 crores.The balance is composed of other gamut of lightingThe balance is composed of other gamut of lighting

systems like sodium vapor, tubular fluorescentsystems like sodium vapor, tubular fluorescentlamps, mercury vapor lamps, etc. The value of LEDlamps, mercury vapor lamps, etc. The value of LEDbusiness is around Rs. 200business is around Rs. 200--250 crores which forms250 crores which formsnearly 3 % of the total lighting business. The lightingnearly 3 % of the total lighting business. The lightingsector is poised for a general annual 11 % growth.sector is poised for a general annual 11 % growth.The share of LEDs is likely to go up to 5The share of LEDs is likely to go up to 5--6 % in the6 % in theimmediate future and 10 % with theimmediate future and 10 % with theimplementation of smart grids. This means that theimplementation of smart grids. This means that thegrowth of LEDs is likely to be around 20 % in thegrowth of LEDs is likely to be around 20 % in theimmediate future and 30 % in the near future asimmediate future and 30 % in the near future ascompared to the present sale.compared to the present sale.

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The largest share is in the solar PV lantern andThe largest share is in the solar PV lantern andnon solar lantern sectors. The digitally controllednon solar lantern sectors. The digitally controlledLED market is the next largest upcomingLED market is the next largest upcoming

market after the lantern segment.market after the lantern segment. The sale of CFL (2010) are around 100 millionThe sale of CFL (2010) are around 100 million

pieces/year and GSLs (incandescent lamps) arepieces/year and GSLs (incandescent lamps) arearound 600 million pieces/year. The LEDaround 600 million pieces/year. The LED

replacements for GSLS and CFLs is going toreplacements for GSLS and CFLs is going toincrease in the near future. The present scale ofincrease in the near future. The present scale ofLEDs is around 2 million pieces/year. 90 % ofLEDs is around 2 million pieces/year. 90 % ofthe LEDs are sold in the lantern sector andthe LEDs are sold in the lantern sector andbalance in the street lighting sector.balance in the street lighting sector.

MARKET POTENTIAL FOR LEDS

IN NEAR FUTURE

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R & D

The R & D in India is on new OThe R & D in India is on new O--LEDs and polymericLEDs and polymericLEDs at National Institutes (like IISc) and nationalLEDs at National Institutes (like IISc) and nationalLaboratories (like CSIR). The R & D investment in IndiaLaboratories (like CSIR). The R & D investment in India

is around Rs. 30is around Rs. 30--40 crores. The R & D investment of40 crores. The R & D investment ofJapanese is around Rs. 5,000 crores by Nichia alone. RJapanese is around Rs. 5,000 crores by Nichia alone. R& D investment in drivers and balance of systems by few& D investment in drivers and balance of systems by fewIndian players is around 5 % of the turnover. ForIndian players is around 5 % of the turnover. Fordevelopment of reliable efficient product R & Ddevelopment of reliable efficient product R & D

investment is required by every Indian LED vendor. Aninvestment is required by every Indian LED vendor. Aninvestment of 4 % of the turnover is rather average, 6investment of 4 % of the turnover is rather average, 6% is good while 8% is good while 8--10 % is considered exceptionally10 % is considered exceptionallygood.good.

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CONCLUSIONS

The market for LED lighting technologyThe market for LED lighting technologyin India has three segmentsin India has three segments-- kerosenekerosenelamp replacement, portable LEDs inlamp replacement, portable LEDs in

electrified areas and controllable LEDselectrified areas and controllable LEDsthrough integration into smart gridthrough integration into smart gridstructures.structures.

The kersosene lamps in the rural sectorThe kersosene lamps in the rural sector

can be replaced by solar PVcan be replaced by solar PV--LED of 5 W.LED of 5 W.Possible 10 W and 20 W capacity canPossible 10 W and 20 W capacity canbe considered for future.be considered for future.

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Portable LED lanterns chargeable throughPortable LED lanterns chargeable throughsolar as well as grid power for localizedsolar as well as grid power for localizedlighting, table lamps, portable lamps, etc. is alighting, table lamps, portable lamps, etc. is a

major market in India. This is a popularmajor market in India. This is a populartechnology and is likely to penetrate highertechnology and is likely to penetrate higherwith reduction in costs of reliable systems.with reduction in costs of reliable systems.

Integration of LED lighting systems into streetIntegration of LED lighting systems into streetlighting systems and building lighting systemslighting systems and building lighting systemswith intelligence and controllable features,with intelligence and controllable features,has a fair share of potential as a substitute forhas a fair share of potential as a substitute forfluorescent and ballasted technology.fluorescent and ballasted technology.

CONCLUSIONS

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The LED sector is poised for an increase in itsThe LED sector is poised for an increase in itsmarket share from 3 % to 5market share from 3 % to 5--6 % in near6 % in nearfuture. Besides, a general growth of 11 % isfuture. Besides, a general growth of 11 % isalready assured. Thus the composite growthalready assured. Thus the composite growth

rate of LED technology may be around 20rate of LED technology may be around 20--3030% compared to the present sale.% compared to the present sale.

One of the main deterrents to penetration ofOne of the main deterrents to penetration ofLED technology is high capital cost. The costLED technology is high capital cost. The costof the bare LED is over 50 % of the systemof the bare LED is over 50 % of the systemcost. Significant cost reduction is expected incost. Significant cost reduction is expected inLED costs following the present trends andLED costs following the present trends andfactors like indigenous manufacturingfactors like indigenous manufacturingcapability, volumes as well as the innovativecapability, volumes as well as the innovative

manufacturing processes.manufacturing processes.

CONCLUSIONS

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