Let there be CFL

An overview of the regulatory and management issues necessary for a successful CFL programmeCentre for Science and EnvironmentStudy published in Down To Earth (January 15-31, 2009)

CFLs: Our first leapfrog?

We have tracked many cases where people, not connected to reliable energy sources have paid to move to battery-CFL or even PV-CFL combinationAlready substantial penetration of CFL in India --reportedly 165 million units sold in 2007 (against 343 million units in the US)The poor of India are leapfrogging from no light/kerosene directly to the efficient -- CFLThey are providing the market -- this transition, which will help the entire world is driven by them But are the market/regulators up to the task?

Why CFLs?

• If 400 million bulbs are replaced by CFLs, the resultant saving would be to the tune of Rs 14,000 crore

• It would mean power saving of 31 billion units per annum

• The money saved from these could additionally fund a 3500 Mw power plant in the county

• CFLs can work on 6-12 volt batteries,helping villages off the grid get illumination

This transition is being promoted and facilitated by states and schemes

Engineering the change

Price an important factor -- down but still not competitive with cheap incandescent bulbs -- Rs 75-150 against Rs 15

Large commercial consumers save enough to make transition, but bulk of consumers are small -- less than 50 units per month, paying Rs 100 per month as power tariff

So, government/agency intervention necessary:Schemes of states/agencies promoting CFL; seeking carbon

credits to make up the short fall or not

Engineering..

BEE scheme -- Bachat Lamp Yojana -- distribute at Rs 10-15, recover the deficit from CDM credits --reach 400 million households. In 2009, 650,000 CFL will be given in just two cities of Visakhapatnam and Yamunanagar. Osram is the company

Himachal Pradesh -- Atal Bijli Bachat Yogna -- county’s most ambitious CFL programme. Reaching 1.6 million households with an order of 6.4 million CFLs, costing Rs 65 crore (had problems with cartel of big four who tried to fix price; delayed because of power factor decision). HP Socomec and Phoenix will supply

Engineering

Sirsa -- a district that has gone CFL -- selling at half price as printed on the packet (Rs 67.50 for 11 watts; Rs 75 for 15 w; Rs 100 20 w) -- used dealer margins to reduce cost of CFL (50% higher than factory price)

Delhi -- Finolex scheme -- sold directly at half price

Nashik -- Between November 2005 to June 2006; Prayas evaluation found sale of 380,000 against target of 300,000; substantial saving but quality issues

Mumbai -- Reliance energy -- pilot scheme

Now all on hold for central scheme?

Market: size and players

• Indian market is moving towards 200 million pieces• Growing at nearly 40 per cent per year

• The market is complex with more than a dozen branded players and many more unbranded players

• Cross selling between manufacturers and brands are common (Philips or Phoenix is the biggest?)

• A huge chunk of the CFLs of different qualities are still imported from China (brought down market price to Rs 40-50 per piece) -- new anti-dumping regulations?

Concerns

1. Number of CFLs sold in the market without BIS certification

2. PF of .85 made mandatory from January 1, 2009 but industry opposition continues

3. Given the market structure, what other systems and standards are needed to ensure quality and life?

Mercury: the next problem

1. Currently there is no regulation to limit the amount of mercury going inside CFLs. Again Industry opposition

2. What: 1 mg CFL available; In India 3-13 mg of mercury; pellets or amalgams?

3. Need to set standards -- get the best in the world and even better to drive technology in big markets

4. No labelling standards of CFLs regarding the mercury toxicity on CFLs, in spite of BIS committee advice

Mercury: disposal?

1. RH Khwaja task force recomended a tax on CFLs to finance a disposal mechanism

2. It noted that major manufacturers had facilities to recycle CFLs in house that could be used for disposal

3. CPCB issued guidelines for disposal of CFL as part of its consent conditions -- no manufacturer has applied as yet

Without adequate conditions for disposal of CFL should schemes continue?

Way Forward• Ensure strict standards for Mercury dosing of CFLs• Use of amalgams or pellets instead of liquid to ensure the correct dose of mercury inside CFL• Strict standards to ensure mercury inside a CFL does not exceed 5 mg. The aim is to reduce to about 1 or 2 mg• Strict standards to ensure that toxicity of mercury be labelled on every CFL package along with the quantity of mercury present in that CFL•Labels must also advise consumers on what to do in case the CFL breaks• Strict enforcement of .85 PF so that transmission and distribution losses are minimised so that all the benefits of the CFL can be availed• Set parameters to ensure that poor quality Chinese CFLs are heavily taxed at point of entry so that they loose the edge of lower price•Only long life CFLs with 10,000 hours must be allowed to be sold in the market

Way Forward

• Proper recycling and disposal of CFLs is a must -- at manufacturers site or common? Or both with differing costs?

• Existing recycling facilities at manufacturing sites must be made available so that CFLs can be recycled even before the government mechanism is put in place

• Cost of disposal must be part of the cost of the CFL

• A system must involve buy back of burned out CFLs