Submitted in Fulfilment of the Requirement of the Degree Of

A COMPARATIVE STUDY OF ENERGY SAVING LED LIGHTING WITH FOCUS ON SELECTED MUNICIPAL CORPORATIONS IN GUJARAT AND HARYANA STATE

SYNOPSIS

submitted in fulfilment of the requirement of the degree of

DOCTOR OF PHILOSOPHY

to

ManavRachna International University

by

VISHWAJEET V. JITURI

Registration No: 13/Ph.D./012

Registration Date: 12.06.2014

Under the Supervision of

Dr. ANIL SARIN

Professor

Faculty of Management Studies (FMS)

ManavRachna International University

Sector-43, Faridabad, Haryana, India

CERTIFICATE

This is to certify that this Synopsis entitled "A COMPARATIVE STUDY OF ENERGY SAVING LED LIGHTING WITH FOCUS ON SELECTED MUNICIPAL CORPORATIONS IN GUJARAT AND HARYANA STATE" byVISHWAJEET V. JITURI, submitted in fulfilment of the requirement for the Degree of Doctor ofPhilosophy in FACULTY OF MANAGEMENT STUDIES (FMS) of Manav Rachna International University Faridabad, during the academic year 2014, is a bonafide record of work carried out under my guidance and supervision.

(Signature of Supervisor)

Dr. Anil Sarin

Professor

Manav Rachna International University, Faridabad

Dated:

ABSTRACT

Lighting plays an important role in our life. We presently have variety of lighting sources depending upon nature of the requirement. The lighting (households, industry, commercial establishments, streetlights/ public places) is a big load on our electricity demand. With rising costs of energy and the need to save natural resources like coal, oil, gas etc. used for generating the power, there is a necessity to consume less power in lighting. The municipal corporations (MC/MCs) in India incur significant amount of expenditure for providing street lighting, and operation and maintenance of the same thereafter. As against incandescent and other traditional lamps, where most of the power is lost in the form of heat; the LED lighting shows a path in reducing the power consumption by energy savings and also has more life. In future, the LED lighting share is expected to increase to 75 per cent. But as the LED lights have emerged recently, the technology is not yet proven and they have high initial cost. Indian government is taking many LED promotion initiatives and some MCs in India have tried pilot LED streetlight projects with several investment options like energy services company (ESCO);however, the payback and the future are not clear. This research aims to carry out descriptive and comparative study of LED lighting utilization in selected municipal corporations of Gujarat and Haryana, to bring out successful initiatives and/or gaps. This will help to understand the LED growth drivers and barriers for their large scale promotion and build-up confidence level for future investments in this area.

Keywords:Energy savings, LED light, municipal corporations, streetlight, CFL

TABLE OF CONTENTS

S.NO. / TOPIC / PAGE NO.
/ Introduction / 2-4
/ Literature Review / 5-8
/ Description of Topic / 9
/ Objectives and Scope of Research / 10-11
/ Methodology to be adopted / 12
/ Proposed/expected outcome of the research / 13
/ References / 14

INTRODUCTION

Lighting or illumination plays an important role in the life of mankind. During daytime, sun is the source of energy and light. At night or within closed areas during daytime, artificial light provide us the illumination. Proper lighting in our surroundings gives us energy and increases the efficiency levels.

Even before the invention of first incandescent lamp, man has been using fire for centuries, in the form of torches to provide illumination. Thomas Alva Edison[1] invented the first commercially practical incandescent lamp. Sooner, variety of lighting sources were invented; arc, mercury vapour, neon, halogen, metal halide, fluorescent (tube light),… and more recently compact fluorescent lamp (CFL) and light-emitting diode (LED).

Each invention tries to address the gaps in the previous product by way of innovation or improvement. In case of lighting too, man has discovered several methods of production of light, for improvement. The need is to increase intensity of the illumination using less energy, get more life of the product, should be soothing to humans, environment friendly etc.

The need of type of lighting depends upon the surroundings to be illuminated, for example indoor home, offices etc.normally use incandescent bulb, tube light, CFL or LED bulb; whereas outdoor places like roads, streets, factories etc.use high intensity mercury vapour, sodium, metal halide or halogen lamps.

All lightings are electrical load on the power supply system. In India, lighting load is approximately 20 per cent of the total electricity demand (Samal, 2013). As per the CEA[2] report, public lighting contributed to approximately 1 per cent of the total electricity demand in the country in financial year 2010-11 (Johnson, Phadke, & Cann, 2014). This amounted to 6,700GWh of power consumption, costing more than Rs. 3,000 crore[3] annually to the municipal corporations (TERI, 2007). The municipal corporations (MC/MCs) in India are urban local government that works for the development of a metropolitan city, which has a population of more than one million. They provide necessary community services like health care, educational institution, housing, transport, sewage, public lighting, water supply etc. by collecting property tax and fixed grant from the state government (Wikipedia.org).

It has been reported that the electricity consumption in public lighting system is increasing faster at a rate of 10 per cent against the 7 per cent incremental rate of total electricity consumption in India (TERI, 2007).

With rising costs of the energy, there is a necessity to consume less power in lighting,whereasgetting more illumination and intensity is desired. In addition to the energy savings with less power consumption, another benefit is that the carbon emission in the environment is also reduced[4] (TERI, 2007).

The Collins English dictionary defines ‘energy-saving’ as ‘that promotes energy saving, that does not waste energy’ ( As per Lawrence Berkeley National Laboratory, ‘energy efficiency’ is using less energy to provide the same service (http://eetd.lbl.gov/ee/ee-1.html).Wikipedia gives ‘energy efficiency’ as the goal to reduce the amount of energy required to provide products and services ( International Energy Agency (IEA) refers that ‘Energy efficiency is a way of managing and restraining the growth in energy consumption. Something is more energy efficient if it delivers more services for the same energy input, or the same services for less energy input. For example, when a compact fluorescent light (CFL) bulb uses less energy (one-third to one-fifth) than an incandescent bulb to produce the same amount of light, the CFL is considered to be more energy efficient’ (

The reduction of power consumption for the same illumination levels in the lighting will come from improvement of the technology. For example,CFL lamp consumes less power with respect to say halogen lamp for the same illumination level.Similarly, LED lamp consumes even less power than CFL lamp.

The major energy consumption areas for municipal corporations in India are street lighting and water supply, in which street lighting alone amounts to 10 to 15 per cent of their energy expenditures (Vasudevan, Cherail, Bhatia, & Jayaram, 2011). This study undertakes the work of determining energy saving opportunities in street lighting in municipal corporations. For limiting the scope of the study, selected municipal corporations from Gujarat and Haryana state in India will be chosen. A comparison of the findings between the states will be made to generalize the results and draw out the conclusions.

LITERATURE REVIEW

The efficacy[5] of light source is measured in lumens/watt. The efficacy of LED is compatible with the present light source but the efficiency of LED lighting is very high. A normal incandescent lamp is having efficacy of around 18 lumens/watts and LEDs are in the range of 40 lumens/watt. In incandescent lamp, most of the power (watts) is lost in the form of heat due to low efficiency which is in the range of 10 to15 per cent. Comparatively, there is no heat developed in LEDs, so the power towards heat is reduced, and the only losses take place in driver circuits which are in the range of 10 to 15 per cent. Thus, a higher efficiency in the range of 85 to 90 per cent can be obtained in LEDs. This makes the potential difference in energy saving with LED lighting. LEDs are used in street lighting because they have long life, makes them more economical to operate and maintain over their span of operation and LEDs provide more pleasant spectrum of light. The cities can hope to cut street lighting budget by half by switching to LED street lighting and this can be accounted by the direct energy savings alone (Soni & Devendra, 2008).

According to an assessment made by Philips[6] in year 2008, light sources containing LEDs and lighting fixtures using LEDs occupied 7 per cent of the volume in the world market, despite the high price of LEDs. It was projected that in the years to come, LED cost woulddrop by 10 times. It was anticipated that by year 2020, LED light sources and LED lighting fixtures would occupy 75 per cent of the market (Borovkov, 2011).

Knights Magazine reported that Los Angeles[7]municipality had been paying more than $20 million for its fleet of 220,000 streetlights. In year 2009, the municipality changed about 140,000 streetlights to LED units. As a result, the energy consumption was reduced by 37 per cent and the municipality was able to cut its bill by $7 million a year. Another benefit was saving of $2.5 million annually on maintenance costs, as LED lamps had 3 to 4 times longer life than sodium lamps (Heaps, 2014).

Bloomberg business week described that Chattanooga[8] officials replaced the traditional high-pressure sodium streetlamps with LEDs lamps and cut energy use by 70 per cent. They also discovered further cost-saving in the form of radio controlled system which could turn streetlamps on and off and tailor the brightness to the lighting needs. The combineddollar savings were 75 per cent to 80 per cent (Credeu, 2012).

In contrast to the above reports, a conclusion from a road lighting study stated that still the traditional high pressure sodium lamp is the best solution considering both cost of installation and performance at least for the bigger roads due to requirement of large installed lumen[9] output to reach the demands regarding lighting level and uniformity. The study however mentioned that for competitiveness, the LED luminaire has to become more efficient (higher lumen/watt ratio) and lower the "cost per lumen" of installation (Larsen, 2012).

Even though the LED benefits have been studied and observed, it has been found that the municipalities remain reluctant to commit the upfront capital required to do the retrofits. ESCO (energy services company)[10] model is one solution, where the ESCO company offers to pay for and install LED street lighting as part of an energy performance contract. The municipality doesnot have to provideupfront capital for the project. Instead, it makes regular payments to the ESCO company based on its energy savings (Heaps, 2014). This is like a ‘pay as you save’ scheme.

However, there areissues of non-performance of ESCO delivery system despite of the cost benefit and attractiveness of LED streetlights. One importantreason can be attributed to the tender conditions stipulating minimum guarantee of energy and cost savings. Even though the payback to ESCO company is based on the amount of energy savings, it is practically difficult to deliver the guaranteed savings. This could be due to the reasons that pre-project baselines may not be met, consumption patterns may depend on seasonal and other variations, installed equipment not meeting the required standards etc. (Energy efficiency services limited [EESL], 2013).

In India too, government is taking many initiative steps towards energy saving by LED street lighting. One such example is setup of ‘energy efficiency services limited (EESL)[11]’company to facilitate implementation of the energy efficiency projects.EESL will work as ESCO, as consultancy organization for energy efficiency, CDM[12], etc.; and as a resource centre for capacity building of SDAs[13], Utilities, financial institutions, etc. EESL toolkit executive summary stated that the public lighting in India consumed about 8,500 million KWh of electricity in financial year 2012-13. It was reported that retrofitting the entire conventional streetlights with LEDs could result in potential annual savings of 4,300 million KWh, which is about 50 per cent of total energy consumed. Furthermore, the operational optimization could lead to an additional 15 to 20 per cent energy savings. Assuming a power cost of Rs. 5 per KWh, this translates to an annual cost savings of Rs. 2,500 crores(Energy efficiency services limited [EESL], 2013).

In past few years, many government agencies have come out with tender requirements for LED streetlights, on pilot as well as regular basis. Some examples are in Haryana (200 units of LED streetlights in year 2012, 140 units in year 2014), Jammu & Kashmir (3500 units in year 2014), Karnataka (288 units LED streetlight units for replacing sodium vapour, mercury vapour, fluorescent streetlights in year 2013), Rajasthan (500 units in 2013), Uttarakhand (131 units LED streetlight units for replacing mercury vapour, metal halide streetlights in year 2011). Generally, these tenders have been awarded with 2 to 5 years comprehensive maintenance contract, thereby reducing government’s expenditure on the recurring maintenance charges.

Ahmedabad MC in Gujarat came out with “expression of interest”in year 2013 for replacement of around 12,000 sodium vapour street lamps with LED lamps, to implement energy efficiency project through ESCO route. The main purpose was to reduce energy consumption, bring down operation & maintenance cost, and improve environmental conditions (Expression of interest for street light energy efficiency programme, 2013).

HAREDA[14] issued guidelines in year 2012 for the promotion of 2000 units of standalone LED solar streetlights for the government sector in Faridabad (Haryana). In this programme, there was a provision of 40 per cent subsidy of the project cost by Haryana government and 30 per cent subsidy by MNRE[15]. Effectively, against a tentative LED light system per unit cost of Rs. 15,000; subsidy of Rs. 6,000 from HAREDA and Rs. 2,880 from MNRE was available (Special project of standalone LED based solar street lights, 2012).

DESCRIPTION OF TOPIC

According to the literature review, there is a lot of opportunity for energy savings in the municipal sector in India. The street lighting is a major expenditure for the municipal corporations. The LED streetlight offers energy savings with respect to the conventional streetlights being utilized presently. There are many initiatives from the government supported by the energy saving projection reports.

Though the energy saving projection with LED lighting is significant, the actual growth in usage of these lights is not ascertained. Some of the barriersfor extensive use of LED lights could be high initial cost, payback failure, inappropriate government policies, product standards, technology, consumer awareness etc.

This research aims to ascertain energy saving scope and potential for the municipal corporations (MCs) by using LED streetlights. In the process, the drivers and barriers in the implementation procedurefor MCs will be determined, to derive recommendations for the future. Therange of this study is limited to selected municipal corporations in Gujarat and Haryana state and a comparison will be made within and between these states.

Correspondingly, the title of the research is “A comparative study of energy saving LED lighting with focus on selected municipal corporations in Gujarat and Haryana state”.

OBJECTIVES OF RESEARCH

The objectives of this research are

• To study and compare benefits of LED streetlights versus traditional streetlights.
• To study various drivers for promoting LED streetlights and the barriers being faced for its large scale promotion in selected municipal corporations in Gujarat and Haryana.
• To compare the results found in selected municipal corporations in Gujarat and Haryana and give suggestions to municipal corporations of other states as well to encourage and adopt LED lighting for achieving energy savings.
• To help develop the guidelines for policy makers in India for future large scale promotion of LED lighting for energy savings.

SCOPE OF RESEARCH

The scopes of this research are

• To do study on operating efficiency levels and potential for achievement of energy savings by using LED streetlights versus traditional streetlights.
• To carry out overview of LED lighting being used for energy savings in selected municipal corporations of Gujarat and Haryana and to find out government policies supporting energy saving products with focus on lighting.
• To find out awareness level, existing practices, applications, incentives and current usage of LED lightings in municipal corporations and to identify the factors contributing and hindering LED lighting in municipal corporations.

To contain and limit scope of the research, the following points are not planned to be addressed. These may form part of the future studies conducted on this topic.

• Study of consumers’ response and perceived value on usage of energy saving LED streetlights by municipal corporations.
• Study, analysis, or comparison of different categories or varieties available within LED lighting.
• To study the role of various stakeholders.
• To identify the benefits of LED street lighting in these states and impact on the development of the economy.
• To come out with suggestions, if any, to private users of the lighting.
• To come out with suggestions to suppliers of the LED lighting.

METHODOLOGY TO BE ADAPTED

In this research, traditional street lighting is the established variable and LED street lighting is the unestablished variable. Descriptive research methodology will be followed to accomplish the objectives.

The data collection will be done by secondary as well as primary methods. The information related to LED street lighting usage in MCs and comparisons between several types of streetlights etc. will be gathered by secondary method. The primary method will be employed for identification of the drivers and barriers for MCs in implementing LED streetlight projects.