Government Intervention Needed to Achieve LED Lighting Savings

The LED lighting revolution is happening and the savings are astounding, but it may be decades before we see the full benefit if our governments don't step in to ensure the public good is achieved.

Businessweek (Dec 24, 2007) "Philips: Lord of the Lights" Philips has spent $4.2 billion to take a dominate position (ahead of GE) as a supplier of lighting in the US and has become the leading supplier of LED lighting. The problem is LED lights will run 12 hours per day for 11 years and they need to make up for lost future revenue. The Businessweek article suggests the plan is to sell LED lights with their own fixtures and control systems.

This plan may benefit Philips, but it could slow down the implementation of home use LED lighting by decades. Unique operating systems can create near monopoly situations that maximize profit opportunities for the manufacturer, keep prices unreasonably high, restrict competitive products, and slow down the implementation of new technologies.

Current LED lights are up to 98% more efficient than incandescent bulbs and with about 1/5 of all electricity going to lighting - the switch to LED lighting would make a significant contribution to Canada meeting its Kyoto commitments.

The good news on LED includes Wal-Mart switching over 500 superstores to LED lights. And expect other large retail/commercial power consumers concerned about their public image to consider following suit.

Also, the move to LED lighting is in the very early stages. There are opportunities to ensure the technology is implemented more quickly. LED standards and standardization can be created to minimize monopoly effects. There are suppliers of the chips required to produce LED lights other than Philips and GE, so opportunities to develop and grow competing LED lighting manufacturers exist. It would seem prudent to attempt to promote Canadian manufacturing facilities.

The benefits from the overall reduced demand on our electric power systems cannot be ignored.
The reduced demand for electrical power from coal or oil will result in improved air quality.
The reduction or elimination of the need to add more generation capacity provides a means stop the development of new power generation capacity from nuclear or coal.
Reduced power demand, without requiring changes to how we use electrical power, provides the means to making real progress on our Kyoto goals - A method that the public can easily comprehend and get behind.

There is nothing to suggest that GE, Philips, and others will not be good corporate citizens as they develop and implement their LED lighting strategies. However the potential impact and benefit of a rapid, smooth, and effective implementation of LED lighting technology into the industrial, commercial, and residential sectors of our economy is far too important to leave to chance or be permitted to suffer delay.