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HomeEconomyLED bulbs prices come down further

LED bulbs prices come down further

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New Delhi: The Union government, through its flagship initiative Domestic Efficient Lighting Programme (DELP), has achieved a further 10% reduction in prices of 9W LED bulbs in yet another round of LED procurement for Madhya Pradesh. The procurement price has come down to Rs 64.41 (exclusive of taxes) from existing Rs 73 while the efficiency of 9W bulbs has increased by 20%. This is a 10% reduction from the June 2015 price and about 80% reduction from February 2014 price of Rs 310.

Energy Efficiency Services Limited (EESL), a public energy services company under the administration of the Ministry of Power, has achieved a rapid decline in LED prices through a combination of aggregation and transparent procurement.

 

The government has ensured transparency and encouraged by using e-procurement of goods and services. This has resulted in a significant reduction in the transaction and and enhanced process efficiency. This, in turn, has led to a much larger participation of bidders, thereby increasing competition and reducing the cost of LED bulbs.

The government has also emphasised the need for quality. As a result, the EESL has been able to consistently procure a better quality and an efficient product.

The DELP scheme is being monitored in a transparent manner through a portal. As of now, the EESL has distributed 5.1 crore LED bulbs. The programme has led to significant savings to the country and consumers who are using these bulbs. As of date, the savings achieved are:

Estimated daily energy savings  1.80 crore kWh
Estimated reduction of peak Demand 1,612 MW
Estimated daily reduction of bills of consumers Rs 7.09 crores
Estimated daily greenhouse gas emission reductions 14,750 tonnes of CO2

The target of the programme is to replace all the 77 crore incandescent bulbs sold in India with LEDs. This will result in a reduction of 20,000 MW load, energy savings of 100 billion kWh and greenhouse gas (GHG) emissions savings of 80 million tonnes every year. The annual saving in electricity bills of consumers will be Rs 40,000 crore, considering an average of Rs 4 per kWh.

Featured image: The graphic illustration shows figures as of  2015. Courtesy: The Times of India

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