Can ESCO mode be a LED street light out of price war?

The global awareness of power saving has arisen. The counties and cities in Taiwan have also actively promoted the replacement of LED street lights. After the completion of the five-way street lamp marking device last year, 250,000 LED street lights have been replaced. The Energy Bureau estimates that it will replace 310,000 baht this year, and it is different. In the past, most of the price targets, this year may be changed to the Energy Conservation Performance Assurance Model (ESCO). The industry believes that through the ESCO model, the bidding market will change from chaotic price competition to a unified competency competition in terms of technology, scale, and capital, which is expected to help the LED street lamp market to be healthier and set a good example.
Taiwan promoted the Wudu streetlights at the end of 2012. After the killing of various industries, until 2013, several large factories went out one by one, including Guanglin and Delta of Everlight and Guangbao, and congratulated with China Power’s strategy. At the same time, all the 250,000 LED street lights were erected last year. Among them, Yiguang won about 100,000 lamps as the biggest winner and contributed about 800 million yuan in revenue last year.
According to the statistics of the Energy Bureau, the number of LED street lamps installed in this year is about 310,000 baht, and in the future there are 650,000 盏 mercury street lamps to be replaced with LED street lamps.

Compared with the street lamp standard that was funded by the government in the past, it is easy to flow into the vicious competition of price targets. This year, the government intends to promote the energy conservation performance guarantee model (ESCO) model, that is, the initial construction cost is borne by the winning bidder, and the LED street lamp is After the replacement, the annual electricity bill will be paid to the winners.

Through the ESCO model, in addition to reducing the financial burden of the county and city governments, for the bidders, they must consider the quality and age of the LED street lights (this will link their cost recovery status), that is, the bidder must Taking into account the conditions of price, quality and stability, and to achieve the above conditions, the LED street lamp market in Taiwan will be transformed into a comprehensive competency competition in terms of technology, scale and capital.

Of course, the market size of only 100-200 million street lamps in Taiwan is still small, but the LED industry aims to set up a streetlight model area in Taiwan and look at overseas markets. According to relevant data, there will be 5.77 million street lamps in the Asia-Pacific region by 2020. The market potential, while other countries such as Southeast Asia and Eastern Europe have also promoted LED outdoor lighting from the policy side, and these countries have not yet established LED lighting standards, these will be opportunities for future Taiwanese factories.

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