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LED Technology for Efficient Illumination. Team Element Todd Arthurton Jason Becker Bart Erwin Jason Hesler Prashant Naik Kailash Purohit. BUS D 594 - Competitive Strategies in Global Industries. Project Scope. Imagining Indiana as the “Lighting Innovation Hub” by : - PowerPoint PPT Presentation
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LED Technology for Efficient Illumination
Team ElementTodd Arthurton
Jason BeckerBart Erwin
Jason HeslerPrashant NaikKailash Purohit
1BUS D 594 - Competitive Strategies in Global Industries
Project Scope
Imagining Indiana as the “Lighting Innovation Hub” by:• Increasing the adoption of the LED lights with businesses,
government and consumers.• Launching a consulting company for lighting solutions.• Recruiting from Indiana’s top schools to drive down costs of LED
technology and develop next generation lighting solutions through advancements and breakthroughs.
• Creating center of excellence labs for light innovation in major engineering programs.
• Attracting major lighting manufacturers such as GE and Sylvania. • Creating jobs in R&D, manufacturing, consulting and installation.
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Energy Usage
• Based on estimates from Alliance to Save Energy– 22% of U.S. electrical demand is from lighting
• Energy Independence and Security Act of 2007– Will phase out the manufacturing of incandescent light
bulbs from 2012 to 2014– Effectively makes the Compact Florescent Light (CFL) the
new standard– Requires all lighting in Federal buildings to use Energy Star
products
3
What Is An LED?
• Light Emitting Diode (LED)– Invented by Nick Holonyak, Jr. in 1962– Electroluminescence occurs when a semiconductor diode is
turned on • This allows for electrons to recombine with holes
– Energy is then released in the form of light – Color is determined based on energy gap of the semiconductor
– First LEDs only emitted dim red light– New technology allows for high brightness along the color
spectrum
4
LED Benefits
• Efficiency – 80% less energy used • Less thermal waste – lower cooling costs• Durable – solid state shock resistant• Longer life – 25,000 to 100,000 hour utility• Environmentally friendly – no mercury to dispose of• Guarantee – 3 years if Energy Star certified• Instant on – no warm up time• Ability to dim
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Fluorescent Versus LED Comparison
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Technology Proven light source of 20+ yearsEmerging technology that holds great promise to revolutionize lighting over the next decade
Energy Use 75% less energy than incandescent fixturesAt least 75% less energy than incandescent fixtures and getting more efficient all the time
Cost Typically more expensive than incandescent fixtures ($)
Typically more expensive than fluorescent fixtures ($$)
Lifetime ≈9 years (Based on 3 hours of use/day) 22+ years (based on 3 hours of use/day)
Warranty 2-year warranty 3-year warranty
Fixture Types Available in many decorative stylesCurrently available in select fixture types including recessed cans, under cabinet lights, & porch lights
Replacement Bulbs
Special "pin-based" bulbs available for replacement
LEDs are part of the fixture and typically not replaceable
On/Off Time Typically less than 1 second to turn on and up to 3 minutes to reach 80% brightness
Instant on
Heat Output Cooler than incandescent Cooler than fluorescent
Recycling Contain a small amount of mercury and should be recycled
Contain electronic parts and should be recycled (like computers or cell phones)
Fluorescent LED
Incandescent Light
Bulbs
CFL(Compact Fluorescent
Light Bulbs)
LED(Light-Emitting Diode
Light Bulbs)
Life Span (in hours) 1,500 10,000 60,000
Watts 60 14 6
Cost $1.345 $2.98 $54.95
KWh of electricty used over 60k hours 3,600 840 360
Electricity Cost (@ $0.23 per KWh) $821.72 $191.73 $82.17
Bulbs needed for 60k hours of usage 40 6 1
Equivalent 60k hour bulb expense $53.80 $17.88 $54.95
Total 60,000 Hour Lighting Spend $875.52 $209.61 $137.12
Energy Cost Comparison
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LED Applications
• Early applications were as indicator lights on laboratory testing equipment– Later LEDs were utilized for radios, phones, calculators, and other
electronic devices
• Currently LEDs are used in:– automobile lights, signs, traffic lights, street lights, parking garages,
architectural lighting (home light bulbs and fixtures) and flashlights
• Opportunities exist for future applications
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Macro Impact
• Eliminating incandescent bulbs completely would save $18 billion per year (equivalent to the output of 80 coal plants)
• If every United States household changed their five (5) highest-use light fixtures (or the light bulbs in them) to Energy Star certified lighting, Americans would collectively save more than $6 billion (or $60/household) every year in energy costs
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Five Forces Analysis: LED Lighting Industry in Indiana
External: - Incandescent lighting - CFL Lighting providers - Foreign LED producers - Other US statesInternal: - Indiana’s non-LED business
Related Service Providers: - Incandescent bulbs - CFL lighting providersForeign Players: - Foreign LED Companies - Manufacturers in other US states (Eg. Silicon Valley)
Direct: - CFLIndirect: - Alternative energy lighting - Building/engineering re-design for natural light use
- Light innovation labs- Current LED producers (GE, Sylvania etc)- Lighting installers- Engineering institutions - Maintenance and Services
Customers- Institutions, Corporations- Homeowners- Government agenciesChannels- Government agencies- Green groups
Supplies/Suppliers CustomersCompetitors
Substitutes
Possible Entrants
Current Lighting Industry Clout
Initial cost
Economy
Gov’t Initiatives
Technology adoption
Environmental impact
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Challenges of LED Adoption
• Initial cost - the use of LED lighting has a high initial capital cost when compared to conventional lighting
• Current lighting industry clout – as incandescent bulbs are phased out, CFL will be natural replacement
• High temperature sensitivity• Light output from LEDs is directional leading to a more complicated
fixture design
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Why Indiana?• R&D
– Existing universities with strong research capabilities
– Availability of stimulus funds– Ability to partner with existing
institutions like the Richard Lugar Center for Renewable Energy
• Manufacturing– Strong manufacturing
infrastructure.– Large manufacturing workforce
availability due to automotive crisis
• Installation– New state requirements of building
codes– Large manufacturing workforce
availability due to automotive crisis
• Logistics– Crossroads of America
• Indiana’s strategic objectives– Aligns with Indiana’s energy policy– IEDC successful in attracting
businesses and FDI– Budget surplus
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Tax Incentives
• Commercial Lighting Tax Deduction– The Energy Policy Act of 2005 created the Energy Efficient
Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap
– Eligible for tax deductions of as much as $1.80 per square foot.
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What Indiana is Already Doing
• Indianapolis is eligible to receive $8,032,300 over the next two years as part of the EECBG program funded by the American Recovery and Reinvestment Act
• LED Street Lighting Pilot Projects - $800,000 High-efficiency LED street lighting projects will be installed at various locations where replacement street lighting is needed.
• LED Traffic Signal Retrofits - $2,503,900 Currently, only 370 of the city's 1,100 intersections have LED traffic signals. This activity proposes to retrofit the remaining 730 intersections to LED.
• http://www.sustainindy.org/
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Strategic Action PlanPhase 1
– Creation of a consulting company to help businesses, industry, government, and homeowners realize cost savings through the use of efficient lighting.
– Collaborate with the state universities to start light innovation labs and curriculum for next generation technology.
Phase 2– Recommend IEDC to attract lighting innovation companies to
Indiana.Phase 3
– Work with regulators and construction industry to modify construction standards for utilizing energy efficient lighting.
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Phase 1 – Create Consulting Company
• Setup a consulting company in Indiana to promote the use of LED technology on a global scale.
• Services offered– Energy audit - Assess the current energy demand and costs– Own and execute the implementation of projects.– Recommend and provide a cost/benefit analysis using LED
technology for various sectors.– Provide information on government funding programs for the
installation of LEDs– Promote the benefits of using LED technology via seminars,
workshops, advertisements etc
16
Phase 1 – Create Consulting Company
• Target Customers:– Government– Commercial– Industry– Residential
• Key Partnerships:– National energy conservation institutes like Lighting Research
Center, Energy Star and Alliance to Save Energy to leverage existing research and expertise
– Partnership with vendors to offer competitive prices– Partnership with installation services
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Consulting Company – Business Model
Consulting Company
Consulting Company
Commercial Division
Industrial Division
Residential Division
Government Division
Material Volume Discount
Partners
Indiana Universities
LED Private Research
LabsEnergy Star
(Federal Government)
Energy Conservation
Groups
Project Management
3rd Party Sub Contractors
ElectriciansEngineering
Firms
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Innovative Products and
Systems
Information Exchange
Advisory Services
Installation Projects
Energy AuditLight Fixtures
Power Monitoring
Installation
Phase 1 - Innovative Labs and Curriculum
• Indiana strengths– Top engineering and business schools– Existing centers like Richard Lugar Center for Renewable
Energy.– Existing light research program at Purdue
• Actions– Setup light innovation labs at the leading universities. – Develop curriculum in alternate energy at the universities.
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Phase 2 - Attract Light Innovation Companies
• Indiana strengths– High innovation light labs.– Highly skilled talent pool.– Logistics (Crossroads of America).– Available manufacturing resources.
• Actions– Recommend IEDC to leverage Indiana’s strengths and with
appropriate incentives attract light innovation companies to relocate or expand in Indiana.
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Phase 3 - Constructions Standards
• Indiana strengths– Commitment to energy conservation.– Previous recommendations.
• Actions– Collaborate with state and federal agencies and the
construction industry to update construction standards to utilize more efficient lighting in new buildings and homes.
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Imagining Indiana with LED Technology
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