Stimulating the transition to LED lighting in Asia

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ROTTERDAM SCHOOL OF MANAGEMENT, ERASMUS UNIVERSITY ROTTERDAM

Stimulating the transition to LED

lighting in Asia How do standards for LED lighting emerge in developing countries in Asia?

Master Thesis

24-11-2011

Author: Welmoed Altena – 336943

MScBA Chinese Economy & Business

Coach: Mark Greeven

Co-reader: Peter van Baalen

Stimulating the transition to LED lighting in Asia

Master Thesis

Preface

The copyright of the Master thesis rests with the author. The author is responsible for its contents.

RSM is only responsible for the educational coaching and cannot be held liable for the content.


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Acknowledgement

This thesis is written as the final work of my MScBA Chinese Economy and Business at the Rotterdam

School of Management, Erasmus University Rotterdam.

I would like to thank my coach Mark Greeven for his everlasting enthusiasm, profound support and

valuable guidance during the entire thesis process and my co-reader Peter van Baalen of RSM

Erasmus University.

Furthermore, I would like to thank Piet Derks, General Manager Lighting R&D China, Philips

Innovations Campus Shanghai for giving me the opportunity to do my internship at Philips Shanghai,

China as well as the HR-department of Philips Singapore for their support and cooperation. I would

also like to thank Jag Arora, Managing Director of the Asia Lighting Compact (ALC) for sharing her

expertise and her invaluable support.

In addition my thanks go out to Frank Altena, who introduced me to Philips Shanghai and helped me

to arrange the internship.

Moreover I thank the interviewees Mr. Roberto C. Cristobal, Ms. Raquel S. Huliganga, Ms. Napaporn

Phumaraphand, Mr. Luong Van Phan, Mr. My K. Ton, Mr. Stuart Jeffcott, Ms. Kathryn M. Conway, Mr.

T. Sujendan, and Mr. Jürgen Sturm for offering their time and sharing valuable insights.

Finally I would like to thank my parents who encouraged and supported me all the time.

Rotterdam, 24 November 2011

Welmoed Altena


Master Thesis

Executive Summary

Nowadays it is widely acknowledged that climate change is a severe threat to global development

and top priority on the international agenda. In order to fight climate change, reducing greenhouse

gas emission is essential. Taking into account that energy consumption is the main cause of

greenhouse gas emission, energy efficiency plays an important role within the international debate

on climate change. Within this context, LED lighting, as one of the existing energy-efficient

technologies, provides a lighting solution which uses less energy than most other types of lamps.

Considering that developing economies account for 51 percent of the global energy demand, they

play a major role in reducing greenhouse gas emissions. In many countries in South Asia the demand

for energy is even dominated by lighting. In other words, stimulation of the transitions towards the

adoption of LED lighting across developing countries in Asia, can contribute to reduce greenhouse

gas emissions. Research shows that standard setting is essential to achieve significant improvements

in energy efficiency. However, currently regional standards for lighting quality for LED do not exist in

developing countries in Asia. In order to stimulate the transition to LED lighting, international

organizations and regional associations can be instrumental to set standards within the Asian region.

Numerous organizations and associations are involved in the standard setting procedures and

influence each other, which makes this process complex. Moreover, the great differences between

the countries involved in terms of local conditions make it difficult to develop one overall standard

that can be applied to these countries.

The question arises what how standards for LED emerge in developing countries in Asia and what

stakeholders are involved in this process. In this research paper, both theory on standardization

processes, institutional theory and stakeholder theory will be applied to answer this research

question and analyze which actors influence the standardization of LED lighting in developing

countries in Asia. The scope of this project is developing countries in Asia, including Philippines,

Thailand, Vietnam, Indonesia, and China. The analysis of transnational standard setting of LED in

developing countries in Asia gives us insight into the process of standardization and fits into a

growing academic interest in standardization processes. This study contributes to the existing

literature on standardization theory. Standardization theory is often applied on a technical level, but

research in the field of business is still very limited. In addition, it provides insight into the

institutional and industrial actors that influence the standard setting process of LED lighting in

developing countries in Asia. Especially in this geographical area research in the field of

standardization is limited.

From the case studies we find evidence that diverging institutional environments in developing

countries in Asia have resulted in different perceptions of the relevance, validity and acceptance of

various stakeholders into the standardization process of LED in this region. Institutional variation

influences the effectiveness of specific stakeholders within a particular institutional context. In

conclusion both the context and the role of each stakeholder within the standardization process

affect how standards for LED emerge and what the most important drivers for the standardization

process are.

The countries involved all have to deal with challenges related to the standardization of LED. In China

it is of major importance that small manufacturers gain more knowledge on LED, buy equipment so


Master Thesis

they are able to test LED, and train their employees so they can reach the international level of

quality control. Another challenge is that China has different regional requirements, especially for

outdoor lighting, given the country’s size and temperature differences between different regions.

Moreover, the patent issue and new industries moving into the lighting market slow down the

standardization process of LEDs. For the Philippines major challenges are related to time and

technical competence. In Thailand, Vietnam and Indonesia lack of testing facilities is the main

challenge. Another challenge in Indonesia is the lack of resources applied to lamps. For all countries

involved it will be a challenge that even if a country adopts the IEC standard for LED, that particular

product that can meet the IEC standards might be too expensive for the local market. Especially for

Indonesia this will be a big challenge.

This study has several practical implications. First of all organizations involved in the standardization

process of LED in Asia should be aware of the developmental nature of the countries which might be

more complex and has its own specific institutional challenges and barriers related to the

standardization process. Moreover, it implies that harmonization of performance standards of LED

lighting across the Asian region is needed to enhance the adoption of quality LEDs in Asia. Since this

study gives insight into the dynamics of standard setting in developing countries and the main

stakeholders involved, it provides a road map what stakeholder to approach and involve in this

harmonization process. In order to achieve harmonization of LED standards regional institutions play

a major role, especially Asia Lighting Compact (ALC), Lites.Asia, En.Lighten and the Regional Centre

for Lighting (RCL). It is important that these organizations cooperate and complement each other.

While Lites.Asia and En.Lighten are more focused on policymakers, ALC is involved with a wider range

of stakeholders, such as the industry, lighting associations and testing laboratories. Since regulation

and standardization go hand in hand, it is important to create a platform to link industry and

government to stimulate discussion between them, for instance about the parameters and levels of

the performance standards. In this way stakeholders involved can build on feedback to give an Asian

perspective on the standardization of LED. Based on this study, it is recommended to first focus on

the standardization of the general lighting segment of LED. However, more research is needed to

analyze what the focus areas are in other Asian countries. Lastly, given the fact that conditions and

needs in developing countries in Asia are different from the developing world, the use of a tier

system (such as the one developed by ALC), will be beneficial. Reason for this is that this takes

minimum performance standards into account, while at the same time it is able to meet specific

needs of Asian countries. In this way good enough will be the way forward for better in the future.

Key words: standardization, LED, energy efficient lighting, climate change, stakeholder theory, Asia,

institutions


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Table of contents 1 Introduction .......................................................................................................................................... 1

1.1 The international debate on global climate change...................................................................... 1

1.1.1 Energy efficiency and LED lighting .......................................................................................... 1

1.1.2 The role of developing countries ............................................................................................ 2

1.1.3 The role of international organizations and regional associations ........................................ 2

1.2 Research objective and scope ....................................................................................................... 3

1.3 Thesis outline................................................................................................................................. 3

2 Literature review .................................................................................................................................. 4

2.1 Standardization ............................................................................................................................. 4

2.1.1 Definition ................................................................................................................................ 4

2.1.2 Types of standards ................................................................................................................. 4

2.1.3 The standardization process................................................................................................... 5

2.1.4 Standardization regimes ......................................................................................................... 8

2.2 Stakeholder theory ...................................................................................................................... 10

2.2.1 Typologies of stakeholder theory ......................................................................................... 10

2.2.2 Identification and classification of stakeholders .................................................................. 11

2.2.3 The Stakeholder Salience Model: stakeholder attributes .................................................... 13

2.2.4 The Stakeholder Salience Model: the degree of salience .................................................... 14

2.2.5 Summary stakeholder theory ............................................................................................... 17

2.3 Problem statement and research question ................................................................................. 18

3 Methodology ...................................................................................................................................... 19

3.1 Research method and data collection ......................................................................................... 19

3.2 Case selection .............................................................................................................................. 20

4 Results ................................................................................................................................................ 22

4.1 International and regional stakeholders ..................................................................................... 22

4.1.1 Stakeholder identification .................................................................................................... 22

4.1.2 Stakeholder analysis ............................................................................................................. 27

4.1.3 Discussion ............................................................................................................................. 28

4.2 China ............................................................................................................................................ 29

4.2.1 Institutional overview ........................................................................................................... 29

4.2.2 Stakeholder identification China .......................................................................................... 31


4.2.4 Discussion ............................................................................................................................. 36


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4.2.5 Standardization regime ........................................................................................................ 38

4.3 The Philippines ............................................................................................................................ 39




4.3.4 Discussion ............................................................................................................................. 42


4.4 Thailand ....................................................................................................................................... 45



4.4.3 Stakeholder Analysis............................................................................................................. 47

4.4.4Discussion .............................................................................................................................. 48


4.5 Vietnam ....................................................................................................................................... 50



4.5.3 Stakeholder Analysis............................................................................................................. 52

4.5.4 Discussion ............................................................................................................................. 53


4.6 Indonesia ..................................................................................................................................... 55


4.6.2 Stakeholder identification Indonesia ................................................................................... 56


4.6.4 Discussion ............................................................................................................................. 58


4.7 Comparative discussion ............................................................................................................... 60

4.7.1 Comparative discussion across countries ............................................................................. 60

4.7.2 Comparative analysis standardization regimes .................................................................... 61

5 Conclusion and recommendations ..................................................................................................... 64

5.1 Conclusion ................................................................................................................................... 64

5.2 Limitations and recommendations ............................................................................................. 65

References ............................................................................................................................................. 66

Interviews .......................................................................................................................................... 66

The Philippines .............................................................................................................................. 66


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Thailand ......................................................................................................................................... 66

Vietnam ......................................................................................................................................... 66

Indonesia ....................................................................................................................................... 66

China .............................................................................................................................................. 66

International & regional ................................................................................................................ 66

Articles ............................................................................................................................................... 66

Books ................................................................................................................................................. 73

Websites ............................................................................................................................................ 73

Appendices ............................................................................................................................................ 78

Appendix 1: Stakeholder questionnaire and basis of questions ....................................................... 78

Appendix 2: Singapore Lighting Energy Efficiency Week .................................................................. 81

Appendix 3: List of laboratories ........................................................................................................ 87

Appendix 4: Existing standards for LED in China ............................................................................... 91


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1 Introduction

1.1 The international debate on global climate change

The 16th

Conference of the Parties (COP-16) to the United Nations Framework Convention on Climate

Change (FCCC), held on November 29 to December 10, 2010 in Cancun, Mexico, emphasized the

need to urgently address climate change and stressed that climate change is currently one of the

greatest challenges to human development (COP-16, 2011). Today it is widely acknowledged that

climate change is a severe threat to global development. As a result of the growing evidence of the

importance of climate change action, the debate on climate change and the role of greenhouse gas

emissions attracts increasing international concern and is top priority on the international agenda

(WBCSD, 2008). The threat of global climate change has triggered the transition towards emissions

reduction and to global low carbon (CCICED, 2009). The major cause of climate change is greenhouse

gas emission, which is mainly a result of energy consumption. During the Climate Change Conference

in Mexico, the importance of energy efficient lighting solutions to save energy and reduce emissions

has been underlined (ESA, 2010).

1.1.1 Energy efficiency and LED lighting

A report of the McKinsey Global Institute (2008) stresses the importance of capturing the energy

efficiency opportunity as one of the main issues to address in order to drive abatement. So energy

demand can be worldwide reduced by using energy more efficiently. Reducing energy consumption

can be achieved by the adoption of already existing energy-efficient technologies. Taking into

account that these technologies pay for themselves in future energy savings, energy efficiency can be

regarded as the cheapest form of new energy (MGI, 2008a). According to another report of the

McKinsey Global Institute, which specifically focuses on developing countries, the application of

energy-efficient technologies can reduce growth in energy demand in developing countries by more

than half in the period 2008-2020, from 3.4 to 1.4 percent per year (MGI, 2008b). LED (Light Emitting

Diodes) lighting is one of these existing energy-efficient technologies that provides a lighting solution

which uses less energy than most other types of lamps. The main advantages of LED are its increased

luminous efficacy, long lifetime, and low power requirements (Bhusal et al., 2007). Especially in Asian

countries, where local grids are not always reliable, the ability of LED to endure fluctuating power

conditions is beneficial (RCL, 2011). Moreover, LED lighting is one of the very high-return

opportunities in energy-efficient appliances and potentially one of the most cost effective

approaches to abate global climate change by using existing technologies (MGI, 2008b). Hence,

stimulation of the transitions towards the adoption of LED lighting across developing countries and

Asia, can contribute to reduce greenhouse gas emissions and enormously reduce energy

consumption. Important to avoid is that LED will the follow the same path as compact fluorescent

lighting (CFLs), which suffered from poor product quality and lack of a regionally agreed-upon quality

standards. These low quality lighting products with low efficiency levels drastically undermine

energy-efficiency policies. So in order to assure that LED is able to achieve its energy efficiency

potential, clear standards for LED has to be developed and adopted. Currently this can be regarded

as one of the major limitations for the implementation of LED technologies (USAID, 2011).


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1.1.2 The role of developing countries

A Harvard Project on International Climate Agreements points out that energy-related carbon dioxide

emissions in the developing world, especially in China, have recently increased even more than

expected (Aldy & Stavins, 2007). Moreover, research of McKinsey emphasizes the important role of

developing economies in reducing greenhouse gas emissions by pointing out that developing

economies account for 51 percent of global energy demand. Along with the rapid economic growth

in this region, developing countries will be responsible for 60 percent of total global energy

consumption in 2020 if current political conditions would not change (MGI, 2008b). In other words,

they have an enormous abatement potential (Enkvist et al., 2007). While developing economies start

from a much lower base, they grow much faster than developed economies. Hence, they can adopt

the most recent technologies at lower cost (MGI, 2007). So although the opportunity to reduce

energy demand by the application of more energy-efficient technologies exists across the world,

especially developing countries have an exceptional opportunity to leapfrog to these energy-efficient

solutions. However, action is needed in order to seize this potential (MGI, 2008b). Also in terms of

constraining economic growth in developing countries, increasing energy demand and insufficient

energy supplies have become a major concern in this region. Energy efficiency will enhance

developing economies to make progress in terms of both energy security and sustained economic

growth (MGI, 2008b). In many countries in South Asia the demand for energy is even dominated by

lighting (RCL, 2011).

1.1.3 The role of international organizations and regional associations

Within the context of the international debate on global climate change, research shows that

governmental institutions play an important role in achieving significant improvements in energy

efficiency by creating the right policy environment that rewards energy-efficient choices and by

setting standards to achieve significant improvements in energy efficiency. Setting government

standards for appliances such as lighting products, is an effective, low-cost way to stimulate a

transition towards more energy efficiency (MGI, 2008b). Currently standards of many countries are

mainly focused on energy efficiency and energy performance, but do not include minimum quality

criteria such as energy, light output and lifetime performance for LED lighting. The incorporation of

quality criteria that are uniform throughout the region would streamline the harmonization process

(USAID, 2011). Besides stimulating the transition to LED lighting, developing performance standards

also enhances quality assurance of the lighting products sold and ensures that the product saves in

fact energy (RCL, 2011). However, currently these standards for LED lighting do not exist in

developing countries and Asia. In order to stimulate the transition to LED lighting, international

organizations and regional associations can be instrumental to set standards within the Asian region.

Numerous organizations and associations are currently involved in the standard setting procedures

and influence each other, which makes the standard setting process rather complex. Moreover, the

great differences between the countries involved in terms of local conditions make it difficult to

develop one overall standard that can be applied to these countries. Thus standard setting and

harmonization of these performance standards of LED lighting across the region are of paramount

importance to enhance the adoption of quality LEDs in Asia. Important to note is that setting

standards on paper requires a country to be able to test for actual compliance and verification

against standards. However, currently adequate testing facilities are often not available in the Asian

region.


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1.2 Research objective and scope

The question arises how standards for LED lighting emerge in developing countries in Asia and what

stakeholders are involved in this standardization process. In this research paper, both theory on

standardization processes, institutional theory and stakeholder theory will be applied to analyze how

these standards emerge and which actors influence the standardization of LED lighting in developing

countries in Asia. Stakeholder support is needed to ensure the long-term viability of organizations,

policies, plans and programs (Bryson, 2003). If key stakeholders are not satisfied at least minimally,

organizations will fail. Taking into account that the world has become increasingly interconnected

and that the transition to LED lighting in developing countries affects many individuals, groups and

organizations, stakeholder analysis provides valuable insight in this process. The focus will be on the

industrial and institutional level of stakeholders. In this way, a strategic view of the institutional and

industrial landscape will be developed. Based on this research, implications and recommendations

for the standardization process will be developed.

The analysis of transnational standard setting of LED in developing countries in Asia gives us insight

into the process of standardization and fits into a growing academic interest in standardization

processes. The purpose of this study is twofold. Firstly it contributes to the existing literature on

standardization theory by introducing the concept of standardization regime. Moreover,

standardization theory is often applied on a technical level, but research in the field of business is still

very limited. Secondly, it provides insight into the institutional and industrial actors that influence the

standard setting process of LED lighting in developing countries in Asia. Especially in this geographical

area research in the field of standardization is limited.

Based on the purpose of this research paper, the following research question is proposed:

How do standards for LED lighting emerge in developing countries in Asia?

The scope of this project is developing countries in Asia, including Philippines, Thailand, Vietnam,

Indonesia, and China. China is an example of a country that is far ahead in terms of the

standardization of LED and has a lot of manufacturing interest. Thailand and the Philippines are

examples of countries where the government is driving the standardization process and where a

number of efforts for the standardization of LED are going on. Indonesia and Vietnam are examples

of countries which are far behind. The focus is on the standardization process of LED in this region.

The level of analysis will be institutional and industrial, including international organizations and

regional associations, regulated, governmental and semi-governmental bodies. The specific

stakeholders to focus on include national utility, lighting associations, standard setting institutes, the

industry, and energy efficiency bodies.

1.3 Thesis outline

The study is organized as follows. Chapter 2 provides a literature review and theoretical background.

Important concepts such as institutional theory, standardization theory and stakeholder theory will

be reviewed. Next, in chapter 3 the methodology will be introduced. Chapter 4 presents the results,

discussion and comparative analysis. Finally, chapter 5 states the conclusions, limitations and

recommendations.


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2 Literature review This chapter consists of theoretical background and a literature review of major relevant academic

contributions. It introduces theory on standardization processes, institutional theory, and

stakeholder theory. Furthermore, this chapter indicates the research gap and how this study

contributes to existing academic research.

2.1 Standardization

There is a growing academic interest in standardization processes (Hommels et al., 2008). Over the

past few decades, research on standardization has been conducted by academics from a variety of

disciplinary backgrounds, including engineering, economics, business, technology management and

education (De Vries, 2011). While research on standardization was originally mainly based on

technological considerations, it now takes into account that standardization processes are also

characterized by economic and political interests (Egyedi, 2008). However, a lot of research has been

focused on telecommunications and information technology, especially in relation with technological

innovation processes (Cowhey, 1990; Werle, 2001b; David & Steinmueller, 1996; Williams et al.,

2004). Moreover, limited research has been done on the lighting industry (Conway, 2011). So far,

most of the research has focused on the identification of factors that influence the outcome of a

technology battle, including technological superiority, firm resources and the role of institutions

(Suarez, 2004). Furthermore, research on standardization has been mainly focused on developed

countries and not so much on developing countries (Shapiro & Varian, 1999). Currently the field of

standardization studies is still in an early phase of professionalization (Egyedi, 2008).

2.1.1 Definition

Several definitions of standards exist. David & Greenstein (1990) define standards as ‘a set of

technical specifications adhered to by a producer, either tacitly or as a result of a formal agreement’.

Technical standards can be defined as ‘a means to achieve control and to regulate and coordinate the

production and uses of technology’ (Hommels et al., 2008). The official international definition by ISO

and the IEC of a standard is a ‘document, established by consensus and approved by a recognized

body, that provides, for common and repeated use, rules guidelines or characteristics for activities or

their results, aimed at the achievement of the optimum degree of order in a given context’ (IEC, 2011).

So standards yield specifications.

Standardization takes place at different scales. Besides the development of standards at a company

level and an inter-organizational level, standardization has become increasingly important at an

international scale. Especially the regional level is becoming more important (De Vries, 2008), for

instance Europe or Asia.

2.1.2 Types of standards

Standards can be categorized in reference, minimum quality, and interface or compatibility standards

(David & Greenstein, 1990). Reference and minimum quality standards aim to indicate that a product

has reached a certain quality or characteristic. Interface standards are needed to incorporate an

intermediate product or component in a larger technological system, so entities are able to function

together. In order to stimulate the transition to LED lighting, performance and quality standards are

needed, which should focus on energy efficiency, performance and life time of LED lighting (Ton,

2011b).


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Standards can be the outcome of committee-based and market-based standardization (Farrell &

Saloner, 1988). In other words, standards can be established through market forces, or through

official standardization institutes. When standards are established by market forces, they are called

de facto standards, and are the outcome of market-mediated processes. De jure standards are

defined by standardization institutes, including government regulations, industry committees and

associations, and approved by authoritative national or international bodies before market adoption

(David & Greenstein, 1990). While earlier research (1980s) is mainly focused on de facto standards,

later on (1990s – early 2000s) the emphasis of research has shifted towards committee standards,

especially committee standards of the formal standards bodies and consortia (Egyedi, 2008). In this

study I will focus on de jure standards. So the analysis will be on the level of organized

standardization, defined as organizational bodies in which committees negotiate and adopt

standards (Werle, 2001a). However, in reality the distinction between de facto en de jure standards

is not always so clear, since many standards are the outcome of a standard battle or originate from a

dominant firm.

De facto standards can be further categorized in sponsored and unsponsored standards, while de

jure standards can be divided in voluntary and mandated standards. Unsponsored standards are a set

of specifications without an identified originator that holds a proprietary interest or without any

sponsor, but they do exist in the public domain. In sponsored standards at the other hand,

sponsoring agencies do have a direct or indirect proprietary interest. These standards stimulate

other firms to accept a set of specifications. Voluntary standards are the outcome of voluntary

standards-writing organizations. These standards, also called coordinative standards, are adopted by

standard organizations, private consortiums, and forums (Werle, 2001a). Finally, mandated

standards, also called regulations, are set by regulatory authorizes, such as governmental agencies.

Only mandated standards can be enforced by law (David & Greenstein, 1990). This research will

focus on voluntary standards.

2.1.3 The standardization process

Standardization processes are characterized by a high degree of complexity, which is caused by the

intertwined technical, economic and political interests of the parties involved. Involvement of several

stakeholders such as engineers, politicians, industrialists, international standardization bodies in the

negotiation of norms and standards, makes the standardization processes difficult to achieve

(Hommels et al., 2008).

Theoretical frameworks in the standardization literature provide useful insight into these complex

standardization processes and the factors that play a role. Van de Kaa et al. (2007) proposes a

framework which consists of 31 factors grouped under five categories that help to explain the

outcome of standard battles. The five categories are: superior design, mechanisms, stakeholders,

dominant agent and strategy (see figure 2.1). The role of a regulator, part of the stakeholder

category, is to prescribe certain standards in the market (Van de Kaa et al., 2007).


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Figure 2.1: Framework for standard dominance

Source: Van de Kaa et al., 2007.

Research of Tushman and Rosenkopf (1992) suggests regarding the idea of technology as ‘systems in

context, linking characteristics of systems and contexts to socio-political dynamics’. They emphasize

the role of social, political economic and organizational factors on technical progress and the

emergence of a dominant design: ‘a negotiated logic enlivened by actors with interest in competing

technical regimes’.

Research of Lee et al. (1995) analyses the process of emergence of dominant designs from a strategic

perspective and views the process as a black box process in which external conditions, non-

technological forces, technological forces and complementary assets interact. Within their

framework, economic, technological, organization, and socio-political driving forces are integrated. 6

primary and 11 secondary factors are proposed of which socio-political forces are the least

predictable or controllable. They argue that governments play an influential role by supporting or

opposing a move to standardization and underline the role of industry committees, government

regulation and international standardization commissions in the standardization process (Lee et al.,

1995).

The framework of Schilling (1998) proposes 5 primary and 11 secondary factors that influence the

dominance of a design. One of those factors is government intervention in the standards by

regulation, which is explained as ‘a legally induced adherence to a dominant design’ (Schilling, 1998).

Research of Suarez (2004) focuses on the process of standard dominance and proposes five battle

milestones, which determine five different key phases of a dominance battle (see figure 2.2). Success

in each phase of the battle is based on different firm- and environmental level factors. In total the

framework proposes 11 primary and 9 secondary factors.


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Figure 2.2: Key factors of success at each stage of the dominance process.

Source: Suarez, 2004.

Two broad groups of factors influence the outcome of a dominance battle: firm-level factors and

environmental factors. Environmental factors can also influence firm-level factors (Suarez, 2004).

Since I will approach the standard setting process from an institutional theory perspective in this

research, I will discuss the environmental level, especially the regulation part in more detail now.

Regulation plays a major role in phase II, ‘when the leading technological trajectories have proved

their feasibility but have not yet or only just reached the market that regulators intervene’ (Suarez,

2004). Since industry regulation and institutional intervention have the power to mandate the use of

a particular technology and to enforce a standard, and thus define a dominant design (Suarez &

Utterback, 1995), they play an important role in the standardization process. In fact, technology is

embedded in the institutional environment that shapes it (Garud et al., 2002). Besides regulation,

private institutions, such as industry associations or standard making bodies can also affect the

standard setting process (Suarez, 2004). However, next to regulations, governments can also play

other roles in the emergence of a dominant design. They can for instance stimulate that a design

becomes dominant by purchasing a product in the early stages of an industry (Suarez & Utterback,

1995).

So the literature on standardization provides us with several frameworks to gain insight in the

standardization processes. They underline the importance of standardization institutes such as

government regulation, industry committees, and international standardization commissions.

However, the literature does not deal with how standards emerge and the specific role the

stakeholders play within the standardization process, especially in developing countries where a lot

of uncertainty exists. Moreover, the literature does not deal with how the stakeholders influence the

standardization processes and each other. Within the standards process coordinated by committees,

such as formal standard bodies, consortia, and government agencies, negotiation of standards is a

key area, since it directly affects what interests, values and norms will be included in the standard

(Egyedi, 2008). Negotiations are based on conflicting interests and aim to reach a consensus among


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various stakeholders (Pfetch, 2008). In reality this consensus is often based on a balance between

technical excellence and acceptability (Dijkstra, 2008). In order to reach consensus it is useful to

identify which interests play a role. To identify and prioritize the stakeholders that are part of the

institutional environment for standardization in developing countries, stakeholder theory will be

applied, which is introduced in section 2.2.

2.1.4 Standardization regimes

The idea that institutions matter comes from new institutional economists such as Douglass North.

They argue that institutional frameworks create incentives for behavior, leading to different

outcomes (Prado & Trebilcock, 2009). According to North, institutions consist of both informal

constraints (sanctions, taboos, customs, traditions, codes of conduct) and formal rules (constitutions,

laws, property rights) that shape the incentive structure and direction of an economy (North, 1991).

Institutional legacies reflect the culture, history, and polity of a particular country or region. Within

any institutional setting, organizations are established to represent collective interests, frequently

with the aim to codify these interests as informal practices or formal rules (Doh & Guay, 2006).

Section 2.1.3 shows that governments, industry committees, government regulation and

international standardization commissions are all part of the institutional environment of a

standardization process. However, different societies structure institutions in a different way

resulting in diverging institutional environments; this diversity in economic organization leads to

different economic outcomes (Whitley, 2003). Moreover, institutional variation originates from

differences in social, political and economic situation within a geographic area (Doh & Guay, 2006).

According to research of Hoskisson et al. (2000), institutional theory is one of the most insightful

theories for analyzing emerging economies. Institutional theory ‘emphasizes the influences of the

systems surrounding organizations that shape social and organizational behavior’ (Hoskisson et al.

2000). He further argues that institutional forces influence organizations’ processes and decision

making. Moreover, research shows that institutions influence the standardization process, for

instance Montealegre’s study (1999), which indicates that institutions such as the government,

private sector and international organizations influence the standard setting process (Montealegre,

1999). Other studies highlight the importance of industry and trade associations within the

standardization process (Steinfield et al., 2005). Key institutions for the standardization process

include national utility, lighting associations, standard setting institutes, and energy efficiency bodies

at the supranational and national level.

Within the Asian region, major differences exist between the countries in terms of local conditions

and the environment, which makes it difficult to develop one overall standard that can be applied to

all the countries involved. Therefore it can be useful to categorize each country by looking at its

standardization regime. Krasner (1982) defines a regime as ‘principles, norms, rules, and decision

making procedures around which actor expectations converge in a given issue-area’. This broad

definition includes human interaction ranging from formal organizations to informal groups. The

landscape of the standardization regime is shaped by political, professional and business interests,

which are represented by the stakeholders involved in the standardization process. Research shows

that institutions of emerging economies significantly differ from those in developed economies (Peng

et al., 2007). Moreover, emerging economies are not homogeneous, and show a rich variety of

institutional contexts (Narayan & Fahey, 2005). The aim of this research is to gain a deeper


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understanding of the complex standardization process of LED in the countries involved by paying

more attention to these differences.

This research takes into account the influence of the environment on the standardization process of

LED in developing countries by applying institutional theory and by analyzing how institutions matter

within the standardization process. I will restrict the discussion of the institutional context in the

countries involved to the development of the policy and regulatory institutions related to the energy

sector, especially focused on energy efficiency and lighting. After analyzing both the institutional

context and the stakeholder analysis, a standardization regime will be developed by analyzing who

are the most important drivers of the standardization process of LED in that particular country: the

industry, the government, or international organizations. This integration of institutional theory and

stakeholder perspectives provides valuable insight for evaluation of interactions among the different

stakeholders involved in the standardization process of LED. I this research I will suggest that

diverging institutional environments in developing countries in Asia have resulted in different

perceptions of the relevance, validity and acceptance of various stakeholders into the

standardization process of LED in this region. Institutional variation influences the effectiveness of

specific stakeholders within a particular institutional context. In other words, both the context and

the role of each stakeholder within the standardization process affect how standards emerge. Figure

2.3 shows a simplification of these relationships. In order to take into account the role of the

stakeholders within this process, stakeholder theory is valuable, which will be introduced in section

2.2.

Figure 2.3: Institutions, stakeholder and the standardization process of LED lighting

Source: Derived and adapted from Doh & Guay, 2006.

Social, political, and

cultural legacies

Institutional

variation

Stakeholder legitimacy

and influence

Standardization process

of LED lighting


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2.2 Stakeholder theory

This section discusses stakeholder theory and introduces different frameworks to identify, group and

prioritize different stakeholder groups. Stakeholder theory deals with the identification of

stakeholder groups that require attention from an organization. It provides a framework to separate

stakeholders from non-stakeholders and to understand an organization and its increasingly

unpredictable external environment (Mitchell et al., 1997). Stakeholder management facilitates the

ability of an organization to manage this environment and to align its priorities and actions with the

needs of its stakeholders. This will result in a good fit between the organization and it environment,

which will enhance the success of an organization (Wolfe & Putler, 2002). Moreover, developing

strong, sustainable relationships with various stakeholders will result in long-term value creation for

an organization (Buono, 2002).

Since defining stakeholders directly affects who and what counts, it is essential to first define a

stakeholder (Bryson, 2003). Although disagreement exists among scholar about the exact definition

of a stakeholder (Jones et al., 2002, p. 19), the definition most often used comes from Freeman.

Freeman’s book, Strategic Management: A Stakeholder Approach (1984) is a landmark for

stakeholder theory. After publishing this book, the concept of stakeholders became embedded in

both management literature and in managers’ thinking (Mitchell et al., 1997). According to

Freeman’s now classic definition of stakeholders, widely cited in the literature, a stakeholder is ‘any

group or individual who can affect or is affected by the achievement of the organization’s objectives’

(Freeman, 1984). The definition by Freeman provides a broad definition of stakeholders, so virtually

anyone can be included. In order to avoid exclusion of important stakeholders, a broad definition is a

good starting point to begin a stakeholder analysis (Bryson, 2003). Stakeholders can be persons,

groups, organizations, institutions, societies, neighborhoods and even the natural environment

(Mitchell et al., 1997).

Development of stakeholder theory has focused on stakeholder analysis, which is the classification of

stakeholders into useful categories that gives insight into how stakeholder groups influence an

organization (Rowley, 1997). In the literature, agreement exists about the main steps that are part of

a stakeholder analysis. It begins with the identification of stakeholder groups. The seconds step is to

determine the relevant interests, also called the stakes, of the stakeholders. The final step involves

the evaluation of the type and level of stakeholder power or salience (Wolfe & Putler, 2002).

2.2.1 Typologies of stakeholder theory

Based on the nature and purpose, stakeholder theory can be divided into three main typologies:

descriptive/empirical, instrumental, and normative stakeholder theories (Donaldson & Preston,

1995). Descriptive theory aims to describe and explain specific characteristics and actual behaviors of

an organization. It describes for instance the nature of a firm. This type of stakeholder theory reflects

past, present and future state of affairs of an organization and its stakeholders. Instrumental

stakeholder theory refers to theory that identifies connections between stakeholder management

and the reach of corporate performance objectives, for instance profitability. So this type of

stakeholder theory suggests that by following principles and practices to manage stakeholders,

corporate objectives will be achieved. It explores links between cause and effect in detail and is

hypothetical in essence. It says: ‘If you want to achieve (avoid) results X, Y, or Z, then adopt (don't

adopt) principles and practices A, B, or C’ (Donaldson & Preston, 1995). Normative stakeholder

theory interprets the function of an organization in moral and philosophical terms. In other words, it


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looks whether an organization is able to fulfill its moral duties. It is saying: ‘Do (Don't do) this because

it is the right (wrong) thing to do’ (Donaldson & Preston, 1995). Although the three theories are very

different in terms of purpose and implications, they are mutually supportive. Donaldson & Preston

regard normative stakeholder theory as foundation of all stakeholder theory.

In response to Donaldson and Preston (1995), Jones & Wicks (1999) argue that stakeholder theory

can be divided in two broad categories: the social science based theory, which includes both

instrumental and descriptive/empirical stakeholder theory, and ethics based theory, which focuses

on normative theory. They propose convergent stakeholder theory, which combines both ideas from

instrumental and normative stakeholder theories and suggests managing business in a morally sound

way. However, at the same time the organization should be able to remain economically viable

(Jones & Wicks, 1999).

In response to convergent stakeholder theory, Freeman (1999) proposes a divergent stakeholder

theory which emphasizes instrumental stakeholder theory. According to Freeman, normative theory

is not needed, since it does not relate to the actual world we live in. He argues that it is impossible to

connect a normative claim to real firms and real stakeholders without the support of an instrumental

claim (Freeman, 1999).

2.2.2 Identification and classification of stakeholders

The broad definition of stakeholders will result in an unmanageable number of stakeholder groups.

In order to enhance cooperation with different stakeholder groups, stakeholders need to be

prioritized or classified. Research of many scholars is focused on theories to group and prioritize

stakeholder groups, which will be first introduced.

A common way to classify stakeholders is to divide stakeholders into primary and secondary

stakeholders. Primary stakeholders have a direct interest in an organization and have an economic

impact on the organization, such as employees, customers, suppliers, communities and the natural

environment (Hillman & Keim, 2001). Without the participation of an organization’s primary

stakeholders it cannot survive, sot the level of interdependence is high (Clarkson, 1995). Primary

stakeholders have formal, official, or contractual relationship with an organization (Savage et al.,

1991). Secondary stakeholders are diverse and neither have direct stakes, nor direct contact with the

economic activities of an organization, such the media and special interest groups. However,

secondary stakeholders are able to influence an organization, for instance by mobilizing public

opinion in favor or against an organization’s behavior (Savage et al., 1991). So although an

organization is not dependent on its secondary stakeholders for survival, this group can bring

damage to an organization (Clarkson, 1995).

Dividing stakeholders into internal and external, and interface stakeholders is another method to

categorize stakeholders (Savage et al., 1991). Internal stakeholders of an organization are for

instance employees. External stakeholders are for example competitors and the government. An

example of interface stakeholders is the board of directors, because they are neither internal, nor

external.

Another way to group stakeholders is to categorize them based on which role they play, for instance

customers, suppliers and investors etc. However, research shows that by classifying large stakeholder


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groups based on the role they play, significant differences within stakeholders groups are ignored. In

other words, this method is not fine-grained (Harrison & Freeman, 1999).

In addition, stakeholder can be classified into market and non-market stakeholders (Stevens et al.,

2005). Market stakeholders directly interact with an organization through economic transaction and

influence its competitive environment, such as customers, suppliers, competing firms and

shareholders. Market stakeholders have a high degree of salience. Non-market stakeholders also

interact with a firm, but on a non-economic basis. Public institutions, such as regulatory agencies,

government bodies, the court system, and special interest groups are part of the non-market

stakeholder group. This group of stakeholders has a legitimate claim on an organization, and is able

to use coercive power. However, they do not have economic power to influence an organization

(Stevens et al., 2005).

So it can be concluded that there are various ways to determine stakeholder groups, each with its

advantages and disadvantages. De Vries (2003) proposes a method for stakeholder identification and

classification especially for standardization processes. This useful tool for the systematic

identification of stakeholders and the determination of their positions takes into account that

standardization organization is different from a firm, which results in a different stakeholder

approach. This approach takes a broad perspective by including all parties that may affect and that

may be affected by the standardization process, which represents the open character of

standardization. In addition, the identity of the stakeholder groups influenced by standards varies

significantly and depends on the kind of the standardization process. While some standards mainly

affect employees, others mainly affect certification institutes.

The two-step stakeholder analysis results in a balanced stakeholder representation. The first step

consists of the identification of all potential stakeholders in a standardization process. Nine

directions to identify stakeholders are proposed, based on the diverse ways in which a standard can

be important to stakeholders. However, some directions can be more relevant for a standardization

process than others. In other words, they serve as search heuristic in order to avoid overlooking

some stakeholder groups. The nine categories are (De Vries 2003):

• Product chain: ‘all firms in the production chain of the product that the standard relates to’,

such as suppliers, transporters, and trade companies.

• End users and related organizations: for instance large companies, small-and medium sized

enterprises, public organizations and individual employees.

• Designers: designers of the product the standards relates to, such as specialized companies

(in case production and design do not come in one hand).

• Physical system: analysis of physical interactions with other technical systems and

compatibility will result in stakeholders involved in the development and production of

elements of the surrounding system.

• Inspection agencies: for instance dedicated organizations, certification bodies, testing

laboratories, or government enforcement agencies.

• Regulators: Standards are often related to government regulation. Standards should act in

accordance with already existing regulations. Moreover, reference in government regulation

is beneficial for the status and adoption of the standard.

• Research and consultancy: for instance universities, research institutes and consultants.


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• Education: such as educational programs for students and professionals. These organizations

can contribute to the standard’s diffusion.

• Representative organizations: these organizations represent the interests of their members,

such as professional organizations and consumer organizations.

This first step of the stakeholder analysis results in a long list of stakeholders. The second step of the

analysis proposed by De Vries (2003) deals with this and aims to involve the stakeholders in the

standardization process and is based on the Stakeholder Salience Model of Mitchell et al. (1997). The

Stakeholder Salience Model has become one of the main classification models in literature on

stakeholder theory (Wolfe & Putler, 2002; Scholl, 2004; Vos & Achtenkamp, 2006) and is verified by

research of Agle et al. (1999). This model will be discussed in more detail in the next section and will

provide the basis of the stakeholder analysis.

2.2.3 The Stakeholder Salience Model: stakeholder attributes

The salience model is based on stakeholder attributes and provides a useful theoretical framework to

identify and categorize stakeholders and to explain why certain groups of stakeholders should be

given attention (Vos & Achtenkamp, 2006). According to this model, stakeholders possess one or

more of the three key attributes: power, legitimacy, and urgency (Mitchell et al., 1997). These key

stakeholder attributes provide the basis of a theory categorize classes of stakeholders, and make a

distinction between essential stakeholders in the standardization process and less important

stakeholders. Moreover, the stakeholder salience model provides insight into the probable roles

stakeholders can play and how to involve various stakeholders in the standardization process (De

Vries, 2003).

The stakeholder attribute of power refers to the power of a stakeholder to influence a firm (or in this

case, the standardization process or the success of the resulting standard (De Vries, 2003)). Within

the context of standard setting processes, power is established by using resources to influence the

standardization process. Resources that should be taken into account include time available, financial

position, technical expertise and the position on the network of rims and organizations to which the

standard applies (De Vries, 2003). The power of a stakeholder depends on whether a stakeholder can

gain access to these means to influence the standardization process. However, access to these

means is not a steady state. So power can be acquired, but also be lost. In other words, power is

transitory (Mitchell et al., 1997).

Legitimacy refers to the legitimacy of a stakeholder within the standardization process. Legitimacy

refers to socially accepted and expected structures or behaviors (Mitchell et al., 1997), and can be

defined as ‘a generalized perception or assumption that the actions of an entity are desirable, proper,

or appropriate within some socially constructed system of norms, values, beliefs, and definitions’

(Suchman, 1995). If, for instance, an organization uses its power in a way which society evaluates as

irresponsible, it will lose its legitimacy. Legitimacy can be divided in formal legitimacy and perceived

legitimacy. Formal legitimacy looks whether ‘the stakeholder is formally entitled to participate in the

process’, while perceived legitimacy asks ‘do the other stakeholders accept or support the

participation of this stakeholder in the process?’ (De Vries, 2003). De Vries (2003) points out that

almost every stakeholder is formally legitimate, but that the ‘significance of the stakeholder’s

participation largely depends on his perceived legitimacy’.


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Urgency refers to the urgency of the stakeholder’s claim. In other words, it clarifies to what extent a

stakeholder demands for immediate attention. The degree of urgency of a stakeholder can be

determined by analyzing its recent action: ‘has the stakeholder been active in pursuing his goals

regarding this standardization issue?’ (De Vries, 2003). By adding the attribute of urgency the

stakeholder model is able to capture the dynamics that arise as a result of interactions between

stakeholders and an organization. The stakeholder attribute of urgency is based on time-sensitivity

and importance or criticality of a relationship or claim. Time sensitivity is further defined as ‘the

degree to which managerial delay in attending to the claim or relationship is unacceptable to the

stakeholder’ (Mitchell and al, 1997). Criticality refers to the degree of importance of the relationship

or claim to the stakeholder. Important to note here is that urgency is a perception. Hence, the

possibility exists that a stakeholder regards its claim as urgent, but in fact the claim is not.

2.2.4 The Stakeholder Salience Model: the degree of salience

Based on the three attributes power, legitimacy and urgency, the degree of salience of a stakeholder

can be determined. The more attributes a stakeholder possesses, the higher the degree of salience.

Salience is defined as ‘the degree to which managers give priority to competing stakeholder claims’

(Mitchell et al., 1997). In other words, the more salient, the more important a stakeholder is. Three

categories can be identified: latent stakeholders, expectant stakeholder, and highly salient

stakeholders. These categories consist of eight classes of stakeholders (see figure 2.4) (Mitchell et al.,

1997). For each type of stakeholder, De Vries (2003) has analyzed the appropriate level of

participation of each class of stakeholder in the standardization process, and what should be done to

involve the stakeholders in this process (De Vries, 2003). The most important stakeholders possess all

three stakeholder attributes. However, important to note is that the possession of these attributes is

not static, but dynamic in nature. So it can change over time and vary per situation. As a

consequence, a stakeholder map can only give insight into a certain situation at a particular point of

time.


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Figure 2.4: Stakeholder typology: one, two, or three attributes present

Source: Mitchell et al., 1997.

Latent stakeholders

The category of latent stakeholders consists of dormant stakeholders, discretionary stakeholders,

and demanding stakeholders (Mitchell et al., 1997). Latent stakeholders possess only one attribute

and are perceived to have a low degree of salience.

Dormant stakeholders possess power to influence the standardization process (De Vries, 2003). Since

these stakeholders do not possess the attributes of legitimacy or urgency, they are not able to use

this power. Usually there is no participation or interaction between dormant stakeholders and the

standardization process. However, Mitchell et al. (1997) suggest that managers should be aware that

if dormant stakeholders acquire either urgency or legitimacy, they will become more salient. The

dynamic nature of the stakeholder model makes this possible. Therefore they should be monitored

(De Vries, 2003).


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Discretionary stakeholders possess legitimacy, but they lack the power to influence a standardization

process (De Vries, 2003) and their claims are not urgent. Due to lack of power and urgency of this

group of stakeholders, there is no direct pressure for them to participate. Although they lack urgency,

it might be useful to involve discretionary stakeholders, since their legitimate role in the

standardization process is acknowledged by other participants or potential buyers of the standard

(De Vries, 2003).

Demanding stakeholders possess the attribute of urgency. Although this group has an urgent claim,

they do not have the power or legitimacy to move their claim. This group is irritating, but not

dangerous. As long as demanding stakeholders do no acquire power or legitimacy, the stakeholder’s

claim remains latent and largely unconsidered (Mitchell et al., 1997).

Expectant stakeholders

The category of expectant stakeholders consists of dominant stakeholders, dependent stakeholders,

and dangerous stakeholders. Expectant stakeholders possess two attributes and have moderate

salience (Mitchell et al., 1997).

Dominant stakeholders possess both power and legitimacy, but due to lack of urgency this group has

no urgent need to participate in the standardization process. However, for the standardization

process participation would be desirable. Since this group has legitimate claims as well as the power

to act on these claims, they can possibly have a lot of influence on the standardization process. As a

consequence, efforts should be made to involve this group of stakeholders (De Vries, 2003). In other

words, this is a class of stakeholders that is important to managers and should receive much of

attention. This group of stakeholders can be involved by relating the standardization process to other

matters that are relevant for them, such as combining the development of one standard with the

development of related standards that are urgent for this group. Governmental organizations are

often dominant stakeholders (De Vries, 2003)

Dependent stakeholders possess legitimacy and urgency, but lack power. This group is called

dependent, because in order to impose their will, they depend on others for power. Important to

note is that a dependent stakeholder can become part of the most salient stakeholder class if

dominant stakeholders adopt its claims, for instance through guardianship of other stakeholders

(Mitchell et al., 1997). This group of stakeholders is relevant for the support of a standard and their

participation is needed. However, this group often does not have access to resources needed to

participate in the standardization process. Involving these stakeholders in the standardization

process is usually not so difficult and can be done for instance by financial support and access to

technical expertise. (De Vries, 2003).

Dangerous stakeholders possess urgency and power, but lack legitimacy. Since this stakeholder group

will be coercive and possibly violent, it can be of danger to an organization. Examples are sabotage,

strikes and terrorism (Mitchell et al., 1997). Although this group of stakeholders have no formal place

in the standardization process, their strategies should be taken into account during the process (De

Vries, 2003).


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Definitive stakeholders

Definitive stakeholders are highly salient stakeholders and possess all three attributes. So they have

the power to influence the standardization process, the standard is important for them, and their

involvement is undeniable (De Vries, 2003). By acquiring one of the missing attributes, an expectant

stakeholder can become definitive. The most common way of stakeholders to become definitive, is

first be a dominant stakeholder and then move into the definitive category. So when a stakeholder

possesses power and legitimacy, and its claim becomes urgent, high priority should be given to this

stakeholder. In short, a high degree of salience of a stakeholder requires acknowledgement and

action (Mitchell et al., 1997). Often this group of stakeholders is in fact the driving force behind the

standardization process and they are already highly committed to standardization activities (De Vries,

2003).

Stakeholders without any attributes are not taken into account by this framework and are regarded

as non-stakeholders (Mitchell et al., 1997).

2.2.5 Summary stakeholder theory

This summarizing section aims to highlight the main points of the literature review in section 2.2 and

underlines which parts are especially important for this study. In the section above stakeholder

theory is introduced and its importance for organizations is discussed. For this study I will use the

broad definition of a stakeholder by Freeman to start the stakeholder analysis to avoid exclusion of

important stakeholders. Furthermore, three main typologies of stakeholder theory:

descriptive/empirical, instrumental, and normative stakeholder theories are discussed in this section.

Development of stakeholder theory has focused on stakeholder analysis, which is the classification of

stakeholders into useful categories that give insight into how stakeholder groups influence an

organization. Stakeholder analysis starts with the identification of stakeholder groups. The seconds

step is to determine the relevant interests, also called the stakes, of the stakeholders. The final step

involves the evaluation of the type and level of stakeholder power or salience.

Different frameworks to identify, group and prioritize different stakeholder groups has been

introduced, including primary and secondary stakeholders, internal and external stakeholders,

categorization of stakeholders based on the role they play, and market and non-market stakeholders.

For this study the stakeholder identification and classification method of De Vries (2003) will be

applied, since it is especially applicable for standardization processes and takes into account that

standardization organization is different from a firm, which results in a different stakeholder

approach. The two-step stakeholder analysis results in a balanced stakeholder representation.

The first step consists of the identification of all potential stakeholders in a standardization process

according to the nine directions to identify stakeholders: product chain, end users and related

organizations, designers, physical system, inspection agencies, regulators, research and consultancy,

education, and representative organizations. However, some directions can be more relevant for a

standardization process than others. This first step of the stakeholder analysis results in a long list of

stakeholders. The second step deals with this and aims to involve the stakeholders in the

standardization process and is based on the Stakeholder Salience Model of Mitchell et al. (1997). The

Stakeholder Salience Model has become one of the main classification models in literature on

stakeholder theory and will provide the basis of the stakeholder analysis. According to this model,


Master Thesis

18

stakeholders possess one or more of the three key attributes: power, legitimacy, and urgency. Based

on the three attributes power, legitimacy and urgency, the degree of salience of a stakeholder can be

determined. The more attributes a stakeholder possesses, the higher the degree of salience. Three

categories can be identified: latent stakeholders, expectant stakeholder, and highly salient

stakeholders. These categories consist of and eight classes of stakeholders: dormant stakeholders,

discretionary stakeholders, demanding stakeholders, dominant stakeholders, dependent

stakeholders, dangerous stakeholders, definitive stakeholders and non-stakeholders. This

stakeholder salience model provides insight into the probable roles stakeholders can play and how to

involve various stakeholders in the standardization process.

In conclusion, the framework discussed provides a roadmap for:

• The identification of stakeholders

• The determination of stakeholder interests and influence (stakes)

• The classification and prioritization of stakeholders based on stakeholder salience

• Stakeholder mapping

2.3 Problem statement and research question

The literature review leads to the following problem statement of this research paper:

How do standards for LED lighting emerge in developing countries in Asia?

In order to answer this research question the following questions will be answered:

• What stakeholders influence the standardization process for LED lighting in developing

countries and Asia?

o What are the relevant stakeholder groups in the countries involved?

o What are the stakes and importance of each stakeholder group?

o Where does the balance of influence lie within these various stakeholders in each

country?


Master Thesis

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3 Methodology In this chapter, the methodology used for this research will be introduced. Research purpose,

research approach, strategy, research design, case selection, and data collection methods will be

discussed and methodological choices will be justified.

3.1 Research method and data collection

Within the context of the international debate on global climate change, research shows that

standard setting is essential to achieve significant improvements in energy efficiency. However,

currently performance standards do not exist for LED lighting in developing countries in Asia. The

question arises how standards for LED lighting emerge in developing countries in Asia and what

stakeholders influence the standardization process. On standardization in developing countries as

well as on the lighting industry, limited research has been conducted. The purpose of this study is to

gain a better understanding of standard setting for LED lighting in developing countries in Asia and to

gain insight in the exact role the stakeholders involved play.

The study is characterized by a multiple case study strategy, since this provides insight into ‘a

contemporary phenomenon within its real life context, especially when the boundaries between a

phenomenon and the context are not clearly evident’. Moreover, multiple case study is particularly

suitable to answer how and why research questions (Yin, 1994). Taking into account that

standardization is a complex process, in which numerous organizations and associations are involved

and influence each other, and which also differs per country, multiple case study is an appropriate

approach. Moreover, case study research is especially applicable in new topic areas and focuses on

‘understanding the dynamics present within single settings’ (Eisenhardt, 1989). Hence, by a multiple

case study a better understanding of the standardization processes in developing countries can be

gained. This research paper is exploratory in nature and characterized by a qualitative research

approach. Qualitative research offers understanding of complex issues in which various stakeholders

with different interests and perceptions are involved (Skinner et al., 2000).

A few developing countries in Asia which are expected to be different in terms of standardization

regime serve as case study and will be analyzed in depth, including China, Thailand, the Philippines,

Vietnam and Indonesia. First the institutional context in the countries involved will be briefly

discussed, mainly focused on the policy and regulatory institutions related to energy efficiency and

lighting. The institutional overview on a country level will be followed by a stakeholder analysis to

analyze the institutional and industry actors that influence the standardization process of LED lighting

in developing countries and Asia. After analyzing both the institutional context and the results of

the stakeholder analysis, a standardization regime will be developed by analyzing what the most

important drivers are of the standardization process of LED in that particular country: the

industry, the government, or international organizations.

The stakeholder analysis will be done according to stakeholder theory of De Vries (2003). In order to

evaluate the power, legitimacy and urgency of each stakeholder, first desk research will be

conducted. Websites, news articles, events, conferences, forums and platforms will be analyzed to

gain insight in the role of each stakeholder and to look how they interact with each other. To

evaluate the three attributes, questions derived from research of De Vries (2003) will be used. In

order to evaluate power, the question “Has the stakeholder the resources to affect the

standardization process or the success of the resulting standards?” is relevant. Resources include


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time available, financial position, technical expertise and/or the position in network of firms and

organizations to which the standard applies. Since almost every stakeholder is formally legitimate,

only perceived legitimacy will be taken into account. The question “do the other stakeholders accept

or support the participation of this stakeholder in the process?” is relevant here. To evaluate urgency

the answer to the question “Has the stakeholder been active in pursuing his goals regarding this

standardization issue?” is relevant. This desk research was complemented with interviews with key

stakeholders in August and September 2011 during my internship at Philips Singapore.

In terms of the generalizability of this study, the case study approach makes it rather difficult to

generalize the findings to different contexts. However, according to Yin (2003) research findings

should not be generalized to other case examples, but to theory. With respect of the validity of the

results it is important to rely on triangulation by applying more than one method of data collection

during the research (Barbour, 2001). This research paper uses multiple sources within one

methodological approach, which is also called within-method triangulation (Hurmerinta-Peltomäki &

Nummela, 2004).

Case studies typically combine several data collection methods (Eisenhardt, 1989). This research

consists of both primary and secondary data. Secondary data were gathered from academic

publications, books, reports and websites. The literature review and desk research are

complemented with in-depth interviews with relevant stakeholders in the countries involved, as

interviews are a highly efficient way to collect rich, empirical data (Eisenhardt & Graebner, 2007). My

internship at Philips Shanghai and Singapore provided me with the opportunity to collect these

primary data. The interviews were semi-structured and were conducted mainly via telephone (see

appendix 1). The questions for the interviews are based on stakeholder theory of de Vries (2003) and

aim to complement the desk research. The interviews contribute to the analysis of the power,

legitimacy and urgency of each stakeholder. The questionnaire addressed such questions as: What

are the current activities of your organization related to the standardization of LED? What are the

most important organizations involved in developing standards for LED in your country? Does your

organization control resources needed for the standardization process (time, financial, technical,

position in network)? For further elaboration on the basis for each specific question see appendix 1.

In total 9 stakeholders were interviewed, representing various perspectives and areas of expertise in

the field of the standardization process of LED.

Besides the primary data collected from the interviews, attending the Singapore Lighting Energy

Efficiency Week held from November 1 until November 4 in Singapore, gave me the opportunity to

gather more primary data and fine-tune my thesis. During this event, sponsored by APEC and the

Australian Government and supported by Asia Lighting Compact, a wide range of stakeholders from

all over the world came to Singapore to discuss the latest issues on the standardization of LED

lighting in the Asian region (see appendix 2 for the program). It was a unique opportunity to meet

most of the stakeholders I had interviewed over the telephone.

3.2 Case selection

Based on the theory of standardization regimes, cases have been selected for this study. A few

developing countries in Asia which are expected to be different in terms of standardization regime

serve as case study and will be analyzed in depth, including China, Thailand, the Philippines, Vietnam

and Indonesia. China is an example of a single-party state governed by the Communist Party of China


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and far ahead in terms of the standardization of LED. It has a lot of manufacturing interest. Vietnam

is a single-party socialist state led by the Communist Party of Vietnam, but it is far behind in terms of

standardization of LED. Thailand is an example of a country in which international organizations are

driving the standardization process, while in the Philippines the government is the main driver. In

both countries a number of efforts for the standardization of LED are going on. Thailand and the

Philippines both made the transition to democratic rule, but remain unstable in terms of democracy.

The Philippines is suffering from state weakness. Indonesia is far behind in terms of standard setting.

Indonesia also made the transition to democratic rule and is an example of a relatively stable

democracy with a decentralized and autonomous system of local government (Haggard, 2004).


Master Thesis

22

4 Results In this chapter the research findings will be presented. Before discussing the stakeholders in China,

the Philippines, Indonesia, Vietnam and Thailand, international and regional stakeholders will be

identified to show their involvement in the standardization of LED in Asia. The literature review in

section 2.1 showed that standardization has become increasingly important at an international scale.

Especially the regional level is becoming more important (De Vries, 2008), for instance Europe or Asia.

Therefore, in section 4.1 first the international and regional stakeholders will be discussed separately

on a more general level for the Asian region, meaning that these organizations all play a role in the

countries involved in this research. However, instead of mentioning each organization repetitively in

each section on a country level, all organizations will be introduced together in section 4.1. The

involvement of international organizations per country will follow in the sections on a country level.

4.1 International and regional stakeholders

4.1.1 Stakeholder identification

The identification of the stakeholders of the standardization of LED will be done according to the

method for stakeholder identification and classification for standardization processes of De Vries

(2003) as introduced in chapter 2 and 3. Important to note is that the analysis will be on an

institutional and industry level. Hence, some stakeholder groups are excluded from the analysis.

Production chain

Within the product chain of LED, distributors, manufacturers, and large purchasers are the main

stakeholders. Countries in which LED is manufactured include China, Korea, Taiwan, Singapore, and

Japan. Big global companies such as Philips, GE and Osram, quality regional manufacturers and small

scale workshops are major stakeholders. Large purchasers include major retailers such as Tesco,

Walmart, Ikea and Carrefour. The product chain will be further discussed in section 4.2 about China.

End users

Regarding the standard for LED lighting, end users are stakeholders that are involved in the

implementation and use of the specifications of the standard. On an international and global level

relevant stakeholders include international standard setting institutes.

Table 4.1: International standard setting institutes

Stakeholder Type Aim Size Since Members Financial

sources

Interaction Extra info

The

International

Electrotechni

cal

Commission

(IEC)

non-

profit,

non-

governm

ental

internati

onal

standard

s

organizat

ion

To develop

International

Standards

and operate

conformity

assessment

systems in

the fields of

electro

technology.

leading

global

organi

zation

in its

field

1906

81 National

Committees

Funded by

members

hip fees,

income

from

sales,

income

from

certificatio

n activities

With national

standardization

bodies around the

world

Has developed IEC

LED standards;

IEC opened its

new Asia Pacific

Regional Centre in

Singapore in

2002, which

received strong

support from the

WTO.

Sources: IEC, 2011.


Master Thesis

23

Regulators

For the standardization of LED, policy makers on both international and global level play a role.

International and regional institutions are important stakeholders who influence the standardization

process.

Table 4.2: International and regional institutions and related organizations

Stakeholder Type Aim Size Since Financial

sources


World Bank

International

financial

institution

offer financial

and technical

support to

developing

countries and

aims to reduce

poverty and

help people by

providing

resources,

sharing

knowledge,

building

capacity and

establishing

partnerships in

the public and

private sectors.

owned by 187

member

countries

1944

selling bonds,

loans

works o.a. with the

Asian Development

Bank, USAID

The Energy Sector

Management

Assistance

Programme (ESMAP)

is a global knowledge

and technical

assistance program

part of the World

Bank, which aims to

support developing

countries to enhance

knowledge and

institutional capacity

to achieve

environmentally

sustainable solutions

for poverty

reduction and

economic growth. It

offers special

programs on energy

efficient lighting.

Asian

Development

Bank

multilateral

development

bank

fight poverty in

Asia and the

Pacific region;

focus on

inclusive

economic

growth,

environmentally

sustainable

growth, and

regional

integration

67 members -

of which 48 are

from within

Asia and the

Pacific and 19

outside.

1966

bond issues,

members'

contributions,

retained

earnings from

our lending

operations,

and the

repayment of

loan

It's 'Lighting for all'

program is in

cooperation with

o.a. Philips

Lighting;

partnership with

The Clean Energy

Financing

Partnership Facility

(CEFPF) for e.g.

energy efficient

street lighting

Has funded energy

efficient lighting

project in the

Philippines (CFL).

'Lighting for all

initiative': aimed at

providing clean,

affordable, and

reliable lighting

solutions for 50

million people across

the Asia and the

Pacific region by

2015.

Asia Lighting

Compact

(ALC)

Independent,

non-profit

To mitigate

climate change

by improving

the quality of

lighting

products and

encouraging the

adoption of

energy-efficient

lighting in Asia

19 members:

National

lighting

associations in

Asia, lighting

manufacturers

worldwide, and

government

agencies;

members from

Indonesia,

Australia, India,

Thailand,

China,

Singapore,

Philippines

2009

Major source

of funding

comes from

sponsors

Current members:

Amka Lighting;

APERLINDO

(Indonesian

Express Delivery

Companies'

Association);

Bureau of Energy

Efficiency India;

Bureau of Indian

Standards, India;

Council of

Engineers,

Pakistan; Carbon

Futures; CE

Lighting; DCCEE

(Department of

Energy Efficiency

and Climate

Control Australia);

Danson Electronics;

Already worked on

harmonization of CFL

in Asia;

Now working on the

standardization and

harmonization of

LED in Asia;

Has a LED workgroup


Master Thesis

24

Department of

Energy, Philippines;

ELCOMA (Electric

Lamp and

Component

Manufacturers

Association of

India); Electricity

Generating

Authority of

Thailand, Thailand;

General Electric; In

Consultants; NVC

Lighting

Technology

Corporation;

Philips; PLIA

(Philippines

Lighting Industry

Association); UL

(Underwriters

Laboratories);

Zhejiang Yankon

Group Co., Ltd.

En.lighten

initiative of

United

Nations

Environment

Programme

(UNEP)

partnership

/program

to assist

interested

developing and

emerging

countries to

initiate and

implement

effectively their

own market

transformation

programmes

towards

efficient

lighting.

partnership

between UNEP,

OSRAM GmbH

and Philips

Lighting, with

the support of

the Global

Environment

Facility (GEF)

Earth Fund.

2009

Funding

comes from

the United

Nations

partnership

under guidance of

UNDP, UNIDO, the

World Bank

Sources: World Bank, 2011; ADB, 2011; ALC, 2011; En.lighten, 2011

Representative organizations

Relevant organizations for LED that serve the interests of their members include international

lighting associations.

Table 4.3: International and regional lighting associations and related organizations


sources


Global

Lighting

Forum (GLF)

forum of

peak

industry

lighting

organisati

ons from

around

the world

Promoting the

use of

sustainable,

energy efficient

lighting solutions

while

maintaining and

improving the

quality of

lighting. Uniting

leading national

and regional

industry

associations for

lighting

technology.

represe

nting

over

5,000

lighting

manufa

cturers

2007

represente

d in various

regions by

the

regional

association

s

Unknown

Represented by:

Abilux (Brazil); China

Association of Lighting

Industry – CALI;

Electric Lamp and

Component

Manufacturers

Association – ELCOMA

(India); European

Lamp Companies

Federation – ELC;

Japan Electric Lamp

Manufacturers

Association – JELMA;

Japan Luminaires

Association – JLA;

Developed LED

standards for LED in

Europe;

LED working group is

part of GLF;

GLF assists with

international

standards

development and

encourages the

harmonisation of

standards in different

regions of the world.


Master Thesis

25

Lighting Council

Australia – LCA;

National Electrical

Manufacturers

Association – NEMA

(US); Taiwan Lighting

Fixture Export

Association – TLFEA;

CELMA (Europe) –

observer

Internationa

l Solid State

Lighting

Alliance

(ISA)

not-for-

profit

Non-

Governm

ent

Organizati

on

Promote the

development

and application

of the global

solid lighting

industry.

5 initial

membe

rs

2010 found by 5

initial

members

unknown Initial members

consist of China Solid

State Lighting Alliance

(CSA), Korea

Association for

Photonics Industry

Development (KAPID),

Illuminating

Engineering Society of

Australia and New

Zealand (IESANZ),

Optoelectronics

Industry Development

(OIDA) Association,

and Taiwan

Optoelectronics

Semiconductor

Industry Association

(TOSIA)

-

Lux Pacifica

associatio

n of

lighting

societies

a quadrennial

conference

supported by the

national lighting

societies,

characterized by

a conscious

effort to

promote good

lighting design,

as well as the

development

and

improvement of

lighting

technologies.

12

lighting

societie

s

1989

lighting

societies of

India,

China,

Japan,

Thailand,

Russia,

Australia,

New

Zealand,

Canada,

USA, South

Africa,

Mexico and

Hong Kong

Unknown

with all the lighting

associations involved

-

Internationa

l Association

of Lighting

Designers

(IALD)

volunteer

associatio

n

represents

independent,

professional

lighting

designers; strives

to set the global

standard for

lighting design

excellence by

promoting the

advancement

and recognition

of professional

lighting

designers.

11-

membe

r board

of

directo

rs; over

700

lighting

designe

rs

around

the

world

1969

independe

nt,

professiona

l lighting

designers

volunteer

association

Lighting Industry

Resource Council

(LIRC) is affiliate of

IALD

IALD's energy &

sustainability

committee addresses

lighting-related

aspects of sustainable

design and operations

of the built

environment.

Professional

Lighting

Designers'

Association

(PLDA)

voluntary

federatio

n of

lighting

designers

and

lighting

consultan

ts who

increase the

reputation of the

profession and

to establish the

profession as

such in its own

right

3

interna

tional

offices

around

the

world;

over

600

1994

lighting

designers

sponsored

sponsored by o.a.

Philips

Supported the

Philippine Lighting

Conference (PLC), a

nationwide

conference which is

focused on

responsible lighting

design practice,

products, and,


Master Thesis

26

are active

on an

internatio

nal scale

membe

rs

worldw

ide

standards.

The mission of PLC is

to link the local

lighting industry

together and create a

theoretical and

practical thinking

platform of lighting

standards in the

Philippines.

Efficient

Lighting

Initiative

(ELI)

non-profit

organizati

on

transparent and

simple

mechanism for

certifying the

quality and

efficiency of

lighting products

sold worldwide

has

large

testing

networ

k

worldw

ide

2000

key clients

including

utilities,

governmen

t agencies,

bulk

purchasers

originally

funded by

the Global

Environme

nt Facility

(GEF), and

administer

ed by the

Internation

al Finance

Corporatio

n (IFC)

collaborated with the

Philippines

Department of Energy

(DOE) and the

Development Bank of

the Philippines (DBP);

currently promoting

voluntary technical

specifications for LED

Products

Lites.Asia

forum/ne

twork

Lighting

Information and

Technical

Exchange for

Standards:

initiative to

enhance the

involvement of

Asian/APEC

countries to

adopt IEC

standards.

unkno

wn

2009

Representa

tives from

Australia,

China,

India,

Indonesia,

Philippines,

Sri Lanka,

Thailand

and

Vietnam

Supported

by the

governmen

ts of

Australia

and the

United

States of

America as

part of the

APP (Asia-

Pacific

Partnership

) on Clean

Developme

nt and

Climate.

Department of

Climate Change and

Energy Efficiency

Australia, EcoAsia,

Lighting Council

Australia, National

Measurement

Institute Australia,

Asia

Pacific

Laboratory

Accreditation

Cooperation

series of lighting

meetings in Asia

SEMI

global

industry

associatio

n

serves the

manufacturing

supply chain for

micro- and nano-

electronics, such

as LED

engage

d in

major

manufa

cturing

region

o.a.

China,

India,

Singap

ore

1970

manufactur

ers of

semicondu

ctor

devices

membershi

p fees,

selling

standards,

training,

events

mainly within the

manufacturing supply

chain

Primary activities

include o.a. SEMI

International

Standards program;

has high-brightness

(HB) LED Standards

Committee for

developing

manufacturing

standards;

organizes SEMI LED

Events

Regional

Centre for

Lighting

(RCL)

Regional

Centre for

Lighting

Advancing

sustainable

lighting and

making it

affordable in

South Asia to

improve the

wellbeing of

citizens and the

countries within

the region

unkno

wn

2010 Funded by

USAID

established recently

within the Sri Lanka

Sustainable Energy

Authority (SLSEA) with

assistance from

the South Asia

Regional Initiative for

Energy, funded by

USAID. The knowledge

partner is Lighting

Research Centre (LRC),

which is a part

of Rensselaer

Polytechnic

Established first LED

testing lab in South

Asia


Master Thesis

27

Sources: GLF, 2011; Lux Pacifica, 2011; IALD, 2011; PLDA, 2011; ELI, 2011; Lites.Asia, 2011; En.Lighten, 2011;

SEMI, 2011; RCL, 2011.

4.1.2 Stakeholder analysis

After the identification of the stakeholders in section 4.1.1, now the relevant stakeholders will be

classified according to the method for stakeholder identification and classification for standardization

processes of De Vries (2003) as introduced in chapter 2.

Table 4.4: Stakeholder analysis international and regional level

Stakeholder Power Legitimacy Urgency Classification

Time

available

Financial

position

Technical

expertise

Position in

network

Total

(%)

The

International

Electrotechnical

Commission

(IEC)

Y Y Y Y 100%: P L U Definitive

World Bank Y Y - Y 75%: P L - Dominant

Asian

Development

Bank

Y Y - Y 75%: P L - Dominant

Asia Lighting

Compact (ALC)

Y - Y Y 75%: P L U Definitive

En.lighten


Global Lighting

Forum (GLF)


International

Solid State

Lighting

Alliance (ISA)

- - Y Y 50%:- L - Discretionary

Lux Pacifica

- - Y Y 50%: - L - Discretionary

International

Association of

Lighting

Designers

(IALD)

- - Y - 25%: - L - Discretionary

Professional

Lighting

Designers'

Association

(PLDA)

Y - Y - 50%:- L - Discretionary

Efficient

Lighting

Initiative (ELI)


Lites.Asia


Institute of USA.


Master Thesis

28

SEMI

- - Y Y 50%: - L - Discretionary

Regional Centre

for Lighting

(RCL)


4.1.3 Discussion

The International Electrotechnical Commission (IEC) is the main international standard setting

institute involved in developing International Standards for LED lighting products. Standards for LEDs

are developed based on existing IEC standards by the national standard setting institutions in the

Asian countries involved. So relevant parts of the IEC standards are selected and used as national

standard. The IEC opened its new Asia Pacific Regional Centre in Singapore in 2002, which shows the

involvement and interest of IEC in the Asian region (IEC, 2011).

Another major stakeholder on an international level is the Global Lighting Forum (GLF). GLF, a forum

of peak industry lighting organizations from around the world representing over 5,000 lighting

manufacturers, assists with the development of international standards and encourages the

harmonization of standards in different regions of the world. Lighting associations from China, India

and Japan are for instance member of GLF (GLF, 2011). Mr. Jürgen Sturm, Secretary General of the

Global Lighting Forum, and Secretary General of European Lamp Companies Federation explains that

the main focus of the GLF is to serve as a forum for information exchange where the stakeholders

involved update each other on standardization processes in different regions. Its LED working group,

which consists of representatives from lamp associations, industry and manufacturers, is involved in

aligning regional activities related to the standardization of LED and collecting information. They are

now working on a recommendation towards standardization bodies regarding the need of the

industry for additional standards, which will be finalized at the end of 2011. This group has an

observer role and is not involved in developing standards (Sturm, 2011).

Mr. Sturm emphasizes that close cooperation between standardization bodies is needed to align

their scientific and technical expertise to GLF’s market expertise and consumer relation expertise.

This would be a step forward in terms of coming to standardization with added value. However, this

should be rapidly done, because especially the LED development can be so accelerating that the GLF

expects difficulties if the standardization process is not after that speed. Mr. Sturm also states that

the GLF is sensitive to initiatives which would result in local or regional standardization, because

according to the GLF standardization should be globalized since the business and the market are

global (Sturm, 2011).

Within the Asian region Asia Lighting Compact (ALC), Lites.Asia, the En.lighten initiative of the United

Nations Environment Programme (UNEP), the Efficient Lighting Initiative (ELI), and the Regional

Centre for Lighting (RCL) are main organizations to enhance the standardization of LED and its

harmonization within the Asian region. ALC is currently working on the standardization and

harmonization of quality and energy-efficiency standards of LED in the Asian region. ALC’s LED

committee consists of members of various energy efficiency regulatory bodies within Asia. ALC aims

to develop a suitable 3 tier quality system for LED’s (good, better and best) along the same lines as

they did for CFL’s. This tier system ensures that minimum performance standards are taken into

account. Since not all Asian countries have the same needs in terms of quality and have the same

price sensitivity, this system enables that Asian countries can opt for standards that meet their

specific requirements. In addition, ALC is working on LED product registry to report and track LED’s


Master Thesis

29

that have been verified to meet guidelines for quality and efficiency. ALC is involved with a wide

range of stakeholders such as governmental agencies, manufacturers, standardization bodies and

lighting association (ALC, 2011). Lites.Asia, an initiative to enhance the involvement of Asian

countries to adopt IEC standards, organizes lighting meetings in Asia to exchange lighting information

and technical exchange for standards (Lites.Asia, 2011). The En.lighten initiative aims to support

developing and emerging countries to accelerate market transformation towards efficient lighting

technologies. It is developing guidelines for harmonization efforts on global quality, performance-

based standards and certification procedures for energy-efficient lighting products. Both En.lighten

and Lites.Asia are mainly influencing the standard setting process from a political perspective and

targeting governmental agencies (En.lighten, 2011). ELI, an international program for certifying the

quality and efficiency of lighting products is currently promoting voluntary technical specifications for

LED Products. ELI has been active in the Philippines for example (ELI, 2011). RCL aims to increase the

awareness of energy efficient lighting and to make it more affordable for citizens. In addition, it is

establishing the first LED testing lab in South Asia (RCL, 2011).

One of the major obstacles for the standardization of LED in Asia is the lack of LED testing

laboratories. Of the five countries involved, only China is able to test LED lighting products. Currently

China has five well-equipped LED testing labs and four more testing laboratories will be established

in the near future (see appendix 3).

Both the Asian Development Bank and the World Bank play a role by providing funding for energy

efficient lighting projects in the Asian Region. In the past they sponsored for instance rural

electrification projects.

4.2 China

Each country level analysis will consist of a brief institutional overview in which the institutional

context in the countries involved in terms of the development of the policy and regulatory

institutions related to the energy sector will be discussed, especially focused on energy efficiency

and lighting. Criteria for this section include form of government, policy and regulatory framework

for energy efficiency and energy efficient lighting, governmental agencies in the energy sector, major

institutional barriers for policies regulation and standardization, and governmental Initiatives and

projects to promote energy efficient lighting. After the institutional overview stakeholder

identification and analysis will be done according to the stakeholder method of De Vries (2003),

which will be followed by a discussion in which the role and influence of the stakeholders will be

further discussed. The country level analysis will be concluded with a standardization regime.

This regime will be developed by analyzing who the most important drivers of the

standardization process of LED in that particular country are: the industry, the government, or

international organizations. Moreover, main findings of the institutional overview will be linked

with the regime. In this way institutional theory and stakeholder theory will be integrated to

provide insight in the main drivers of the standardization process of LED. The findings on a

country level will be followed by a comparative discussion and a comparative analysis of the

standardization regimes across countries.

4.2.1 Institutional overview

As a result of Asia’s strong economic growth, Asia has already become the largest market in both the

total general lighting market and LED general lighting market. Within Asia, China is taking the lead


Master Thesis

30

with an estimated general lighting market of EUR 13 billion by 2016 and a LED general lighting

market of EUR 11 billion by 2020. Due to its large economic size and rapid economic growth China

plays a significant role in Asia (McKinsey & Company, 2011).

Along with China’s rapid economic growth of the past decades and its evolving into an industrial

power, China is facing a continuously increasing energy demand and environmental deterioration.

The Chinese government has realized that environmental protection industries are essential to

achieve rapid development of its economy (USAID, 2011). China has huge potential for clean energy

development en energy efficiency. China’s 12th Five Year Plan for 2011-2015 is focused on the

development of energy-saving and environmental industries, thereby addressing both economic

growth and energy consumption. Taking into account that China’s LED industry is still in its initial

phase of development, this will considerably boost China’s LED industry, one of China’s strategic

emerging industries (Lin, 2011).

Being a single-party state governed by the Communist Party of China, the government plays a

powerful role in China’s economy and strongly controls China’s strategic industries. Comprehensive

commissions are responsible for overseeing the economy, which shows China’s party-state control

over the economy. The National Development and Reform Commission (NDRC), one of China’s

comprehensive commissions, makes basic decisions as to which industries should receive major

investment from the government (Pearson, 2005). The NDRC is the leading governmental agency in

the energy sector in China and is responsible for the formulation of China’s national energy policy

and the development of strategies and policies related to energy conservation and climate change.

However, lack of enforcement of policies and regulations is currently a major barrier, resulting in

ineffective compulsory energy saving standards and other regulations. Enforcing energy policies and

laws requires technical standards that are formulated and implemented. In addition, at both the local

and the national levels, the Chinese government needs substantial training assistance in terms of

capacity building in for example renewable energy technologies and policy consultancy (USAID,

2007d).

Policies on both national and local government level are in place to promote the LED industry to

secure its healthy development, such as ‘Advises on the Development of Semiconductor Illumination

Industry’ published on 12 October 2009, and ‘Notices for Applying Demo Projects of Semiconductor

Lighting Products’ issued in 2010 (USAID, 2011). These policies promote the development of the

semiconductor industry and green lighting projects. The Chinese government strongly supports the

installation of outdoor LED lighting in particular (McKinsey & Company, 2011). Local governments

have also established several policies to promote the illumination industry, varying from financial

support for technical research, subsidies for essential equipment, and subsidies for application of the

products (USAID, 2011). However, local governments still intensely support CFL, which is lower

priced than LED (McKinsey & Company, 2011). Important to note is that significant differences exist

between local governments in terms of policy implementation. In areas with capable energy

efficiency agencies that promote energy efficient lighting, major achievements have been made.

However, other local governments, especially in local areas, lack capacity to promote energy efficient

lighting and do not have specially trained staff (UNDP/GEF, 2009). In addition, support is needed for

compliance activities with local governments who have the mandate but lack the capacity to

collaborate with manufacturers and relevant stakeholders to develop new standards and test

procedures (USAID, 2007d).


Master Thesis

31

The most prominent initiative to promote energy efficient lighting is the ‘Phasing-out of Incandescent

Lamps and Energy Saving Lamp Promotion Project’ (PILESLAMP) project (2008-2012) (En. Lighten,

2011). The Chinese government, in collaboration with UNDP and GEF, launched the PILESLAMP

project, which aims to enable the phase-out of the production and use of inefficient lighting in China

and the promotion of energy efficient light sources (PILESLAMP, 2011).

According to Mr. My K. Ton - Team Leader, Energy Efficient Lighting, for the ECO-Asia Clean

Development and Climate Program (ECO-Asia CDCP) China has a good standardization process,

including market testing and market surveillance, for which they go out and collect products from

manufacturers and test them to establish the baseline. After that they chart them, and calculate the

national average. However, although the Chinese process is a good idea in principle, it is flawed in its

execution. They sometimes collect the product and let the manufacturers know that they are on

their way to collect the product, which allows the manufacturers some warning that they know their

products are being collected and tested (Ton, 2011).

4.2.2 Stakeholder identification China

The identification of the stakeholders of the standardization of LED will now be conducted per

country following the relevant stakeholder groups already identified in section 4.1.

Production chain

The global LED industry can be divided into three bases: Asia, North America, and Europe. LED

manufacturing is dominated by Asian countries, with already 90% of the capacity located in Taiwan,

Korea, China and Japan (Salis, 2011). Since 2002, when China was still importing all of its LED chips,

China has shown a dramatic increase of its LED production (Stevenson, 2009). As a result of the rapid

growth of China’s LED market driven by the Chinese government, China has now already become the

biggest export and production country of solar LED and landscape lights and is the leading

manufacturing country of lighting products in the world. Currently there are about 4000 enterprises

working in China’s LED industry, which is scaling up rapidly in terms of size. LEDs are extensively used

across China for road lighting and indoor lighting (USAID, 2011). A variety of manufacturing

categories exists, such as LED chip manufacturers (around 10), LED driver manufacturers,

manufacturers focused on assembling, and packaging plants (Sujendan, 2011). There are about 1,000

packaging plants in China.

LED manufacturers can be divided into big global manufacturers, quality regional manufacturers and

small scale workshops. The big global manufacturers are represented by global giants from Japan,

Europe and the U.S. such as NICHIA, TOYODA GOSEI, LUMILEDS, CREE, and OSRAM. These leading

global enterprises manufacture high-class LEDs, own core technology patents, and have many years

of experience in the LED industry (Salis, 2011). They mainly focus on the high-end market (USAID,

2011).

An example of a quality regional manufacturer in China is Danson Electronics, a multimillion dollar

company that is producing high quality lamps, such as LED and CFLs, mainly for the Australian market.

The company holds several patents and is focused on product quality and reliability (Danson, 2011).

The company shares its technical knowledge with international organizations such as Asia Lighting

Compact (ALC) and Lites.Asia, thereby showing its commitment to promote energy efficient lighting

in Asia. According to Mr. T. Sujendan, Managing Director of Danson Electronics PTY LTD, most of the


Master Thesis

32

manufacturers in China are very interested in the standardization process of LEDs. Nonetheless, not

many of them are engaged in this process, because they are not always aware of the standards.

Hence, they manufacture inferior quality products. However, not only small manufacturers produce

inferior quality lamps, even the big companies do, which came to light after collecting and testing

lamps from the market (Sujendan, 2011).

The small scale workshops are scattered and generally of low level technology. The LEDs

manufactured possess backward technology and are mainly used for outdoor landscape, decoration

and advertisement (Salis, 2011). These manufacturers are competitive in red, green and blue color

LED chips, and lack competence in the production of white-LED components (Goldman Sachs, 2011).

The performance of these LED products still lags behind that of the leading global manufacturers

(Stevenson, 2009). Reason is that Chinese LED packaging companies are very limited in terms of

capacity on research and development (USAID, 2011). Competition among the local players is fierce

within the China market (GIA, 2011). These enterprises compete in the middle and lower-middle end

markets (USAID, 2011).

According to Stuart Jeffcott, independent consultant, the industry is playing a self-interest role.

Everyone is pushing their own technology and performance criteria constantly, and there is no real

strong independent group yet. The process is not driven by what is the best way to move forward

now, but by whoever is involved in their technology (Jeffcott, 2011).

National standard Setting Institute

Table 4.5: National Standard Setting Institute


sources


Standardiza

tion

Administrati

on of the

P.R.C. (SAC)

Chinese

National

Standard

Body

takes part

in several

standards-

related

activities

Consists of

various

department

s; most

relevant

one:

Department

of Service

Industry

Standards

(responsible

for light

industry)

2001 Funded by

the

government

Represents China for the

IEC; administrated by

the General

Administration of

Quality Supervision,

Inspection and

Quarantine (AQSIQ)

member of IEC technical

commission lamps and

related equipment (34

34A), involved in preparing

international standards

regarding specifications for

o.a. lamps (including

LED's).

National Technical

Committee 224 on Lighting

China

National

Institute of

Standardiza

tion (CNIS)

non-profit

national

research

body

engaging in

standardizat

ion research

provide all-

round

support in

standardiza

tion;

responsible

for national

energy

efficiency

standards

developme

nt,

primarily

for

products.

Covers

various

research

areas

1990 Funded by

the

government

Affiliated with AQSIQ Has developed energy

efficiency standards for CFL

and is planning to develop

standards for LED lamps.

China

Standard

Certification

Quasi-

government

al agency:

founded

Energy and

environme

nt research

52 fulltime

staff; 6

branches in

different

1988 Funded by

the

government

Subordinate of CNIS;

Responsible for ELI,

global labeling program

for lighting products

Participated in

International CFL

Harmonization Initiative;


Master Thesis

33

Center and owned

by the

government

, but acts as

a non-profit

independen

t third party

certification

body

provinces

Chinese executive body

for the Barrier Removal

To The Cost-Effective

Development And

Implementation Of

Energy Efficiency

Standards And Labeling

Project In Asia (BRESL)

project

Operates ELI Quality

Certification Institute

which promotes voluntary

technical specifications for

energy efficient lighting,

including LED

Source: SAC, 2011; CNIS, 2011; SCS, 2011.

National Utility

Table 4.6: National utility


sources


State Grid

Corporation

of China

Government-

owned

enterprise

provide safe,

economical,

clean and

sustainable

electric power

for social and

economic

development

the largest utility in

the world; service area

represents 88% of the

national territory,

supported by more

than 1,500,000

employees to serve a

population of over one

billion

2002 SOE Sino-Philippine

power

cooperation for

power grid

development in

the Philippines

Has DSM programs for

energy efficient lighting

technology

China

Southern

Power Grid

Government-

owned

enterprise

Power

generation

electricity

distribution

Supplies the other 22%

of China

2002 SOE Has DSM programs for


technology

Sources: SGCC, 2011; CSG, 2011.

Regulators

Table 4.7: Energy efficiency body


sources


National

Developme

nt Reform

Commission

(NDRC)

Manage

ment

agency

under

the

Chinese

State

Council

study and

formulate

policies for

economic and

social

development,

maintain the

balance of

economic

development,

and to guide

restructuring of

China's

economic

system

Consists of 26

functional

departments/b

ureaus/offices; Most relevant

departments:

Department of

Environment

and Resource

Conservation

and

Department of

Climate Change,

and the Energy

Research

Institute

2003 Funded by

the

government

green lighting

program has won

support from the

United Nation's

Development

Program and

Global

Environment

Facility (GEF)

Provides subsidies for end-

users to purchase energy

efficient CFLs.

NDRC launched a LED

luminaire development

program in the second half of

2010 for which they will

support 20 demonstrative

projects for indoor lighting

applications and 15 each for

street lamps and tunnel

lamps across the country.

China

Ministry of

Science and

Technology

(MOST)

Ministry

which

coordinat

es

science

and

technolo

gy

activities

in the

country.

drawing up

Science and

Technology

development

plans and

policies,

drafting related

laws,

regulations and

department

rules, and

guaranteeing

Consists of 12

departments

and offices

1998 Funded by

the

government

Initiated the program of ten

cities with 10,000 lights

separately for which the

ministry chose 10 cities to

spread the application of

over 10,000 LED functional

lights in each city. Encouraging the growth of

the LED market

Operates testing lab for LED


Master Thesis

34

the

implementation

.

Ministry of

Industry

and

Information

Technology

(MIIT)

State

agency

formulate

development

strategies,

guidelines,

policies and

overall plans of

the information

industry with a

view to

invigorating the

manufacturing

industry of

electronic and

IT products

Consists of

various

departments

2008 Funded by

the

government

Established a Technical

Standard Working Group on

Semiconductor Lighting.

Sources: NDRC, 2011; China Daily, 2009; MOST, 2011; USAID, 2011; MIIT, 2011.


Table 4.8: Lighting associations and other relevant representative organizations


sources


China

Association

of Lighting

Industries

(CALI)

Regional

association;

voluntary

community

group

composed

of lighting

industry

enterprises

and

institutions

.

Communicate

between

enterprises,

industries,

enterprises and

government’s

relations,

coordinate

lighting

industry’s

interests,

safeguard the

legitimate

rights and

interests of its

members, and

protect the

industry’s

overall

interests.

CALI

has

seven

profess

ional

commi

ttees

1989 More than

1000

members

Membershi

p fees,

sponsors

One of the

regional

associations of

GLF.

Cooperates with

NDRC, UNDP, GEF

Directly influences China’s

national standards (GB)

Involved in the Phasing-

out of Incandescent Lamps

and

Energy Saving Lamp

Promotion Project

(PILESLAMP) project

China

Illuminating

Engineering

Society,

(CIES)

official

lighting

industry

association

for China

aims at uniting

and organizing

its members

and numerous

experts and

professionals of

lighting science

and technology

to unfold an

active academic

exchanges,

taking care of

and

safeguarding

their lawful

rights and

interests, and

making

contributions to

prosperity and

development of

China’s lighting

cause

Under

CIES

there

are 6

workin

g

commi

ttees

and 11

speciali

zed

divisio

ns

1987 has 404

organizatio

n members

Membershi

p fees,

sponsors

CIES joined the

CIE


Master Thesis

35

Sources: CALI, 2011; CIES, 2011; CSA, 2011; LEDs Magazine, 2010.


After the identification of the stakeholders, now the relevant stakeholders will be classified.

Table 4.9: Stakeholder analysis China


Time

available

Financial

position

Technical

expertise

Position in

network

Total

(%)

Standardization

Administration

of the P.R.C.

(SAC)

Y Y Y Y 100%:

P

L U Definitive

China National

Institute of

Standardization

(CNIS)

Y Y Y Y 100%:

P

L U Definitive

China Standard

Certification

Center

Y Y Y Y 100%:

P

L U Definitive

State Grid

Corporation of

China

- Y - Y 50%: - L - Discretionary

China Southern

Power Grid

- Y - Y 50%: - L - Discretionary

National

Development

Reform

Commission

(NDRC)

Y Y Y Y 100%:

P

L U Definitive

China Ministry

of Science and

Technology

(MOST)

Y Y Y Y 100%:

P

L U Definitive

Ministry of

Industry and

Information

Technology

Y Y Y Y 100%:

P

L U Definitive

China

Association of

Lighting

Industries

(CALI)

Y Y Y Y 100%:

P

L U Definitive

China

Illuminating

Y - Y Y 75%: P L - Dominant

China Solid

State Lighting

Alliance

(CSA)

membershi

p society of

solid state

lighting

industry

developing

technology and

industrialization

of China SSL

through

“collaboration,

win-win,

innovation and

development”

3

perma

nent

workin

g

groups

includi

ng

Standa

rdizatio

n, IP

Pools

and

Cross-

Strait

2004 currently

has 117

members

from across

Hong Kong

and Main-

land China

Membershi

p fees,

sponsors

plays a leading

role of building up

a channel

between

government

departments and

the industry

CSA also provides

assistances for foundation

of standards, assessments

and quality testing

systems, helping its

members in self-value

realization therefore

upgrading the

competitiveness of the

whole Chinese SSL industry


Master Thesis

36

Engineering

Society

(CIES)

China Solid

State Lighting

Alliance (CSA)


4.2.4 Discussion

According to Mr. Ton China is very far ahead in terms of its standardization of LED and has spent a lot

of effort and time in it. Up to a few years ago China was mainly focused on assembly, meaning that

they buy products and assemble it in China. Now they move to more advanced production where

they try to make the LED chips themselves. During this process they realized that they need to

improve their standardization efforts. By now China is one of the few countries that is spending

significant resources on standards development (Ton, 2011).

The Standardization Administration of China (SAC), the Chinese National Standard Body, is in charge

of standardization activities across china. National Technical Committee 224 on Lighting, part of SAC,

is responsible for research on standardization of lighting sources and related equipment, and for

developing national and industrial standards. The committee consists of four sub-committees

including one for lighting sources and devices, luminaries, testing and illuminations basis (USAID,

2011). Between 2008 and 2010 TC 224 issued eleven LED lighting standards and one industrial

standard. Existing standards for LED are focused on general lighting, road lighting and decorative

lighting and mainly include safety specifications, performance specifications and performance

requirements (see appendix 4). In addition, the technical committee is currently developing one LED

national standard. It will most likely adopt the IEC standard (USAID, 2011). Mr. Sujendan expects that

China will issue the mandatory standards for LED in 2012. Although several standards for LED already

exist, Stuart Jeffcott, independent consultant, questions how good these standards are. Since they

were developed some time ago, and the technology has moved on significantly since then. He points

out that current performance specifications for LEDs are used by the government for procurement.

The Chinese government has spent hundreds of millions of dollars over the last few years supporting

procurement activities. LED got their first subsidy in 2008/2009 in very small numbers. Last year they

received about 30 million dollars from the National Development Reform Commission (NDRC) and

they also received huge subsidies from the Ministry of Science and Technology (MOST) (Jeffcott,

2011).

Besides SAC, China National Institute of Standardization (CNIS) and China Standard Certification

Center (CSC) are important institutions involved in creating standards for end-use equipment. CNIS is

responsible for the development of national energy efficiency standards. It developed energy

efficiency standards for CFL and is planning to develop standards for LED lamps as well (CNIS, 2011).

China Standard Certification Center is in charge of the ELI Quality Certification Institute which

promotes voluntary technical specifications for energy efficient lighting, including LED (SCS, 2011).

The leading government agency involved in the standardization of LED is the National Development

Reform Commission (NDRC). Other important governmental agencies are China Ministry of Science

and Technology (MOST) and the Ministry of Industry and Information Technology (MIIT). In 2010,

NDRC initiated a LED luminaire development program which consisted of 20 demonstrative projects


Master Thesis

37

for indoor lighting applications and 15 projects for street lamps and tunnel lamps across China (NDRC,

2011). MOST launched the program of ten cities with 10,000 lights for which the ministry supported

the spread of over 10,000 LED lights in each city, thereby encouraging the growth of the LED market

in China. Ms. Kathryn M. Conway – Independent consultant, LED Consulting / Conway & Silver,

Energy Associates LLC, points out that there has been discussion whether this program started too

early, because manufacturers could not meet the demand created by this project. Promotional

programs on LED exist for outdoor lighting, and are mainly aimed at commercial and government

buyers, since residential buyers usually cannot afford expensive technology. The middle class is

growing but has probably still other priorities (Conway, 2011). In addition, MOST operates a testing

laboratory for LED (MOST, 2011). The Ministry of Industry and Information Technology (MIIT) is

another important governmental agency. As a result of China’s rapidly developing LED industry, the

MIIT set up a Technical Standard Working Group on Semiconductor Lighting (MIIT, 2011). This

working group is involved with the development of industrial standards on semiconductor lighting

(USAID, 2011).

LED testing laboratories are other key stakeholders for the standardization process of LED. Currently

there are five laboratories able to test LED lighting products: National Lighting Test Center (Beijing),

National Center of Supervision & Inspection on Electric Light Source Quality (Shanghai), China

National Lighting Fitting Quality Supervision Testing Centre (CLTC) (Shanghai), China National Lighting

Fitting Product Supervision Testing Center (Zhongshan) and China National Center for Quality

Supervision and Test of semiconductor devices (Shijiazhuang). Besides, four more testing laboratories

will be established to test LED (USAID, 2011).

China’s national utility consists of two main enterprises: State Grid Corporation of China and China

Southern Power Grid are both involved in DSM programs, but currently do not seem to play a major

role in the standardization of LED (SGCC, 2011; CSG, 2011).

Of the three main lighting associations in China, China Association of Lighting Industries (CALI), China

Solid State Lighting Alliance (CSA), and China Illuminating Engineering Society (CIES), CALI and CSA

play the most important role for the standardization process of LED. CALI, one of the regional

associations of the Global Lighting Forum (GLF), directly influences China’s national standards (GB) by

participating in de development of product standards and test procedures for Chinese lighting

products (CALI, 2011). Mr. Sujendan points out that CALI is mainly involved in the standardization of

state lighting and some other areas only, but still not in indoor lighting (Sujendan, 2011). CSA assists

standards development in terms of foundation, assessments and quality testing systems in order to

enhance the competitiveness of China’s Solid State Lighting industry (CSA, 2011).

According to Ms. Conway international organizations do not especially play a role for the

standardization of LED in China in terms of promoting standards. The standardization process is

usually started at either regional or national level (Conway, 2011). Both Mr. Jeffcott and Mr.

Sujendan note that IEC is pushing to develop international standards. Besides, the En.Lighten

Initiative plays a role (Jeffcott, 2011)

Ms. Conway points out that one of the main challenges is that LED is a relatively new technology

being manufactured in China, because until recently China imported its LED. China has less

knowledge and experience with LED compared to countries like Japan, Korea and Taiwan. Now that

LED is made in China, the challenge is to enable small manufacturer to gain more knowledge on LED,


Master Thesis

38

to buy equipment that will help them to test LED, and to train their workers to reach the

international level of quality control. In addition, given China’s size and temperature differences

between the south and north, China has some regional requirements, especially for outdoor lighting.

These different local requirements need coordination and centralized authority (Conway, 2011).

According to Mr. Jeffcott, the patent issue and new industries moving into the lighting market slow

down the standardization process of LEDs in China. LED chip making is driven by patent technology

rather than standard. So the people that really got control are the patent owners, since they can

decide what to build and how to build it rather than standards coming along that prescribe how to

build it. Most of the patents are being held by the Japanese, the Americans, and a bit by the

Taiwanese and the Koreans. Furthermore, because LEDs are a new technology that is fundamentally

a computer screen, other businesses from outside the lighting industry enter the market, such as the

telephone business and the electronic industry. However, the electronic industry makes standards

differently from the lighting industry, since these standards are about functionality, not performance.

For LED packages nobody is being in charge, which makes the standardization process rather difficult

(Jeffcott, 2011).

4.2.5 Standardization regime

China has spent significant resources on standards development and has already developed

standards for LED, mainly safety specifications, performance specifications and performance

requirements. Segments include general lighting, road lighting and decorative lighting.

Mr. Jeffcott points out that currently there is a big war going on with LEDs in China, comparable with

the VHS vs. Betamax war, but then even bigger. Trying to come up with one generic standard is

challenging, certainly on a chip level. It is easier on the package level (Jeffcott, 2011).

According to Ms. Conway, manufacturers are the main drivers for the standardization process of LED.

Chinese government agencies are very responsive and wanting to help the manufacturers (Conway,

2011). Mr. Jeffcott also emphasizes that the industry is playing the most important role, together

with the test centers, while the government is a bit lost. The Chinese government is the driver in a

way that it is trying to sort out the industry, because it is subsidizing it and wants to know who to

subsidize. In addition, because they want to subsidize applications to get the technology adopted in

households, standards need to be developed. So the government is driving the standardization

process in terms of the need for standards to be there for their political agenda, but in terms of

content it is definitely the industry playing the main role. Nobody else has a clue, because the

technology moves so quickly. So the government is putting pressure to come up with one most

acceptable to the big players: the manufacturers and the test centers (Jeffcott, 2011). Mr. Ton notes

that the manufacturers are pushing the Chinese government to have standards for LED. International

organizations are mainly used by China as an informational resource (Ton, 2011).

In conclusion, the fact that China has already become the leading manufacturing country of lighting

products in the world is reflected in the key role the LED industry is playing in the standardization

process of LED. However, as a single-party state governed by the Communist Party of China, the

government plays a powerful role in China’s economy and strongly controls China’s strategic

industries. In order to deal with China’s increasing energy demand and environmental deterioration,

the Chinese government sees the importance of environmental protection industries. By boosting

the LED industry, as one of China’s strategic emerging industries, the Chinese government addresses


Master Thesis

39

both economic growth and energy consumption. So the Chinese government is pushing the

standardization process to support China’s rapidly developing LED industry. This is also in accordance

with prominent governmental initiatives to promote energy efficient lighting and LED.

4.3 The Philippines


The Philippines is an example of a country that made the transition to democratic rule. Although the

country has a lot of experience with democratic institutions, it suffers from unstable democracy. The

country is facing institutional deficiencies resulting in an overall lack of responsiveness to the needs

of the majority of the population (Hutchcroft & Rocamora, 2003). State weakness is reflected in the

inability of the state to provide basic services, ensure peace and order, and foster economic

development (Abinales & Amoroso, 2005).

As a result of the growing impact of energy use on climate change and in order to be able to support

the energy requirements of its economic and social development goals, the Philippines is currently

facing the challenge to search for clean energy solutions and energy efficiency. The policy and

regulatory framework for energy efficiency in the Philippines consists of various policy and regulatory

instruments which are responsible for the creation of regulatory authorities, the provision of

incentives and the development of technical, safety and product standards. Within the energy sector,

the government plays a key role both in terms of participation and regulation (USAID, 2007a). The

main governmental agency in the energy sector is the Department of Energy. This agency introduced

in 2005 the Philippine Efficient Lighting Market Transformation Project (PELMATP) to stimulate

efficient lighting solutions by integrating several energy efficient lighting programs into standards,

labeling program and promotional events. As a result of this project, the President of the Philippines

has called for a ban of incandescent lamps by 2010, which makes the Philippines one of the first

Asian countries that bans incandescent lamps. PELMATP has been succeeded by the Philippine

Energy Efficiency Project (PEEP) in 2009 (En.Lighten, 2011). However, institutional barriers to the

effective implementation of policies and programs still exist. Firstly, energy agencies are not enough

involved with other departments and institutions and too much focused on their own department.

Secondly, besides weak implementation of laws, verification and enforcement of standards are also

lacking. In addition, regulators and manufacturers do not have enough capacity to harmonize energy

efficiency standards. Government agencies for example lack adequate institutional capability as they

have not enough manpower. Moreover, current regulation does not provide incentives to utilities to

implement demand-side management projects (USAID, 2007a).



On a country level national standard setting institutes are relevant stakeholders.



sources


The

Department

of Trade

and

Governmenta

l agency

under the

Department

of Trade and

Develop,

impleme

nt, and

coordinat

e

About 97,

administrat

ive and

technical

staff

1964 Funded by

the national

government

Strategic alliances

with:

- International

Electro technical

Commission (IEC),

BPS is member of IEC technical

commission lamps and related

equipment (34 34A) (out of total

of 3 TC they are member of!)

involved in preparing international


Master Thesis

40

Industry -

Bureau of

Product

Standards

(DTI-BPS)

Industry

(DTI);

National

Standards

Body

standardi

zation

activities

in the

Philippin

es

- Asia Pacific

Economic

Cooperation

(APEC),

- The ASEAN

Consultative

Committee for

Standards and

Quality (ACCSQ);

Cooperates with

USAID

standards regarding specifications

for o.a. lamps (including LED's).

The scope of related existing

Philippine National standards does

not include LED.

TC of DTI-BPS is composed of

representatives from BPS, DOE,

stakeholders, and PELMATP.

TC is working on the development

of a national

standard for safety specifications

for LED modules for general

lighting and a

national standard for performance

requirements for self-ballasted

LED lamps

for general lighting services.

The proposed national standards

shall cover LEDs for general

lighting applications

as well as Christmas lights using

LEDs.

Source: DTI, 2011; USAID, 2011.

National Utility

National utilities are significant stakeholders, since they can directly benefit from the use of energy-

efficient lighting and have influence on regulators.



sources


CEPALCO electric

utility

power

distribution

3rd largest

electric

distribution

company in the

Philippines

1952 electric

revenues

Cooperated with DOE on


system;

Cooperated with ELI on

CFL program

In 2002 involved in

CFL distribution

program

VECO electric

utility

power

distribution

2nd largest 1905 electric

revenues

Cooperated with DOE on

efficient lighting program

in 2009

Involved in

distribution of CFL's in

2009

MERALCO electric

utility

distributor of

electrical power

Philippines'

largest distributor

of electrical

power

1903 electric

revenues

Cooperated with ELI on

CFL program

Launched CFL

program in 2002

Sources: CEPALCO, 2011; VECO, 20110; MERALCO, 2011; CDO, 2008; ELI, 2011.

Regulators

For the standardization of LED, policy makers on local, national, international and global level play a

role. However, since the focus will be on the transition on LED in developing countries and Asia,

where current standards often do not even exist, local policy makers will not be taken into account.

Instead, the focus will be on national policy makers.


Master Thesis

41



sources


Philippine

Department

of Energy

(DOE)

Governm

ental

departm

ent

Formulating

and

implementing

policies and

programs to

ensure

sustainable,

stable, secure,

sufficient,

accessible and

reasonably-

priced energy.

Consists of

various units

and bureaus;

most relevant

one is: Energy

Efficiency and

Conservation

Division, part

of Energy

Utilization

Management

Bureau and

Energy

Research and

Testing

Laboratory

Services

(ERTLS)

1977 Funded by

the

national

governmen

t

Energy

cooperation

programs of

various

international

organizations

such as

ASEAN, APEC

and ACD.

DOE pushes use of LED lighting

system: Boni Tunnel Efficient Lighting

System, involves the installation of the

first energy efficient light emitting

diode (LED) powered by solar energy.

The success of this project, particularly

the use of energy efficient lighting, is

expected to create a template for

replication in other similar site

applications and is seen to

revolutionize the country’s major

roadways.

Also: national energy efficiency and

conservation program (NEECP) to

promote the judicious conservation

and efficient utilization of energy

resources through adoption of the

cost-effective options toward the

efficient use of energy to minimize

environmental impact. NEECP

published e.g. list of certified CFL

lamps on its website. LED is not

included so far.

Implemented the Philippine Efficient

Lighting Market Transformation

Project (PELMATP)

Involved in The Philippines Energy

Efficiency Project (PEEP), which

includes the Efficient Lighting

Initiative.

Sources: DOE, 2011; NEECP, 2011; PhilStar, 2011; PEEP, 2011.


Relevant organizations for LED that serve the interests of their members are lighting associations.


Sources: Aemas, 2011; PELMATP, 2009.


sources


Philippine

Lighting

Industry

Association

Inc. (PLIA)

Industry

Associati

on

promoting

the interests

of the

Philippine

lighting

industry

consistent

with

consumer

welfare

About

20

memb

ers

2001 importers,

manufacturer

s,

distributors,

suppliers,

consultants

unknown partner of

PELMATP

In the board of

ALC


Master Thesis

42



Table 4.14: Stakeholder analysis Philippines


Time

available

Financial

position

Technical

expertise

Position in

network

Total

(%)

The

Department

of Trade and

Industry -

Bureau of

Product

Standards

(DTI-BPS)

Y Y Y Y 100%:

P

L U Definitive

CEPALCO - Y - Y 50%: - L - Discretionary

VECO - Y - Y 50%: - L - Discretionary

MERALCO - Y - Y 50%: - L - Discretionary

Philippine

Department

of Energy

(DOE)

Y Y Y Y 100%:

P

L U Definitive

Philippine

Lighting

Industry

Association

Inc. (PLIA)


4.3.4 Discussion

Currently standards for LED do not exist yet in the Philippines. The Philippines are in the initial stage

of standards development for LED, led by the Bureau of Product Standards (BPS) under the

Department of Trade and Industry (DTI). Energy standards and labeling are developed by DTI-BPS and

the Energy Research and Testing Laboratory Services (ERTLS) under the Department of Energy (DOE)

together by the formation of a Technical Committee for lamps and related equipment, which consist

of representatives from BPS, DOE, the Philippine Electric Market Transformation Project (PELMATP),

the private sector and the lighting industry. The Technical Committee, part of the DTI-BPS, is now

reviewing existent IEC standards for lamps and related equipment, of which one or two are for LED

(Cristobal, 2011). The TC is developing national standards for safety specifications for LED modules

for general lighting applications and a national standard for performance requirements for self-

ballasted LED lamps for general lighting services. These national standards will be applied for general

lighting and for Christmas lights using LEDs (USAID, 2011). Roberto C. Cristobal, President of

Philippine National Committee of the IEC, Department of Trade and Industry (DTI), Bureau of Product

Standards (BPS), and Chairman of the Technical Committee for Lamps (TC04), stresses that the

priority is to establish safety standards, but that the TC is working on performance standards as well.

He explains that developing standards for decorative lighting and Christmas lighting is very important

since they are used extensively in the Philippines. During some severe accidents with decorative

lighting in the past some people even died, so it is of major significance to develop these standards.

The TC started working on this particular standard for decorative and Christmas lighting mid-2010.

The working group has just completed the first draft, which will be presented to the TC soon


Master Thesis

43

(Christobal, 2011). Raquel S. Huliganga, Director of the Energy Research & Testing Laboratory

Services of the Department of Energy, emphasizes that DOE would like to see standards for outdoor

applications and street lighting. The Philippines is for instance also using LEDs for solar projects in off

grid areas for electrification (Huliganga, 2011).

According to Mr. Cristobal, the major challenges for the standardization of LED are in terms of time

and technical competence. Since there are other standards for lamps being developed at the same

time, time to develop LED standards is limited. Another challenge is the availability of technical

competence and the level of funding to be able to acquire the technical competence by participating

in training and workshops to get more advanced knowledge of LED. In order to deal with these

challenges the TC gets involved with people from the semiconductor industry to get more

information about LED. Furthermore, they participate in organizations that can provide technical

information, such as lighting manufacturers and R&D groups and ask for assistance of governmental

organizations such as ASEAN and APEC (Cristobal, 2011). Ms. Huliganga also emphasizes that DOE

currently does not have the expertise to determine what the best parameters are, so they seek

support of ALC and Lites.Asia and try to learn from leading standards around the world and see what

best fits the needs of the Philippines (Huliganga, 2011).

The Philippine Department of Energy (DOE) plays a major role in the standardization of LED,

especially the Energy Research and Testing Laboratory Services (ERTLS), and the Energy Efficiency

and Conservation Division, part of Energy Utilization Management Bureau. ERTLS is the only

governmental agency that tests for lighting, particularly energy performance, and is responsible for

the drafting implementing rules and regulations of the standards. The Energy Efficiency and

Conservation Division is mainly involved with managing the efficiency of energy consuming devices,

such as air-conditioning and lighting and is more active on the application side (Huliganga, 2011).

DOE implemented the Philippine Efficient Lighting Market Transformation Project (PELMATP), a

program that strived to address the barriers on the widespread use of energy efficient lighting

systems in the Philippines and the reduction of greenhouse gas emissions in 2005-2011. DOE worked

together on this project with the Global Environment Facility, and The United Nations Development

Programme (UNDP). However, this program was mainly focused on compact fluorescent lamps (CFLs),

slim linear fluorescent lamps and better luminaires. LEDs were not yet part of the project (PELMATP,

2009).

Another relevant project which will be implemented by DOE is The Philippines Energy Efficiency

Project (PEEP), which will continue many activities initiated by PELMATP. One of the three

components of PEEP is the Efficient Lighting Initiative, which both includes the promotion of CFL’s

and LEDs and consists of various different programs. The Public Lighting Program, part of the Efficient

Lighting Initiative, includes for instance the replacement of Incandescent Bulbs in existing traffic

lights with LEDs. The Nation Wide Residential Lighting Program includes the procurement of various

LEDs for general lighting, distribution through identified channels, the conduction of customer

satisfaction surveys and reporting. Noting that the Philippines currently have inadequate testing

facilities to test LED, the program also aims to improve the equipment of testing facilities (PEEP,

2011).

Besides this project DOE is promoting the use of LED lighting systems with its Boni Tunnel Efficient

Lighting System project, for which the first energy efficient LED lighting powered by solar energy has

been installed. The successful use of energy efficient lighting for this project is expected to serve as


Master Thesis

44

example for other similar site applications and is even supposed to revolutionize the major roadways

of the Philippines according to DOE (Philstar, 2011).

The national utility of the Philippines, mainly formed by the three largest distributors of electrical

power in the Philippines MERALCO, VECO, and CEPALCO have been involved in various distribution

programs of CFL’s in the past, but are not yet launching any programs on LEDs. CEPALCO is also

involved in the the Philippines Energy Efficiency Project (Huliganga, 2011) A major challenge for the

national utility is how to cope with the poor quality of power supply. Currently the Philippines is

facing several problems related to electrical power, including access to electricity, expensive

electricity costs, and an inadequacy of power supply. Series of power blackouts and outages are not

uncommon (FDC, 2011). The national utility is currently not playing a role in the standardization

process of LED. However, once the standards are available, they will also be involved (Cristobal,

2011).

The main association involved in the standardization of LED in the Philippines is the Philippine

Lighting Industry Association Inc. (PLIA) and is one of the most important stakeholders (Cristobal,

2011). PLIA is a partner of PELMATP and currently a board member of Asia Lighting Compact (ALC).

PLIA contributes to the standardization of LED in terms of technical know-how and are a source of

information. Moreover, they are also the one who are willing to conform to the standards that would

be adapted (Cristobal, 2011). The members of PLIA are mostly lamp manufactures and lamp

importers. Important to note here is that the Philippines is importing all their lighting products, of

which about 95% comes from China (Huliganga, 2011). The most important members of PLIA are the

bigger lamp manufacturers, the big international firms (Cristobal, 2011). Moreover, PLIA is working

closely with DOE and ELI as will be explained in the next paragraph on the role of international

organizations and regional associations.

International organizations play a role in the standardization process of LED in terms of providing

knowledge and expertise. The main international organizations involved are IEC, ASEAN, APEC, ALC,

the En.lighten Initiative of UNEP, and Lites.Asia. In this way the Philippines wants to learn from other

countries. In the past ELI has played a big role in the Philippines by establishing a testing laboratory

for ELI products, but at this point ELI is not playing a significant role anymore (Huliganga, 2011).

In addition, the Professional Lighting Designers' Association (PLDA) has played a role by supporting

the Philippine Lighting Conference (PLC), which aims to link the local lighting industry of the

Philippines together and create a platform for lighting standards in the Philippines. The conference is

focused on responsible lighting design practice, products, and standards (PLDA, 2011).


Currently standards for LED do not exist yet in the Philippines. Currently standards for safety

specifications and performance requirements are being developed. Segments include general lighting,

decorative and Christmas lighting.

Mr. Cristobal and Ms. Huliganga both agree that the government is the main driver of the

standardization process of LED in the Philippines. Ms. Huliganga points out that DOE is pushing for

standards development of appliances and lighting products when they see the popularity of use of

these products, since they use a lot of electricity. In addition, since LED products from the market can


Master Thesis

45

range from very bad to the best, DOE is pushing for standards development (Huliganga, 2011). Mr.

Cristobal explains that the government needs to be able to come up with regulation, and in order to

be able to come up with regulation, you need standards. So everything stands with standardization

(Christobal, 2011). The key stakeholders are the Bureau of Product Standards and its TC for lamps,

since they are the government agency that is mandated to promulgate standards, and DOE,

responsible for the energy side of LED. In terms of the performance aspects of the standard PLIA

plays an important role. However, since there is no manufacturing of LED taking place in the

Philippines, nobody is pushing from that perspective (Ton, 2011). International organizations play a

role in the standardization process of LED in terms of providing knowledge and expertise.

In conclusion, the government is the main driver of the standardization process of LED. This is in

accordance with the government’s need to search for clean energy solutions and energy efficiency as

a response on the Philippines energy requirements of its economic and social development goals and

with the key role the governments plays within the energy sector in terms of participation and

regulation. Moreover, it reflects the President’s call for a ban of incandescent lamps by 2010 and

major governmental initiatives such as the Philippine Energy Efficiency Project (PEEP).

4.4 Thailand


Thailand is an example of an Asian country that has become democratic. However, the coup of 2006

during which the Royal Thai Army overthrew the government of elected Prime Minister Thaksin

Shinawatra shows the unstable character of Thailand’s struggling democracy (Pongsudhirak, 2008). In

Thailand the monarchy plays an important role, which is reflected in great respect toward the King

and members of the royal family. Thailand’s political system is dominated by key power holders

including high-level government politicians, the Thai owners or major Thai shareholders of large

domestic corporations, and high-ranking military leaders (Stern, 2007).

As a result of the economic growth since the mid of the 1980s, energy consumption in Thailand is

increasing rapidly. In order to secure energy supply and sustain Thailand’s economic development,

the Thai Government took several efforts to improve energy efficiency and energy conservation,

which are the main focus of Thailand’s energy policy. The main government energy agency is the

Ministry of Energy (MOEN), which consists of six offices and departments involved in energy-related

activities. Since 1992, various laws and decrees to promote energy-efficiency and renewable energy

programs have been issued, of which the ENCON Act is the most significant one. Following the

ENCON Act, the Thai Government established the Energy Conservation Promotion Fund (ENCON

Fund) to provide financial support to governmental agencies, state enterprises, NGO’s, businesses

and individuals involved in energy efficiency. The Fund has financially approved several energy

efficiency activities and programs, o.a. projects on lighting devices (APEC, 2010). The EGAT Demand

Side Management Program is an example of one of the successful programs. This program was

mainly focused on energy efficiency labeling schemes for o.a. CFLs. However, although successful

energy efficiency programs have been implemented, many government programs were not cost-

effective or unsuccessful. Other barriers exist regarding implementation, monitoring and evaluation.

While Thailand has adequate regulations related to energy efficiency, these regulations are not

effectively enforced. Another barrier is that, although all energy related activities are consolidated


Master Thesis

46

under one ministry, there is still lack of policy coordination among agencies. Furthermore, there is

lack of effective incentives programs to encourage saving energy (USAID, 2007b).


National standard setting institute

Table 4.15: National Standard setting institute Thailand


sources


Thai

Industrial

Standard

Institute

(TISI)

Governmen

tal agency

under the

Ministry of

Industry;

National

Standards

Body

Undertak

e

standardi

zation

activities

Consists of

several

bureaus,

councils,

advisory

groups etc.

1966 funded by the

national

government

Cooperates with IEC

Cooperates with

Department of

Alternative Energy

Development and

Efficiency (DEDE)

and Energy Policy &

Planning Office

(EPPO)

Member of IEC technical


equipment (34 34A) involved in

preparing international standards

regarding specifications for o.a.

lamps (including LED's).

Currently developing standard for

LED modules for general lighting

(Safety)

Source: TISI, 2011.

National Utility

Table 4.16: National utility Thailand


sources

Interactio

n

Extra info

Electricity

Generating

Authority of

Thailand

(EGAT), part

of Ministry

of Energy

State

owned

enterpr

ise

Manages the

majority of

Thailand's

electricity

generation

capacity, as well

as the nation's

transmission

network

Owns and operates

various types of

power generating

plants located in 38

sites, together with

transmission and

main distribution

systems nationwide

1969

State

owned

With DEDE,

EPPO, TISI,

and PEA

EGAT has a unit called DSM

Office to promote energy

conservation, especially in

electrical appliances through

standard and labeling scheme;

supported by World Bank and

GEF.

Provincial

Electricity

Authority of

Thailand

(PEA),

under the

Ministry of

Internal

Affair

govern

ment

enterpr

ise

electricity

supply

all areas covered 73

provinces,

approximately

510,000 km2,

accounting for 99%

of the country’s

total area

1960 State

owned

With EGAT Was involved in an Energy

Saving Project for Street Lighting

in 2006

Source: EGAT, 2011; PEA, 2011.

Regulators

Table 4.17: Energy efficiency body Thailand


sources


Ministry of

Energy

(MOEN)

govern

mental

sustainable

energy

management

for sufficient

energy for the

Various

bureaus,

offices and

sub

departments;

2001

funded by

the

governmen

t

with TISI,

EGAT

In the period 2003-2006 minimum

energy performance standards for o.a

compact fluorescent lights, and

fluorescent tubes were implemented

by the Department of Alternative


Master Thesis

47

nation and

citizens of

Thailand

o.a.

Department

of Alternative

Energy

Development

and Efficiency

(DEDE);

Energy Policy

& Planning

Office (EPPO)

Energy Development and Efficiency

and the Energy Policy and Planning

Office (EPPO) of the Ministry of

Energy, with the support of the

Thailand Industrial Standards Institute

(TISI).

DEDE established a working

committee for energy efficiency

standards and labeling consisting of

DEDE, EGAT, EPPO, the Consumer

Protection Bureau, and TISI. EGAT and

DEDE worked together to set up

standards and testing procedures.

Source: MOEN, 2011; World Bank, 2006.


Table 4.18: Lighting associations in Thailand

Sources: TIES, 2011; Luxpacifica, 2011.

4.4.3 Stakeholder Analysis

Table 4.19: Stakeholder analysis Thailand


Time

available

Financial

position

Technical

expertise

Position in

network

Total

(%)

Thai

Industrial

Standard

Institute

(TISI)

Y Y Y Y 100%:

P

L U Definitive

Electricity

Generating

Authority of

Thailand

(EGAT), part

of Ministry of

Energy

Y Y Y Y 100%:

P

L U Definitive

Provincial

Electricity

Y Y Y Y 100%:

P

L - Dominant


sources


Illuminating

Engineering

Association

of Thailand

(TIEA)

associa

tion

aims to increase

knowledge about

the science,

technology and

design of lighting in

Thailand. It also

aims to raise the

professional

standards of lighting

engineers and

designers and to

promote the Thai

lighting industry in

the context of an

increasingly

competitive market.

unkn

own

unkno

wn

Lighting

engineers

and

designers

Sponsored

by o.a

Philips,

Toshiba

In collaboration

with international

organizations it has

established lighting

standards and

designed

recommendations

to ensure the

quality and

sustainability of

lighting in Thailand

TIEA’s focus is

on energy-

efficient

lighting and

urban lighting.


Master Thesis

48

Authority of

Thailand

(PEA), under

the Ministry

of Internal

Affair

Ministry of

Energy

(MOEN)

Y Y Y Y 100%:

P

L U Definitive

Illuminating

Engineering

Association

of Thailand

(TIEA)

Y N Y Y 75%:P L U Definitive

4.4.4Discussion

LED standards are currently under development in Thailand, mainly focused on safety specifications

for LED modules for general lighting. Thai Industrial Standard Institute (TISI) and Alternative Energy

Development and Efficiency (DEDE) part of the Ministry of Energy take the lead in developing

standards in Thailand. While TISI is responsible for safety and performance standards, DEDE is

responsible for energy efficiency Standards (USAID, 2011). During the development process of

standards Thailand is looking at Western examples of standards and then looks what to adapt (Ton,

2011). Currently there are no special programs to promote LED in Thailand (USAID, 2011).

The Ministry of Energy, especially the Department of Alternative Energy Development and Efficiency

(DEDE) and the Energy Policy & Planning Office (EPPO) are important stakeholders. In the period

2003-2006 Thailand began to develop minimum energy performance standards for compact

fluorescent lights, after which DEDE and EPPO implemented these standards with the support of TISI.

In addition, DEDE set up a working committee for energy efficiency standards and labeling consisting

of representatives of DEDE, Electricity Generating Authority of Thailand (EGAT), EPPO, the Consumer

Protection Bureau, and TISI. EGAT and DEDE cooperated to develop standards and testing

procedures (World Bank, 2006).

The Electricity Generating Authority of Thailand (EGAT), also part of the Ministry of Energy is another

major stakeholder. Its DSM Office stimulates energy conservation through standard setting and

labeling, especially in electrical appliances (EGAT, 2011). Mrs. Napaporn Phumaraphand, Director of

the Demand Side Management & Planning Division, Electricity Generating Authority of Thailand

explains that the DSM office is reviewing LED standards, testing, and specifications developed and

used in many countries such as ELCOMA (India) and NLTC (China). In Thailand, there are two major

mechanisms in standardization development and employment. The first one uses a mandatory

scheme, the second one focuses on voluntary/market-based mechanism. EGAT’s DSM exercises

voluntary/market-based mechanism to remove the barriers for development of high efficiency

electrical appliances into the market. Therefore, their role in standardization of LED or any other

electrical appliances is not to set the (mandatory) standard or related criteria directly, but to push

the demand for higher efficiency appliances and support the employment of more advanced

technology of manufacturers. This includes promoting the standard shifting of the market through

(voluntary) standard and labeling programs and other attitude creation and campaigns. The EGAT

DSM office has been promoting the use of high efficiency lighting since 1993. The High Energy


Master Thesis

49

Performance Standard and Labeling Program (HEPS) is a voluntary energy labeling program which

has enhanced the market transformation of appliances and equipment into energy efficient. Under

this program the EGAT DSM office implemented the labeling scheme for CFL and T5 (linear

fluorescent lamp) in 2008 and 2010 respectively to remove the barriers to replace existing low

efficiency lighting devices with energy efficient lighting. In terms of LED, the DSM office is

formulating an action plan for a LED labeling scheme and expects to agree with LED vendors and

suppliers on criteria for its efficiency performance and testing standards. However, one of the major

obstacles for the standardization of LED is in terms of testing facilities, especially life time testing

(Phumaraphand, 2011). EGAT is member of ALC.

The Illuminating Engineering Association of Thailand (TIEA) is a relevant lighting association which

has developed lighting standards to ensure the quality and sustainability of lighting in Thailand (TIEA,

2011). Mrs. Phumaraphand underlines that TIEA plays a major role in the standardization of LED,

mainly through academic forums, dissemination of international standards and trends, training

programs, and network activities for stakeholders (Phumaraphand, 2011). Moreover, TIEA is

represented in the board of Lux Pacifica. The Lux Pacifica is the lighting conference of various lighting

societies including these of India, China, Japan, Thailand, Russia, Australia, New Zealand, Canada,

USA, South Africa, Mexico and Hong Kong. Thailand hosted the conference in 1993 and 2009. The

next conference, which will be held in 2013, will be hosted in Thailand as well (Lux Pacifica, 2011).

In terms of international organizations as stakeholders for the standardization process of LED, Mrs.

Phumaraphand points out that TISI standards follow IEC and EN standards (European Standards) as

guidelines. Non-profit international agencies, such as Lite.asia and UNDP play a supportive role for

LED standardization in Thailand through encouragement, capacity building and knowledge transfer

(Phumaraphand, 2011).


LED standards are currently under development in Thailand, mainly focused on safety specifications

for LED modules for general lighting. According to Mrs. Phumaraphand international organizations,

especially the IEC are the main driver of the standardization of LED in Thailand. During the

development process of standards Thailand is looking at Western examples of standards and then

looks what to adapt. Through encouragement, capacity building and knowledge transfer

international organizations play a role.

Besides international organizations, the Thai government is driving the standardization process. This

is in accordance with the government’s effort to improve energy efficiency and energy conservation,

the main focus of Thailand’s energy policy. Especially the Electricity Generating Authority of Thailand

(EGAT), part of the Ministry of Energy, plays an active role. EGAT’s DSM exercises voluntary/market-

based mechanism to remove the barriers for development of high efficiency electrical appliances into

the market. However, currently there are no special governmental programs to promote LED in

Thailand.


Master Thesis

50

4.5 Vietnam


Vietnam is an example of a single-party socialist state led by the Communist Party of Vietnam.

Although Vietnam started a gradual path of reform in 1986, the communist party is still firmly in

power. Authorities of the government directly interfere with many aspects of Vietnam’s economy

(Meyer & Nguyen, 2005).

Currently, Vietnam is rapidly developing its infrastructure, economic zones, industrial parks, tourism

resorts, and commercial and residential buildings, which has led to the creation of a big market for

street lighting, commercial and residential lighting in Vietnam. In fact the Vietnam Lighting Market is

primarily driven by the building and construction industry. Lighting currently accounts for 25.3% of

total energy consumption in Vietnam. Energy has been a key component of Vietnam’s rapid

economic growth over the last decade. Meeting the growing power demand is a great challenge for

the government. In order to sustain economic development and reduce adverse environmental

impact, the government of Vietnam stresses the importance of energy conservation and energy

efficiency in its National Energy Policy (VEEPL, 2011). Vietnam’s National Energy Policy encourages

for instance energy efficiency by stimulating to replace low-efficient equipment and facilities. Several

government decrees and decisions emphasize energy efficiency and conservation. The most

important one is the Decree on Energy Saving and Efficient Use of Energy, issued on 3 September

2003, which addresses the roles and responsibilities for both government and society related to

energy efficiency and conservation (USAID, 2007c). In 2010, a new law on Energy Conservation and

Efficiency came into effect, which underlines the government’s efforts to encourage energy saving.

According to this law energy efficient products have to be labeled to stimulate the production of

these products and to substitute outdated equipment with low energy efficiency. However, as a

result of the complexity of the law and its high technical specialization, the implementation of the

law is expected to face certain problems (VNEEP, 2010).

The Ministry of Industry and Trade (MOIT), overall responsible for managing the energy sector and

for the energy efficiency agenda in Vietnam, approved the ‘National Strategic Program on Energy

Saving and Effective Use’ in 2005, which set ambitious energy saving targets for Vietnam by aiming

savings from 3% to 5% in total energy consumption in 2006 - 2010 and from 5% to 8% in 2011 - 2015.

Besides the MOIT, the Ministry of Science and Technology (MOST), has several responsibilities in

terms of energy conservation, such as issuing national standards for the energy efficiency of end-use

devices and appliance, including lighting products (USAID, 2007c). However, although energy

efficiency laws and decrees do exist, implementation is still a major issue due to lack of capacity,

technical knowledge and resources. So stable and sufficient human and financial resources are

needed to implement the energy efficiency laws and policies in the long term are needed (APEC,

2009). In addition, capacity building is needed for standards, labeling and testing regimes (USAID,

2007c).

Besides laws and decrees, important programs on energy efficiency have been launched over the

past years. The UNDP and GEF launched for instance the ‘Energy Efficiency Public Lighting’ (VEEPL)

project to enhance the transition to more energy efficient lighting by providing technical and policy

support. In addition, in 2010 the UNEP and GEF supported Vietnam to promote a large scale market

transformation towards efficient lighting and the phasing-out of incandescent lamps, also called the


Master Thesis

51

En.lighten Initiative (En.lighten, 2011). Part of this project is to strengthen and harmonize quality and

performance-based standards and procedures in Vietnam.


National standard setting institute

Table 4.20: National Standard setting institute Vietnam


sources


Directorate

for

Standards,

Metrology

and Quality

(STAMEQ)

National

Standards

Body;

under

Ministry of

Science and

Technology

responsible for

national standard

development

through the

Vietnam Standards

and Quality Center

(VSQC), product

testing and

certification through

testing and

certification centers,

and laboratory

accreditation

through Bureau of

Accreditation (BoA).

consists of

various

departmen

ts and

centers;

most

relevant

one:

Vietnam

Standards

and Quality

Centre

(VSQC)

1962

funded by

the

governmen

t

Established

relationships with

relevant domestic

ministries/agencie

s, as well as

international and

regional

standardization

organizations in

terms of

standards

development

Has issued technical

standards for

determination of energy

efficiency and Minimum

Energy Performance

Standards (MEPS) for a

few products including

lighting products (FTLs,

CFLs and ballast); Not

participating in any IEC

Technical Commission.

Sources: STAMEQ, 2011.

National Utility

Table 4.21: National Utility of Vietnam


sources


Electricity of

Vietnam

(EVN)

state owned

corporation;

operated by

the Prime

Minister’s

Office and

Ministry of

Industry and

Trade

generation,

transmission,

distribution

and sales of

electric

power

the largest

power

company in

Vietnam

2006

governmen

tal

has joined forces with

the World Bank to

promote a new

energy-efficient form

of lighting that will cut

demand at peak

times, slashing its

short-term investment

needs

implemented a national

program to distribute

compact fluorescent

lamps and thin-tube

fluorescent lamps in

2004-2009 in cooperation

with the World Bank and

GEF; DSM program on

energy conservation

Sources: EVN, 2011; VEEPL, 2011.

Regulators

Table 4.22: Energy efficiency body of Vietnam


sources


Vietnamese

Academy of

Science and

Technology

(VAST)

Govern

mental

Agency

provide scientific

ground for scientific

and technological

management, for the

building of policies,

strategies, planning

about 2500

permanent

staff

1975

funded by the

government

operates 4

VAST key

laboratories

executing agency of the project

"Vietnam Energy Efficient

Public Lighting" (VEEPL), co-

funded by the Vietnamese

government, and the Global

Environment Facility (GEF)

Ministry of

Industry and

Trade (MOIT)

govern

mental

Overall responsibility

for the energy sector

consists of

various

departmen

ts; most

1951

funded by the

government

World Bank

supported

MoIT in the

commercializ

In 2005, the Vietnamese

Government (Ministry of

Industry and Trade—MOIT)

released the National Strategic


Master Thesis

52

relevant

one: Energy

Efficiency &

Conservatio

n Office

(ECCO)

ation of CFLs

and

fluorescent

tube lamps.

Program on Energy Savings and

Effective Use (Vietnam National

Energy Efficiency Program,

VNEEP) for the period 2006–

2015.; also involved in the

Vietnam Energy Efficient Public

Lighting program; in November

2006 MOIT issued a Guideline

for Energy Efficiency Standard

and Labeling in order to assist

on the implementation of

energy efficiency standards and

labeling in appliances.

Sources: VAST, 2011; Trust, 2011; IEEJ, 2010; MOIT, 2011


Table 4.23: Lighting associations in Vietnam

Source: UNDP/GEF, 2008.

4.5.3 Stakeholder Analysis

Table 4.24: Stakeholder analysis Vietnam


Time

available

Financial

position

Technical

expertise

Position in

network

Total

(%)

Directorate

for

Standards,

Metrology

and Quality

(STAMEQ)

Y

Y Y Y 100%:

P

L U Definitive

Electricity of

Vietnam

(EVN)

N Y N Y 50%: - L - Discretionary

Vietnamese

Academy of

Science and

Technology

(VAST)

Y Y Y Y 100%:

P

L - Dominant

Stakeholder Type Aim Size Since Members Financial sources Interaction Extra info

Vietnam Urban

Lighting

Association

(VULA)

NGO,

professional

organization

under the

Vietnamese

Construction

Association

providing

advices on

various issues

relating to EE

lighting system

management,

policy, science

and technology

to Ministry of

Construction as

well as

collecting and

providing

information on

nationwide

lighting system.

Un-

kno

wn

2003

formed by a

group of

municipal

lighting

companies;

association of

lighting

manufacturers

and

government

representatives

supported by

Ministry of

Construction; but

capacity in terms of

staff and finance is

not stable

The Public

Lighting

Information

Center (PLIC)

is attached to

VULA

Involved in

VEEPL project


Master Thesis

53

Ministry of

Industry and

Trade (MOIT)

Y Y Y Y 100%:

P

L - Dominant

Vietnam

Urban

Lighting

Association

(VULA)

Y N Y Y 75%: P L - Dominant

4.5.4 Discussion

Currently standards for LED do not exist in Vietnam. Mr. Luong Van Phan, Deputy Director of

Directorate for Standards and Quality, Vietnam Standards and Quality Institute (VSQI), emphasizes

that the Vietnam Standards and Quality Institute will start to develop safety and performance

standards for LED this year. It will first adopt the international standard from IEC, mainly focused on

general lighting. VSQI strives to harmonize their national standard with the international IEC standard.

It plans to release the standard in December 2011 (Luong, 2011).

The Vietnam Standards and Quality Institute is the major organization responsible for standard

development. In terms of LED, the technical committee responsible for lighting equipment plays a

major role, especially the subcommittee for LED. Stakeholders participating in this committee come

from the bureau of standards, testing laboratories, the government, the lighting association, the

private sector, academic institutions and consumer associations, led by the VSQI, which serves as

secretary for the technical committee (Luong, 2011). Vietnam is currently not involved in any

programs to promote LED, but is considering starting one, which is in accordance with the national

objective program on saving and conservation energy (USAID, 2011).

The national utility of Vietnam, Electricity of Vietnam (EVN), implemented from 2004-2009 a national

program to distribute CFL’s and thin-tube fluorescent lamps together with the World Bank and GEF.

Besides, they have a Demand-Side Management and Energy Efficiency Project. However, they are

currently not involved in any projects regarding the promotion of LED. A major drawback of the

national utility is that its generation and distribution capacity has been inadequate to meet peak

demand. Hence, improving the efficiency of public lighting will support the availability of more power

at peak demand for other purposes (VEEPL, 2011). According to Mr. Luong Van Phan, the EVN is

currently not playing any role in the standardization of LED.

The Vietnamese Academy of Science and Technology (VAST) is an important governmental agency,

operating 4 VAST key laboratories in Vietnam. The government is investing a lot of money in

laboratory testing (Ton, 2011). VAST is the executing agency of the project ‘Vietnam Energy Efficient

Public Lighting’ (VEEPL), part of the ‘Barrier Removal to the Cost -Effective Development and

Implementation of Energy Efficiency Standards and Labeling’ (BRESL) project, supported by the

Vietnamese government and the Global Environment Facility (GEF) (Trust, 2011). This national

project was developed to help to remove barriers to energy efficient public lighting over the past 5

years and to enhance the penetration of energy-efficient public lighting. The project aims for

instance that by 2025, 100% of the streets and neighborhoods have a lighting system. In addition,

100% of public transport projects and advertising in urban areas will use high-performance lighting

products (VEEPL, 2011). Another objective of the project is that by 2015, 60% of the urban lighting

development in Vietnam must be replaced by lighting products of high performance and

conservation, including existing traffic, public space and advertising in urban areas. Moreover, for


Master Thesis

54

new projects, 100% new lighting systems with energy efficiency technology should be applied (VEEPL,

2011). However, LED is not included in the project (Luong, 2011).

A major obstacle for the development of the standardization of LED in Vietnam is the lack of

internationally recognized laboratories for testing, research, and the assessment and certification of

the lighting product quality and labeling. Moreover, laboratory facilities lack qualified staff for testing

and certifying the quality of energy efficient lighting products (IIEC, 2009).

The Ministry of Industry and Trade (MOIT), especially the Energy Efficiency & Conservation Office

(ECCO) is another stakeholder, which is mainly responsible for policymaking and the development of

law and regulation. The MOIT released in 2005 the National Strategic Program on Energy Savings and

Effective Use (Vietnam National Energy Efficiency Program, VNEEP) for the period 2006-2015. In

addition, MOIT was also involved in the Vietnam Energy Efficient Public Lighting program (VEEPL)

(IEEJ, 2010).

Another important stakeholder is the Vietnam Urban Lighting Association (VULA), which was also

involved in the VEEPL program (UNDP/GEF, 2008). In addition, it participates in the technical

committee for lamps. Important to note is that Vietnam is importing LED, mostly from China. Some

companies in Vietnam are involved in assembling lamps (Luong, 2011). In fact, Vietnam traditionally

has been an electronic assembly place (Ton, 2011).

On an international level the En.lighten Initiative and Lites.Asia are important organizations for the

standardization of LEDs in Vietnam. Part of the En.lighten Initiative is focused on the strengthening

and harmonization of quality and performance-based standards and procedures in Vietnam

(En.lighten, 2011). In addition, Vietnam is currently a member of Lites.Asia (Luong, 2011)


Currently standards for LED do not exist in Vietnam. Vietnam will start to develop safety and

performance standards for LED this year, mainly focused on general lighting. The national standards

body and the government are the main drivers of the standardization process of LED in Vietnam. By

law, Vietnam has to develop some energy standards, so they are currently working on that, but so far

it is not finalized. Vietnam is far behind in terms of the standardization of LED compared to the China,

Thailand and the Philippines (Ton, 2011).

In order to sustain economic development, meet the growing power demand and reduce adverse

environmental impact, the government of Vietnam stresses the importance of energy conservation

and energy efficiency in its National Energy Policy. However, although energy efficiency laws and

decrees do exist, implementation is still a major issue due to lack of capacity, technical knowledge

and resources. Since capacity building is also needed for standards, labeling and testing regimes, this

is possibly a reason for the fact that Vietnam is behind in terms of standard setting. Vietnam is

currently not involved in any programs to promote LED. Since Vietnam is importing most of its LED,

mainly from China, nobody is driving the standardization process from the manufacturing side.

International organizations play a role in terms of knowledge transfer. International standards from

IEC are adopted and Vietnam’s national standards will be harmonized with the international IEC

standard. Other international organizations such as En.lighten and Lites.Asia play a supportive role by

strengthening and harmonizing quality and performance-based standards and procedures in Vietnam.


Master Thesis

55

4.6 Indonesia


Indonesia is an example of a relatively stable democracy with a decentralized and autonomous

system of local government. However, the transition from years of tight central control in the past to

a decentralized system has resulted in increasingly complex coordination of national policies and

confusion about the distribution of power and authority between different levels of government

(Hadiz, 2004). As a consequence of the large scale decentralization during which considerable power

and resources has been given to local authorities, the capacity of Indonesia’s central government has

weakened. Moreover, decentralization has resulted in difficulties in terms of implementation of

regulations and policies (ODI, 2011).

Indonesia has great potential to apply energy efficient technologies, since it is expanding rapidly, and

it does not have that much capacity, while the energy demand is growing at the same time. If

Indonesia will not manage the energy demand, it will be a challenge for everybody. However, over

the past few years Indonesia has not shown major progress (Ton, 2011). Reason is that the

Indonesian government has given relatively little attention to energy-efficiency opportunities and

past policies did not stimulate efficient energy use. As a result of subsidized energy prices investing in

energy-efficiency has been unattractive. Moreover, due to low domestic prices for electricity and oil,

Indonesia is facing high energy intensity, which is a major burden on the government budget.

Recently, the Indonesian government is moving away from subsidies, which led to higher prices for

electricity and fuels. Hence, more energy efficient energy has become more attractive for consumers.

However, one of the major institutional challenges for Indonesia is to generate sufficient support to

overcome inertia in terms of clean energy and energy efficiency (USAID, 2007). Other main

challenges are the still relatively low cost of electricity and the limited buying power of the majority

of energy consumers.

Although investing in energy-efficiency has been unattractive, Indonesia launched several demand

side management programs with some success, for instance the introduction and promotion of CFLs.

Although the government of Indonesia is currently strengthening existing major CFL promotional

programs, no promotional programs on LED exist (En.Lighten, 2011). Furthermore, Indonesia

established testing laboratories. These testing labs have not sought international accreditation yet.

Indonesia is also involved in the Barrier Removal to the Cost-Effective Development and

Implementation of Energy Efficiency Standards and Labeling (BRESL) project, supported by UNDP and

GEF (BRESL, 2011).

In order to be able to meet projected energy demand, setting energy performance standards is the

most cost-effective market intervention, which will lead to increased market penetration of energy

efficient technologies (USAID, 2011). Specific institutional challenges related to standard setting in

Indonesia include transparency during the preparation of technical regulations and the coordination

among concerned ministries. In addition, limited availability of accredited product certification

bodies and inspection bodies are a major obstacle (Lites.Asia, 2009).


Master Thesis

56

4.6.2 Stakeholder identification Indonesia




sources


National

Standardiza

tion Agency

of

Indonesia

National

Standards

Body; non-

departmen

tal

governmen

t institution

develop and

conduct

standardizati

on activities

in Indonesia

consists of

various

bureaus and

centers

1997

governmental

with IEC

member of IEC technical


equipment (34 34A) (out of total

of 3 TC they are member of!),

involved in preparing

international standards

regarding specifications for o.a.

lamps (including LED's).

Developing standards for LEDs

solar homes

Source: BSN, 2011; USAID, 2011.

National Utility



sources


Perusahaan

Listrik

Negara

(PLN)

state-

owned

electricity

company

electricity

distribution

biggest producer

of Indonesia

1972

state-owned

Supports R&D

Centre

- promotes energy

conservation in electricity use;

-Lighting Program: the Caring

Program: provide subsidized,

and in certain cases, free CFLs

to eligible households.

Sources: APERC, 2010.

Regulators



sources


Agency for

Assessment

and

Application

of

Technology

(BPPT)

non-

departmen

tal

governmen

t agency

under the

coordinatio

n of the

Ministry of

Research

and

Technology

Support

technology

assessment for

the

Government of

Indonesia;

Manage clean

energy research

laboratories

and testing

facilities

unknown unkno

wn

funded by

the

governmen

t

unknown promotes awareness in energy

conservation;

Major Laboratory for Energy

Technology (B2TE-BPPT)

conducts

performance test of LED for

Solar Home System application.

The test is done based on

standard testing for general

lamps

Ministry of

Energy and

Mineral

Resources

(MEMR)

governmen

tal agency

National policy

formulation,

policy

implementation

and technical

policy in the

field of energy

and mineral

resources;

consists of

various

departmen

ts; most

relevant

one:

Directorate

General of

Electricity

2000

funded by

the

governmen

t

involved with the

'Barrier Removal

to the cost-

effective

development and

implementation

of Energy

efficiency

Standards and

The ‘National Energy Efficiency

Movement’ implemented by

the Ministry of Energy and

Mineral Resources promotes

energy conservation awareness

through seminars and

workshops, talk shows, public

advertisements, brochures and

leaflets; it is directed to


Master Thesis

57

and Energy

Utilization

(DGEEU).

Labeling Project

(BRESL) supported

by UNDP and GEF;

target products

include CFL.

households, specific industries

and transport.

Sources: USAID, 2007; BRESL, 2011; ESDM, 2011; USAID, 2011.



Sources: APERLINDO, 2011; Clinton Foundation 2011; GIZ, 2011.


sources


Asosiasi

Industri

Perlampuan

Listrik

Indonesia

(APERLINDO)

Indonesia

Electrical

Lighting

Industry

Associati

on

To assist the

lighting

industry to

remain comp

etitive and to

meet all

standards

and

specifications

and

constantly

adjust to

development

s and

advances in

technology.

26

members

1980

26 different

companies in

Indonesia

unknown Member of ALC;

involved in

Lites.Asia;

adopting the

IEC

international

standard

cooperates with

the ministry of

Trade, the

Ministry of

Industry, and the

Ministry of Energy

and Mineral

Resources

Clinton

Climate

Initiative,

Clinton

Foundation

nongover

nmental

organizat

ion

fight against

climate

change in

practical,

measurable

and

significant

ways, by

working with

40 of the

world's

largest cities

to reduce

their

greenhouse

gas

emissions.

the

Foundati

on has

staff and

volunteer

s around

the world

working

to

improve

lives

through

several

initiatives

2002 - Donations

and givings

With the

municipal

government

CCI helps cities

around the world

improve the

energy efficiency

of street and

traffic light

systems by

building the

business case for

retrofit projects;

conversion to LED

lights is part of the

initiative.

Deutsche

Gesellschaft

für

International

e

Zusammenar

beit (GIZ)

German

aid

agency

support

people and

societies

worldwide in

creating

sustainable

living

conditions

and building

better futures

operates

in more

than 130

countries

worldwid

e

2011 - Federal

enterprise

Cooperates

with Asian

Development

Bank, USAID,

World Bank,

ASEAN

expressed interest

in converting

outdoor and

street lighting to

LEDs


Master Thesis

58



Table 4.29: Stakeholder analysis Indonesia


Time

available

Financial

position

Technical

expertise

Position in

network

Total

(%)

National

Standardization

Agency of

Indonesia

Y Y Y Y 100%:

P

L U Definitive

Perusahaan

Listrik Negara

(PLN)

N Y N Y 50%: - L - Discretionary

Agency for

Assessment and

Application of

Technology

(BPPT)

Y Y Y Y 100%:

P

L U Definitive

Ministry of

Energy and

Mineral

Resources

(MEMR)

N Y Y Y 75%:P L - Dominant

Asosiasi Industri

Perlampuan

Listrik Indonesia

(APERLINDO)

Y N N Y 50%: - L U Dependent

Clinton Climate

Initiative,

Clinton

Foundation

Y Y N Y 75%:P L U Definitive

Deutsche

Gesellschaft für

Internationale

Zusammenarbeit

(GIZ)

Y Y N Y 75%:P L - Dominant

4.6.4 Discussion

According to Mr. My K. Ton, Team Leader - Energy Efficient Lighting, for the ECO-Asia Clean

Development and Climate Program (ECO-Asia CDCP), Indonesia historically has been quite behind in

terms of standards. Indonesia is mainly focused on safety standards, which they adopt from the IEC.

So the only requirement for products that are imported into Indonesia is that they have to be

registered with the SNI. Basically as long as they do not electrocute the user, they are allowed to sell

products in Indonesia. In terms of energy efficiency, lifespan, and quality of the color Indonesia has

no standards. The Bureau of Natural resources attempted to set up voluntary labeling standards, but

in terms of enforceable national standards Indonesia does not have any. Reason for this is that the

Indonesian government does not have a lot of resources available to develop standards for LED or

any increased interest in LED. Currently standard development for LED is not a high priority of the


Master Thesis

59

government. This might change in the future, because there is a lot of interest of the World Bank and

other multilateral lending institutions who want to loan money to Indonesia to operate their lighting

(Ton, 2011).

Indonesia is currently developing testing standards for LED. The Laboratory for Energy Technology

(B2TE-BPPT) is involved in performance testing of LEDs for Solar Home System application. This test is

conducted based on standard testing for general lamps. Standards development is mainly focused on

the application of LED for Solar Home System (mainly indoor lighting) and street lighting application

using photovoltaic as power source (USAID, 2011). Currently no mandatory performance standards

for LED or other lamp types exist (En.Lighten, 2011). Since the IEC standard for LED is almost

complete now, Indonesia will probably start standard development for LED this year. More than

likely Indonesia will first start with the safety standards, because that is what they have done for

other lighting products. Indonesia might develop energy efficiency and performance standards if the

IEC and other countries in Asia do it. If there is a good standard model to adapt they might follow,

but they will not be developing anything on their own. Standard development will most likely be

focused on outdoor and general lighting. A reason for this is that LEDs incandescent household

replacement will be quite expensive for the average Indonesian (Ton, 2011).

The National Standardization Agency of Indonesia is the major agency responsible for standard

development in Indonesia. The Technical Committee for lighting is responsible for developing

national standards based on IEC standards. Other leading organizations include the Indonesian

Directorate General of Electricity and Energy Utilization and the Agency for Assessment and

Application of Technology (BPPT). The Ministry of Energy and Mineral Resources (MEMR), especially

The Indonesian Directorate General of Electricity and Energy Utilization, is an important stakeholder

for the standardization process. MEMR has been involved with the `Barrier Removal to the cost-

effective development and implementation of Energy efficiency Standards and Labeling Project´

(BRESL) supported by UNDP and GEF (BRESL, 2011). However, although LED is already introduced in

the market, the Indonesian Government has no specific programs on LED yet. The Agency for

Assessment and Application of Technology (BPPT) operates a major laboratory for Energy Technology

(B2TE-BPPT) (USAID, 2011).

Indonesia’s national utility, Perusahaan Listrik Negara (PLN) promotes energy conservation in

electricity use and launched a special lighting program focused on providing subsidized or free CFLs

to households (APERC, 2010). They are not involved in a program for LED yet. In fact national utility

has a peripheral role and is not driving the standardization process of LED (Ton, 2011).

APERLINDO, the lighting association of Indonesia, is quite active for lighting in general, for which they

have been involved in some standard setting process. APERLINDO is a member of ALC and also

involved in Lites.Asia. However they are not technically strong, especially in terms of LED (Ton, 2011).

Besides these organizations, there are two other organizations working in Indonesia that might push

the standards development of LED: the Clinton Foundation and the German Aid Agency, GTZ. The

Clinton Climate Initiative, part of the Clinton Foundation is cooperating with a number of Indonesian

cities to install outdoor LED lighting (Clinton Foundation, 2011). The Clinton Foundation surveys

different countries and searches for the best usable standards. They bring them into the countries to

encourage people to purchase products of good standards, not necessarily for the standards agency

to use. So in fact that is a sort of de facto standard that exists and might encourage SNI to adapt it.


Master Thesis

60

Both the Clinton Foundation and GTZ have expressed interest in converting outdoor and street

lighting to LEDs (Ton, 2011).

Mr. My K. Ton point out that one of the main challenges related to the standardization of LED is the

lack of resources applied to lamps. Another major challenge is that the government is not enforcing

any of the standards. So even if they have standards, they might not apply to the products that are

available in the country. Moreover, in Indonesia they lack the basic testing capacity. So even if

Indonesia has standards, it is impossible to test them. In addition, even if there is some international

standards that can be adapted by Indonesia, the product still ends up more expensive than the

average Indonesian can afford. For instance, if they adopt the IEC standard for LED, that particular

product that can meet the IEC standards might be too expensive for the Indonesian market.

Generally that is also true for the other countries involved, but somehow it is more of a challenge for

Indonesia (Ton, 2011).


Currently Indonesia does not have standards for LED. Indonesia is developing testing standards and

will most likely develop safety standards for outdoor and general lighting. Unfortunately for

Indonesia nobody is driving the standardization process of LED. Even under the best circumstances

standard setting process is quite slow, since it has to go through committees and revisions. But if

nobody is driving the process it is even worse, which is happening now in Indonesia (Ton, 2011). This

is accordance with Indonesia’s major institutional challenge to generate sufficient support to

overcome inertia in the field of energy efficiency. This inertia is possibly a result of the decentralized

system which has resulted in an increasingly complex coordination of national policies and confusion

about the distribution of power and authority between different levels of government.

The finding that nobody is driving the standardization process is in accordance with the relatively

little attention of the Indonesian government to energy-efficiency opportunities and past policies and

lack of stimulation of efficient energy use. The Indonesian government lacks resources to develop

standards for LED and does not have any increased interest in LED. Fact is that standard development

for LED is currently not a high priority of the government, but this might change in the future. Reason

for this is that there is a lot of interest of the World Bank and other multilateral lending institutions

who want to loan money to Indonesia to operate their lighting.

4.7 Comparative discussion

In this section a comparative discussion and a comparative analysis of the standardization

regimes across countries will be given.

4.7.1 Comparative discussion across countries

All the five countries involved in this study have shown rapid economic growth over the past years

with energy being a key component of this growth. Currently they are facing the challenge to search

for energy conservation and energy efficiency to meet the increasing energy demand and sustain

economic development in the coming future. All countries show great potential for clean energy

development and energy efficiency. To secure energy supply, most countries involved have a policy

and regulatory framework for energy efficiency in place, which can take different forms. For China

this is for instance China’s 12th Five Year Plan for 2011-2015, while for Thailand the most significant

decree to promote energy-efficiency and renewable energy programs is the ENCON Act. Taking into

account that the majority of LED is manufactured in China, China’s focus compared to the other


Master Thesis

61

countries is slightly different. China’s policies are for instance also focused on the development and

promotion of the emerging energy-saving and environmental industries to secure their healthy

development. An exception to the countries which have a policy and regulatory framework for

energy efficiency in place is Indonesia. Indonesia has given relatively little attention to energy-

efficiency opportunities. Moreover, past policies of the Indonesian government did not stimulate

efficient energy use.

Within the energy sector, the government plays a key role in the countries involved. Governmental

agencies are in place to manage the energy sector and formulate policies related to energy efficiency

and climate change, such as the Department of Energy in the Philippines, the Ministry of Energy in

Thailand and the Ministry of Industry and Trade in Vietnam.

However, although in most countries an adequate policy and regulatory framework for energy

efficiency is in place, there are major institutional barriers for policies, laws, regulations and

standardization. Common barriers are lack of enforcement and implementation of policies,

regulations and standards. As a result, energy saving standards and regulations are ineffective. In

addition, capacity building is needed in terms of training, technical knowledge and human and

financial resources. Both in the Philippines, Indonesia and Thailand there is lack of policy

coordination among governmental agencies, which makes the standardization process even more

complex. A specific challenge for the standardization process of LED in China is that sometimes

manufacturers are warned in advance that their products will be collected and tested. A specific

institutional challenge for Indonesia is to generate sufficient support to overcome inertia related to

clean energy and energy efficiency. Another major obstacle across the countries involved is the

limited availability of established LED testing laboratories. Of the countries involved in this study, so

far only China has the capacity to test LEDs and verify standards.

In terms of governmental initiatives and projects to promote energy efficient lighting China and the

Philippines take the lead. These countries both have initiatives going on to phases out incandescent

lamps. The other three countries launched successful programs as well, such as the Energy Efficiency

Public Lighting project in Vietnam. Both Thailand and Indonesia had successful Demand Side Projects,

mainly focused on CFL’s.

4.7.2 Comparative analysis standardization regimes

Table 4.30: Standardization regimes

Form of

government

Main driver of

standardization

Existing LED

standards

Segment Programs to

promote LED

China single-party state

governed by the

Communist Party

of China

manufacturers safety

specifications,

performance

specifications

and

performance

requirements

general lighting,

road lighting

and decorative

lighting

yes

Philippines unstable

democracy

government No; developing

standards for

safety

specifications

and

general lighting,

decorative and

Christmas

lighting

yes


Master Thesis

62

performance

requirements

Thailand unstable

democracy

international

organizations

No; developing

safety

specifications

general lighting no

Vietnam single-party

socialist state led

by the Communist

Party of Vietnam

government No; will start to

develop safety

and

performance

standards for

LED this year

general lighting no, but

considering

starting one

Indonesia relatively stable

democracy

none No; developing

testing

standards and

will most likely

develop safety

standards

most likely

outdoor and

general lighting

no

China is very far ahead in terms of its standardization of LED compared to the Philippines, Thailand,

Vietnam and Indonesia. China has spent significant resources on standards development and is the

only country which has already developed standards for LED. In the other four countries currently no

standards for LED exist. According to Mr. Jeffcott China will be leading the developing countries as it

is in their interest (Jeffcott, 2011). Mr. Ton also agrees that China might be an example that other

countries will follow (Ton, 2011). Both Thailand and the Philippines have a number of efforts going

on. Thailand is trying to come up with standards by looking at the western example and looking what

they can adapt. They take the IEC standards and select the parts they think that are relevant and

make it to their national standards. The Philippines is also working on standard development and has

a number of efforts going on. Moreover, the Department of Energy is quite active. Vietnam and

Indonesia are struggling in the dark and far behind. Regarding the segment for which LED standards

are currently being developed, general lighting is the most common one.

While in China the main driver of the standardization process of LED is the industry, in the Philippines

and Vietnam the government is the major driving force. In Thailand this process is mainly driven by

international organization. In Indonesia nobody is driving the standardization process. Currently only

China and the Philippines have special programs to promote LED. In China this is for instance the 10

cities 10,000 lights project. The Philippines is involved in the Philippine Energy Efficiency Project,

which also includes LED lighting projects.

The countries involved all have to deal with challenges related to the standardization of LED. In China

it is of major importance that small manufacturers gain more knowledge on LED, buy equipment so

they are able to test LED, and train their employees so they can reach the international level of

quality control. Another challenge is that China has different regional requirements, especially for

outdoor lighting, given the country’s size and temperature differences between different regions.

Moreover, the patent issue and new industries moving into the lighting market slow down the

standardization process of LEDs. For the Philippines major challenges are related to time and

technical competence. In Thailand, Vietnam and Indonesia lack of testing facilities is the main

challenge. Another challenge in Indonesia is the lack of resources applied to lamps. For all countries

involved it will be a challenge that even if a country adopts the IEC standard for LED, that particular


Master Thesis

63

product that can meet the IEC standards might be too expensive for the local market. Especially for

Indonesia this will be a big challenge.


Master Thesis

64

5 Conclusion and recommendations This chapter presents the conclusion of this study as well as the limitations and recommendations for

future research.

5.1 Conclusion

Within the context of the international debate on climate change, energy efficiency plays an

important role. Considering that meeting the energy demand to sustain economic growth is a major

challenge for developing countries in Asia, these countries all have great potential for energy

efficiency. In order to assure that LED is able to achieve its energy efficiency potential, clear

standards for LED has to be developed and adopted.

This study analyzed how standards for LED lighting emerge in developing countries in Asia and which

stakeholders influence the standardization process in this area, including in China, the Philippines,

Thailand, Vietnam and Indonesia. It has taken the influence of the environment on the

standardization process of LED in developing countries into account by applying institutional theory

and by analyzing how institutions matter within the standardization process. From the case studies

we find evidence that diverging institutional environments in developing countries in Asia have

resulted in different perceptions of the relevance, validity and acceptance of various stakeholders

into the standardization process of LED in this region. Institutional variation influences the

effectiveness of specific stakeholders within a particular institutional context. In conclusion both the

context and the role of each stakeholder within the standardization process affect how standards for

LED emerge and what the most important drivers for the standardization process are. This study

contributed to existing literature on standardization by analyzing how standards for LED lighting

emerge and which stakeholders influence the standardization process in developing countries in Asia.

It provides insight into the institutional and industrial actors that influence the standard setting

process of LED lighting in developing countries in Asia. Especially in this geographical area research in

the field of standardization is limited. Moreover, it introduces the concept of standardization regime

thereby contributing to theory on standardization.

This study has several practical implications. First of all organizations involved in the standardization

process of LED in Asia should be aware of the developmental nature of the countries which might be

more complex and has its own specific institutional challenges and barriers related to the

standardization process. Moreover, it implies that harmonization of performance standards of LED

lighting across the Asian region is needed to enhance the adoption of quality LEDs in Asia. Since this

study gives insight into the dynamics of standard setting in developing countries and the main

stakeholders involved, it provides a road map what stakeholder to approach and involve in this

harmonization process. In order to achieve harmonization of LED standards regional institutions play

a major role, especially ALC, Lites.Asia, En.Lighten and RCL. It is important that these organizations

cooperate and complement each other. While Lites.Asia and En.Lighten are more focused on

policymakers, ALC is involved with a wider range of stakeholders, such as the industry, lighting

associations and testing laboratories. Since regulation and standardization go hand in hand, it is

important to create a platform to link industry and government to stimulate discussion between

them for instance about the parameters and levels of the performance standards. In this way

stakeholders involved can build on feedback to give an Asian perspective on the standardization of

LED. Based on this study, it is recommended to first focus on the standardization of the general

lighting segment of LED. However, more research is needed to analyze what the focus areas are in


Master Thesis

65

other Asian countries. Lastly, given the fact that conditions and needs in developing countries in Asia

are different from the developing world, the use of a tier system (such as the one developed by ALC),

will be beneficial. Reason for this is that this takes minimum performance standards into account,

while at the same time it is able to meet specific need of Asian countries. In this way good enough

will be the way forward for better in the future.

5.2 Limitations and recommendations

This research is subject to some important limitations. One of the major limitations of this

research is that only five Asian countries are involved in the research. Hence, the results are not

generalizable. However, since the purpose of this study is theory building rather than theory testing

this approach is suitable. Future research should be conducted to verify the ideas of this study.

Moreover, in order to harmonize standards within the Asian region, further research is needed on

other Asian countries, such as India, Sri Lanka, Malaysia, Pakistan, Bangladesh, and Nepal. This would

provide valuable insight into the dynamics of standardization in developing countries. Another

limitation is the relatively small number of in depth interviews. Especially for Indonesia it was difficult

to get a response from relevant stakeholders. However, for each country involved at least one

stakeholder interview has been conducted to gain insight in the standardization process of LED in the

countries involved. In addition, data gathered from interviews might be biased, caused by image-

conscious informants (Eisenhardt & Graebner, 2007). In order to limit this bias, I have tried to

interview as many highly knowledgeable stakeholders who view the standardization process of LED

from different perspectives. Another limitation of this study is that the standardization process of

LED is currently ongoing and far from finished which results in an incomplete overview of the process

and gives only insight in the beginning of this process. As conditions can quickly change, it is not

possible to predict how the role of the stakeholders will be in the future.


Master Thesis

66

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IEA. (2011). International Energy Agency. Available via http://www.iea.org/ Accessed June 30,

2011.

IEC. (2011). International Standards. Available via

http://www.iec.ch/standardsdev/publications/is.htm Accessed June 20, 2011.

IEC. (2011). International Electrotechnical Commission. Available via http://www.iec.ch/ Accessed

June 28, 2011.

ISO. (2011). Internatinal Organization for Standardization. Available via www.iso.org Accessed June

30, 2011.

LEDs Magazine. (2010). International Solid State Lighting Alliance (ISA) founded in China. Available

via http://www.ledsmagazine.com/press/27588 Accessed August 31, 2011.

Lites.Asia. (2009). Country Report Indonesia. Available via

http://www.lites.asia/downloads/hongkong2009_assets/05%20Indonesia%20standards%20-

%20Abdul%20Rachman%20Mustar.pdf Accessed September 6, 2011.

Lites.Asia. (2011). Lites.Asia Available via http://lites.asia/ Accessed June 30, 2011.

Lux Pacifica. (2011). Member Societies of Lux Pacifica. Available via

http://www.luxpacifica.org/member-societies/ Accessed July 11, 2011.

MERALCO. (2011). MERALCO. Available via http://www.meralco.com.ph/ Accessed July 5, 2011.

MIIT. (2001). China Ministry of Industry and Information. Available via http://www.miit.gov.cn/



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MOEN. (2011). Ministry of Energy of Thailand. Available via http://www.energy.go.th/ Accessed July

11, 2011.

MOIT. (2011). Ministry of Industry and Trade Vietnam. Available via http://www.moit.gov.vn/


MOST. (2011). Ministry of Science and Technology China. Available via

http://www.most.gov.cn/eng/Accessed August 19, 2011.

NDRC. (2011). China National Development and Reform Commission. Available via

http://en.ndrc.gov.cn/ Accessed August 18, 2011.

PEA. (2011). Provincial Electricity Authority of Thailand. Available via http://www.pea.co.th/th/eng/


NEECP. (2011). Philippine National Energy Efficiency and Conservation Program. Available via

http://www.doe.gov.ph/neecp/default.htm Accessed August, 2011.

PEEP. (2011). Philippines Energy Efficiency Project. Available via http://peep.doe.gov.ph/ Accessed

August 17, 2011.

PELMATP. (2009). Philippine Efficient Lighting Market Transformation Project. Available via

http://pelmatp.doe.gov.ph/stakeholders.htm Accessed July 6, 2011.

PhilStar. (2011). DOE pushes use of LED lighting system. Available via

http://www.philstar.com/Article.aspx?articleId=695246&publicationSubCategoryId=66 Accessed July

5, 2011.

PILESLAMP. (2011). Phasing–out of Incandescent Lamps & Energy Saving Lamps Promotion Project

(PILESLAMP). Available via http://www.eelighting.cn/english/index.html Accessed September 9, 2011.

PLDA. (2011). Professional Lighting Designers' Association. Available via http://www.pld-

a.org/36.0.html Accessed June 30, 2011.

RCL. (2011). Regional Centre for Lighting. Available via http://www.rclsa.net/ Accessed June 30,

2011.

SAC. (2011). Standardization Administration of the People’s Republic of China. Available via

http://www.sac.gov.cn/sac_en/ Accessed August 17, 2011.

Salis. (2011). Global and China LED Industry Report, 2009-2010. Available via

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SEMI. (2011). SEMI. Available via http://www.semi.org/en/ Accessed June 30, 2011.

SGCC. (2011). State Grid Corporation of China. Available via

http://www.sgcc.com.cn/ywlm/index.shtml Accessed August 19, 2011.

STAMEQ. (2011). Directorate for Standards, Metrology and Quality Available via

http://www.tcvn.gov.vn/ Accessed July 13, 2011.


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Standards Australia. (2011) Standards Australia. Available via http://www.standards.org.au/


TIEA. (2011). Illuminating Engineering Society of Thailand. Available via http://www.tieathai.org/


Ton, M. (2011b). Specifying and setting standards for LEDs. Available via

http://lites.asia/downloads/sydney2011_assets/09%20-%20My%20Ton%20-

%20LED%20spec%20for%20asia.pdf Accessed June 30, 2011.

TISI. (2011). Thai Industrial Standards Institute. Available via http://www.tisi.go.th/ Accessed July 11,

2011.

TRUST. (2011). Efficient lights brighten prospects in climate-threatened Vietnam. Available via

http://www.trust.org/alertnet/news/efficient-lights-brighten-prospects-in-climate-threatened-

vietnam Accessed July 14, 2011.

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VAST. (2011). Vietnam Academy of Science and technology. Available via http://www.vast.ac.vn/en/


VECO. (2011). VECO. Available via http://www.veco.com.ph/index.html Accessed July 5, 2011.

VEEPL. (2011). The Vietnam International Lighting Exhibition 2011 Available via

http://veepl.vast.ac.vn/Index.aspx?ID=1217&Style=1&NewsID=1784&Content=Detail Accessed July

13, 2011.

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takes-effect-31003-8805.html Accessed September 1, 2011.

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Appendices

Appendix 1: Stakeholder questionnaire and basis of questions

1. Could you briefly introduce yourself and your organization?

This question is intended to learn more about the respondent and the organization from

their perspective. The data from question 1 help to determine the legitimacy of both the

organization and the respondent.

2. What are the current activities of your organization related to the standardization of LED?

If any, what other stakeholders are involved in these activities?

Question 2 aims to assess the urgency of the stakeholder. The question is based on the

stakeholder method of De Vries (2003) which states that in order to evaluate urgency the

answer to the question “Has the stakeholder been active in pursuing his goals regarding this

standardization issue?” is relevant.

The sub question “If any, what other stakeholders are involved in these activities?” is

intended to find out which other stakeholders are involved in the standardization process

and with which stakeholders the organization cooperates. This helps to assess which

stakeholder are perceived as legitimate within the standardization process. According to the

stakeholder method of De Vries (2003) perceived legitimacy can be evaluated by the

question “do the other stakeholders accept or support the participation of this stakeholder in

the process?”.

3. Could you tell me more about the standardization in terms of timing? When did it start?

When will it be released?

Even under the best circumstances standard setting is very time consuming and a slow

process. In developing countries this process often takes even longer. In order to determine

the level of urgency and to get more insight in terms of timing of question 3 is posed.

4. What types of standards are currently developed for LED (e.g. performance, safety, energy

efficiency)?

Since a lot of different standards exist for LED, it is important to make sure about what type

of standard the respondent is talking. It can for example be the case that a particular country

does have testing standards, but lacks performance standards for LEDs.

5. For what LED segment are standards developed (e.g. outdoor, general etc.)?

This question is intended to learn more about for which LED segments the standards are

developed. This is important to determine, since the LED segment for which standards are

being developed often reflects the focus of the government.

6. What are the most important organizations involved in developing standards for LED in your

country?

This question aims to find out which stakeholders are regarded as most important for the

standardization process. This helps to assess which stakeholder are perceived as legitimate

within the process. According to the stakeholder method of De Vries (2003) perceived


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legitimacy can be evaluated by the question “do the other stakeholders accept or support the

participation of this stakeholder in the process?”.

7. Does your organization control resources needed for the standardization process (time,

financial, technical, position in network)?

According to the stakeholder method of De Vries (2003) to evaluate power, the question

“Has the stakeholder the resources to affect the standardization process or the success of the

resulting standards?” is relevant. Resources include time available, financial position,

technical expertise and/or the position in network of firms and organizations to which the

standard applies.

8. What challenges/obstacles are your organization facing related to standardization of LED?

Question 8 aims to gain more insight in the problems, concerns, and issues facing a

stakeholder related to the standardization process of LED. Data from this question were used

to determine stakeholder claims and the attribute of legitimacy.

9. What other organizations, agencies and associations in your country play an important role

for the standardization of LED?

This question aims to find out which other stakeholders are involved in the standardization

process besides the most important ones resulting from question 6. This helps to assess

which other stakeholder are perceived as legitimate within the process. According to the

stakeholder method of De Vries (2003) perceived legitimacy can be evaluated by the

question “do the other stakeholders accept or support the participation of this stakeholder in

the process?”.

10. Do lighting associations play a major role? If yes, which ones and how?

During the desk research it was often difficult to find enough information about the lighting

associations. A lot of these organizations do not have a website or the website is in the local

language. The interview gave me the opportunity to get a better understanding about these

associations.

11. What role are international organizations playing for the standardization of LED?

This question is based on theory on standardization regimes and aims to find out what role

international organizations are playing in order to assess whether standardization of LED is

mainly driven by international organizations, the industry or governmental organizations.

12. What role is the industry playing for the standardization of LED?

This question is based on theory on standardization regimes and is intended to learn more

about the role of the industry in order to evaluate whether standardization of LED is mainly

driven by international organizations, the industry or governmental organizations.


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13. Is standardization of LED mainly driven by governmental organizations, international

organizations or the industry?

This question is based on theory on standardization regimes and aims to gain more insight

whether standardization of LED is mainly driven by international organizations, the industry

or governmental organizations.

14. For (country) I found that the following organizations play a role for the standardization of

LED:

a) Are any organizations missing on this list? If yes, which ones?

b) Could you indicate for each organization its level of involvement in the standardization of

LED?

c) Could you give me a contact person for each organization?

Question 14a aims to check whether any organizations are missing on the list resulting from

the desk research. Question 14b helps to determine perceived legitimacy. Question 14c gives

the opportunity to get in touch with other organizations to invite them for an interview.

15. Are there any campaigns/ consumer education /national advertisements about LEDs to teach

ordinary consumers how to choose LEDs or any other programs to promote the use of LED in

your country?

Question 15 is intended to get a deeper understanding of existent governmental programs to

promote LED in a particular country.

16. Is there any additional information about your organization that you want to include in this

interview?

Question 16 provides the respondent with the opportunity to address any topic which was

not covered by the interview, but relevant for this study.


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Appendix 2: Singapore Lighting Energy Efficiency Week


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Appendix 3: List of laboratories Country Name Description Type of

lighting

products

capable to

test

Test

CFLS

Test

LEDs

How well

equipped?

Certification

Contact

China National

lighting Test

Center

(NLTC),

Beijing

laboratory

specialized

in testing

energy-

efficient

lighting

products,

established

in 1975

CFLs,

Residential

Lighting

Fixtures,

Mercury

testing in

fluorescent

lamps, lamps,

luminaires,

ballasts and

lighting

accessories

yes yes a set of testing

equipment

that is among

the most

advanced

domestically

and of the first

rank

internationally

accredited by

Energy Saving

Trust (EST);

qualified lab

for ENERGY

STAR®

certification

http://www.nltc.cn/en/i

ndex.html

[email protected]

Phone:

+86.10.67708989-4000

National

Center of

Supervision

& Inspection

on Electric

Light Source

Quality,

Shanghai

professional

testing lab

for lighting

equipment,

subordinate

to Shanghai

Institute of

Quality

Inspection

and

Technical

Research

(SQI),

authorized

by AQSIQ in

1992

general

lighting and

accessories,

marine lights,

airport

lighting,

lamps,

ballasts and

transformers

and other

light control

devices

yes yes 1948

m2 laboratory

area;

12040,000

RMB of capital

assets of

testing

equipment

including 42

apparatus

valued more

than

50,000RMB

each

accredited

Lab of China

National

Accreditation

Service for

Conformity

Assessment

(CNAS), and

the China

Compulsory

Certification

(CCC) Testing

Body

appointed by

Certification

and

Accreditation

Administratio

n of the

People’s

Republic of

China

http://www.saltnet.com

.cn/

[email protected]

Tel:+86-21 51097935

China National

Lighting

Fitting

Quality

Supervision

Testing

Centre

(CLTC),

Shanghai

professional

testing lab

for lighting,

subordinate

to Shanghai

Institute of

Quality

Inspection

and

Technical

Research

(SQI),

authorized

by AQSIQ in

1992

luminaries for

general

lighting,

special

function

lighting, such

as explosion-

proof

luminaires,

luminaires for

emergency

lighting,

marine and

submerge

lighting

equipment

and

aerodrome

luminaries

yes yes 1948

m2 laboratory

area, National

Center of

Supervision &

Inspection on

Electric Light

Source Quality

(Shanghai) has

12040,000

RMB of capital

assets of

testing

equipment

including 42

apparatus

valued more

than

50,000RMB

each

accredited

Lab of China

National

Accreditation

Service for

Conformity

Assessment

(CNAS), and

the China

Compulsory

Certification

(CCC) Testing

Body

appointed by

Certification

and

Accreditation

Administratio

n of the

People’s

Republic of

China

http://www.saltnet.com

.cn/

[email protected]

Tel:+86-21 51097935


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88

China

National

Lighting

Fitting

Product

Supervision

Testing

Center,

Zhongshan

lighting test

laboratory

unknown yes yes international

advanced level

unknown

China

National

Center for

Quality

Supervision

and Test of

semiconduct

or devices,

Shijiazhuang

lighting test

laboratory

unknown yes yes international

advanced level

unknown

Philippines Lighting and

appliance

testing

laboratory

(LATL)

Appliance

testing

laboratory

division, part

of Energy

Research

Testing &

Laboratory

Services of

DOE; since

1997

Compact

Fluorescent

Lamps (CFLs);

Tubular

Fluorescent

Lamps

Fluorescent

Lamp Ballasts

Energy

Saving

Equipment

and Devices

yes

no

Electrical and

performance

testing

facilities

Yes, ISO/IEC

17025: 2005

by Philippine

Accreditation

Office,

Department

of Trade and

Industry

http://www.doe.gov.ph/

ertls/LATL.htm

[email protected]

h

[email protected]

om

(632) 929-5443

DTI-Bureau

of Product

Standards

Testing

Center

Lighting

testing

division;

since 1995

Tubular

fluorescent

lamps, self

ballasted

lamps,

magnetic

ballast,

luminaires,

lighting sets,

incandescent

lamps,

electronic

ballast

no no Safety

requirements

testing

facilities

No http://www.bps.dti.gov.

ph/content/category/12

/159/388/lang,en/

Scientific

Environment

al

and

Analytical

Laboratory

and Services

(SEALS)

Private;

since 2006

unknown yes no Performance

Tests

(electrical and

Photometric

requirements)

No http://www.efficientligh

ting.net/doc/20071114%

2814%29.pdf

Institute of

Integrated

Electrical

Engineers of

the

Philippines

Part of the

National

Engineering

Center (NEC)

of the

University of

Testing

laboratory for

compact

fluorescent

lamps (CFLs)

yes no Life Test No http://www.iiee.org.ph/

home/index.php/cfl-

test-lab


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89

Inc. (IIEE) the

Philippines;

since 2007

Thailand Electrical

and

Electronics

Institute

Industry

specific

institute

under the

supervision

of the

Ministry of

Industry.

Luminaires,

lamps

(Tungsten,

fluorescent,

compact

fluorescent),

lighting

accessories.

yes

no

Testing

services

include

performance

requirements,

safety

requirements,

degrees of

protection

provided by

enclosures (IP

Code), and

photometric

measurements

yes, Thai

Laboratory

Accreditation

Scheme

(TLAS)

http://www.thaieei.com

/eei2009/en/index.aspx

[email protected],

[email protected]

(662)709-4860-8

ext.126, 130

Vietnam Quality

Assurance

and Testing

Center

(QUATEST) 1

Supported

by Ministry

of Science

and

Technology

CFL, FTL, HID,

Magnetic

Ballast,

Luminaire

Yes No Measuring

equipment and

instrument for

light source,

control gear

and luminaire

recognized by

MOIT’s

standards and

labeling

guidelines;

accredited by

BoA

per ISO/IEC

17025

requirements

http://www.quatest1.co

m.vn/index.php?lang=en

Tel: 04-38361399

E-mail:

[email protected].

vn

QUATEST 3 Supported

by Ministry

of Science

and

Technology

CFL, FTL, HID,

Magnetic

Ballast,

Luminaire

Yes No Measuring

equipment and

instrument for

light source,

control gear

and luminaire

recognized by

MOIT’s

standards and

labeling

guidelines

http://www.quatest3.co

m.vn/default.aspx?globa

l=1

Tel: 84–8–38 294 274

E-mail:

[email protected]

Hanoi

University of

Technology

Supported

by Ministry

of Education

CFL, FTL, HID Yes No Measuring

equipment and

instrument for

light source

and luminaire

No

Institute of

Materials

Science

Supported

by VAST

CFL, FTL, HID Yes No Measuring

equipment and

instrument for

light source

No http://www.ims.vast.ac.

vn

Tel: 84.4.37564129

E-mail:

[email protected]

Indonesia Center of

R&D on

Electricity

and

Renewable

Energy

(P3TEK)

Supported

by Ministry

of Energy

and Mineral

Resources

(MEMR)

CFL Yes No unknown unknown -

Energy

Technology

Centre

(B2TE),

Agency of

Assessment

&

Appliances

of

Technology

Supported

by Agency

for

Assessment

and

Application

of

Technology

(BPPT)

CFL, ballast Yes No Unknown unknown http://b2te.bppt.go.id/hi

story.html

Tel: 021 - 756 0550, 756

0092

Email:

[email protected]

t.go.id

PT. CFL, ballast Yes No unknown fully complies -


Master Thesis

90

Sucofindo with the

requirements

of ISO/IEC

17025: 2005-

05, The Basic

Rules, IECEE

01: 2008-11

and

Rules of

Procedure

IECEE 02:

2008-10, and

the relevant

IECEE CB-

Scheme

Operational

Documents

R&D Centre

of State Own

Electricity

Enterprise

Supported

by PLN

CFL, ballast Yes No unknown unknown -

B4T Supported

by Ministry

of Industry

CFL, ballast Yes No unknown unknown -

Internation

al

Underwriter

s

Laboratories

Inc.

international

ly

recognized

independent

product

safety

testing and

certification

organization

Regarding

LED UL offers

a wide variety

of services,

such as safety

certification

and

compliance

services for

manufacturer

s,

qualification

testing and

photo

biological

evaluations to

determine

risk of LED

Yes Yes Affiliates in

o.a.: Australia,

China, India,

Malaysia,

Singapore,

Thailand

UL uses IEC

standards

http://www.ul.com/


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91

Appendix 4: Existing standards for LED in China

Name Segment Type

GB 19651.3-2008 Miscellaneous lamp holders Part 2-2: Particular requirements -

Connectors for LED modules (IEC

60838-2-2:2006, IDT)

GB 19510.14-2009 Lamp control gear Part 14: Particular requirements for

d.c. or a.c. supplied electronic control

gear for LED modules (IEC 61347-2-

13:2006, IDT)

GB 24819-2009 LED modules for general lighting Safety specifications (IEC 62031:2008,

IDT)

GB/T 24823-2009 LED modules for general lighting Performance requirements

GB/T 24824-2009 Measurement methods of LED

modules for general lighting

(CIE 127-2007，NEQ)

GB/T 24825-2009 D.C. or A.C. supplied electronic control

gear for LED modules

Performance requirements (IEC

62384:2006, MOD)

GB/T 24826-2009 Terms and definitions of LEDs and LED

modules for general lighting

(IEC 62504:2008 NEQ)

GB 24906-2010 Self-ballasted LED-lamps for general

lighting services>50V

safety specifications (IEC 62560, IDT)

GB/T 24908-2010 LED for general lighting services Performance requirements

GB/T 24907-2010 LED-lamps for road lighting Performance specifications

GB/T 24909-2010 LED lamps for decorative lighting

QB/T 4057-2010 LEDs for general lighting Performance requirements

Source: USAID, 2011