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LED Technology for Efficient Illumination

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LED Technology for Efficient Illumination. Team Element Todd Arthurton Jason Becker Bart Erwin Jason Hesler Prashant Naik Kailash Purohit. BUS D 594 - Competitive Strategies in Global Industries. Project Scope. Imagining Indiana as the “Lighting Innovation Hub” by :

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LED Technology for Efficient Illumination
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  1. LED Technology for Efficient Illumination

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