Can the ESCO model be a price war for LED street lamps?

The awareness of electricity saving has arisen, and counties and cities in Taiwan have also actively promoted the replacement of LED street lamps. After the end of the Wudu street lamp labeling device last year, 250 thousand LED street lamps have been replaced. The energy bureau estimates that 310 thousand LED street lamps will be replaced this year, and unlike in the past, most of the price targets, this year may be changed to the energy-saving performance guarantee model (ESCO). The industry believes that through the ESCO model, the bidding market will change from chaotic price competition to integration ability competition in technology, scale and capital, which is expected to help the LED street lamp market to be healthier, and set a model. At the end of 2012, Taiwan promoted the Wudu street lamp bidding case. After the various companies were killed, until 2013, several major factories qualified one by one, including Yiguang, Guanglin of Guangbao, and Delta, at the same time, all 250 thousand LED street lamps were set up one after another last year, with Yiguang winning about 100 thousand lamps, and contributed its revenue of about 0. 8 billion yuan last year. According to the statistics of the Energy Bureau, the number of LED street lamps installed in Taiwan this year is about 310 thousand, and there will be 650 thousand mercury street lamps to be replaced with LED street lamps in the future. Compared with the street lamp bidding cases funded by the government in the past, it is easy to flow into vicious competition for price targets. This year, the government intends to promote the energy-saving performance guarantee model (ESCO) The model, that is, the initial construction cost is borne by the winning manufacturer, and the LED street lamp will be paid to the winning manufacturer after the replacement. Through the ESCO model, in addition to reducing the financial burden of the county and city governments, for the bidders, they must consider the quality and service life of LED street lamps 〉, that is to say, the bidders must take into account the conditions of price, quality, stability, etc. , and if the above conditions are to be met, the Taiwan LED street lamp market will be converted into a competition in technology, scale, and capital. Of course, the whole station is only 100- The market scale of 2 million street lamps is still small, but LED operators aim to look at overseas markets after establishing a street lamp model area in Taiwan. According to relevant data, in 2020, the Asia-Pacific region has a market potential of 5. 77 million street lamps. At the same time, in other countries such as Southeast Asia and Eastern Europe, it has also become a trend to promote LED outdoor lighting from a policy perspective, these countries have not yet established LED lighting standards, which will be opportunities for future Taiwanese factories.