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UJALA

Posted On: 16 DEC 2021 13:52 PM

 (UnnatJyoti by Affordable LEDs for All)

 

(Ministry of Power)

December 16, 2021

 

  1. UJALA:Under this scheme, LED bulbs, LED tube lights and energy efficient fans are being provided to domestic consumers for replacement of the conventional and inefficient variants.
  1. Scope: A7W LED bulb provides same amount of light as a 14W Compact Fluorescent Lamp (CFL) and a 60W Incandescent Lamp (ICL) and thereby saves almost 90 per cent energy as compared to ICLs and 50 per cent in case of CFLs. LED bulb consumes One unit of electricity when it is used for 140 hours as compared to Two units by CFL and Nine units by ICL.
  1. Barriers and Challenges that prevented large scale adoption of LEDs:
  • High initialcost of LEDS as compared to ICLs and CFLs
  • Lack of awareness about the reduction of electricity bills by use of LEDs
  • Low appreciation of policy makers at state and DISCOM level about the bene­fit of incentivizing efficient lighting
  • No incentivesto consumers

In 2014, the retail price of LED was about Rs 450-500 each in comparison to CFL at Rs 100-150 and ICLs at Rs 10-15. The share of LEDs in the lighting market was less than One per cent in year 2013-14.

  1. Solution: PAY-AS-YOU-SAVE (PAYS) – a new business model
  • Providing LED bulbs to households at Rs 10 each
  • Balance amount included in electricity bill as Equated Monthly Installment (EMI) over a 5-10 year period
  • During the period of EMI, all defective LEDs were replaced
  • Information and outreachprogrammelaunched to spread awareness amongst consumers
  1. Launch:
  • Phase One:
  1. Pilot project was implemented in Puducherry in 2014, covering Two lakh households by selling Six lakh LEDs. The procured price of LEDs was Rs310 each and consumers paid it in monthly installment of Rs. 10 for 8 years.
  2. Andhra Pradesh became the next state to implement the scheme in four districts initially with an overall coverage of 60 lakhs LEDs. The procurement of 60 lakhs LEDs reduced the cost to Rs 204 and PAYS model was implemented with EMI spread over five years.
  1. The success of the programme and simplicity of the PAYS model attracted other states like Delhi & Rajasthan, while Andhra Pradesh implemented it in all 11 districts.

 

  • Phase Two:
  1. In view of the successful implementation of the scheme, Prime MinisterNarendra Modi launchedthe National LED Programme on January 5th, 2015.
  2. Local level awareness programmes were launched informing consumers of the benefit of LEDs and locations in their neighbourhood where the bulbs were being sold.
  1. A public UJALA dashboard was created that captured the sale of every bulb
  • Phase Three:

 

The procured price reduced by almost 90 per cent between 2014 and 2017; from Rs. 310 to Rs. 38. This took UJALA to thethird stage, where LEDs were priced at Rs. 70 each and consumers, knowing the bene­fits of energy and costsavings and with the prices becoming lower than CFLs, started to buy LEDs paying upfront instead of EMIs.

 

  1. Street Lighting National Programme: Traditional street lights have been replaced with smart LED street lights.
    1. EESL has enrolled 1601 Urban Local bodies and work has been completed in 1060 Urban Local Bodies.
    2. Entire upfront investment by EESL and repayment through deemed savings model.
    3. 7-year contract with municipalities guaranteeing minimum energy saving (of typically 50%) and free maintenance of lights.

 

  1. Facts and Figures
  • As per the data of UJALA dashboard, 13,31,79,689 LEDs bulbs were distributed as on 19th July, 2016,  number increased to 36,78,78,231 as on November 30, 2021.
  • The procured price of LED bulbs reduced by almost 90 per cent between 2014 to 2017; from Rs. 310 to Rs. 38.
  • India became the largest driver of global LED demand. In 2013-14 India’s contribution to global demand for LED was 0.1 per cent which increased to 12 per cent in 2015-16. 
  • UJALA programme has also caught global attention. International Energy Agency (IIEA) has published a case study on same. IIEA, in its report, published that UJALA is reducing annual household electricity bills by about 5 per cent, saving consumers over 16 billion rupess every year.      
  • The UJALA programme has also attracted the attention of Management Schools and entire programme is now a Leadership case study in Indian Institute of Management (IIM), Ahmedabad and is under consideration of being included in Harvard Business School.

Source: PIB e-booklet on UJALA

 

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