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  1. 1. Let there be CFLAn overview of the regulatory andmanagement issues necessary for asuccessful CFL programmeCentre for Science and EnvironmentStudy published in Down To Earth (January 15-31, 2009)
  2. 2. CFLs: Our first leapfrog?We have tracked many cases where people, notconnected to reliable energy sources have paid to moveto battery-CFL or even PV-CFL combinationAlready substantial penetration of CFL in India --reportedly 165 million units sold in 2007 (against 343million units in the US)The poor of India are leapfrogging from nolight/kerosene directly to the efficient -- CFLThey are providing the market -- this transition, whichwill help the entire world is driven by themBut are the market/regulators up to the task?
  3. 3. Why CFLs?• If 400 million bulbs are replaced by CFLs, the resultant saving would be to the tune of Rs 14,000 crore• It would mean power saving of 31 billion units per annum• The money saved from these could additionally fund a 3500 Mw power plant in the county• CFLs can work on 6-12 volt batteries,helping villages off the grid get illuminationThis transition is being promoted and facilitated by states and schemes
  4. 4. Engineering the changePrice an important factor -- down but still not competitive with cheap incandescent bulbs -- Rs 75-150 against Rs 15Large commercial consumers save enough to make transition, but bulk of consumers are small -- less than 50 units per month, paying Rs 100 per month as power tariffSo, government/agency intervention necessary:Schemes of states/agencies promoting CFL; seeking carbon credits to make up the short fall or not
  5. 5. Engineering..BEE scheme -- Bachat Lamp Yojana -- distribute at Rs 10- 15, recover the deficit from CDM credits --reach 400 million households. In 2009, 650,000 CFL will be given in just two cities of Visakhapatnam and Yamunanagar. Osram is the companyHimachal Pradesh -- Atal Bijli Bachat Yogna -- county’s most ambitious CFL programme. Reaching 1.6 million households with an order of 6.4 million CFLs, costing Rs 65 crore (had problems with cartel of big four who tried to fix price; delayed because of power factor decision). HP Socomec and Phoenix will supply
  6. 6. EngineeringSirsa -- a district that has gone CFL -- selling at half price as printed on the packet (Rs 67.50 for 11 watts; Rs 75 for 15 w; Rs 100 20 w) -- used dealer margins to reduce cost of CFL (50% higher than factory price)Delhi -- Finolex scheme -- sold directly at half priceNashik -- Between November 2005 to June 2006; Prayas evaluation found sale of 380,000 against target of 300,000; substantial saving but quality issuesMumbai -- Reliance energy -- pilot schemeNow all on hold for central scheme?
  7. 7. Market: size and players• Indian market is moving towards 200 million pieces• Growing at nearly 40 per cent per year• The market is complex with more than a dozen branded players and many more unbranded players• Cross selling between manufacturers and brands are common (Philips or Phoenix is the biggest?)• A huge chunk of the CFLs of different qualities are still imported from China (brought down market price to Rs 40-50 per piece) -- new anti-dumping regulations?
  8. 8. Concerns1. Number of CFLs sold in the market without BIS certification2. PF of .85 made mandatory from January 1, 2009 but industry opposition continues3. Given the market structure, what other systems and standards are needed to ensure quality and life?
  9. 9. Mercury: the next problem1. Currently there is no regulation to limit the amount of mercury going inside CFLs. Again Industry opposition2. What: 1 mg CFL available; In India 3-13 mg of mercury; pellets or amalgams?3. Need to set standards -- get the best in the world and even better to drive technology in big markets4. No labelling standards of CFLs regarding the mercury toxicity on CFLs, in spite of BIS committee advice
  10. 10. Mercury: disposal?1. RH Khwaja task force recomended a tax on CFLs to finance a disposal mechanism2. It noted that major manufacturers had facilities to recycle CFLs in house that could be used for disposal3. CPCB issued guidelines for disposal of CFL as part of its consent conditions -- no manufacturer has applied as yetWithout adequate conditions for disposal of CFL should schemes continue?
  11. 11. Way Forward• Ensure strict standards for Mercury dosing of CFLs• Use of amalgams or pellets instead of liquid to ensure the correctdose of mercury inside CFL• Strict standards to ensure mercury inside a CFL does not exceed 5mg. The aim is to reduce to about 1 or 2 mg• Strict standards to ensure that toxicity of mercury be labelled on everyCFL package along with the quantity of mercury present in that CFL•Labels must also advise consumers on what to do in case the CFLbreaks• Strict enforcement of .85 PF so that transmission and distributionlosses are minimised so that all the benefits of the CFL can be availed• Set parameters to ensure that poor quality Chinese CFLs are heavilytaxed at point of entry so that they loose the edge of lower price•Only long life CFLs with 10,000 hours must be allowed to be sold in themarket
  12. 12. Way Forward• Proper recycling and disposal of CFLs is a must -- at manufacturers site or common? Or both with differing costs?• Existing recycling facilities at manufacturing sites must be made available so that CFLs can be recycled even before the government mechanism is put in place• Cost of disposal must be part of the cost of the CFL• A system must involve buy back of burned out CFLs