16 Development of innovative lighting technologies
(33572) 18853/11
COM(11) 889 | Commission Green Paper: Lighting the Future — Accelerating the Deployment of Innovative Lighting Technologies |
| Legal base | — |
| Document originated | 15 December 2011 |
| Deposited in Parliament | 22 December 2011 |
| Department | Environment, Food and Rural Affairs |
| Basis of consideration | EM of 14 January 2012 |
| Previous Committee Report | None, but see footnotes |
| Discussion in Council | No date set |
| Committee's assessment | Politically important |
| Committee's decision | Cleared |
Background
16.1 The Commission says that lighting accounts for 14% of EU electricity consumption, and that, as incandescent lamps are being phased out, new energy efficient and eco-friendly technologies are starting to replace them. It identifies solid state lighting (SSL) — based on semi-conducting materials, and comprising light emitting diode (LED) and organic light emitting diode (OLED) — as the most innovative of these, and it notes that, having first been introduced in traffic and car lights, this is already widely used for lighting displays, and is now entering the general lighting market.
16.2 It goes on to suggest that wide-scale uptake could contribute substantially to the sustainable growth objectives of the Europe 2020 strategy (and in particular the target of increasing energy efficiency in 2020 by 20%), but that larger uptake of current SSL products faces a number of challenges, in that they are expensive, unfamiliar to users, subject to rapid innovation, and hampered by a lack of standards. It also says that, although the EU has a wide range of policy instruments to stimulate the uptake of such technologies, it is necessary to consider whether new or additional measures are needed in relation to both the supply and demand sides (and, if so, what).
The current document
16.3 The Commission has therefore brought forward this Green Paper as part of the Digital Agenda for Europe flagship initiative under the Europe 2020 strategy, with the aim of setting out the key issues to be addressed in a European strategy to accelerate the deployment of high-quality SSL for general lighting. It also says that the document has important links to several other flagship initiatives, including Innovation and Industrial Policy, the Energy Efficiency Plan for 2011 the new Horizon 2020 framework for research and innovation, the Thematic Strategy on the Prevention and Recycling of Waste, the Key Enabling Technologies Initiative, and Regional Policy Funds.
16.4 The Commission says that SLL is a breakthrough in general lighting in relation to energy efficiency (as it will in the next few years outpace existing technology, allowing significant energy savings, and reduce carbon dioxide emissions); lighting quality and visual comfort (as it offers lighting which has a long lifetime, does not contain mercury and has easily controlled colour and intensity); design and aesthetics; and innovation and business opportunities. It adds that intensive manufacturing and research activities around the world should further improve SSL performance, but it notes that, with market penetration in the EU being currently very low, it faces a challenge in removing barriers to the delivery of SSL's large potential for domestic use and other applications, whilst helping the European industry to remain at the forefront of global competition.
MEASURES TO INFLUENCE DEMAND
16.5 It suggests that the issues to be addressed so far as consumers and professional users are concerned include:
— Low quality LED products
Many such products emit low-quality cold white light, and life-times are often much shorter than claimed. Consequently, minimum quality requirements are a key factor, and, although Member States are responsible for monitoring the performance and safety of products sold holding the CE marking label, the Commission believes that an efficient market surveillance scheme is a pre-requisite.
— High initial purchase costs
The Commission notes that, although rapid advances in technology have led SSL costs to drop by 30% a year, LED lamps will continue in the foreseeable future to be more expensive than other existing technologies.
— Lack of user awareness
The Commission says that users do not yet consider SSL as an important low-carbon technology, and are unable to weigh up its costs against its advantages.
— Insufficient or poor product information
The Commission says that the necessary technical properties for consumers to choose an appropriate product are often not provided or are poorly explained.
— Concerns for biological safety
The Commission says that, although an expert study has not identified any evidence that the "blue spectral component" of LED light presents a health hazard, this remains a concern of many consumers.
— Rapid technology obsolescence
The Commission says that users hesitate to use SSL because of continuing price drops and speedy increases in efficacy, and that safety gaps exist in existing technology standardisation.
It also says that large SSL deployment in cities is hindered by high upfront costs, particularly at a time of financial stringency, and that, in the case of private buildings, by the differing interests of landlords and tenants.
16.6 The Commission then identifies a number of initiatives to increase SSL uptake. It notes that a broad range of voluntary and mandatory EU instruments already exist which are regularly reviewed to reflect technological progress and new EU policy, and that changes to reflect recent developments are currently being considered a number of areas, such as the Eco-design and Energy Labelling Directives, the Ecolabel Regulation, the Low Voltage Directive, and the new EU Green Public Procurement criteria. In addition, it notes that a voluntary initiative (GreenLight) encourages non-residential users to install energy-efficient lighting technologies, whilst the International Energy Agency is addressing the issue of SSL global quality by developing a quality assurances scheme.
16.7 The Commission observes that a number of further measures could nevertheless be taken. In the case of consumers, it suggests that the lighting industry and/or consumer associations could organise awareness campaigns, whilst Member States and the industry can ensure that SSL products conform to EU performance and safety requirements. In particular, it advocates the creation of SSL lead markets. In the case of cities, it notes the role of Green Public Procurement and the existence of financial instruments — such as the European Local Energy Assistance (ELENA) and European Energy Efficiency Fund (EEE-F) — for cities to finance feasibility studies, and that they have the potential to become leading markets for SSL. It says that it is therefore considering inviting representatives from cities and the industry to establish a dedicated Task Force to set out a roadmap, including the introduction of innovative financial schemes; to invite cities to use ELENA and EEE-F, existing structural funds and other financial mechanisms to plan the large scale deployment of SSL; to organise a number of awareness raising events; and to examine the use of mechanisms, such as the new Cohesion Policy, to implement large scale pilot, demonstration and deployment actions.
16.8 In the case of public buildings, the Commission again notes the opportunities presented by Green Public Procurement; the extent to which the proposal for a Directive on Energy Efficiency includes elements which could foster the uptake of SSL; and the that requirement in the Energy Performance of Buildings Directive that all new public buildings should become near-zero energy by 2019 will be extended to all new buildings by 2021. As regards residential buildings, it says there is also a need to put in place financial and other incentives, such as innovative contracting models, for users to buy and install new SSL technologies. It also proposes that public authorities should be invited to promote the wide deployment of SSL technologies when they renovate public buildings, and that Member States should provide incentives to consumers to replace lighting systems in their homes by SSL.
MEASURES TO INFLUENCE SUPPLY
16.9 The Commission notes that the European lighting industry is highly innovative, but is fragmented along its supply chain, and that, alongside a number of large global players, it consists of several thousand SMEs. It adds that, although the industry is well positioned as regards the emerging OLED technology, it is struggling to turn leadership in research and development into business success. At the same time, the Commission points out that the wider deployment of SSL will affect lighting as a business, with retrofit activities expected to dominate the market for the next three to five years, underpinned by the phasing-out of incandescent bulbs, and that there will be an increasing emphasis on intelligent lighting systems and services. Also, the customising of lighting characteristics to specific users' requirements will provide new business opportunities, requiring enhanced cooperation by European manufacturers, with others along the value chain (including wholesalers and retailers, urban planners, architects and lighting designers, manufacturers of electrical components and systems, installers, facility managers, the construction industry, and lighting service companies), and with vertical integration already taking place and expected to continue.
16.10 The Commission believes that the next three to five years will also be pivotal in establishing leading SSL market players, with the European industry being in principle in a strong position. However, it notes that it is already under significant pressure from newly, mainly Asian, competitors, and it has therefore suggested a strategic approach for achieving a competitive SSL industry in Europe. This would include translating ideas into marketable products by focussing on technological research, product development and demonstration, and advanced manufacturing; strengthening the SSL value chain; fostering cooperation between the industry and others in the extended value chain, with the industry taking strategic decisions on the future of SSL marketing in Europe; and securing the supply of scarce raw materials and the recycling of end-of-life SSL products. In addition, it says that the further development of the European industry will depend on standardisation, on access to intellectual property rights and to low cost routes of investment, and on learning and training.
16.11 The Commission then looks at initiatives for strengthening the SSL value chain. It notes the steps taken as regards EU for research and innovation during the period 2007-13, including expenditure under the Seventh Framework Programme on the manufacturing processes for LEDs and OLEDs, materials research, and improving the performance of SSl-based applications; support provided under the Competitiveness and Innovation Programme on raising consumer awareness and supporting Member States in market surveillance activities; and the use of the Structural Funds to enhance the capacity to innovate in SSL. It says it is now considering a number of further actions, including:
- mandating the European Standard Organisations to develop standards;
- pilot actions to raise EU-wide awareness of SSL technologies;
- continuing to fund under the Seventh Framework Programme research on new lighting sources and on novel materials to replace critical raw materials;
- the creation under Horizon 2020 of a Public Private Partnership in Photonics;
- giving priority to SSLs as part of regional smart specialisation strategies under the new Cohesion Policy.
16.12 Finally, the Commission looks at the action which industry might take. It suggests that this might include:
- launching initiatives which extend the scope of business alliances;
- matching public support to a Photonics PPP with a commitment to invest in Europe;
- working with consumers to develop new functionalities for lighting applications to encourage faster uptake;
- working with European Standardisation Organisations to address issues related to SSL, including those relating to safety, environmental aspects, and the measurement of the performance of products and systems;
- further engaging in assessing the full life cycle impact of SSL products;
- using all existing mechanisms for launching vocational and lifelong learning and training.
The Government's view
16.13 In his Explanatory Memorandum of 14 January 2012, the Parliamentary Under-Secretary of State at the Department for Environment, Food & Rural Affairs (Lord Taylor of Holbeach) says that the Government broadly welcomes the Green Paper as it is consistent with its own views and work, and will therefore reply to the consultation expressing its general support for the proposals.
16.14 He notes that the Government has a policy of removing inefficient lighting products from the market in favour of energy efficient alternatives, and that it is therefore working to encourage the innovation of ultra efficient lighting, recognising that this has the potential to provide significant carbon dioxide emissions savings over and above those produced by alternatives, such as compact fluorescent lamps (CFLs), whilst offering UK companies the opportunity to take advantage of the growing worldwide demand for energy-efficient lighting.
16.15 He adds that the Government has been focusing in particular on two of the issues identified in the Green Paper — the fact that SSL technology currently has a long pay-back period, and that the wide variation in performance of SSL products currently on the market threatens consumer confidence, delays market acceptance and slows down penetration rates. He says that, to address the first of these points, it has recently run a £1.2m challenge to develop LED lighting to replace conventional incandescent lamps: and, in order to address the second, it is participating in two international collaborations which are pushing the development of SSL technologies. He notes that these initiatives support the work being done on a national level to address the main challenges with SSL technologies, including providing better information to governments and consumers about SSL products, and he believes that the Commission should become more actively engaged in both of them, particularly where work on harmonisation and standard development is envisaged.
Conclusion
16.16 By the standards of many such documents produced by the Commission, this Green Paper provides an interesting and coherent account of recent developments in relation to solid state lighting, and of the measures which the EU can take to promote its uptake. Consequently, whilst we see no need to withhold clearance, we are drawing the document (and the Government's comments on it) to the attention of the House. |
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