SHARDUL MEHTRE PGP/17/XXX

YOGESH PARATE PGP/17/125

INTERNSHIP COMPLETION REPROT

FEASIBILITY AND COST ANALYSIS OF LED

Abstract
One of the biggest challenge faced by India is power deficit for its population. The newly
elected government has declared electricity penetration as its priority mandate. On one hand
India has huge power deficit but on the other hand not much measures are taken for saving
electricity, given it is very costly and require extensive resources for electricity generation. A
lot of resources are wasted for generation of electricity. The wastage of electricity continues
during transmission of electricity. Large chunk of electricity is lost while transmission and
storage of electricity. India has been trying to reduce its dependence on traditional sources of
energy and trying to use renewable sources of energy. Though renewable sources are a
lucrative source of energy, the high installation costs, lower efficiency and less innovation in
the space are the roadblocks to exploit the potential of renewable source of energy.
While it is quite difficult to increase share of renewable sources for energy generation,
another way to tackle problem of electricity deficit is conservative usage of electricity. We
have been instructed many a times through public instruction for conservative use of
electricity, which is seldom taken seriously by people. A new dimension to electricity savings
is added by technological innovation. The new developed lamps, CFL then LED are
incrementally reducing the amount of electricity required for operation. In past the
performance of LED was inferior as compared to FTL and CFL. With continuous
development the new LED lights prove to have higher performance at lower electricity
consumption.
Indian Institute of Management Kozhikode, is the elite B school of the country. The
institution is known for its socially conscious initiatives. The unique curricular with social
development projects, courses like Social Transformation of India, water re-harvesting in
campus, active social service group, all these stand as a testimony to IIMKs social
awareness. Now to get a head start into electricity savings, the biggest problem faced by
nation, the institute is planning to replace its fluorescent tube lights with the LED tube lights.
This would serve as an example for other institutes to follow.
This study is aimed at studying the cost-benefit analysis and feasibility of plan to replace the
fluorescent tube lights with LEDs.

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IIM Kozhikode

Why energy efficiency is required??

Unit of electricity consumed at user point requires 3 to 4 units of primary energy

consumption at generating station.

To set up thermal power plant and transmission & distribution network,

approximately Rs. 75 Million investment per MW is required.

Construction period is 4 to 5 years.
Energy Efficiency projects attracts Rs. 5 to 10 Million and will take 6 to 9 months to

implement.
Energy Efficiency projects reduce capacity addition
One KWh savings reduces 900 to 1100 Gm. of equivalent CO2 emission.
Reduce global warming & climate change effect.
Local, National & Global benefits.

LED Over TFL

Mercury Free Unlike fluorescents, LEDs contain no mercury. This makes them
safe for the environment and results in no recycling fees.

Dimmable Many LEDs have full dimming capabilities, whereas fluorescents are
expensive to dim and do so poorly.

Directional Lighting LEDs offer directional light (illumination exactly where you
need it). On the other hand, fluorescents have multi-directional light, which means
some light is lost in the fixture and other unnecessary places.

Work Well with Controls Fluorescent lights tend to burn out faster when integrated
with occupancy sensors and other controls. In contrast, LEDs work perfectly with
control systems, since their life is not affected by turning them on/off.

Better Efficiency The newest T8 LEDs are around 30% more efficient than T8
LFLs.

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IIM Kozhikode

No Sounds- LED light work in silence. The days of humming bulbs came to an end
with the creation of LEDs, so there's no need to lose sanity listening to the thrum, tick,
or ping of other light bulbs.

Quality Light - Todays LEDs produce light in a variety of colour temperatures

similar to fluorescent, but dont have any flickering issues that can happen with
fluorescent.

Lifespan The average life of a T8 LED is 50,000 hours, versus only 30,000 hours
for an average T8 LFL. One thing to keep in mind though is that there are now linear
fluorescent T8 lamps that last up to 84,000 hours. This lifespan is five times that of
typical fluorescent bulbs and twenty times longer than incandescent light bulbs.

Lumens efficiency
The effective lumens of LED are significantly high as compared to TFL because of
directional lightening of LED as compared to spread of TFL.
Effective Lumens= RL * CU *BF * LLD * LDD * LBO
where,
RL = Rated Lumens

LLD = Lamp Lumen Depreciation

CU = Coefficient of Utilization
BF = Ballast Factor

LDD = Luminaire Dirt Depreciation

LBO = Lamp Burnout Factor

Coefficient of utilization refers to percentage of light lumen reaching intended work plane.
Other factors are technical factors related to technologies.
Visual demonstration of coefficient of utilization

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IIM Kozhikode

Options in LED
Type A
Has
internal
compatible

with

Type B
driver; Has internal
existing ballasts;

Type C
no Has external

driver;

wired

to

driver;

no

main ballasts;

ballasts
Pros
No

Cons
Maintenance

voltage
Pros
Cons
No
power Higher

additional

costs

installation

ballasts

ballasts

costs

Dimming

Low

Limited

Full

functionality

maintenance

dimming

dimming

not available

costs

for loss due to installation

Pros
Most

Cons
Higher

efficient

installation
costs

costs

functionality

We propose installation of Type-A LED lights as it does not involve additional capital
investments and provides same cost savings as the Type-B and Type-C. Also the dimming
functionality will not be used as our set up involves class rooms and hostel which would
require same intensity of light over time; hence additional capital investments are not
advised.

Power Comparison between TFL and LED

BASIC PARAMETERS
Sl. No.
Parameters
1
Operation hours per day (Hrs.)
2
Cost of Electricity (Rs. Per unit Kwh)
3
1 Unit (Kwh) =0.8kg 0f CO20
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12
7
0.8 kg

IIM Kozhikode

4
5
6

Working days (Days)

No. of 36W FTL
No of 20W Led Tube

365
1
1

COMPARISON PARAMETERS
Sl. No.
Parameters
1
Luminous Flux ( Lumen)
2
Annual Maintenance Cost (Rs)

36W FTL
2000
60

20W LED Tube Light

2000
0

SAVING CALCULATIONS
20W
Sl. No.

1
2
3
4
6
7
8
9
10
11

Parameters

36W FTL

Power Consumption (W)

40
Energy used per day (Units-KWh)
0.48
Annual Energy Consumption (Units175.2
KWh)
Annual Energy Cost (Rs.)
1226.4
Total Operating Cost
1286.4
Percentage Annual Savings
0
CO2 Emission (Tons per Year)
0.14
Reduced CO2 emissions (tons per year)
Percentage annual reduction in CO2
emissions
Payback period
1400)

(Considering

cost

LED
Tube

Savings

Light
20
0.24

20
0.24

87.6

87.6

613.2
613.2
0
0.07

613.2
673.2
52.33%
0.07
50.00%

Two years

Power Comparison between TFL and LED for IIM Kozhikode

Class Rooms
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IIM Kozhikode

Class
Number of Tube
Room
Light
Class A1
34
Class A2
34
Class A3
21
Class A4
21
Class B1
34
Class B2
34
Class B3
21
Class B4
21
Class C1
34
Class C2
34
Class C3
21
Class C4
21
Total
330

Price of Tube light

Price of LED

0
1000

Annual Maintenance Cost of Tube light

100

Annual Maintenance Cost of LED

175

Power Consumption (W) Tube light

Power Consumption (W) LED
Energy used per hour per Watt (Units-KWh)
No of days in a year Tube lights used
Operating Hours per day

40
20
0.001
250
10h

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IIM Kozhikode

Summary
Tube Lights
264000
33000
26400

Parameters
Total Annual Cost(Rs)
Total Annual Energy Consumption
Total Annual CO2 emissions

LED
173250
16500
13200

% change
34.38%
50.00%
50.00%

Tubelight vs LED
264000
50.00%

50.00%

173250
34.38%

33000

Tube Lights

26400

16500
LED

13200

% change

Break-Even Analysis
Year
Tube

Light

0
330000

264000
503250

528000
676500

792000
849750

1056000
1023000

1320000
1196250

Cumulative

Expense
Led Cumulative Expense (Rs)

Break Even point for Class Rooms 3 years and 6 months for 10 hours operating time per
day. If operating time of tube light increases break-even point will also decrease (Less time
require) as per the ratio and vice versa.

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IIM Kozhikode

Break-Even LED Vs Tube Light

Tube Light

Led

Power Comparison between TFL and LED for IIM Kozhikode

Hostel Rooms
Hostel
Room
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Hostel
Total

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A
B
C
D
E
F
G
H
J
K1
K2
L1
L2

Number of Tube
Light
71
71
71
71
71
80
71
0
82
56
56
56
56
812

Price of Tube light

Price of LED

0
1000

Annual Maintenance Cost of Tube light

100

IIM Kozhikode

Annual Maintenance Cost of LED

175

Power Consumption (W) Tube light 40

Power Consumption (W) LED
20
Energy used per hour (Units-KWh) 0.001
No of days in a year Tube lights
used
Operating hours per day

300
12

Summary
Parameters
Total Annual Cost (Rs)
Total Annual Energy Consumption
Total Annual CO2 emissions

Tube Lights
899696
116928
93542

LED
551348
58464
46771

% change
39%
50%
50%

Tube Light vs LED

Summary Tube Lights

Summary LED

Summary % change

Break-Even Analysis
Year
Tube Light
LED

0
0
812000

1
899696
1363348

2
1799392
1914696

3
2699088
2466044

4
3598784
3017392

5
4498480
3568740

Break Even point for Class Rooms 2 years and 6 months for 12 hours operating time per
day. If operating time of tube light increases, break-even point will decrease (Less time
require) as per the ratio and vice versa.

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IIM Kozhikode

Break-Even Tube Light vs LED

Tube Light

LED

Conclusion
It can be seen that use of LED for lightening not only reduces the electricity consumption but
also reduces the CO2 emission, another global environmental problem. It also gives us better
quality of light. It can be seen that payback period for installation of LED lights is quite low
i.e. 2 years and hence we propose the installation of LED lights in the campus.

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IIM Kozhikode