SRI English

Energy efficient LED solutions off the blocks

By Martina Jung

The application of light-emitting diode (LED) technology in consumer products is increasing rapidly. In particular, the consumer electronics industry is demonstrating a very aggressive approach towards integrating the latest technological advances into new products, thereby offering customers more attractive and energy-efficient solutions.

When Samsung launched a range of energy-efficient LED TV products last April, it triggered a surge in LED chip production, and left competitors such as Philips, Sharp and LG scrambling to follow suit. The resulting mass production of LED chips and the continued development of LED technology have paved the way for other advanced LED applications.

Another attractive area is LED lighting. Although LED lighting has struggled to hold its own against significantly less costly—but less energy-efficient—conventional lighting solutions, Cree, a US-based leader in LEDs for lighting, indicated with the release of its results in January that LED lighting is gaining traction.

Furthermore, a new screen technology – organic light-emitting diodes (OLEDs) – is about to emerge. OLED screens are far more energy-efficient than current LCD screens and, what’s more, OLED screens are flexible. Last April, Japan-based Kyocera presented a flexible OLED cell phone concept, which users can fold like a wallet.

If LED technology continues to develop at the current pace, its market penetration and energy savings potential is set to outpace all prior expectations. Already, Bank of America/Merill Lynch expects the proportion of TVs with LED backlighting to rise to 32 % by 2012, from just 1 % in 2008.

Some governments have drafted energy efficiency regulations that will boost LED technologies. Under new legislation in the EU, for example, homeowners must replace inefficient incandescent bulbs with more efficient alternatives, including LED lights. And last year, China installed more than 100,000 LED lamps across ten cities in a pilot project; the next stage will be 1 million LED lamps across 20 cities.

Policy makers such as those in China and the EU, and beyond, may soon realise that the contribution of LED technologies to climate protection is accelerating far beyond their expectations. For investors, this could mean there will be growing numbers of compelling investment opportunities in the LED market.

Copenhagen - low expectations mean no disappointment

by Martina Jung

We had not expected a global climate treaty – or anything close to it – to emerge from the Copenhagen Climate Change Conference 2009, and we had not been optimistic that emission reduction commitments would be made, in particular by China. So, we were not especially disappointed with the content of the Copenhagen Accord.

In contrast, the wider consensus view appears to be that Copenhagen failed to meet its goal: To reach binding agreements among the participating states to tackle global warming, which would serve as the basis for a global climate treaty to be signed in 2010. Indeed, participating countries have done little more than to take note of the Copenhagen Accord, without committing to accept it. The minimal compromise achieved does not include precise emission reduction targets or control mechanisms, nor is it legally binding or unanimous.

However, there are two points in the Copenhagen Accord which give us reason for optimism. The first is the recognition among UN member states that the increase in average global surface temperatures by 2050 must be limited to 2 degrees Celsius or less. This is the first time that scientific evidence of global warming has entered political documentation, applicable to 193 states. Looking ahead, this targeted restriction will serve as a universally accepted cap against which developments can be measured. The second is the pledge by industrialised nations to provide USD 30 billion to developing countries for the next 3 years. The pledge is aimed to step up action against climate change, and may be scaled up to USD 100 billion annually by 2020. This cash should accelerate installation of renewable energy capacity.

Achievements such as these are just a first step towards a global climate treaty. For now, they will have little immediate impact on the fundamentals of renewables stocks. But the need for continuing negotiations, and the growing pressure to achieve legally binding agreements, provides room for a positive mid- and long-term effect on renewables.

In the short-term, we do expect more ambitious action on a national level. In the course of the Copenhagen conference, China and the US presented various measures that they are prepared to implement in order to reduce their carbon emissions. All of them include the increase of renewable energy capacity, implying the potential for creating new jobs and reducing their countries’ dependence on foreign resources. The statements released by the world’s two largest emitters after the conference confirm their commitment to address the climate change problem and their willingness to further promote renewable energy technologies. We believe there will be more countries that follow this path now that 193 states are involved, at least politically.

The dawn of E-Paper

By Alvaro Ruiz-Navajas

The nascent market for e-readers has put e-paper into the spotlight, but the potential applications for e-paper are much wider.

The technology for e-paper has been developing since the late 1960s, but its potential applications have become apparent only since the advent of the e-readers. In theory, e-paper could replace ink and paper, but given the current state of technology, e-paper is better suited to display data rather than input data. Thus, rather than being useful only in consumer electronics, e-paper could find its core markets in disposable electronics and electronic signage. E-paper could expand rapidly to a USD 3 billion market by 2015.

Disposable electronics is likely to be an area where e-paper creates a new market. Potential uses include making packaging more appealing to consumers and advertisers – as shown by the Esquire magazine cover in 2008 - the change in pre-paid cards and, most interestingly, medical instructions. Doses and instructions could be changed so that they target a specific patient, and even the time to take the next dose could be displayed.

Electronic signage is where e-paper does have an advantage over current incumbents. Currently, TFT-LCD, LED and paper dominate this segment. However, with e-paper's ability to change rapidly and its low energy consumption, it is ideal for mobile message boards in airports and train stations. For billboards, e-paper could still provide an expensive alternative to paper, but the robustness of e-paper and the possibility to update it remotely presents a compelling case. E-paper price tags that can be updated centrally have proved successful in Japan.

A frequently cited benefit of electronic paper, however, stems from its direct effect on the environment. With an estimated 4 billion trees cut down each year and most of them going to paper, e-paper could not just open new markets, but also help preserve biodiversity.