At the beginning of the year, the Ministry of Finance and the National Development and Reform Commission jointly issued the Interim Measures for the Administration of Financial Subsidy Funds for Efficient Lighting Products Promotion. This is another important measure for the Chinese government to increase efforts to promote efficient lighting products and promote energy conservation and emission reduction targets. The state will promote 50 million energy-saving lamps every year by means of financial subsidies. Starting in 2008, China will subsidize 30% of the supply price of each energy-saving lamp for large users such as schools and hotels, and subsidize 50% of urban and rural residents.
During the 11th Five-Year Plan period, the state will promote 150 million energy-saving lamps, which can save 29 billion kWh. Since China's energy-saving lamp market currently accounts for a large share of the entire lighting market, it still has a lot of room for development. Some institutions predict that the annual average compound growth rate of the domestic energy-saving lighting industry will reach about 27% in the next five years, and with the support of national policies, development may be faster. On July 23, Premier Wen Jiabao of the State Council presided over the State Council executive meeting to study the deployment of fuel-saving and energy-saving activities and the implementation of national energy-saving actions, and reviewed and approved in principle the Public Administration Energy Conservation Regulations (Draft) and the Civil Building Energy Conservation Regulations (Draft). It has accelerated the promotion and popularization of energy-saving lighting products.
China has included LED lighting in the 15 national science and technology research projects. At the end of 2003, the state urgently launched a major project for the development of semiconductor lighting industrialization technology, and established a semiconductor lighting engineering coordination leading group composed of eight ministries and commissions, and identified five cities in Shenzhen, Dalian, Nanchang and Xiamen as industrial demonstration bases. At present, domestic power supply is tight. Recently, the country has raised electricity prices. High electricity prices directly increase the cost of living for Chinese people. Under this background, the popularity of energy-saving lighting is directly promoted. Some experts predict that by 2010 China's entire LED industry's output value will exceed 100 billion yuan. The LED lighting industry has achieved unprecedented opportunities for development.
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