Declining LED Product Prices Halt New Thai Government Incentives

Thailand Ministry of Energy has no intention of issuing new LED incentives for 2015, said Minister of Energy Dr. Narongchai Akrasanee in an exclusive interview with LEDinside at LED Expo Thailand 2015, which runs from May 21-24, 2015 at IMPACT Exhibition and Convention Center.

LED bulb and tube prices have drastically fallen in the Thai LED market making existing incentives to encourage consumers to switch to LEDs “adequate”, explained Akrasansee. 

Surge of LED players onto the global market especially from Taiwan and China has been part of the cause of the plummeting LED bulb prices witnessed in Thailand, he added.

 Thailand Minister of Energy Dr. Narongchai Akrasanee. (LEDinside)

To illustrate how much LED bulb and tube light prices have spiraled, EGAT boxed Level No.5 LED bulbs 5W E27 are now sold for 115 Thai baht (US $3.44), while manufacturers in general are selling at an average price of 175 Thai baht, said Soonchai Kumnoonsate, Governor of EGAT in a separate interview.

After EGAT implemented Level No.5 LED project, LED tube lights on average are selling for 500 Thai Baht, but lowest prices for tube lights are now nearing 200 Thai Baht, added Kumnoonsate. Prices for LED T8 tubes that previously fetched for 600 Thai Baht have dropped to around 400 to 450 Thai Baht, said  Howard Huang, Managing Director of TP LED Lighting.

“We only let the market forces at work,” said Akrasansee.

Liberal economic policies is also the reason why Thailand has not drafted policies to support local LED chip and package manufacturing , in which he noted there was simply no market demand for it, adding Thailand LED market remains heavily reliant on importing LED chips and components from China.

It is hard to say whether manufacturers will consider to move to upstream LED production in the future, but it is for the market to decide, said Akransansee.

He also noted most LED products manufactured in Thailand are for domestic consumption, with only some being exported to neighboring countries.

Asked if the ministry had specific incentives to attract foreign LED chip manufacturers to partner up with Thai companies, Akrasansee responded the country did not have specific foreign LED investment incentives, but did have an investment promotion which included income tax incentives.

(Author: Judy Lin, Chief Editor, LEDinside)

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