Audacious Top Prize 2015

By Claire Grant | Posted: Friday April 22, 2016

Street lighting in New Zealand could be considerably cheaper to run, but the cost of LED bulbs is holding New Zealanders back from replacing their inefficient conventional bulbs.

However, an entry from students Mashkoor Ahmad, Namfon Kumsem and Giovanni Stephens into the Audacious challenge 2015 could change that. LED Light Australasia is investigating the possibility of setting up an LED light manufacturing assembly plant in New Zealand, guided by team leader Mashkoor Ahmad who has worked in his family lighting business in Pakistan for the past 20 years.

Currently studying for a PhD in Management at the University of Otago, Mashkoor was surprised to see cheap incandescent bulbs for domestic use available in supermarkets here, as they are obsolete in many parts of the world, including Australia. He knew that although LED lights are more expensive, they are energy efficient, long-lasting (between 10-15 years) and cheaper to run. He therefore thought they should be at a price New Zealanders perceive as affordable. At the same time, he could see they needed to be a better quality than some of the LED lights available currently, and able to fit into the user’s fixtures.

This led him to thinking about the cost of commercial lighting. Importing them from China or Taiwan was one option, but Mashkoor believed LED lighting could also be assembled in New Zealand. The team’s subsequent feasibility study showed assembling LED lights for commercial use in New Zealand appears more cost effective – changing from sodium bulbs to LED lights would be up to three times cheaper for street lighting. This work would also involve a local manufacturer producing aluminum die cast fixtures. Manufacturing here will solve the quality and price issues, and provide employment; it could even become an export industry.

Local authorities would be benefit by having a long lasting, durable and maintenance free street light for a longer period, producing considerable savings in electricity costs. New Zealand has around 345,000 street lights using sodium lamps, most of them which are 15 to 25 years old, and need replacing. The Dunedin City Council for instance, has around 15,000 street lights currently using high pressure sodium lamps, costing about $1 million per annum for the electricity and about $400,000 in bulb replacement and maintenance.

The three students have appreciated access to business advisors from participating in the Audacious Challenge, and enjoyed the ease of interacting with business leaders and angel investors who were happy to provide insights and advice. “It was a supportive and helpful environment; the networking opportunities are there for those who want to make full use of all the opportunities.”

Mashkoor and his team members are now investigating how to set up their business while still committing to studies, and are discussing options with angel investors.