As noted in the report, “LEDs are attractive as a next-generation lighting technology because they have approximately 5-10x the life of an incandescent bulb and operate at approximately 5x the efficiency, with the potential to lower energy consumption and maintenance requirements.”

Another advantage, according to executives of LED manufacturers who spoke at Merriman Curhan Ford’s annual “Cleantech” conference in New York last week, is that LEDs don’t present a mercury disposal problem the way presently popular compact fluorescent lighting (CFL) does.

For investors, the immediate implications of this forecast go beyond the potential for rising sales and earnings for manufacturers of LEDs and related equipment. The report highlights industry projections that should LED lighting become broadly used, U.S. electrical demand in 20 years could be one third less than anticipated. Should that be the case, the U.S. won’t need to build approximately 45 large power plants, the report highlights. Since it often takes five to 10 years for a new power plant to be designed and built, decisions about how many new power plants – as well as which fuels they should use – already are becoming an issue on Wall Street and in electric utility boardrooms across America, an issue that could impact investors’ portfolios in areas such as coal, nuclear and uranium mining.

The Merriman Curhan Ford report lists a number of companies it believes are “well-positioned” to take advantage of this coming surge in LED lighting, including: Cree Inc, Lighting Science Group, Energy Focus Inc. and Nexxus Lighting Inc.