Some venture capital firms in the U.S. are glowing about energy efficient lighting companies and they are investing large sums of money in this sector, according to an article on Wall Street Journal.

New York-based Braemar Energy Ventures and San Francisco-based VantagePoint Venture Partners are both targeting $50 million of investments at energy efficient lighting companies currently. And VantagePoint may increase that amount by another $50 million within the next year.

The focus of the energy efficient lighting market are light-emitting diode (LED) and lighting control companies. Van den Berg, Managing Director of VantagePoint, estimates the LED market will reach about $50 billion in sales within 10 years, assuming LEDs become about 10% of the worldwide lighting market by that time. The LED market was about $5 billion in 2008, according to industry analysts.

Generally, the best LED products are 85% more energy efficient than incandescent lights and last up to 100,000 hours, comparing to about 1,500 hours for incandescent lights. LEDs also last longer and are more efficient than most florescent lights, which are cheaper but contain mercury.

Dennis Costello, managing director with Braemar Ventures, said lighting is an enticing investment because it is a “low-hanging fruit” in the global struggle to reduce carbon emissions and reduce spending on energy.

The $50 million Braemar plans to spend on lighting companies makes up 20% of the current fund’s $250 million total, Costello said. The firm has invested in LED company Luminus Devices Inc., LED cooling company Nuventix Inc., energy–efficient laser light company Laser Light Engines Inc. and electronic ballast company Fulham Co. Ballasts limit the amount of current in an electric circuit.

Among VantagePoint’s more $1 billion in capital dedicated to clean technology companies, energy-efficient lighting companies represent “the top one or two sectors,” Van den Berg said.

VantagePoint has invested in lighting control company Adura Technologies Inc., LED packaged chip company Bridgelux Inc. and luminaire company SuperBulbs Inc.