The ELI Story:
TRANSFORMING MARKETS
FOR EFFICIENT LIGHTING
IFC/GEF EFFICIENT LIGHTING INITIATIVE (ELI)
The ELI Story:
TRANSFORMING MARKETS
FOR EFFICIENT LIGHTING
Contents
IFC/GEF EFFICIENT LIGHTING INITIATIVE
Part 1
What is ELI?
3
Part 2
Efficient Lighting: A Bright Idea
ELI’s Toolbox for Transforming Markets
4
6
Part 3
Innovation and Impact
10
Part 4
The ELI Legacy
12
Part 5
Acknowledgments
14
ABOUT IFC: The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce
poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial
markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and
businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and has arranged $23 billion in
syndications and underwriting for 3,143 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY04 was $17.9 billion
for its own account and $5.5 billion held for participants in loan syndications.
1
What is ELI?
The goal was to reduce greenhouse gas emissions, one light bulb at a time, by
catalyzing vibrant markets for energy-efficient lighting across four continents and
in seven countries. The Efficient Lighting Initiative (ELI), implemented by IFC
between 1999 and 2003, and seeded by a $15 million* investment from the Global
Environment Facility (GEF), was a dynamic market experiment that engaged
multiple actors to promote efficient lighting in Argentina, the Czech Republic,
Hungary, Latvia, Peru, the Philippines, and South Africa.
Tailored to local conditions in each country,
ELI achieved impressive results over its
three-year life:
» In Peru, annual sales of compact
»
»
»
»
fluorescent bulbs (CFLs) increased
twentyfold, from 250,000 to over 5
million;
In Argentina, the price of CFLs dropped
eightfold due to ELI-inspired promotion
and competition between lighting
manufacturers;
In the Philippines, manufacturers
improved the quality of their efficient
lighting products to meet ELI
specifications;
Electric utilities in Argentina, Peru, the
Philippines, and South Africa began
selling, and financing, efficient lamps to
their customers;
Municipal authorities in the Czech
Republic, Latvia, Peru, and South Africa
commenced energy-efficient street
lighting upgrades;
» Thousands of newly trained lighting
professionals in seven countries will be
able to specify efficient lighting for their
clients.
Across the board, ELI demonstrated
substantial market impact with product prices
falling (from $23 to $3 in Argentina), sales
climbing (by a factor of 21 in Peru), and sales
of traditional incandescent lamps tumbling (by
9 percent in South Africa, in a market
undergoing widespread electrification).
catalyzed immediate uptake of efficient
lighting, even as the program strategy focused
on underpinning long term, sustained market
growth.
The ELI experience highlights IFC's role as a
market leader able to coordinate the shared
interests of multiple entities and channel
resources in a manner that truly moves—and
even transforms—markets.
From ELI's outset, IFC commissioned an
independent Monitoring and Evaluation (M&E)
assessment with a focus on sustained, postprogram market impacts. While this long term
study is not yet complete, aggregated
preliminary results show that, across seven
countries, ELI reduced energy consumption by
2,590 gigawatt-hours (GWH), and CO2
emissions by 2,018,000 tonnes between 20002003. These initial estimates indicate that ELI
*Note: All currencies are in US Dollars unless specified otherwise.
3
2
Efficient Lighting: A Bright Idea
Efficient lighting not only provides high quality lighting services and energy
savings, but reduces greenhouse gas emissions and pollution caused by
electricity generation. For example, a compact fluorescent lamp (CFL) lasts
six to ten times longer than an ordinary incandescent light bulb and consumes
only a quarter of the electricity. Replacing one 60-watt ordinary bulb with a
15-watt efficient CFL avoids burning around 350-400 pounds of coal or a
barrel of oil at a power plant. This translates to around 600-800 pounds of
greenhouse gas emissions reductions.
The Genesis of ELI
ELI was born from IFC's Poland Efficient
Lighting Project (PELP), funded by the GEF (see
box on IFC and GEF, p. 5). Driven by dynamic
marketing and subsidies, PELP grew demand for
CFLs over two years, with measurable impacts
beyond the program. By 2004, about one in two
homes in Poland used a CFL, and the project
saved an estimated 2,320 gigawatt-hours, which
is a reduction of 2.8 million tons of CO 2
emissions.
PELP showed how the GEF's impact can be
multiplied by market forces to generate
substantial direct investments by manufacturers,
wholesalers, retailers, and consumers in efficient
lighting. PELP was a natural model for broader
replication through ELI in diverse markets for a
wider range of efficient lighting products.
In 1999, IFC set out to implement ELI, selecting
seven countries on the basis of inquiries
received following PELP, and the ripeness of the
market economy in each country. ELI was a
laboratory for testing market transformation
experiments in parallel, in seven different
environments.
4
Seven Diverse Lighting Markets…
Lighting markets differed widely in each ELI
country. ELI arrived in Latvia, Hungary and the
Czech Republic during a period of economic
transition from Soviet-era central planning. The
fast-growing Czech and Hungarian markets
had had some exposure to efficient lighting;
unlike the poorer Latvian market. The
Philippines and Argentina, both emerging
markets, also provided contrasting conditions.
The Philippine market was proliferated with
low-quality, black market efficient bulbs, while
in Argentina only 5 percent of homes used
efficient lighting. Meanwhile, South Africa and
Peru were low-income markets with
undeveloped lighting infrastructure, particularly
among poor communities.
One Goal: To Create Dynamic Markets for
Efficient Lighting
Across these seven markets, IFC had one goal:
to accelerate sustainable market development
for efficient lighting. To strengthen the
competitive underpinnings of the market, IFC
built on market interventions, used separately
before, to target the special interests of multiple
market players, empowering them to become
agents of change for efficient lighting. Using IFC's
credibility and convening power, ELI collaborated
with manufacturers, electric utilities, retailers,
lighting professionals, and designers to create a
virtuous cycle of commercial investment in
efficient lighting—a cycle that improved product
quality and availability, boosted sales, and put
downward pressure in prices. ELI also became an
important voice within government—a role that
was unanticipated in the original program design.
Tackling Market Barriers
Creating dynamic markets required tackling
prevailing barriers limiting the widespread use of
efficient lighting. Consumers are discouraged
from purchasing energy-efficient lighting due to
the lack of credible information about its economic
and environmental benefits. This is compounded
by the high “first-cost” of buying efficient lighting
products, which can retail at up to 15 times the
cost of regular incandescent bulbs. With few
recognizable quality standards for consumers to
differentiate new technology, the market can
easily be “spoiled” by bad quality products.
Tried-and-Tested Market Interventions
To overcome these barriers, ELI's country
programs focused on four market support
strategies to promote efficient lighting:
IFC and GEF:
A Partnership for Innovation
The Global Environment Facility (GEF)
supports projects in developing countries
that address global environmental problems,
such as climate change and biodiversity.
GEF has a current budget of $3 billion.
About 40 percent of this amount is allocated
for clean energy projects to reduce
greenhouse gas emissions.
» providing consumers with reliable information
on efficient lighting
» increasing the availability of efficient lighting
»
»
IFC's “adaptive management” approach
supported a culture of innovation within each
team so that ELI remained inherently dynamic,
responding to market conditions as they evolved.
IFC’s local teams focused on results in the
market rather than implementing static
workplans. This was essential for ensuring ELI's
sustained impact on local markets.
by strengthening distribution and retail
channels
supporting commercial financing to
overcome the high “first-cost” barrier of
efficient lighting products
promoting open market competition,
especially among lighting manufacturers
GEF resources allow IFC to take noncommercial risks and test innovative
technologies and business models with
substantial environmental promise. In turn,
IFC provides innovative ways of leveraging
the GEF’s funding through the private sector
for sustained environmental benefit.
Using these strategies as a common basis, ELI
adapted tried-and-tested market transformation
“tools” to leverage its impact in each country.
These tools developed intensive consumer
marketing and education campaigns, quality
standards for manufacturers, and innovative
financing and bulk purchasing schemes to
improve distribution of efficient lighting products
(see ELI Toolbox, p. 6-7).
GEF provided $15 million for ELI to support
activities the market was unlikely to
undertake on its own—such as consumer
education and quality assurance. In this
way, IFC was able to go beyond the use of
subsidies to accelerate market acceptance
for an environmentally beneficial technology.
Other IFC innovations, such as flexible
finance instruments to stimulate commercial
lending for energy efficiency and renewable
energy, are further enhancing what has
become a productive partnership between
IFC and GEF.
Who Implemented ELI?
IFC's singular focus on market development was
supported by a flexible implementation
approach. Implementation teams had good
knowledge of the market, varied expertise and
institutional affiliations—from utility companies in
Argentina, Peru and South Africa, to an NGO in
the Czech Republic, and a consultancy in
Hungary. These elements contributed to the
personality of each program as local teams were
given significant latitude in tailoring their country
programs based on initial market assessments.
5
ELI’s Toolbox for Transforming Markets
ELI and Electric Utilities
ELI forged partnerships with electric utilities to promote investments in efficient lighting
as part of “demand-side management” (DSM) schemes that meet a number of utility
business interests. DSM can reduce energy demand where costly infrastructure
upgrades may be necessary. It can also reduce electricity bills and encourage
consumers to pay, where high, unpaid electricity bills can lead to large financial losses.
More broadly, DSM promotes good corporate values such as business efficiency, care
for the environment and the poor. ELI prompted regulatory changes that have since
enabled electric utilities in Argentina, Peru, South Africa, and the Philippines to sell
CFLs, and lease them to consumers through “pay-on-the-bill” installments. ELI also
worked with national utilities and governments to provide subsidized CFLs as an
integral component of rural electrification programs.
ELI's Quality Mark and Product
Qualification Process
Commercial Financing and Transaction Support for Efficient Lighting
ELI supported commercial financing channels to help overcome the high cost of
providing efficient lighting products and services. Beyond financing efficient lighting to
poorer consumers through utility “pay-on-the-bill” schemes, ELI addressed commercial
sector financing shortfalls by supporting energy service companies (ESCOs). ESCOs
are companies that offer energy efficiency services to third parties paid for by the
savings they generate for their clients. ELI provided ESCO training courses, model
ESCO contracts, and customized project development assistance. For example, in
Latvia, ELI pioneered a business model that mobilizes commercial finance to support
upgrades of public lighting infrastructure.
Bulk Purchases
ELI engaged housing and consumer associations, large offices, and utilities to make
bulk efficient lighting purchases. Harnessing the purchasing power of these groups
drove manufacturers to lower prices and, in turn, stimulated demand for efficient lighting
products. ELI worked with manufacturers and suppliers to establish high quality ELIqualified products as the market standard and product of choice.
Limited Use of Subsidies
Unlike for PELP, ELI limited use of subsidies due to their potentially market-distorting
effects. When used, subsidies only supported short term activities with long term
impacts, such as ELI's public education efforts and helping overcome initial cost-barriers
associated with bulk purchases of efficient lighting.
6
To improve consumer awareness of
high quality efficient lighting, ELI
developed technical specifications for
efficient lighting products, harmonized
with international standards, such as the US
Environmental Protection Agency's Energy Star
Rating. Lighting products, not manufacturers, were
qualified on the basis of performance results from
ELI-approved labs. If up to standard, products could
wear ELI's “green leaf” quality mark on
packaging and participate in ELI-sponsored
promotions and bulk purchase schemes. ELI issued
specifications for several efficient lighting products,
but CFLs for residential use were the most
prominent market. The ELI logo became the
centerpiece of ELI's marketing activities in all seven
countries. Consumers were encouraged to “Look
for the Leaf!” to identify quality, reliability, and
economy in efficient lighting products. Results from
consumer surveys, manufacturers, and retailers
indicate that the ELI logo came to signify a high
quality product. The logo was adopted widely by the
lighting industry in all seven countries with over 200
products from 14 different manufacturers receiving
ELI qualification.
Consumer Education and Marketing
ELI invested $3.7 million promoting
efficient lighting across its seven
countries. Advertising campaigns
were customized to meet market
needs. For example, in the
Philippines, ELI engaged a national celebrity to
promote quality to combat the flourishing black
market of illegally-imported, bad quality CFLs. ELI's
award-winning campaign in the Czech Republic
promoted energy savings, comparing a greedy,
energy-guzzling incandescent bulb to a slim,
energy-efficient lamp. In South Africa, promotions
were conducted in partnership with the Nelson
Mandela Children’s Fund. In Latvia, ELI sponsored
community promotions with municipalities and
manufacturers to introduce a 'new' technology to
consumers who knew little or nothing about efficient
lighting prior to the program. ELI also worked with
hypermarkets, lighting, and hardware stores to
stock the shelves with ELI-qualified lighting
products, further enticing customers with in-store
promotions. These tailored campaigns increased
purchases of efficient lighting in all ELI countries
(see Spotlight on Peru).
7
3
Innovation and Impact
Across its seven countries, ELI sparked the competitive forces that drive market
development—reducing prices, improving availability, and increasing sales of
efficient lighting products. How exactly did ELI achieve this?
ELI's multi-faceted programs leveraged
commercial investment in efficient lighting by
manufacturers; improved distribution to
consumers in partnership with electric utilities;
built market capacity for efficient lighting by
training lighting professionals; and developed
new business models to deliver efficient lighting
benefits. ELI also worked with public agencies
to reinforce lighting standards and change
regulations in support of efficient lighting use.
Innovation and impact defined ELI's work to
effect change by persuading market players to
sell, buy, use, and promote efficient
lighting—not just today, but for a long time to
come.
Leveraging Manufacturer Investment in
Product Development and Marketing for
Efficient Lighting
One of ELI's distinguishing features is the
extent to which it engaged lighting
manufacturers to invest in developing and
marketing efficient lighting products. ELI's
voluntary qualification process and logo,
supported by high profile marketing campaigns,
provided an umbrella for these efforts.
Manufacturers sought to position their brands to
capitalize on ELI-stimulated market growth. The
major players valued ELI as a credible third
party able to highlight the quality of their
products and weed out poor imitations that
8
threatened to spoil the market. Small producers
used their ELI-qualified products to compete on
a level playing field with the major
manufacturers, increasing circulation of their
high quality, “no name” brands.
This level of cooperation enabled ELI to
stimulate industry investment in market
development for efficient lighting. In all
countries, manufacturers designed expanded
advertising campaigns around ELI's promotional
material. Manufacturers offered their ELIqualified CFLs at deep discounts to participate
in ELI's bulk purchasing schemes, and in-store
promotions (a manufacturer in Hungary reduced
prices by 50 percent).
As ELI stirred up demand, manufacturers
improved existing products so they could don
ELI's “green leaf” logo. In the Philippines, a
major manufacturer improved the quality of its
best-selling CFL from 3,000 to 6,000 hours to
gain ELI-qualification. The company then
remarketed the product with the ELI logo. This
was a significant achievement for ELI, as the
lamp was sold throughout Southeast Asia,
increasing ELI's impact beyond the borders of
its target countries.
Powerful Partnerships with Electric Utilities
Improve Access to Efficient Lighting
ELI's partnerships with electric utilities illustrate
its effectiveness in cultivating the shared
Spotlight on Argentina:
ELI Provides Consumers
Affordable Efficient Lighting
during an Economic Crisis
How did ELI increase sales of high-cost, imported
efficient lighting products by 400 percent in the
midst of economic crisis, when the peso lost 300
percent of its value against the dollar, and created
a large impoverished class? ELI truly tangoed
with the Argentine market, responding to the new
dynamic by changing its strategy to mobilize
consumer financing for efficient lighting through
electric utilities.
Innovation: ELI encouraged manufacturers to
compete for utility supply contracts by offering
their ELI-qualified CFLs in bulk at high discounts.
Competing brands that did not win the tenders
often matched the winning price in the stores.
Bolstered by extensive public education and
promotions, ELI made efficient lighting widely
desirable, available, and affordable to residential
consumers.
Impact: ELI's interventions caused Argentine
imports of CFLs to jump from 1 million in 2000 to
5.1 million by 2003. Simultaneously, the price of
CFLs dropped from an average $23 each to $3.
Sales of ELI-qualified products reached over 9
million people—about 23 percent of the
population. As a result of this market shift,
Argentina is projected to save an estimated
6,000,000 tonnes of C02 over the next ten years. If
aggregated, these carbon savings have a market
value of $30 million, at the current average price
of $5 per tonne.
interests of disparate market players. Utility
partnerships increased the availability of efficient
lighting by addressing the high 'first-cost' barrier to
consumers. As part of demand-side management
programs (see ELI Toolbox, p. 6-7) utilities in
Argentina and South Africa offered discounted
CFLs to customers, often financed on utility bills.
In promoting low-cost CFLs, and their related
energy savings, utilities reduced financial losses.
A pilot effort in Argentina, focused on low-income
communities, found that CFL-generated energy
savings reduced utility bills by 20 percent on
average. This led bill non-payment to decrease by
35 percent. Buoyed by such experiences, five
Argentine utilities have extended efficient lighting
offerings to 60 percent of the residential lighting
market (see Spotlight on Argentina).
ELI Spurs Economic Development: Extending
Modern Energy Services to the Poor
Efficient lighting not only yields economic benefits
by reducing electricity costs, but allows limited
electricity resources to be stretched to provide
more services to more people. This has a
profound effect in countries struggling to provide
modern energy services—including life-altering
lighting and refrigeration—to large, un-electrified
populations. In most countries, ELI was a vehicle
to deliver modern energy products and services to
low-income communities to improve their lives.
For example, in Latvia, Peru, and South Africa,
ELI promoted public lighting upgrades that
improved safety in towns and rural areas, and
reduced costs for municipalities. ELI's efforts to
increase access to lighting services through
energy savings have provided tangible life
improvements throughout the ELI countries,
especially to the South African poor. (see Spotlight
on South Africa).
Central to South Africa's strategy for expanding access to electricity to the
country's disadvantaged communities, the Electricity Basic Support Services Tariff
(EBSST) promised the poorest households 50 kilowatt hours (kWh) of free
electricity a month. The challenge for ESKOM (the national utility and ELI's
implementation partner) was to implement this project on a national scale without
the benefit of increased electricity revenues. Further, the corresponding increase
in peak demand was likely to stretch grid capacity t o d a n g e r o u s l e v e l s .
Spotlight on
South Africa:
ELI Lights Up
Impoverished
Communities
Innovation: ELI saw this as an opportunity to accelerate efficient lighting
to the poor. In an ELI pilot to four townships, ESKOM provided households
with two 15-watt CFLs, while reducing the allocation of free electricity to
40kWh. This reduced the amount of electricity used by 20 percent, while
the new customers gained 400 percent more light in their energy quota,
thanks to ELI's efficient bulbs.
Impact: The pilot provides an important model for wider use as South
Africa struggles to expand electricity services to a potential six million
“poverty tariff” customers over the next fifteen years. Estimated energy savings
through ELI's sustainable solution would be 720 GWh, enough to serve an
additional 1.5 million customers. The government is now evaluating this option for
national implementation.
9
ELI's course on efficient street lighting was
accompanied by a technical manual in the Czech
Republic. In Latvia, ELI invented words for
efficient lighting that did not yet exist in Latvian.
In Hungary, ELI focused on electricians, who are
highly influential in selecting and installing light
fixtures. Many of ELI's courses are still being
offered today. In South Africa, ELI's curricula
met with such demand that it was adopted
permanently by a number of universities and
technical colleges.
Training alone is not enough to build sustainable
market capacity. In light of this, ELI generated
new business models to enhance the uptake of
efficient lighting beyond the bulbs alone. For
example, in the Czech Republic and South
Africa, ELI worked with lighting designers and
luminaire manufacturers to develop new product
designs for consumers to use with efficient
lamps. Several models are now in commercial
production.
10
Spotlight on Peru:
Impact of ELI on Sales of CFLs and
Incandescent Lamps, Peru
In Peru, ELI triggered huge per capita sales
growth in a low-income market, where
perceptions of efficient lighting were previously
negative.
18,500,000
7,000,000
18,000,000
6,000,000
17,500,000
5,000,000
17,000,000
4,000,000
16,500,000
16,000,000
3,000,000
15,500,000
15,000,000
2,000,000
1,000,000
$3.75/
CFL
$10/
CFL
0
Innovation: ELI promoted CFLs heavily at
retail stores with three major manufacturers.
Reinforced by substantial advertising
campaigns in newspapers, and on radio and
TV, ELI yielded astonishing results, with
complex implications…
Impact: ELI's initial market assessment of
Peru in 1999, showed yearly CFL sales flat at
270,000, with no growth expected.
Preliminary results following ELI's four-year
program show that annual CFL sales
14,500,000
14,000,000
Incandescent Lamps Sales
(Units)
ELI Triggers
Huge Sales Growth
for Efficient Lighting
CFLs Sales (Units)
Beyond the Bulb: Building Capacity to
Design and Deliver Efficient Lighting
Lighting professionals—including engineers,
technicians, architects, and designers—are an
important group whose decisions today will have
an impact on energy consumption well into the
future. Recognizing this, ELI established
partnerships with technical schools, universities,
and professional associations, in addition to
designing efficient lighting curricula, training, and
learning materials.
13,500,000
1999
2000
Sales of CFLs
2001
2002
2003
Sales of Incandescent Lamps
Source:
IFC
Market
Assessment,
ELI Independent
Monitoring
and Ev aluation
Report
Source:
IFC
Market
Assessment,
ELI Independent
Monitoring
and Evaluation
Report
increased twenty times to almost 5,800,000 by 2003, while
sales of incandescents decreased 17 percent. However, a
high percentage—76 percent—of these sales were nonELI-qualified CFLs from unknown brands that undercut the
prices of ELI-qualified products. IFC's long term evaluation
study will assess the lasting impact of these market
dynamics and widespread use of low quality efficient
lighting in Peru.
ELI Energizes National Regulations,
Standards, and Institutions for Efficient
Lighting
ELI was positioned to make a big impact on the
lighting market as convener and provider of
technical information to government regulators,
standards agencies, and independent
organizations. ELI worked across the seven
countries to strengthen existing institutions to
promote efficient lighting—in some instances
creating new organizations. One of these, the
National Council for Energy-Efficient Lighting in
the Philippines, a high-profile private-public
partnership, continues to support market
development today. In Peru, Argentina, and the
Philippines, ELI promoted regulatory change that
enabled utilities to diversify their business while
improving their management of system demand
(see Spotlight on the Philippines).
Spotlight on
the Philippines:
ELI Powers
Regulatory Change
In the Philippines, ELI built coalitions of regulators,
lighting manufacturers and electric utilities to build
consensus for efficient lighting as a strategy to
manage electricity demand and expand provision
of modern electricity services across the
archipelago nation.
Innovation: Leveraging IFC's “honest broker”
role, ELI convened over 70 organizations to
promote efficient lighting—from government
agencies and power producers, to
environmentalists and consumer groups. Efficient
lighting emerged as the primary choice for utilities
to manage electricity use due to its direct impact
on reducing demand in the residential,
commercial, and street lighting sectors.
Impact: Once the new regulatory framework is
fully implemented, potential energy savings in the
Philippines could amount to 62 terrawatt hours
(TWh) per year by 2016, with 12 GWh hours
shaved off peak demand. This amounts to
approximately 24,000,000 tonnes of CO2 per
year, with an aggregated market value of $120
million at the current average price of $5 per
tonne. Manila Electric (MERALCO), one of the
Philippines largest utilities, has already committed
to developing a “Smartlight” CFL program that will
cover three million residential customers in
Metropolitan Manila.
11
4
The ELI Legacy
A dynamic program, implemented across four continents, in seven
countries, involving myriad stakeholders—ELI demonstrated sustained
innovation and impact in each of its markets. Far from following a static
workplan, ELI remained nimble, enabling it to capitalize on market
opportunities as they unfolded, refocus ineffective strategies, and assess
long term program impacts. ELI's legacy highlights the cumulative
contribution of these efforts to transform markets for efficient lighting
globally.
The ELI legacy lives on in three ways:
» First, ELI catalyzed market change rooted in
»
»
market fora. This empowered many different
market actors to promote efficient lighting in
their own special interests;
Second, ELI planted the institutional and
professional seeds in each country to
support ongoing growth of efficient lighting
markets well into the future;
Third, ELI is evolving to its next
incarnation—a self-sustaining, global
certification process to support market
development for an expanded range of
efficient lighting technology worldwide.
Fertile Ground for Market Development
Looking back on three years of implementation,
one paradigm emerges: ELI was most effective
when it empowered existing market actors to
become agents of change for efficient lighting.
ELI's collaborations worked to mutual
benefit—spotlighting ways in which efficient
lighting is in the interest of manufacturers,
utilities, retailers, and consumers, while
furthering ELI's goal to accelerate market
12
growth for efficient lighting. These efforts were
magnified by ELI's implementation
partners—whether utility companies,
independent consultancies or NGOs—who
gained the trust of others in the lighting market
and increased “buy-in” to ELI's activities.
ELI focused on activities that went beyond the
individual reach of these market actors. Acting
as an “honest broker”, ELI provided credible
public information, independent qualification for
high-quality products, and acted as a conduit
for others to lobby for regulatory and
institutional change. This allowed market
players to do what they do best: manufacturers
developed and marketed new products;
retailers put these products into consumers'
hands; utilities built stronger connections with
their customer base; and people bought lamps
that burned brighter and longer, at a lower cost.
ELI cultivated links throughout the lighting
supply chain to lever long term market
preferences toward efficient lighting, changes
that remain institutionalized in the market
today.
Planting the Seeds: Nurturing Sustainable
Market Capacity for Efficient Lighting
The second part of ELI's legacy is the sustained
commercial and professional capacity the
program built for efficient lighting as its partners
developed expertise in new areas. Government
regulators, standards and testing agencies
expanded their focus to limit low performance
and inefficient lighting technology. Small
manufacturers improved product quality and
marketing capacity as ELI's activities energized
their businesses. Technicians, engineers, and
municipal decision-makers were trained by ELI to
factor efficient lighting into their day-to-day work.
ELI generated new business models for luminaire
designers to extend their product lines to cover
efficient lighting services, and for ESCOs to
provide energy-efficient lighting to towns and
municipalities.
In these ways, ELI made a range of influential
market actors amenable to the benefits of
efficient lighting technology. In most countries,
ELI continues to influence these market players
through the ongoing use of ELI's product
qualification process and logo, and continued
delivery of professional training and education.
ELI planted the seeds to grow a generation of
efficient lighting practitioners and users in
countries where awareness of energy efficiency
was formerly low.
The ELI Tree Grows Global: Building
Sustainable Value for ELI's Quality Mark
The “Green Leaf” Lives On
ELI created substantial value for the logo as a
symbol of high quality efficient lighting products,
both within and outside ELI countries. The logo
was adopted widely by manufacturers and
retailers in all ELI's countries during the course of
the program, and is still used today by some
manufacturers in the Czech Republic, Argentina,
South Africa, and the Philippines on product
packaging and marketing materials.
The product qualification process also established
a presence for ELI beyond the borders of its own
countries. IFC has fielded inquiries from Africa,
Asia, and Latin America, where governments and
utilities are eager to adopt ELI's quality
specifications and approved product list for their
own bulk purchasing programs.
Other efficient lighting initiatives are also keeping
ELI's product specifications alive. The Philippine
Department of Energy is using ELI specifications
for the United Nations Development Program
(UNDP)/GEF Philippine Efficient Lighting
Transformation Project. The UNDP/GEF Vietnam
Energy Efficient Lighting Project has also used the
ELI qualification process as a model for its own
market transformation efforts.
The Light Shines On:
The Next Generation of ELI
In response to groundswell demand from
manufacturers, consumers, and national
programs, IFC is using ELI as a springboard to
launch a self-sustaining, fee-based, quality
certification service for efficient lighting products
worldwide, with an emphasis on developing
countries.
ELI will live on as the 'ELI Certification Institute',
administered by the China Standard Certification
Center (CSC). The Institute's work will be built
around ELI's quality mark and sustained by
manufacturers. CSC will build on institutional
partnerships established in the ELI countries to
extend product certification to an expanding range
of efficient lighting technologies worldwide. This
includes promoting the adoption of promising new
technologies, such as light-emitting diodes (LEDs).
The Certification Institute will provide an important
link between the Asian manufacturer base, which
dominates the lighting industry, and the developing
country markets that it serves. Through the
Institute, ELI will continue to light the way on
market development for efficient lighting across
the globe for many years to come.
important role in the uptake of efficient lighting
globally.
ELI was a pioneer not just for the GEF, but also
within IFC, where the Corporation went beyond
its traditional direct investment role to support
early market development for new technologies
with high sustainability impacts. Significantly,
since ELI was launched, IFC has moved the
concept of sustainability—including
environmental sustainability—to the core of its
business strategy to deepen IFC's development
impact in line with its mission. IFC/GEF
collaborations like ELI prepare markets for
private sector investment and position IFC at
the head of the development curve for
technologies with significant sustainable
development potential. The ELI experience
illustrates the alignment of GEF’s global
environment interests with the capabilities and
strategic interests of IFC. By identifying private
sector actors’ self-interests, the power of the
market can help find solutions to challenging
problems facing the world in achieving
sustainable development.
Reflections on ELI
The ELI experiment was a success, both as a
testing ground for market transformation strategies
globally, and in its immediate market impacts.
ELI’s monitoring and evaluation program will
continue to document lessons learned from ELI for
the benefit of the global development community.
In addition to the institutional capacity established
during the program in the ELI countries, the ELI
Certification Institute will continue to play an
13
5
Acknowledgments
The ELI Story Team
Written by: Emily Horgan, Russell Sturm, and Sabrina Birner
Designed by: Vanessa Manuel
Additional thanks to: Fabio Nehme, Alan Miller, Maria
Gallegos, Sam Keller, and Dana Lane
Photo Credits
Alex Ablaza
Steve Beeson
Andra Blumberga
Barry Bredenkamp
Davin Greenwell
Jan Konig
Ruben Lambuson
Jose Maria Lopez
Gary Poyner
Russell Sturm
Wrexham County Borough Council
ELI Czech Republic
Lic. Daniela Auerbach, Martin Dasek, Michael Donkelaar,
Miroslav Florian, Martin Hajek, Pavel Karnik, Jan “Honza”
Koenig, Juraj Krivosik, Jaroslav Marousek, Petra
Neuwirthova, Ivana Svojtkova, Tomas Špirek, Miroslav
Votapek
ELI-Hungary
Géza Bakoss, Rózsa Bradák, Gábor Gáti, József
Horotyák, István Kovacsics, Zoltán Lontay, Katalin
Meskó, Erika Pintér, Elek Turda
ELI Global Management Team
Global Program Manager: Russell Sturm
Technical Advisors: Kathryn Conway,
Christopher Granda
Regional Coordinators: Sabrina Birner,
Sam Keller, Ted Flanigan, Carol Mulholland
Program Concept Developers: Dana Younger, Kelly Gordon
ELI Latvia
Dr. Hab. Sc. Ing. Blumberga, Dr. Andra Blumberga, Dr.
Hab. Sc. Ing. Ivars Veidenbergs, MBA Laura Vecvagare,
Ing. Pauls Krievins, M.Sc.Ing. Juris Ozolins, M.Sc.Ing.
Claudio Rochas, Romans Barmotins, Edgars Dukalskis,
M.E. Andra Feldmane, Arita Berzina, Zane Upmane,
Martins Jonass, Anna Šèerbaka, Inga Smilga
ELI Local Implementation Teams
ELI Peru
Ing. Luis Haro Zavaleta, Miss Erika Beyer, Mr. Juan
Miguel Coriat, Engineer Carlos Centeno Zavala, Mrs.
Sara Morla, Economist Hector Sanchez, Mr. Reynaldo
Aragon, Mr. Dante Ojeda, Mr. Elio Landauro, Mr. Jaime
Ponce, Mr. Daniel Lozano, Engineer Francisco Caycho,
Mr. Jose Yui, Mr. Walter Fegan, Mr. Roberto Murillo, Mr.
Jorge Velasquez, Miss Roxana Caceres
Europe Regional Management
Jens Demuth
Asia/Africa Regional Management
Mamen Salas, Jesus Lopez-Cotarelo, Jose Maria Lopez,
Pepe Hurtado
14
ELI-Argentina
Ing. Alberto Arrigoni, Lic. Alejandro Esquivel,
Dr. Gautam Dutt, Ms. Karina Jurajda Mr. Daniel
Mendiburu, Ing. Diego Pasjalidis, Ms. Mariela Barbotta,
Lic. Adrian Peragallo, Ing. Esteban Conti, Lic. Alejandra
del Rio
ELI Philippines
Alex Ablaza, Ruben Lambuson, Camilla
Natasha Villegas, Florvi Villaescusa, Maria
Theresa Ragasa, Mirko Moeller, Randee
Almond Gabriel, Jay Jerrick Go
ELI South Africa
Peter Kgame, Barry Bredenkamp, Naas
Jordan, Mmemezi Dlamini, Nad Perumaul,
Bob Price, Mpho Makhetha, Helen Roos
ELI Cross-Cutting Activities
International Institute for Energy
Conservation (IIEC) (Product Certification:
Sommai Phon-amnuaisuk)
ELI Monitoring and Evaluation
Martin Adelaar, Barbara Atkinson, Luisa
Freeman, Rafael Friedman, Joseph S.
Lopes, Iris Sulyma, Ken Tiedemann,
Edward Vine
In Memoriam
Mirko Mueller, Janos Pollich, Doug Kuffel
partners of the ELI family who passed away
during the life of the program.
In Celebration
Eli Sturm (who is as old as ELI), Macarena
Salas, and Ulysses Tiber Dalton who joined
the ELI family as rays of light for the future.
For more information, contact:
Russell Sturm
ELI Global Program Manager
International Finance Corporation
Email [email protected]
www.ifc.org
Copyright (c) 2005
International Finance Corporation
2121 Pennsylvania Avenue, N.W.
Washington, D.C. 20433, USA
www.ifc.org
Li Tienan
ELI Quality Certification Institute
China Standard Certification Center
Email [email protected]
Environmentally friendly printing on recycled paper using vegetable-based ink
www.efficientlighting.net
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent
to the Manager, Corporate Relations, IFC, at the address shown in the copyright notice above. IFC encourages
dissemination of its work and will normally give permission promptly and, when the reproduction is for
noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through
the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, USA
2121 Pennsylvania Avenue, N.W.
Washington, DC 20433, USA
Telephone 202-473-3800
Fax 202-974-4384
www.ifc.org