The IFC/GEF Efficient Lighting Initiative (ELI)
2003 FAQ update

What kind of strategies did ELI use?
Based on experience of past energy-efficient lighting programs, ELI assembled a “toolbox” of approaches that participating countries could adapt to local conditions in order to develop their own energy-efficient lighting markets. These tools were:

1. Public Education, Marketing and Standards – Sponsor and conduct public education campaigns, facilitate the development of technical standards and labeling, and provide a marketing umbrella under which lighting manufacturers and other partners can launch expanded product promotions and advertising campaigns. Form advisory committees to bring together non-governmental organizations (NGOs), government agencies, industry and technical professionals to help structure and support country-specific opportunities.
   
2. Electricity Distribution Utility Programs – Partner with electricity distribution companies to promote investments in energy efficient lighting as part of a demand-side management (DSM) strategy for the electricity sector, tailored to prevailing tariff structures, regulatory systems, utility business conditions and electrification programs in each country.
   
3. Transaction Support and Financing –Aggregate small projects to increase the demand for capital. Leverage program funds through innovative credit structures, and demonstrate commercial models of consumer finance for replication by local financial institutions. Arrangements could include utility bills, microcredit organizations and paycheck billing. Address commercial-sector financing issues energy service companies (ESCOs) and other financial vehicles.
   
4. Market Aggregation – Pool the purchasing power of residential housing organizations, consumer associations and large employers to lower prices for efficient lighting products and strengthen delivery mechanisms. Engage lighting manufacturers and suppliers to substitute low-efficiency lighting with high-efficiency products.
   
5. Financial Incentives – Use targeted subsidies as a coordinated element in short-term promotions, to support public education efforts and to overcome initial cost barriers in selected transactions and market aggregation activities.