EFFICIENT LIGHTING INITIATIVE
PERU FINAL REPORT
Lima, February 2004
Efficient Lighting Initiative
Peru Final Report
I. Executive Summary
The Efficient Lighting Initiative (ELI) initiated activities in Peru in August 1999, with the
objective of developing the Peruvian efficient lighting market. A preliminary evaluation
indicated a market characterized by yearly CFL sales under half a million units versus HID
(Incandescent) sales of over twenty million units per year. The market for linear
fluorescents was dominated by T12 tubes with a very small penetration of T8 tubes,
These results were confirmed by an initial market study which estimated 1999 CFL sales
below 273,000 units, 80 % of which were provided by well known brands and the rest from
other brands that did not offer guarantees for their products. The penetration of other
efficient lighting technologies, like T8 linear fluorescents, was very low, except for high
pressure sodium steam lamps whose usage for Public Lighting (PL) was increasing, in part
due to the electric service regulations that gave incentives to DISCOs to be efficient in
providing this service, which is under their responsibility.
After 4 years of ELI Program activities the Peruvian lighting market has experienced a
complete change characterized by the following facts:
CFL sales have gradually increased to over 5’774,600 units (5 million 7 seven hundred
seventy four thousand and six hundred units) in 2003. The sales of ELI certified CFLs
amount to 299,412 units (5.3%), while the sales of CFLs from known brands (likely to
obtain guaranty) were of 1´080,069 (18.7%) units. The sale of non-certified CFLs from
unknown brands, that do not offer guaranties for the quality of their products, represents
76% of the market.
CFL prices have been reduced from between US $ 9.00 to US $12.00, at the beginning
of the ELI Program, to between US $ 3.50 to US $ 4.00 in 2003, for ELI certified CFLs
(non ELI certified 15 watt CFLs prices range from US $1.00 and up).
The ELI public marketing campaigns, launched through television, radio, journals and
magazines, contributed to disseminate, among the public, the advantages and benefits of
efficient lighting technologies. According with the last post-publicity test done last
December, 76% of the public expressed their interest in acquiring CFLs.
The initial public perception about CFLs has changed, from considering them as
“expensive and short lasting bad quality products”, to conceptualize them as “mature
new technology products yielding considerable energy and money savings”.
In association with Peruvian universities and technical education institutions, more than
57 educational events were organized, involving more than 3,518 technicians,
professionals, and students of engineering and architecture. It is expected that these
training courses will have a multiplying effect, reaching a minimum of another 1387
The execution of more than 600 lighting retrofit studies done in industrial, commercial
and institutional buildings, determining the economical benefits of changing their
lighting systems for efficient lighting. In total, 41 institutions and companies have
implemented the projects by themselves and another 39 manifested their interest in
Active participation of the mayor lighting distributors, like Philips, OSRAM, General
Electric, as well as Maxlite, and Land Lite, and lately Duraluz, in ELI organized
Increased market competitiveness, with presence of the main lighting distributors and
the entrance of new brands with ELI certified products, (Maxlite, Land Lite and
Duraluz; Indo Asian, an Indian manufacturer, went through the whole process of
certifying their products for the Peruvian market, but are not yet in the market).
Participation of the main electrical distribution utilities (Distribution Companies –
DISCOs) in CFL sale campaigns, aimed to their personnel and customers.
Introduction of the use of CFLs in Public Lighting, with a large potential to increase the
use of CFL for this service. As part of this Plan, the Program has signed agreements
with 13 DISCOs (almost all DISCOs in Peru) and a community located in the jungle, to
execute pilot projects in populations with different weather and geographical
The initial strategy followed in Peru considered the participation of the DISCOs to directly
commercialize CFLs to their customers, which required Government authorization;
however, this authorization has not yet been granted, in spite of the interest expressed by
The strategy was therefore changed and reoriented to work with the traditional channel of
lighting distribution, large retail stores, super markets, large institutions, and DISCOs
(while continuing work with the Government to get the required authorization). The
implementation of this strategy began with the signing of agreements with the main CFL
distributors (Philips, GE and OSRAM) and promotions in supermarkets and large retail
In the second half of 2001 Edelnor, the DISCO for the northern area of Lima, responsible
for the execution of the Program in Peru, decided to allow CFL distributors to sell CFL, at
reduced cash prices, directly to the DISCO customers in their customer service offices,
making available new points of sale. After the initial success with this strategy, more new
CFL brands, as well as other Lima DISCOs decided to participate in these activities, while
provincial DISCOs are gradually deciding to participate. Total CFL sales in DISCO offices,
are close to 200,000 units, however the main effect was to catalyze sales in the Peruvian
It is important to mention that due to the initial high CFL prices (compared to HID lamp
prices), and the low income level of most of the Peruvian families, the campaigns were
oriented to the medium and high income sectors of the population. However, due in part to
the reduced price of the CFLs offered by the lighting distributors, the sales at the DISCO
offices were mostly to low income customers.
The Peruvian CFL market has grown 172% the year 2000, 73% in 2001, 118% in 2002 and
106% in 2003.
Also, Edelnor gave ELI access to its larger customers, to perform lighting retrofit projects.
As a result, more than 600 retrofit studies were done for businesses, factories and
institutions in Lima.
With regards to mass marketing, it was oriented to the general public and was designed in
The first stage was oriented to introduce ELI and position CFLs as energy efficient
lamps before the public. It accomplished its objective partially, due to the fact that there
was not commitment from lighting distributors to participate in ELI organized
The second stage, oriented to show the energy consumption and economical benefits of
CFLs was delayed in order to get the participation of lighting distributors, and was
released in the second half of 2001, helping to boost the market, even though at this
time DISCO´s were not yet engaged in any of ELI activities.
The third stage, launched in 2002 was oriented to show the advantages of ELI certified
CFLs, through the guaranteed long CFL lasting time feature. In 2003 a short marketing
campaign was launched to complement this stage, and was oriented to emphasize the
value of the ELI logo as guarantee of high quality and long lasting life for efficient
lighting products. However the level of penetration of the ELI logo as a quality symbol
is still low and some more work has still to be done to position the ELI logo in the mind
The first stages of the marketing campaign were done through television, radio, journals
and newspapers, while the 2003 campaign used only national and local radio, as well as
popular local newspapers, resulting in a cheaper and effective marketing. The Program
marketing campaigns received the PADIS award in 2001 and the EFFIE award in
The educational activities were oriented to the general public, through mass media
marketing campaigns, and to the technical and professional level, through universities,
technical education and large commercial and industrial institutions. The school level
education was left to the “Programa de Ahorro de Energia” (PAE) of the Ministry of
Energy and Mines, who had already been working with the Ministry of Education in
elementary and high schools. The activities with universities were focused at first only to
academic matters; later however, it evolved to include other activities like CFL sales to
university personnel and people in general, and also to the training of students, technicians
and professional to perform retrofit studies in businesses, factories and institutions, as an
initial seed for future ESCOs.
The Program has supported certified CFL´s distributors by providing them with more than
1´000,000 holographic stickers with the ELI logo.
1. Eli Goals:
The initial ELI goals for Peru were, to:
Expand the market for CFLs to steady yearly sales of 2´000,000.00 units. This goal was
surpassed; sales have increased more than twenty times.
Increase the penetration of T8 linear fluorescents. From the year 2000 to the year 2003,
the sales of 18watt and 36 watt T8 tubes have increased 76% (from 393,433 units to
693,862 units), while the sale of T12 tubes have increased 32.9 %, (from 3´311,978
units to 4´401,705 units) in the same period. This is due in part to the fact that the
advantages of T8 tubes are still ignored by the customers, who prefer the older T12
tubes, and also because the manufactures and producers are pushing their sale (even
Philips, that in 1999 had decided to withdraw T12 tubes from the market has returned to
Reduce CFL prices to US $6.5 for 6000 hour 20w CFLs. The actual prices for ELI
certified CFLs in the Peruvian market are in the order of US $ 3.5, while non ELI
certified CFLs of lower lasting life can be found at prices between US $ 1.5 to US $
Promote competition in the Peruvian high quality lighting market through the
introduction of at least three new brands in the market. Since August 1999, three new
brand certified CFL are present in the Peruvian market: Maxlite (they are no longer in
the market because their agreement with their local distributor – Lumicenter – ended,
and do not have another distributor) Land Lite and Duraluz. Indo Asian, a manufacturer
from India completed the certification procedure but are not yet in the market.
Execute market aggregation programs with large private and government institutions.
The activities organized with DISCOs and universities include CFL sales to their
personnel. In Edelnor, three rounds of sales to the personnel were executed, with
participation of Philips and Osram. In Luz del Sur the personnel acquired CFLs the
same way as clients, while in Electro Norte and Electro Sur Este special programs were
implemented for the personnel. In universities (UNI and San Marcos in Lima , Callao,
Piura, Huancayo, Ica, Arequipa and Cuzco) and other DISCOs (Electro Nor Oeste,
Electro Norte, Electro Norte Medio – Hidrandina, Electro Sur Medio, Electro Sur Oeste
– SEAL and Electro Sur) the agreements signed include the sale of CFL to their
Promote lighting retrofitting in 8 large private and government institutions. Lighting
retrofitting studies were done for 7 Navy buildings (that has been gradually
implemented), the Peruvian Army and the Wood Innovation Center (CITE Madera) of
the Ministry of Industry (that were implemented with the support of Luz del Sur
DISCO). Other studies were done for the Archeological Museum of Lima, the
universities of San Marcos, Nacional de Ingeniería and del Pacifico in Lima, and the
universities of Piura, Arequipa, Cuzco, Huancayo and Ica. Also, with the partnership of
the Edelnor, that gave ELI access to its larger customers, more than 600 projects were
done in industrial, commercial and institutional buildings, determining the economical
benefits of changing their lighting systems for efficient lighting. From these, 38
companies have implemented the projects and 39 more plan to implement them.
Develop an educational campaign involving two Lima universities. The professional
courses organized by ELI, have the participation of professionals, technicians and
students of ten universities. Agreements have been signed with 8 national universities to
execute, among other, educational activities.
2. Administrative Arrangements
ELI Program in Peru was executed by Edelnor, an Endesa Group company, in charge of the
electrical distribution service in the Northern Area of Lima. Edelnor signed a contract with
Endesa International in April 24 of 2000.
Edelnor appointed Engineer Luis Haro Zavaleta, manager of “Tariffs and Energy Supply
Purchases” to lead the Peruvian team, as Regional Manager of the Program, what initially
included the administration of the Argentinean Program. Since February 2002, the work
status of Mr. Haro changed, being hired under fixed term contract to take charge
exclusively of the ELI Peru Program.
The administrative, legal and accounting support was supplied by Edelnor, along with the
infrastructure, including local, communications, access to the company computer
equipment and systems, as well as telephone, fax, software and computing support. For that
support, a fee was included in the Program budget (this fee has been gradually reduced to
allow the completion of the Program activities, within the bounds of the assigned
Administrative Budget). Any other support or service, supplied on the basis of competition
with other suppliers, has been billed directly to the Program.
Endesa gave overall administrative and financial support, especially to take charge of all
the financial matters with IFC (like the reimbursement of funds) through the appointment
of Doctor Julio Lopez Cataño (who was replaced by Rodolfo Riesnick in September 2000).
Also, Endesa provided technical support, advising on the Program, marketing,
communication and training strategies, and on alternatives for final consumer financing, as
well as helping to design the mechanisms to promote the participation of DISCOs, and
whenever they were required by the Peruvian team. This support was supplied mainly by
Engineer Javier Lopez de Pinillos, through mail or telephone.
For the execution of the marketing campaign an invitation was made to local well known,
experienced publicity agencies (most of them with ties to international publicity and
marketing agencies) to present proposals. After evaluating the proposals The Agency Gray
Communications Group - GCG Peru S.A., was selected.
For designing and executing the Professional education activity, after inviting three
professionals to present proposals, ELI signed a contract with engineer Fernando
Dorregaray, as Educational Advisor. He was charged with the task of:
- Investigating the status of lighting courses at Peruvian universities and technological
- Design lighting curses content for introduction in the curricula of the universities.
- Promote agreements with universities.
- Organize and implement courses, as well as presentations for professors, professionals,
technicians, students, managers, and public in general, of universities, technological
institutions and other organizations.
To perform these tasks, he got the services of lighting specialists and university professors.
Before the participation of engineer Dorregaray, the Program participated in the IV Course
on Energy Efficiency organized by Universidad Nacional de Ingenieria – UNI, in Lima,
hiring lighting specialists like engineer Gonzalo Bardalez to participate on behalf of ELI.
For the execution of the Professional Lighting activities (retrofitting studies), also after
evaluating proposals of invited companies and professionals, the Program selected the
company COVERSA to performed lighting audits in Edelnor´s large clients installations.
For reviewing the methodology and supervising the professional COVERSA retrofit
studies, ELI hired architect César Jhusey, who was one of the invited professionals to
present proposals. He was also charged with the task of organizing and directing retrofitting
studies for the National Archeological Museum, and the universities (for the latter, he
organized teams with students, professors and technicians from the universities to
participate in the studies, coordinated their training and supervised the studies).
The Navy, Army and CITE Madera retrofitting studies were done directly by ELI staff with
the participation of engineer Ivan Cruz, and technical personnel of Edelnor. After the study
was handed to the Navy authorities, it has been implemented gradually. The Army and the
CITE Madera studies were implemented by those institutions with the participation of Luz
For the Public Lighting activities, which were implemented since December 2002, ELI
hired Mr. Jose Cardenas, lighting specialist with experience in Public Lighting. He, with
the support of engineer Jose Cervantes of General Electric, prepared a proposal for modify
the Public Lighting Normative to adapt it to the conditions and lighting needs of marginal
urban areas, and rural populations. The proposal was signed by the Ministry of Energy and
Mines in January 2004, after being posted in the Ministry’s web page, for observations and
comments from interested parties.
Also, with the sponsorship of ELI, the public lighting specialists designed a luminaire with
a plastic cover, for the use of CFLs, and coordinated the realization of pilot projects for
testing the luminaires in populations with different environmental and geographical
conditions. ELI has signed agreements with almost all DISCOs in Peru for executing the
pilot projects in populations in their concession area, and the specialists participate
supervising the installation of the luminaires.
For the initial lighting marketing study, done in 1999, ELI contracted with CENERGIA, a
government consulting agency. The second and third market studies, covering the market to
July 2002 (later it was completed to December 2002) and the year 2003 respectively, was
done by Analistas y Consultores - A&C, after evaluating proposals of invited companies.
Also, post publicity and promotional campaigns tests were done by Synapsis, an Endesa
Group company and A&C, after competing with other companies. Deloitte & Touche did
the Audits of the Program.
All other activities were done directly by the ELI team, hiring outside specific consultants
IFC and GEF, as part of the World Bank have a tax exemption agreement with the Peruvian
Government. However it was not possible for the Program to get the exemption, because
for that it was required that the direct funding organization (IFC) had a local office.
3. Staffing issues
The following personnel integrated the initial Peruvian team:
- Engineer Luis Haro Zavaleta, ELI Regional Manager in charge of the organization and
administration of the Program in Peru and Argentina (the latter until October 2000,
when engineer Alberto Arrigoni was appointed by Edesur of Argentina as new Country
Manager, in place of Mr. Marcelo Anchuvidart). His duties included also, establish and
coordinate the implementation of the strategy for the Program, control and supervise the
activities, as well as participate in the development of the different activities of the
Program, especially those related with the electrical sector and contact with the
- Miss Erika Beyer, Edelnor´s personnel, appointed full time to the Program as secretary
and assistant, in charge of the secretarial and administrative support. A fee was assigned
in the Program’s budget to account for her participation. She has worked for the program
since August 1999 to its end.
- Miss Patricia Palao, also from Edelnor´s personnel, appointed to contribute to the design
of the marketing and publicity of the Program. A fee was also assigned in the Program’s
budget to account for her participation, however she resigned from Edelnor in
September 1999 and the assigned fee was not spent.
- Mr. Juan Miguel Coriat, specialist of the lighting industry, hired as Technical Advisor,
in charge of designing and implementing the strategy related with the industry,
contacting the lighting manufacturers and distributors to get their participation in
Program activities, designing the marketing and publicity for the Program and following
up its implementation, among other duties. He worked in the Program from August 1999
to April 2001, being substituted by engineer Carlos Centeno.
- Mrs. Sara Morla, economist, with experience in the electrical sub sector, transactions
and financing, hired as Transactions and Financial Advisor. She has been responsible
mainly of designing lighting project transactions, proposing and executing alternatives
for lighting products acquisition financing, promoting and negotiating the participation
of DISCOs, as well as contributing to the market monitoring and surveillance of product
quality and ELI logo correct use, and helping in other program tasks, among other. She
worked for the Program since March 2000 to its end.
In a second stage the Peruvian team was reinforced with the following personnel:
- Engineer Carlos Centeno Zavala, a professional with long experience in the electrical
sub sector as well as on marketing and commercialization. He was hired as Technical
Advisor taking up the responsibilities of Mr. Juan Miguel Coriat. He worked for the
Program from May 2001 to September 2002.
- Economist Hector Sanchez, professional with experience in the electrical sub sector,
administration and accounting. He was hired as Assistant Economist in charge of
administering the Program finances and the budget execution, coordinating and
supervising the development of the Program activities, as well as to provide logistic
support to executing the activities and help in other Program activities, among other
duties. He worked for the Program from May 2001 to September 2002.
- Mr. Reynaldo Aragon, media specialist, hired to take care of the publicity for the
Program (getting ELI notes published in newspapers and magazines, as well as free
space in radio and television spots. This activity was before contracted to the GCG
agency). Mr. Aragon worked in 2002 on a pay by task basis.
- To assist in the Program activities, basically in the logistic tasks, the Program got the
services of Mr. Dante Ojeda (for the professional lighting activities), who worked from
September 2001 to February 2002; Mr. Elio Landauro (for the marketing activities) who
worked from May 2002 to March 2003; Mr. Jaime Ponce who worked from February to
September 2003, replacing Mr. Landauro; Mr. Daniel Lozano (for the professional
lighting activities, after Mr. Ojeda, the design of the Peru Program web page, and
communications with ELI on these matters) who worked from May 2002 to September
2003; and Engineer Francisco Caycho (for the demonstrative professional and public
lighting activities) who worked on a pay by task basis.
On a third stage, from September 2002, in order to avoid duplicating efforts, take advantage
of Edelnor´s administrative and economical strength, as well as to optimize the use of the
Program resources, the "Administrative and Logistical" services that Mr. Hector Sanchez
was supplying to the Program, was undertaken by Edelnor´s personnel. For this Edelnor
appointed the Accountant Mr. Jose Yui to take care of the administrative matters, and
engineer Walter Fegan, Edelnor´s commercial executive, to take care of the "Logistical
Support". Those professionals were backed by supporting teams on their respective work
areas (Mr. Roberto Murillo, Mr. Jorge Velasquez and Miss Roxana Caceres).
The Administrative Support Activities done by those teams were:
- Review and supervision and administration of Program budget execución.
- Preparation of conciliatory and reconciliation reports for IFC and request of Program
funds reimbursement to Endesa and IFC.
- Preparation of bills to Endesa, to account for Edelnor´s Professional Services.
- Economical monitoring of Program contracts with subcontractors.
- Coordinate Program Audits.
- Daily control of Program bills paid.
- Monitoring of Payments and program resources.
The Logistic Support Activities were:
- Preparation of Monitoring and Evaluation reports.
- Supervision and evaluation of the Program work plan and schedule of activities.
- Preparation of the Terms of Reference of agreements and contracts to be subscribed by
Edelnor, with subcontractors and partners, on behalf of the Program..
- Monitoring and supervision of contracts and agreements.
- Logistic support for Program campaigns and activities.
- Preparation of Program monthly reports for IFC.
Also, after the resignation of engineer Carlos Centeno, Edelnor appointed Ms. Patty Pazos,
a marketing specialist to take care of the marketing activities of the Program and coordinate
with Edelnor´s Communications Department, the media and publicity support.
Edelnor´s support was charged to the Program budget, resulting in savings for additional
services that were formerly gotten from external suppliers (publicity, logistical and special
Finally, the Program was extended from October 2003 to January 2004, to complete
committed activities and close down the Program. In this period the Program personnel was
integrated by Mr. Haro, Ms. Morla and Miss Beyer, besides the eventual participation of
Mr. Cardenas and Mr. Caycho, for monitoring the installation of the public lighting pilot
projects, and contracting A&C for the final marketing study and the post publicity test, and
Deloitte & Touche for the final Program Audit.
The responsibility of the Program activities were assigned according to the following
Strategy, Supervision and Overall Administration Haro
Relationship with Authorities and DISCOs Haro, Centeno, Morla
Marketing Coriat, Centeno, Haro
Relationship with materials and service suppliers Coriat, Centeno, Sanchéz
Support to traditional commercialization channel Coriat, Centeno, Morla, Haro
Lighting Product Providers Coriat, Centeno
Supermarkets and retail distribution channel Morla, Sanchez
Certification Centeno, Sánchez, Morla
Education Dorregaray, Morla
Financing Morla, Sánchez
Market Aggregation Morla, Sánchez, Haro
Logistic Support Sánchez
Financial Administration Sánchez
Budget Coriat, Sánchez
Public Lighting Haro.
The ELI Program initiated activities in Peru in August 1999, with the objective of
developing the Peruvian efficient lighting market. A preliminary evaluation done, by IFC
functionaries, before the beginning of ELI activities in Peru, indicated an initial market
characterized by yearly CFL sales under half a million units versus HID (Incandescent)
sales of over twenty million units per year. The market for linear fluorescents was
dominated by T12 tubes with a very small penetration of T8 tubes, especially triphosfor
For executing the ELI Program the lighting market was differentiated according with the
sectors in which the program was applied, namely the residential, the professional and the
public lighting markets.
In the residential market, the emphasis was put in promoting the penetration of CFLs,
market competition, entrance of new distributors and price reduction. The strategy for the
professional market was aimed to promote efficient lighting through the use of standard and
Triphosfor T8 linear fluorescents, low loss electromagnetic and electronic ballasts, and the
promotion of energy service companies (ESCOs).
The initial Work Plan contemplated subsidies and market washing activities; however, they
did not have a great advance because the need for subsidies were very large (and
considered ineffective for the objectives of the program) and the fact that all the efficient
lighting products were externally manufactured. Instead the strategy prioritized the
development of the market through the participation of DISCOs and other relevant
institutions, which would allow the massive penetration of CFLs and T8 fluorescents,
making possible market growth and consequent price reduction, as well as more
As part of Cross Country activities, functionaries of the Program participated in the ELI
workshop hold in the Czech Republic in July 2000, and also in a Regional Cross Country
activity with ELI Argentina in June 2002.
Also, in order to continue efficient lighting monitoring and promotion activities after ELI,
the Program signed an agreement with the “Programa de Ahorro de Energia” (PAE) of the
Ministry of Energy and Mines. However in the year 2002 PAE was deactivated, and there
is not a clear indication as to how the government is going to continue efficient energy use
Residential Market Development
The activities executed by the ELI Peru team to develop the residential efficient lighting
market were the following:
Work with Electrical Distribution Utilities
The plan considered the participation of the DISCOs to directly commercialize CFLs to
their customers, taking advantage of the massive contact of DISCOs with the population.
This strategy however had the opposition of most DISCO functionaries, who considered
that the Program would reduce its energy sales and consequently affecting negatively the
To deal with this problem, the ELI team did a study to convince DISCO functionaries about
the benefits of promoting efficient lighting among the DISCO customers. The benefits
considered for the study were based on the reduction of power and energy purchases to
their suppliers (specially during peak hour, when energy is more expensive), and of
physical (joule) and commercial losses, the delay of new investments required to meet the
growing demand, as well as reduction of nonpayment, greater network security and service
quality, image improvement and client loyalty.
Even though the results of the study, done using some conservative inputs, showed the
economical benefits for DISCOs of directly selling CFLs to their clients, this was not
thoroughly accepted by the functionaries, because they maintained their fear of reducing
energy sales and therefore income.
Another problem consisted in that, in order to reach the larger low income sector of the
population, given the initially high CFLs prices (compared to incandescent bulbs), it was
deemed necessary that CFLs be delivered at credit, with low interest rates. However
DISCOs were worried about the risk of payment default, and therefore required that the
CFLs payments be included in the same invoice that the electricity service, so that if there
were any default payment, they were authorized to cut the electrical service, reducing the
payment risk. .
To overcome this, the Program promoted the needed regulatory authorizations from the
Government. Some Government functionaries and authorities expressed their interest in
passing the required regulation to allow DISCOs to participate in the promotion of efficient
In July 2000 the Peruvian Congress approved the "Law to Promote Efficient Energy Use"
authorizing DISCOs to deliver CFL´s, directly or through third parties, to their customers
and bill them in the same invoice for electricity service. However, the Executive observed
the law on this point and did not sign it. The law was finally approved without the article
authorizing DISCOs to bill for the lamps in the same invoice for electricity services.
The government opposition to the law was based in that they considered that the power to
cut the electricity service for payment default, was limited only to public services, which
did not include the sale of goods. However, this position was not consistent with former
authorization granted by the government to DISCOs to collect for the sale of lamps during
a 1994-95 CENERGIA – PAE campaign, as well as with specific laws allowing DISCOs to
collect loans made by FONAVI (government institution that used to finance home
construction), and to telephone companies to collect for the sale of goods and services,
other than the telephone service.
DISCOs could still deliver the lamps and bill for them in a separate invoice, although it was
considered that this would reduce the market penetration of the lamps because, in order to
avoid the risk of non-payment, the lamps had to be paid cash. It was estimated that this
procedure would exclude most of the low income customers, that make the larger segment
of the population, due to the fact that the initial high CFL prices (compared to HID lamp
prices), and the low income level of such families.
The strategy was then changed and reoriented to work with the traditional channel of
lighting distribution. Promotional campaigns were organized jointly with large retail stores
(Ace Home Center in february 2002), super markets (Wong and Metro in the second half of
2001), and the participation of the main CFL distributors (GE, Philips and OSRAM),
besides working with large institutions.
In the second half of 2001 Edelnor decided to participate more actively in ELI activities,
allowing CFL distributors to sell CFL, at reduced cash prices, directly to the DISCO
customers in its customer service facilities, making available new points of sales. The
initial success with this strategy, prompted more brands, like MaxLite, Land Lite and lately
Duraluz, to participate in these activities. Also, the provincial DISCO, Electro Sur Este,
decided to participate with CFL sales to its customers in Puerto Maldonado. Later, the other
Lima DISCO, Luz del Sur also accepted to participate, helping to booster CFL sales in
Lima. Other provincial DISCOs are gradually deciding their participation in the program
allowing lamp distributors to sell their products to their personnel and customers, while at
the same time make a small profit.
The sales at the DISCO facilities have been done mostly to low income customers, due in
part to the reduced price of the CFLs offered by the lighting distributors. The market grew
172% the year 2000, 73% in 2001, 118% in 2002 and 106% in 2003.
As consequence of the increase use of CFLs the load factor of the Peruvian electrical
demand increased from 0.72 in 1999 to between 0.80 to 0.82 nowadays, an impressive
improvement of demand shape, as consequence mainly of those sales, what constitutes a
clear and successful example of Demand Side Management.
Work with the Government to get authorization for DISCOs to deliver CFLs to their
customers and bill for them in the same invoice for electricity service, continued. However,
continuous change of authorities, with different views on the Program, has frustrated these
The marketing activities were designed to disseminate, among the population and
institutions, the advantages and benefits of efficient lighting products available in the
One of the initial problems was the negative perception that the population had about CFLs.
They considered them as products expensive and of bad quality; this was consequence of
the 1994 – 1995 CENERGIA – PAE CFL sale campaign organized by the government,
which did not pay attention to the quality of the lamps, resulting in the market being
flooded with low cost bad quality products.
To deal with this problem, the marketing campaign was designed in three stages, with
simple and transparent messages, inspired by social marketing techniques.
The first stage was oriented to introduce ELI and position CFLs as energy efficient lamps
before the public. It accomplished its objective only partially, due to the fact that there was
not any commitment from lighting distributors to participate in ELI organized activities.
The second stage, oriented to show the energy consumption and economical benefits of
CFLs was delayed in order to get the participation of lighting distributors, and was released
in the second half of 2001. It marked the initial point for the market escalation, helping to
The third stage, launched in 2002 was oriented to show the advantages of ELI certified
CFLs, through the guaranteed long CFL lasting time. In 2003 a short marketing campaign
was launched to complement this stage, and was oriented to emphasize the value of the ELI
logo as guarantee of high quality and long lasting life for efficient lighting products.
However, the level of penetration of the ELI logo as a quality symbol is still low and some
more work has still to be done to position the ELI logo in the mind of customers.
The first stages of the marketing campaign were done using television, radio, journals and
newspapers. The marketing through television, though wide-reaching, is expensive (in spite
of the reduced prices of television time gotten by the time of the campaign) and long
periods of time are required to establish a concept in the minds of the public. In 2003 the
marketing campaign was done using only national and local radio, as well as popular and
local newspapers, resulting in a cheaper and more effective marketing.
The marketing campaigns received the PADIS award for best press publicity in the year
2001, and the EFFIE award in the non commercial category, in 2002.
The marketing campaign was accompanied with promotional campaigns executed, in
association with CFL manufacturers and distributors, in the stores of the WONG and Metro
supermarkets (2001) and Ace Home Center hardware retail store (2002). The campaigns
were oriented to the medium and high-income sectors of the population, however it had
more impact in the low-income sectors.
In working with DISCOs, universities and large institutions, the Program has promoted the
sale of ELI certified CFLs to their personnel, by the manufacturers and distributors of those
A barrier for a more extensive market aggregation program is constituted by the lack of low
cost financing for the bulk lamp acquisitions. In some cases the lighting distributors are in
disposition of offering credits at commercial interest rates (that usually are high), and in
other cases the DISCOs expressed their interest to finance the acquisition, with a certain
commercial margin, and collect the payments included in the service invoice.
In Edelnor, three rounds of sales to the personnel were executed, with participation of
Philips (3567 sold) and Osram (approximately 700 units sold). In Luz del Sur the
personnel acquired CFLs the same way as clients, while in Electro Norte and Electro Sur
Este special programs were implemented for the personnel. In universities (UNI and San
Marcos in Lima , Callao, Piura, Huancayo, Ica, Arequipa and Cuzco) and other DISCOs
(Electro Nor Oeste, Electro Norte, Electro Norte Medio – Hidrandina, Electro Sur Medio,
Electro Sur Oeste – SEAL and Electro Sur) the agreements signed include the sale of CFL
to their personnel.
The barriers encountered developing the residential efficient lighting market in Peru were:
- The lack of commitment of the government authorities to support the Program
activities, despite the benefits of the Program for the economy, the environment and
the conservation of energy resources. The continuous change of political authorities,
with diverse views on the importance of the Program, made it difficult to get their
support. Although this barrier was not completely overcome, some limited support was
obtained. In order to advance in meeting the Program objectives, the Program had to
work with interested partners, like efficient lighting manufacturers and distributors.
Also efforts had to be done to involve other partners, like DISCOs, while launching a
strong marketing and promotional campaign.
- The limited knowledge and negative perception of the population about efficient
lighting products, which made it difficult to develop the efficient lighting markets.
To deal with this problem, a marketing campaign, based in simple and clear messages
with a social marketing approach, was launched.
- The negative perception of DISCOs on the advantages of efficient lighting for their
business, which made it more difficult to get them to participate in ELI activities.
To deal with this difficulty, the direct approach of trying to convince DISCO
functionaries on the benefits of efficient lighting for DISCOs was unsuccessful.
Therefore an indirect approach was taken; this approach consisted in getting the
participation of Edelnor, the DISCO responsible for the execution of the Program in
the country, to allow lamp distributors to sell CFLs in its customers service offices.
This helped to start the growth of the market, and later other DISCOs joined the
- The low income of most of the Peruvian population, a situation likely present in many
countries with similar level of development. This characteristic makes the Peruvian
market a price-oriented market, which leads to a preference for cheap products, despite
of their limited quality. This explains why more than 76% of the 2003 CFL sales were
from non-certified unguaranteed cheap products.
This problem has not been overcome yet. To deal with this problem a long a strong
campaign fighting low quality products needs to be deployed.
- The lack of support from official regulatory bodies in charge of setting quality
standards and protecting consumers rights.
INDECOPI, Peru’s normalization and consumer protection agency emitted a voluntary
CFL standard. Also, to protect consumer rights, INDECOPI emitted a standard
requiring product suppliers to commercialize their products with the necessary
information about the product; which ought to be correct and truthful and be printed on
the package. However, they do not supervise the compliance with this requirement, and
has been reluctant to participate directly to enforce its own quality standards issued.
A CFL distributor is using the ELI name to sell its products (usurping and taking
advantage of the ELI message influence among the customers). The Program has
presented a case against this CFL distributor before INDECOPI; however, this entity,
after more than a year of the presentation of the case, has not yet issued its decision,
despite that the usurping distributor has not presented any discharge.
For the next ELI activities (“Next Generation”, after the development activities just
finished) ELI has agreed with the Peruvian Association of Consumers and Utility Users
(ASPEC, a non-governmental organization with the objective of consumers protection
and defense) to take over the quality supervising and monitoring activities. They will
follow up the case before INDECOPI.
- Lack of finance available for small and aggregated acquisitions. Usually banks are
willing to finance large acquisitions, after getting the usual commercial guarantees for
the repayment, but at high commercial interest rates, which ultimately reduces the
economical benefits of the acquisitions, even the bulky ones.
To deal with this Problem, the Program involved DISCOs that have the power to get
price reductions from their suppliers, and can offer financing facilities to some of their
clients. Also large institutions, that could make bulk purchases for their personnel,
obtaining the necessary credit, were involved
The final results show that the measures taken to overcome the barriers were successful. It
can be said that the activities executed to develop the residential market were effective,
except for the increment of non-certified unguaranteed CFLs, and the low penetration of the
The lessons of the experience in developing the Peruvian residential efficient lighting
- The participation of the Government, as well as of the DISCOs and large institutions is
very important; especially DISCOs that have the power to negotiate with lighting
distributors to get price reductions.
- In order to communicate the advantages of efficient lighting to the population,
especially the low-income population, the marketing must be clear and simple and
have a social marketing approach.
- Other lesson is related to the price-oriented market characteristic and the low income
level of the Peruvian population. The 6000 hour minimum lasting time standard set for
getting the ELI certification has let out of the Program many products from known
manufactures with acceptable quality; these products nonetheless have entered the
market, along with other low quality products. At the current Peruvian market CFL and
electricity prices, the investment for 3000-hour CFLs is recovered in around one
month, considering a normal 5-hour usage.
Professional Market Development
The activities executed by the ELI Peru Team to develop the professional efficient lighting
market were the following:
Retrofitting Studies and ESCO Development
In the professional sector the activities were focused in promoting the change of old
technology linear fluorescents (T12) and ballasts for efficient ones (like standard and tri-
phosphor linear fluorescents and efficient electromagnetic and electronic ballast), and the
promotion of energy service companies (ESCOs).
With this objective the Program planned to do retrofitting studies in 8 large institution
installations, and help them to develop the transaction to implement the projects.
The first work in this area was done with the Peruvian Navy. With the participation of
Edelnor´s professionals, Navy personnel and ELI own personnel, a retrofitting study was
done for 7 Navy organizations. The Program required the installation of approximately
22,300 T8 linear and circular fluorescents, 11,000 electronic ballasts and 3,000 CFLs,
among other changes, with 23 months to recover the investment, out of the energy savings.
Edelnor was to supply the products at credit and collect for them in the monthly electric
bill. Changes in the Navy stopped the implementation with participation of Edelnor;
however the Navy has been gradually implementing it.
To supply the products, Edelnor made an invitation to local distributors to present their
offers. The prices of the offers were reduced, and indirectly this action (even though the
project was not implemented) influenced the reduction of prices in the market.
Also lighting retrofitting studies were done for the Peruvian Army and the Wood
Innovation Center (CITE Madera) of the Ministry of Industry. These studies were
implemented by the institutions with the participation of the DISCO Luz del Sur.
After this experience the Program designed an extensive campaign of lighting retrofitting
studies in Commercial, Industrial and Institutional buildings, with the partnership of the
DISCOs (Edelnor) and universities, showing the economical and environmental benefits of
efficient lighting. Edelnor allowed ELI to have access to its larger customers to perform the
The Program hired an engineering company (COVERSA) to perform the audits. As a
result, more than 600 retrofit studies were done in industrial, commercial and institutional
buildings, determining the economical benefits of changing their lighting systems for
efficient lighting. From these studies, 38 companies have implemented the projects by
themselves and another 39 manifested their interest in implementing them.
Other retrofitting studies have been done for representative institutions, like the
Anthropological Museum, The Government house, the Peru-Spain Commercial Chamber,
Villa Tusan club, the Hospital Rezola of Cañete, the Municipality of Lima, the Colegio
Militar Leoncio Prado and the installations of the Universities Nacional Mayor de San
Marcos, Nacional de Ingeniería and Del Pacifico in Lima, San Agustín de Arequipa, San
Antonio Abad del Cuzco, San Luis Gonzaga de Ica, Nacional del Centro of Huancayo and
Universidad Particular de Piura.
The promotion for the development of ESCOs confronted the problem of lack of attractive
financing available and the limited resources of interested engineering consulting
companies. The Program tried another approach to promote this activity.
The activities with universities, which first focused only on educational matters, were
expanded to include other activities like CFL sales to university personnel and people in
general, and also the organization and training of teams of students, technicians and
professional, to carry out retrofit audits in university and local industries, commerce and
This last activity can be considered as an initial seed for the establishment of future ESCOs.
The students performing the studies and implementing the projects are to be paid from the
difference between the final product cost to the clients and the cost of the product to the
students. The lighting distributors expressed their disposition to sell the products to the
students, with a considerable price reduction (because the students were acting as the
distributor agents when they recommended their products, saving them some sales costs).
The professional training was done with all the Universities with which the Program signed
agreements (8 universities).
The educational activity of the Program was segmented into (a) mass media campaigns
aimed at the general public; (b) school programs; and (c) professional level education. The
mass media campaigns were developed through TV, radio, and distribution of written
information, while the school level education was left to the “Programa de Ahorro de
Energia” (PAE) of the Ministry of Energy and Mines, who had already been working
successfully with the Ministry of Education in elementary and high schools. This avoided
duplication of efforts; ELI agreed with PAE to collaborate for the execution of these
activities, when requested.
The professional education was oriented to the training of technicians and professionals
through the organization of presentations, courses and short seminars, jointly with
universities, technical education and large commercial and industrial institutions, as well as
to the introduction of efficient lighting topics in the university curricula.
The Program signed agreements with 8 Peruvian Universities (UNI, San Marcos and Callao
in Lima, and Universidad de Piura, San Luis Gonzaga de Ica, Nacional de Huancayo, San
Agustin de Arequipa and San Antonio Abad del Cuzco), and technical education
institutions (Sencico, Senati, Copei).
57 educational events, involving more than 3,518 technicians, professionals, and students
of engineering and architecture were organized. 185 university professors from different
provinces, and 991 professionals and technicians attended the professional training courses.
It is expected that these training courses have a multiplying effect, reaching a minimum of
another 1387 students yearly.
A minor barrier to the educational activities is related with the delay of university
functionaries, specially of Lima universities, to decide upon their participation; however the
participation of universities of provinces was very dynamic and collaborative.
The barriers encountered in developing the professional market in Peru were:
- The lack of interest of large industries and institutions which gave low priority to
lighting energy savings, because the electricity bill, especially due to the portion
related to lighting, is small compared with other costs, and also because they usually
had other financial problems.
This barrier was not actually overcome. Instead the Program tried to work with medium
and small sized industries, business and institutions.
- The high cost of financing funds available in Peru for most commerces, industries and
institutions (except for the large ones, which usually do not need the financing).
One approach taken consisted in contacting financial institutions and banks that had
some of our target lighting retrofitting organizations as clients; by helping their clients
they could assure recovery of loans. This approach did not raised interest from the
financing institutions. Another approach was to involve DISCOs to finance target
clients. This approach was accepted by Edelnor and was to be applied to some
customers, like the Navy; however for other problems (from the Navy side) the scheme
was not executed.
- The professional market involves business, industries and institutions whose needs,
problems and priorities vary. It is not easy to contact and get entrance to their premises.
This requires a unique approach for each institution, to contact them, get their interest,
and do the retrofitting study. This posed a great difficulty to extend the professional
To deal with this barrier the Program got the support of Edelnor that helped to introduce
ELI to its large clients. More than 600 retrofitting studies were done and a follow up
program was structured to help the organizations to implement the studies
- Limited financial resources of engineering consulting firms interested in becoming
ESCOs, as well as scarce availability of low cost financial resources for the operation
To overcome this problem the Program interested DISCOs to finance retrofitting
projects for their larger clients, which was done in a few cases, but was not extended
further because it did not constitute the DISCO main business. Other approach was to
organize and train university teams of students, technicians and professional, to carry
out retrofit audits in the universities and local industries, commerce and institutions. By
the end of the Program, those teams participated only in retrofit studies for the
This last activity could be considered as a seed for the establishment of ESCOs. The
students performing the studies and implementing the projects will be paid from the
difference between the cost of the product to the client and the cost of them to the
students. The lighting distributors are willing to sell products to the students, at reduced
prices, because they would be saving sale costs.
The measures taken to overcome the barriers worked partially. It is expected that some
results take some more time in being concretized, as the measures taken mature, like the
training of university teams to perform retrofitting projects.
- One of the main lessons of the ELI experience in developing the professional market is
the importance of the participation of large institutions, DISCOs and distributors.
Efficient Public Lighting
In Peru the Public Lighting (PL) service is under the responsibility of DISCOs, who have to
comply with the quality of service established in the regulatory bylaws, otherwise they are
subjected to fines. On the other hand DISCOs are limited to collect for the PL service only
up to a percentage of total energy sales; this percentage is calculated based in the use of
efficient lighting technology for the service.
In provincial cities, especially in areas serviced by government DISCOs, the PL service
was insufficient and inefficient.
Initially, the Program was oriented to help provincial DISCOs to retrofit their public
lighting system, reducing their energy and economical losses while satisfying the service
needs of the populations. The Program was to co-finance the corresponding feasibility
study to improve the PL service in their concession area. However this strategy did not
work due to the scarce interest showed by DISCOs, who did not guarantee the
implementation of the projects.
In application of the strategy the Program coordinated with Grupo Gloria (a private holding
that controlled 4 provincial DISCOs) to co-finance a feasibility study to improve their
public lighting. However, the agreement was not signed by Grupo Gloria, because they
were experiencing some serious economical problems (what lately cause them to return the
DISCOs to the Government).
The activities then were oriented to introduce efficient technologies helping the government
and DISCOs to extend the service to marginal urban, rural and isolated populations, who do
not have access to the service or the generation capacity is insufficient to satisfy their
needs. For this, a plan for Introduction of CFLs for usage in Public Lighting was
This plan consisted of the
- development of new legal standards for public lighting service in marginal, rural and
isolated populations, adapted to the service needs of those type of populations
(considering the level of vehicle and people evening traffic) and their socioeconomic
- development of new public lighting luminaires with polymeric cover (plastic) adapted
for CFL and,
- execution of pilot projects to test the new luminaires.
The standards were prepared by ELI specialist working jointly with officials of the Ministry
of Energy and Mines of Peru and have been officially signed in January 2004, after being
posted in the Ministry web page, for some time, for comments and observations from
interested parties. The laboratory tests of the designed luminaires, showed that they comply
with national lighting standards for residential roads in urban areas, reducing energy
consumption between 28% and 47%, respect to high pressure sodium steam lamps
luminaires while expected to cost between 30% to 35% less. This has generated interest on
the part of DISCOs.
These facts indicate the potential to intensively penetrate the Peruvian public lighting
market, as well as in other countries with similar public lighting needs, incrementing the
usage of CFLs for this service. It is estimated that in Peru, the public lighting market
managed by DISCOs, is in the order of 1´000,000 luminaires installed, while another
million is estimated for exterior illumination of parks, factories and institutions, among
other places where it could be installed.
For executing the pilot projects, the Program has signed agreements with almost all
Peruvian DISCOs (13 DISCOs; it has not been possible to finish the agreement with
Electro Centro because of bureaucratic delays) and community located in a remote forested
area of Peru (Monzon). The luminaires have been installed in several sites, to test them in
different geographical, weather and environmental conditions.
The Program team did not find any barrier in promoting efficient lighting for Public
Lighting, since the conditions are already given for DISCOs to become efficient in
supplying this service. The development of a new luminaire using CFLs opens a potential
to increase the penetration of efficient lighting technologies in this area.
A lesson from the experience in developing efficient public lighting is that in this area,
where apparently the technology is sophisticated and is in the hands of expert companies,
there are opportunities to introduce efficient lighting technologies, which allow to provide
the service within the required quality standards and adapted to the conditions of the served
IV. Sustainability and Replication
The Peruvian lighting market is already on the path of transformation towards efficiency.
The market has still potential for further penetration.
The Program has contributed to make accessible electricity service to low income
population to satisfy their lighting needs and improve their level of life, while saving
The Peruvian market transformation changes are very sustainable. The level of knowledge
about the benefits of CFLs among the public is relatively high, although it is necessary to
get the public to recognize the benefits of acquiring ELI certified products as a quality
guarantee. The last survey, after a recent publicity of ELI certified CFLs launched by the
Program, by radio and newspapers, shows that 50,5% of the sample population – 400 - are
very interested in buying CFLs, while 25,5% show some interest for the product.
Also, the growth of the CFL market makes it more attractive for manufacturers and
distributors to continue participating, and incentivates the entrance of new brands. The
impressive electrical demand load factor improvement will increase the interest of the
government and DISCOs.
All those factors allows to think in the sustainability of the efficient lighting development
The institutions more likely to provide support for the sustainability of the market are:
- The Ministry of Energy and Mines of Perú, that has as one of its policies promote
efficient energy use, among it efficient lighting.
- CFL manufacturers and distributors present in the Peruvian markets, who benefited of
the larger market, and also see the opportunity to differentiate from low quality non
certified CFL brands through the use of the ELI logo.
- Electrical Distribution Utilities, that have realized it is a business for them to allow
distributors to sell CFLs in its customer service offices.
- The Asociación Peruana de Defensa del Consumidor – ASPEC, a private organization
whose objective is to protect the rights of consumers and are interested in product
quality. They will be in charge of the ELI follow up activities (monitoring efficient
lighting product quality and compliance with ELI standards) and will constitute a local
partner for the Chinese Center for Energy Consuming Products (CECP), who will be in
charge of the “Next Generation” ELI activities.
- The Asociacion Peruana de Iluminacion – ASPEI, a private association of lighting
professionals and practitioners, with the objective of promoting lighting theory and
practice at a professional level in Peru. They will act as technical advisors to ASPEC
and will also constitute a local partner for CECP.
With regards to replication of the ELI experience in other countries, it is evident that the
measures taken to develop the lighting market in Peru could be applied in other countries
too. There are plans to replicate the Peruvian experience in Ecuador.
V. Monitoring and Evaluation
The monitoring and evaluation of the advance of the Program was continuous. According
with the ongoing findings, the strategy and activities were reoriented and the corresponding
budget reallocated. In doing this, the local team had the support of the central ELI
administration of the IFC that continuously discuss the advancement of the Program, and
approved the strategy and budget changes.
The central ELI M&E team coordinated with the local ELI team the monitoring and
evaluation activities. They also had external local personnel that did the monitoring of the
evolution of lighting market for the central M& E team. However, there was not much
coordination between the local M&E team and the ELI team, which is considered important
to be able to detect shortcomings to the program Plan.
One of the first activities executed by the Peruvian ELI team was a market study to define
the initial market, its characteristics and the strategy for the Program. The study was done
by CENERGIA by the end of 1999, and reflected a 1999 CFL sale level below 273,000
units, with prices between Us $9.00 to US $12.00. 80 % of the products were from known
international brands and the rest from new brands without guaranty. The sale of T8 linear
fluorescents, standard and triphosfor, were very low, while for Public Lighting there was a
dynamical penetration of high pressure sodium steam lamps of 50watt, 70watt and 125
watt, replacing high pressure mercury lamps of 125watt, 250 watt and 400 watt, due mainly
to the electric service regulations that put the PL service under the responsibility of
Two other market studies have been done to find out about the changes of the market and
its quantitative and qualitative level. The studies done by Analistas y Consultores (A&C),
and covered the periods 2000 – 2002 and 2003, confirmed the gradual grow of the market
and the impact of the Program’s activities.
Also, to evaluate the effect of the marketing campaign three post publicity and promotional
campaigns surveys were done, two by Synapsis and the last one by A&C. Those surveys
show that in spite of the market growth observed, the penetration of the ELI logo as a
symbol of guarantee and good quality products is still low.
Product Supervision and Certification
The Program promoted the certification of efficient lighting product under the ELI
standards. For this it helped lighting manufacturers interested in entering the Peruvian
market, as well as to local distributors, to certificate their products.
Also, the Program registered the ELI logo, before INDECOPI, as a distinctive symbol to
distinguish quality efficient lighting products.
In order to facilitate the sale of ELI certified products in the Peruvian market, ELI handed
out stickers with the ELI logo to local distributors. These stickers were to be put on the
CFL packaging, while their certified products, with the ELI logo already printed on the
package arrived to Peru.
Periodically ELI surveyed the local lighting market in order to assure the correct usage of
the ELI logo on certified products. Also, by request of the central administration of ELI,
ELI certified CFL samples, commercialized in the local market, were acquired and sent for
testing to the ELI Laboratory in Philippines (FATL), in order to verify its compliance with
VI Overall Analysis and Lessons Learned
Among the lessons that the execution of the ELI Program in Peru leaves, one can name the
- No matter how good a project to change a market could be (like the ELI Program), its
benefits and advantages have to be communicated to the market agents in a simple and
understandable way. The time, effort and resources dedicated to this activity are
It is important that the end users be convinced of the benefits of efficient lighting
products, because they and are the ones that finally make the market and demand the
products at the stores.
The awareness – building aspect was very important to get the change of the efficient
lighting market in Peru. While there is still need to make more work to get the public to
recognize the ELI logo as distinctive of good quality efficient lighting products, the
grow of the market has been possible because the public was interested in acquiring
those products because of their energy and economic savings and their long life, which
assured a short term recovery of the initial investment.
- For the success of the Program it is important to have strong government support.
However the response can be slow, due in some cases to the continuous changes of
authorities and the priority they assign to energy efficiency, confusing some times the
objectives of it, with short term sector objectives. For instance, in some cases the
authorities may fear that the privatization of DISCOs may become less interesting to
investors due to the demand reduction. In other cases they may consider that the
reduction of electrical demand can difficult to build a market to develop unused
indigenous energy resources (like natural gas).
- It is also important to engage the participation and support of the main actors in the
market, specifically the main distributors and institutions like DISCOs with interest in
the sector affected. Efforts must be done to convince DISCOs of the economical benefits
to them of efficient lighting technologies (the common paradigm is that DISCOs lose
market when their customers consume energy efficiently)
- It is important to increase the identification of the ELI logo as a symbol of efficient
lighting product quality. The level of identification of the ELI logo as a symbol of
quality is still low.
- The flexibility allowed to the ELI team to take corrective actions and reorientate the
activities of the Program was very important. As an example, initially one of the main
activities of the Program was the selling of 1`000,000 CFLs directly by DISCOs to their
customers, however this activity was not executed; its implementation depended of third
parties decision. The program formulated an alternative Plan, which consisted in
working with the traditional channel of CFL distribution, and this way it could advance
towards the objectives.
- The certification process is very important to support the ELI claim that the ELI logo
helps to identify the quality of the efficient lighting products. Given the price-oriented
market characteristic and the low income level of the Peruvian population, many low
quality products have entered the market, along with other with less than the minimum
6000 hour ELI lasting time standard, which are not necessarily of bad quality but allow
the low income families to have access to this technology, with short cost recovery
- It is important to register the ELI logo, as well as the “ELI” word and the “Programa de
Iluminación Eficiente” name, to try to limit other parties, that distribute non ELI
certified products, to illegally take advantage of the achievements of the Program.
VII. Future Activities
The ELI Program has been oriented to develop the efficient lighting market, and in doing so
has established a solid basis for its continued development. Next ELI activities will be
oriented to maintain and expand the influence of the ELI logo and the value of the
certification. At a global level those activities will be in charge of CECP.
At the local level the ELI program is signing an agreement with Asociación Peruana de
Defensa del Consumidor – ASPEC, to follow up ELI activities in Peru, monitoring and
supervising the correct use of the ELI logo, and supervising product quality. They will be in
charge of coordinating future activities with IFC, CECP, the M&E teams, local enterprises
and institutions with agreements and other interested parties in using the ELI logo, and with
the ELI web maintenance team.
The Program will establish an advisory committee for ASPEC. The Asociación Peruana de
Iluminación - ASPEI will participate in this Committee, as well as representatives of the
Ministry of Energy and Mines. The Committee will meet to coordinate actions every
The activities to execute in the follow up stage are:
Spreading out and promotion, at national level, of the ELI logo
Verification and monitoring of maintenance of quality of ELI certified products, to
assure compliance with ELI standards.
Coordination, with CECP, IFC, M&E and other institutions appointed by ELI global or
regional authorities, of local lighting market monitoring and evaluation activities.
Help the entrance of new efficient lighting products to the Peruvian market.
Sample product acquisition and remittance to authorized laboratories for ELI standards
compliance testing, under request and coordination with CECP ( the cost of this activity
depends on the size sample and sending costs to the authorized labs, as well as of the
cost of the actual testing; they would be arranged directly with CECP, when required).
Follow up and monitoring of the Agreements signed with Universities (basically for
educational activities) and DISCOs (basically for Rural Public Lighting activities,
related with the pilot projects being executed).
Help for doing efficient lighting market survey studies, in coordination with CECP and
M&E, when requested.
1. List of Documents prepared for ELI
The documents are on CD Rom.
Documents prepared by IFC, prior to the beginning of the Peru Program. Contains
assessments of Peru efficient lighting market as well as other preliminary documents.
Previous and initial activities:
Contains documents about initial and other activities done before August 1999
(Previous&Initial Activities file).
General, Peruvian universities and hardware distributors contact lists.
1) Endesa – IFC contract (Contrato Final ELI file)
2) Endesa – Edelnor contract (Contrato Cesión file)
List of Edelnor´s support activities, staff responsibilities, and activities planned for 2002.
Also includes the resumes of the Program staff and their contract reference terms
Work Plan & Budget:
1) Initial works plan and budget (general format and initial budget, July 1999).
2) Program budget and work plan of September 1999. Considers program duration up
to November 2001.
3) Program budget and work plan advance at May 2000
4) Program budget and work plan of February 2001 (approved by IFC). Considers
Program extension to April 2002.
5) Modified Program budget to September 2002 (PtoModcdo Enero02 Rev1 30-5-02)
and answer to IFC observations (Rpta Obs a Plan de Trabajo revisado último 30-5-
6) Explanation of the work plan to June 2002.
7) Work plan and budget to October 2003 (Pto y Plan de Trab a Oct 03 24 7 03),
budget explanation (Inf Explic Ppto a Oct 03 16 6 03) and answer to IFC
observations (Rpta Obs Plan de Trab&Pto a Oct 03, 24 7 03).
8) Budget and internal activity monitoring documents (files Informe sobre avances,
Reportes de gastos, Ejecución Presupuestal and Cronograma de Actividades)
Program initial strategy, changes and explanations.
Model agreements with DISCOS (Convenios: Emp. Distrib. Electrica), universities and
institutions (Otros convenios).
Other Administrative matters:
Scheme of reimbursement to EDELNOR (Esquema Pagos ELI ENDESA 21-12-00).
Program audits performed by Deloitte & Touche for periods August 99 to June 2002 and
July 2002 to December 2003.
Letters of request for Program extension and IFC approvals.
IFC letters of appraisal of Program results.
ELI Final report
Continuation of ELI Activities:
1) Plan for Continuing ELI activities
2) Next Generation of ELI document.
3) ASPEC documents: ELI-ASPEC agreement, ASPEC action plan for 2004 and IFC
approval of ASPEC agreement.
- CENERGIA market study: terms of reference, proposals, evaluation criteria,
evaluation of proposals, draft and final report, executive report, market estimation
and criteria for market forecasting.
- Focus Group Guide, preliminary market study (Ccomunicacion
inicialJMCyEstMcdo), auto survey (autoaplicablefin2EncuestaMcdo 8-2-00)
Monitoring & Evaluation
Market Evaluation: (in file: Estudios Mcdo 2000-2002, Estudio Mcdo 2003 and Otros
Estudios de Mercado)
- A&C 203 market studies 2000- June 2002, July 2002-December 2002 and 2003:
terms of reference, proposals, evaluation criteria, evaluation of proposals,
residential, professional and ballast surveys, 2000- June 2002 preliminary report;
2000- June 2002, June 2002 –December 2002, consolidated 2000-2002 final
reports; 2003 final report.
- CFL 2003 Peruvian market (Venta Lamp2003Mercado Peruano)
Market and post activity surveys:
Feria ferretera 2003 survey, EDELNOR survey, 2002 Synapsis telephonic survey, 2002
Electro Oriente survey, COVERSA profesional market following up survey and
instructions, Illumination and decoration presentation survey report, Architect
association curse survey report, EDELNOR curse survey report.
Post Publicity Surveys: (in file of Marketing and Publicity)
- 2003 A&C post publicity test reports, 2002 Cusco marketing campaign report,
Weekly, monthly, six month, conciliation and reconciliation and reports:
- 1999, 2000, 2001, 2002, 2003 Program reports (in file Informes y reportes)
Marketing and Education
1) 2000 initial Publicity brief.
2) Marketing agencies proposal evaluation.
3) 2003 marketing campaign brief
4) Press releases and informative documents.
5) Max Effie presentation.
6) GCG Wong ELI promotion proposal.
- Presentations: 2000 Peruvian Congress presentation
- Cuzco, UNI and Del Pacifico Universities.
- Colegio de Ingenieros del Peru, Energía 1999 and 2001 forums, CONEIMERA 2001,
Chiclayo and other presentations.
- Presentation 2000 Czech Republic ELI meeting.
- Feria ferretera report.
- Hiperferia Mi Vivienda report.
- Feria Regional de Chiclayo - Electro Norte photos.
- Professional education strategy, Professional education final report and educational
- Terms of reference IV curse on Energy Efficiency
- 2002 and 2003 Educational Activities: training curses content, list of activities with
universities, curse schedules, basis student lighting paper contest, sustentation of
curses, curse surveys, among other professional education documents.
DISCOS Activities – DSM
- Study on Efficient Lighting Benefits for DISCOs: DISCO´s Impact study (Estudio de
Impacto) in spanish and english, electrical losses reduction and analysis of total impact
on DISCO demand.
- Puerto Maldonado CFL sales campaign report
- Basis for 1´000,000 and 500,000 CFLs acquisition by DISCOS, ELI tender document
and comunication to suppliers.
- CFL price, cost model and sales conditions in DISCO offices.
- ELI –Luz del Sur draft contract for CFL sales in Luz del Sur offices and Luz del Sur and
CFL distributors model contract.
- CFL sale Electro Oriente pilot Project document.
- Law for allowing DISCOS to sell CFLs (file LEY ELI): proposal and sustentation,
congressional evaluation, approved law (approved in july 2000 and modified afterwards)
- Public Lighting Plan and terms of reference for Rural, Isolated and Marginal Urban
Communities Public Lighting System (AUMAR)
- Public Lighting Plan IFC approval.
- 2000 Electro Sur Este Public Lighting equipment.
- ELI Public Lighting agreements (with DISCOS and Communities).
- 2000 EDELNOR costs of Public lighting materials and equipment.
- Public lighting specialists terms of reference, curriculum vitae, contract, and reports (file
- Pilot Projects installation and verification reports, installation photos, distribution of
luminaires, reports of installation (file Planes Piloto).
- NOVALUZ luminaire, CFL and ballast characteristics; luminaire utilization coefficient,
clasification diagram, luminaire coordinates system, luminaire intensity table, Luminaire
photos, luminaire presentation, evaluation of proposal for mold fabrication, report of
luminaire fabrication cost, list of pilot projects and luminaire distribution (file Novaluz).
- Rural Areas Public Lighting Satandard (Norma RD017_2003_EMDGE 11-2-04), ELI
specialists standard proposal, EDELNOR proposal comments and specialists answers,
sending communication (file Norma AP).
- Grupo Gloria public lighting project, terms of reference feasibility study, budget and
memorandums of understanding (file AP Grupo Gloria).
- Coversa TOR, contract, reports, and retrofitting studies (organized by stages, weeks and
- University retrofitting studies (San Marcos, Piura, Cuzco, Huancayo, Ica, Arequipa)
- Demonstrative retrofitting studies: Villa Tusan, Anthropological Museum; Camara de
Comercio Peruano – Española, Colegio Militar Leoncio Prado, Municipio de Lima,
- ELI transactions: transaction diagrams, transactions with professional users, transactions
with Electro Oriente, Discos transaction draft, amog others (ELI transactions file)
2. List of Partnerships
- Peruvian Congress (Congreso de la Republica -1999- 2000)
- Ministry of Energy and Mines
- Municipality of Lima
- Municipality of Monzon
- Peruvian Navy (Marina de Guerra del Perú)
- Energy Saving Program (Programa de Ahorro de Energia -PAE) of the Ministry of
Energy and Mines
- Compañía Administradora de Inversiones Eléctricas – ADINELSA (government
company in charge of managing rural communities electrical systems).
Manufacturers and Distributors of efficient lighting products
- Philips Peruana
- Dekatec (OSRAM distributor)
- Land Lite
- Max Lite
- General Electric
- Universidad Nacional Mayor de San Marcos
- Universidad Nacional del Callao
- Universidad Nacional de Ingenieria
- Universidad Nacional del Centro del Peru – Huancayo
- Universidad Nacional San Luis Gonzaga de Ica
- Universidad de Piura
- Universidad San Agustin de Arequipa
- Universidad San Antonio Abad del Cuzco
- The Servicio Nacional de Capacitacion y Trabajo Industrial – SENATI
- Comité de la Pequeña Industria – COPEI de la Sociedad Nacional de Industria – SIN
(Small Industry Committe of the National Industry Association).
- The Servicio Nacional de Normalización, Capacitación e Investigación para la Industria
de la Construcción – SENCICO (National Standardization, Training and Research
Service for the Construction Industry).
Electrical Distribution Utilities
- Empresa Electrica de Distribucion de Lima Norte (EDELNOR S.A.A.)
- Luz del Sur S.A.A.
- Electro Sur (Tacna, Moquegua, Ilo)
- Electro Sur Este (Cuzco, Apurimac; Made de Dios)
- Electro Sur Oeste –SEAL- (Arequipa)
- Electro Sur Medio (ICA, Ayacucho)
- Electro Puno (Puno)
- Electro Norte Medio –Hidrandina- (La Libertad, Ancash, Cajamarca)
- Electro Norte (Lambayeque, Cajamarca, Amazonas)
- Electro Nor Oeste (Piura, Tumbes)
- Electro Ucayali (Ucayali)
- Electro Oriente (Loreto)
- Colegio de Arquitectos del Perú
- Capítulo de Ingeniería Eléctrica del Consejo Departamental de Lima del Colegio de
- Asociacion Peruana de Consumidores y Usuarios (ASPEC)
- Colegio Guadalupe (Guadalupe high school)
- Villa Tusan recreational club.
- Feria Ferretera (hardware stores fair)
3. List of Subcontractors, amount of subcontract, and task
- CENERGIA, US $ 50,00.00, initial market study.
Monitoring an Evaluation
- Analistas y Consultores - A&C; US $ 17,590.66, market studies and post publicity
- SYNAPSIS, US$4,838.12, post publicity telephonic surveys
Marketing and Publicity
- Grey Communications Group (GCG), US $181,618.94, marketing strategy and design
Television publicity transmission:
- Andina de Radio Difusión S.A.C. (ATV), US $ 45,315.54.
- Panamericana Televisión S.A., US $ 67,621.82.
- Instituto Nacional de Radio y Televisión del Perú – IRTP, US $ 18,541.50.
- Compañía Latinoamericana de Radiodifusión S.A (Frecuencia Latina), US
- Compañía Peruana de Radio Difusión S.A. (América Televisión), US $42,978.55.
Radio publicity transmission:
- Radioprogramas del Perú S.A., US $80,295.31.
- Corporación Radial del Perú S.A.C. (Radiomar), US $ 44,921.81.
- Grupo Panamericana (Radio Panamericana), US $ 17,333.06.
- Corporación Gestion (Radio CPN), US $ 28,617.34.
Journal, newspaper and magazine publicity:
- Empresa Editora Caretas S.A., US $ 3,304.00.
- Empresa Editora El Comercio S.A., US $ 127,147.49.
- Cia. Impresora Peruana S.A. (Diario La República) y Edelnor S.A.A., US
- Empresa Periodística Nacional S.A.C. (Diarios Ojo, Aja y Correo Lima), US
- Diario Expreso, USS $ 5390.24.
- Servicios Editoriales del Perú S.A.C. (Revista ETECE), US $ 10,030.00.
Other marketing and publicity related services:
- Editora Intercontinental S.A.C., US $ 2,360.00, musical synchronization.
- Producciones IEMPSA, US $ 2655.00, licensing for use of phonograms for publicity
- Canal UNO SAC, US $ 25,274.42, 3D animations, film recording and tape copies
- Telefónica del Perú, US $ 500.00, authorization for use of the Perú-Argentina soccer
game recorded tape for a publicity spot.
- Gonzalo Bardalez, US $ 2,301.00, design and dictation of efficient lighting topics in the
IV Course on Energy Efficiency organized by PAE and Universidad Nacional de
- Fernando Dorregaray, US $67,428.57, design, and implementation of Professional
- Professional Education Collaborators, approximately US $9,498.56 (Carmen Falla,
Carlos Herrera, Manuel Rodriguez, Camilo Collazos, Alfredo Ramirez Gaston, Eduardo
Antunez de Mayolo, among others)
Professional Market Studies
- COVERSA, US $ 34,000 (amount of contract), elaboration of retrofitting studies in
industries, commerces and institutions, large clients of Edelnor.
- César Jhusey, approximately US $15,352.86; supervision, organization and execution of
- Jose Cardenas, approximately US $ 1400.00; dictation of complementary specialization
lighting professional courses.
- Jose Cardenas, US $ 4,000.00, analysis of public lighting regulations, proposal of PL
standards for rural areas, design of a CFL PL luminaire and implementation of 3 public
lighting pilot projects.
- Matrix, US $ 23,010.00, design and fabrication of molds for a CFL luminaire.
- Deloitte & Touche, approximately US $ 21,000,00, August 1996-June 2002 and July
2002- December 2003 audits of Program expenditures.