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IFC/GEF EFFICIENT LIGHTING INITIATIVE – PHILIPPINES
FINAL REPORT
COUNTRY PROGRAM IMPLEMENTATION
MAY 2000 – DECEMBER 2003
ALEXANDER ABLAZA
RUBEN LAMBUSON
CAMILLA NATASHA VILLEGAS
The IFC/GEF EFFICIENT LIGHTING INITIATIVE – PHILIPPINES
wishes to recognize
Mirko Möller,
Jay Jerrick N. Go, Randee Almond S. Gabriel
Florvi L. Villaescusa and Ma. Teresa J. Ragasa
for their respective roles in the implementation of this project
The Country Team thanks
Sabrina Birner
for the thorough review of this report and
for her over-all supervision of this Country Program.
FINAL REPORT – ELI-PHILIPPINES i
Soluziona Philippines, Inc December 2003
LIST OF ABBREVIATIONS
AEG Applied Energy Group (New York , USA)
ASEAN Association of Southeast Asian Nations
BPS Bureau of Product Standards (under DTI, Philippines)
BPSLAS Bureau of Product Standards Laboratory Accreditation Scheme (under DTI, Philippines)
C/I/I Commercial/Industrial/Institutional
CECP China Certification Center for Energy Conservation Products
CEPALCO Cagayan Electric Power & Light Company, Inc. (Philippines)
CFL Compact Fluorescent Lamp
COA Commission on Audit (Philippines)
CPD Continuing Professional Development
CRC Center for Research and Communication (Philippines)
DBM Department of Budget and Management (Philippines)
DBP Development Bank of the Philippines
DENR Department of Environment and Natural Resources (Philippines)
DepEd Department of Education (Philippines)
DESZR Law Donato Em Santos Zarate & Rodriguez Law Office (Philippines)
DOE Department of Energy (Philippines)
DPWH Department of Public Works and Highways (Philippines)
DSM Demand-Side Management
DTI Department of Trade and Industry (Philippines)
EDSA Epifanio Delos Santos Avenue (primary circumferential road of Metro Manila)
EEL Energy-efficient Lighting
ELI Efficient Lighting Initiative
EOI Expressions of Interest
ERC Energy Regulatory Commission (Philippines)
ESA Energy Services Agreement
ESCO Energy Service Company
FATL Fuels and Appliance Testing Laboratory (under DOE, Philippines)
GEF Global Environment Facility
GEFSEC Global Environment Facility Secretariat
GHG Greenhouse Gas
GRP Gross Rating Points
GSPEL Government Standards and Policies for Efficient Lighting (Philippines)
IACCC Inter-Agency Committee on Climate Change (Philippines)
IFC International Finance Corporation
IIEE Institute of Integrated Electrical Engineers of the Philippines, Inc.
IPO Intellectual Property Office (Philippines)
LATL Lighting and Appliance Testing Laboratory (under DOE, Philippines)
M&E Monitoring & Evaluation
FINAL REPORT – ELI-PHILIPPINES ii
Soluziona Philippines, Inc December 2003
continued
MERALCO Manila Electric Company (Philippines)
MMAFECCO Metro Manila Federation of Consumer Cooperatives (Philippines)
MOA Memorandum of Agreement
NACEEL National Advisory Council for Energy-efficient Lighting (Philippines)
NATCCO National Confederation of Cooperatives (Philippines)
NextGen ELI Next Generation of the Efficient Lighting Initiative
NPC National Power Corporation (Philippines)
PCEEE Philippine Council for an Energy-efficient Economy
PELMAT Philippine Efficient Lighting Market Transformation
PELMATP Philippine Efficient Lighting Market Transformation Project
PFI Private Financing Institution
PLIA Philippine Lighting Industry Association, Inc.
PO Purchase Order
POS Point-of-Sale
PPSQF Philippine Product Safety and Quality Foundation
PRAAC Public Relations, Advocacy and Advertising Campaign
RAP Regulatory Assistance Project (Maine, USA)
RBM Form 1 Results Based Monitoring Results Framework for ELI Management and Evaluation
RBM Form 2 Results Based Management Performance Indicators
RFP Request for Proposal
SZI Soluziona Ingeniería (Madrid, Spain)
TC-04 Technical Committee No. 04 (under DTI-BPS, Philippines)
TNS Taylor-Nelson/Sofres (Philippines)
TVC Television Commercial
TWG Technical Working Group
UNDP United Nations Development Programme
VAT Value Added Tax
VEEPL Vietnam Energy-efficient Public Lighting (a UNDP-GEF Project)
FINAL REPORT – ELI-PHILIPPINES iii
Soluziona Philippines, Inc December 2003
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY ................................................................................. 1
1.1 Overview .............................................................................................................................. 1
1.2 Residential Sector ................................................................................................................ 1
1.3 Commercial/Industrial/Institutional Sectors ................................................................. 2
1.4 ELI-Philippines Activities, Output and Results ............................................................. 3
1.5 Lessons Learned .................................................................................................................. 7
1.6 PELMATP and the Lessons Learned from ELI-Philippines ....................................10
2.0 INTRODUCTION ........................................................................................ 12
2.1 Objectives of the ELI-Philippines Program .................................................................12
2.2 Administrative Arrangements .........................................................................................12
2.3 Staffing ................................................................................................................................14
3.0 ACTIVITIES ................................................................................................ 15
3.1 Overview of Activities......................................................................................................15
3.2 Market Assessment ...........................................................................................................17
3.3 Residential Sector ..............................................................................................................18
3.4 Commercial / Industrial / Institutional Sectors ..........................................................33
3.5 Ensuring Sustainability .....................................................................................................49
4.0 SUSTAINABILITY AND REPLICATION ......................................................... 55
5.0 MONITORING AND EVALUATION .............................................................. 59
6.0 OVERALL ANALYSIS AND LESSONS LEARNED............................................ 61
7.0 FUTURE ACTIVITIES .................................................................................. 68
7.1 Department of Energy – Lighting and Appliance Testing Laboratory ....................68
7.2 Institute of Integrated Electrical Engineers of the Philippines, Inc. ........................68
7.3 Development Bank of the Philippines and other Private Financing Institutions ..69
7.4 Cagayan Electric Power and Light Company ...............................................................69
7.5 Department of Trade and Industry – Bureau of Product Standards ........................69
7.6 Energy Regulatory Commission .....................................................................................70
7.7 National Advisory Council for Energy-efficient Lighting ..........................................70
7.8 Philippine Lighting Industry Association, Inc. .............................................................70
7.9 Other Stakeholders ...................................................................................................... 71
APPENDICES
APPENDIX A: LIST OF PREPARED DOCUMENTS
APPENDIX B: LIST OF SUBCONTRACTS
APPENDIX C: LIST OF PARTNERSHIPS
APPENDIX D: LIST OF PURCHASE ORDERS
APPENDIX E: FINANCIAL STATEMENT
FINAL REPORT – ELI-PHILIPPINES iv
Soluziona Philippines, Inc December 2003
1.0 EXECUTIVE SUMMARY
1.1 Overview
The IFC/GEF Efficient Lighting Initiative (ELI) was an energy efficiency program funded
by a USD 15 million grant from the Global Environment Facility (GEF), and administered
globally by the International Finance Corporation (IFC). ELI’s goal was to reduce
greenhouse gas emissions by accelerating the growth of the market for energy-efficient
lighting technologies and services. ELI took place in seven countries: the Philippines,
Argentina, the Czech Republic, Hungary, Latvia, Peru, and South Africa.
A USD 2.5 million country budget sustained ELI-Philippines for a program duration of
over three years, from May 2000 to December 2003.
The pre-ELI Lighting Market Assessment revealed a wide and deep penetration of
compact fluorescent lamps (CFLs). This market position was largely attributed to the
influx of low cost, low-quality CFLs. Almost 6 out of 10 CFL brands were being traded
illegally, as they had not been granted the government’s Import Commodity Clearance (an
assurance of minimum safety and quality). This market infection carried both benefits and
risks. Although more households gained access to efficient lighting products, consumers
were left vulnerable to fake, substandard and unreliable CFLs due to the proliferation of
low cost, low-quality CFL imports.
The mission of ELI was therefore two-fold: (1) to design and implement a program to
would not only shift the demand from the base technology to energy-efficient lighting
products, but also from low-quality to high-quality CFLs; and (2) to sustain the lighting
market transformation by making sure that consumers did not revert back to the base
technology.
As part of the overarching ELI framework, IFC developed a toolkit of lighting market
transformation strategies. From this toolkit, ELI-Philippines used the following tools to
achieve its goals in the residential and non-residential sectors:
Public Education, Marketing and Standards
Electric Utility Programs
Transaction Support
Market Aggregation
Ensuring Sustainability
1.2 Residential Sector
The Public Relations, Advocacy and Advertising Campaign and the Point-of-Sale and
Vendor Education activities built general awareness among consumers, retailers, and
wholesalers about the economic and environmental benefits of efficient lighting
technologies. The said activities also created recognition of the ELI Green Leaf logo
(shown on the top right of this page) in the Philippine market. ELI’s promotional
campaigns advised consumers to look for the ELI logo as a sign of high-quality products.
FINAL REPORT – ELI-PHILIPPINES 1
Soluziona Philippines, Inc December 2003
Through a partnership between ELI and lighting manufacturers/importers, CFLs which
met ELI quality criteria (see text box and discussion on ELI Logo Labeling in Sec. 3.4.3 for
more details) were allowed to display the logo on their packaging.
By creating demand for ELI-qualified lighting products, ELI enticed lighting
manufacturers/importers to increase their own sales and marketing efforts for these
products. With the increasing number of ELI-qualified CFL brands and variants,
consumers now have access to a variety of high-quality CFLs at competitive and more
affordable prices, as evidenced by the drop in the average price of CFLs dropped from a
range of USD 6-10 (at the start of the country program) to USD 3-5 (at the end of the
program term).
1.3 Commercial/Industrial/Institutional Sectors
The success of the ELI activities for the C/I/I sectors depended on how the ELI activities
complemented the nation’s ongoing energy and economic development strategies. ELI’s
own strategy was to provide technical assistance for the development of lasting tools for
utilities, banks, lighting professionals, energy service companies (ESCOs), and
cooperatives, in the hopes that these stakeholders would become promotional agents of
efficient lighting who would continue the market transformation over the long term.
Prior to ELI, utilities were reluctant to implement Demand-Side Management (DSM) due
to the inadequate incentives in the 1996 DSM Framework. ELI therefore provided
technical assistance for the review, amendment and improvement of the existing
framework. ELI succeeded in building government-industry consensus towards the
approval of the Amended DSM Framework, as manifested in a collaborative agreement
involving 71 power industry stakeholders. All reports and documentation necessary to
enable the regulatory process to amend the 1996 DSM Framework have been formally
accepted by the ERC. The proposed amendment has been accepted into the ERC’s
pipeline, but its formal adoption has been held up due to a backlog of regulatory cases.
ELI likewise collaborated with the Department of Energy (DOE) and the Development
Bank of the Philippines (DBP) in the preparation and development of the Model ESCO
Transaction bid documents, namely the Request for Proposal (RFP) and the Energy
Services Agreement (ESA). The DBP intends to proceed with the subsequent phases of
project implementation, and to use the RFP and ESA for the procurement of ESCO
services for their lighting retrofit project. These documents can also serve as a guide for
other ESCOs and financing institutions.
FINAL REPORT – ELI-PHILIPPINES 2
Soluziona Philippines, Inc December 2003
The use of the ELI logo and technical specifications in the Philippines program
ELI’s pre-program market assessments found that inadequate information about the energy, economic
and environmental benefits of efficient lighting and a lack of credible sources of such information
discouraged purchases of energy-efficient lighting to varying degrees in all seven ELI country markets.
In response, the global ELI program developed and promotes voluntary technical specifications that
address product efficiency and reliability. Although they integrate elements of widely used
specifications, the ELI specifications are not part of any local or international law or regulation.
Manufacturers interested in participating in ELI needed to show that their products complied with the
ELI specifications. ELI conducted three rounds of random testing across its seven countries, to
ensure that products lived up to manufacturers’ claims.
During the three-year implementation of ELI in the Philippines, CFL products that met the ELI
specifications were allowed to bear the ELI "green leaf" logo. Built up as quality mark through tri-
media campaigns, vendor education activities and professional training seminars, the ELI logo helped
purchasers identify efficient, reliable products that perform according to manufacturer specifications.
Only CFL products that carried the ELI logo in the Philippine market were eligible to participate in
these campaigns and in the other bulk procurement activities arising from the ELI activities with the
regulatory agency, utilities, ESCOs, banks and consumer cooperatives.
The country team succeeded in winning the continued interest of manufacturers to apply for ELI
qualification. When the country program began in 2000, only 3 brands had products in the market that
met the ELI specifications. Because of ELI-Philippines' efforts, two more brands sought ELI
qualification through the program term. A total of 46 models from 5 brands of CFL products (with
two more brands with pending applications) were ELI-qualified by the time the program closed its
public activities in September 2003. The manufacturers of these products not only invested in the
testing and qualification of their ELI-compliant products, but they likewise co-marketed the ELI
quality mark by printing the logo on the packaging of their products, point-of-sale collaterals and print
advertisements.
1.4 ELI-Philippines Activities, Output and Results
Tabulated alongside their corresponding output and results, the ELI activities under the
Public Education, Electric Utility Programs, Transaction Support, Market Aggregation and
Ensuring Sustainability country program areas are summarized below.
ELI-PHILIPPINES
ACTIVITIES OUTPUT RESULTS
Public Education
Introduce internationally Manufacturers sought ELI 5 brands and a total of 46 models of
recognized standards and qualification for their lighting products ELI-qualified CFLs available in the
specifications for CFLs Philippine market at the time the
(ELI Quality Mark) country program closed, with at least 2
more brands poised to be certified
FINAL REPORT – ELI-PHILIPPINES 3
Soluziona Philippines, Inc December 2003
ACTIVITIES OUTPUT RESULTS
Promote adoption of ELI ELI technical specifications were made Regulator, utilities, ESCOs and ESCO
specifications for non- an integral part of proposed regulatory users, professionals and cooperatives
CFL lighting technologies framework, utility business plans, institute ELI specifications as their
ESCO procurement documents and minimum procurement standard
professional manuals and training
programs
Strengthen lighting Provided equipment and training for LATL performed two-rounds of
product testing capability CFL energy performance testing. testing for the seven ELI country
of a government programs
laboratory to support ELI
global testing activity ELI leaves behind a global/regional
(DOE-LATL) test facility with the capability and
experience for testing compliance of
lighting products with ELI (or other)
technical specifications
Run a high-profile Public Release of print advertisements, Public awareness of ELI quality mark
Relations, Advocacy and television commercials and radio is slightly higher than of ICC mark (for
Advertising Campaign advertisements CFLs)
(PRAAC)
Stronger market demand for high-
quality, energy efficient lighting
products
Weakened black market of CFLs
Strengthened cooperation from other
stakeholders
Conduct a Point-of-Sale Visited almost 2,000 hardware stores 112% increase in the number of stores
(POS) Support Campaign in Metro Manila selling ELI-qualified CFLs
and Vendor Education
Seminars Installed point-of-sale promotional 85% of vendors or retailers of visited
materials for CFLs in over 300 hardware stores understood the
hardware stores benefits of energy-efficient lighting
technologies and ELI-qualified
Conducted 5 vendor education products
seminars in various locations
Trained personnel and owners of over
500 hardware stores
Develop a reference Distribution/sale of 2,000 copies of Continued use of the Manual by IIEE
manual for lighting the Manual (produced under ELI and PLIA for their professional
professionals (IIEE-ELI technical assistance) by IIEE to training seminars
Manual of Practice on lighting designers, specifiers,
Efficient Lighting) contractors, suppliers and other ELI quality specifications made the
interested parties basis for procurement processes of
some national government agencies
Conducted two professional training and local government units
seminars
FINAL REPORT – ELI-PHILIPPINES 4
Soluziona Philippines, Inc December 2003
ACTIVITIES OUTPUT RESULTS
Electric Utility Programs
Provide technical Review, amendment and improvement Generation of government-industry
assistance to the electric of the 1996 DSM Framework. consensus towards the approval of the
utility regulatory agency Amended DSM Framework, as
(ERB/ERC) Preparation of Standard/Default manifested in a collaborative
DSM plans to facilitate submission of agreement involving 71 power industry
DSM plans of the utilities stakeholders
Support the design of Implementation of a pilot CFL Utility committed to implement the
utility CFL Programs – distribution program (“Paylight”) scaled-up CFL program
Pilot Distribution and
Business Plan Joint preparation of a business plan for Business model provides a basis for
(CEPALCO) the scaled-up CFL distribution replication by other utilities
program (“Megalight”)
Support the design of Joint preparation of a business plan for Management of utility set to decide on
utility CFL Programs – a CFL distribution program implementation schedule of the three-
Business Plan (“Smartlight”) phased program
(MERALCO)
Transaction Support
Prepare a model ESCO Developed together with DBP and Commitment of DBP management to
Transaction adopted to DOE a Request for Proposal and continue with the subsequent phases
the Philippines business Energy Services Agreement which will of the ESCO project using the ELI
context be used for the procurement of ESCO output
services for the lamp retrofitting
project of DBP Initiated extension of environmental
credit facilities to include energy
efficiency and ESCO project financing
by private financing institutions
Influenced other government agencies
(e.g., the DENR) to consider adoption
of lighting retrofit investments similar
to those of the DBP.
Catalyzed formation of 14 independent
ESCOs (e.g. RNFA-Romago,
CEPALCO ESG & MERALCO
Energy Inc.)
Market Aggregation
Increase sales in an Signing of the MOA between ELI and MMAFECCO interested to pursue
underdeveloped CFL the Metro Manila Federation of bulk purchase negotiations with
distribution channel Consumer Cooperatives manufacturers/importers
(consumer cooperatives) (MMAFECCO)
At least eight member cooperatives
Installation of educational and point- under the MMAFECCO interested to
of-sale promotional materials for CFLs be long-term distribution channels for
at member cooperatives ELI-qualified CFLs
Conducted orientation seminars for MMAFECCO activity provides basis
member cooperatives for future replication by other regional
federations of consumer cooperatives
Organized trade workshops between
interested cooperatives and Commercial negotiations between
manufacturers/importers cooperatives and manufacturers/
importers have begun
FINAL REPORT – ELI-PHILIPPINES 5
Soluziona Philippines, Inc December 2003
ACTIVITIES OUTPUT RESULTS
Facilitation of the establishment of
consumer cooperatives as viable
distribution channel for energy-
efficient lighting products
Ensuring Sustainability
Support a potential Jointly developed with UNDP and ELI, UNDP, and DOE jointly
successor program DOE a matrix of activities that defined approved a matrix of activities for
(UNDP-GEF-DOE a program succession strategy integration into the PDF-B project
PELMATP) document of PELMATP
Pushed for PELMATP adoption of
the ELI logo and specifications and PELMATP adoption of the ELI logo,
the output from activities with the specifications and other legacy tools
various stakeholders produced through ELI and its
partnerships with the DOE-LATL,
NACEEL, PLIA, ERC, MERALCO,
CEPALCO, DBP, IIEE and
MMAFECCO.
Assist the DOE-LATL Provided technical assistance in ISO 17025 Certification of the LATL
Laboratory obtain ISO support of the accreditation process
Accreditation through training and updating of the Mutual recognition under the Asia
LATL’s quality management system Pacific Laboratory Accreditation
Cooperation (APLAC) anticipated by
the first quarter of 2004.
Create and enable Established NACEEL, a high-profile NACEEL continues to exist and will
sustaining organizations public-private sector partnership for oversee the GSPEL project beyond
to support lighting market policy formulation (October 2000) the term of ELI-Philippines
transformation beyond
program term (Philippine Created PLIA, an organization PLIA strengthens in membership and
Lighting Industry composed of lamp, luminaire and government cooperation; PLIA poised
Association and National ballast manufacturers and importers, to as the most active private sector
Advisory Council for push for industry reforms with partner of DOE in the potential GEF
Energy-efficient Lighting) government (November 2001) successor program PELMATP; PLIA
committed to protect consumer
Launched the NACEEL/PLIA welfare through promotion of quality
Government Standards and Policies and energy-efficient lighting products
for Efficient Lighting project; created a
multi-sectoral technical working group Integration of GSPEL project in
PELMATP project design
Support ELI Promotions Promotion of ELI strategies and Increased awareness of ELI logo,
Overseas specifications in new international specifications and strategies in the
markets through active participation in global lighting market
the project development workshop for
the Vietnam Energy-efficient Public
Lighting (VEEPL) Project and
international conferences such as Right
Light 5 and EEDAL’03
Support the Next Technical assistance provided to ELI Candidate custodian (China Center for
Generation of ELI custodian in the development of the the Certification of Energy
business plan for the Next Generation Conservation Products) submitted first
of ELI draft of business plan in December
2003
FINAL REPORT – ELI-PHILIPPINES 6
Soluziona Philippines, Inc December 2003
1.5 Lessons Learned
The Country Team draws the following lessons from its implementation of ELI:
Interactive program design allowed strategies to adjust with the changing
market conditions. The ELI-Philippines team was able to realign its activities in
response to changes in the social, political, or economic conditions that affected the
local lighting market.
The baseline market assessment paved the way for other beneficial and
strategic endeavors. Aside from gaining baseline measurements of the market for
monitoring and evaluation purposes, the Market Assessment allowed the Country
Team to create strategies tailored to market conditions, and to provide information to
government which raised awareness of a need for industry reforms, especially relating
to illegally-traded CFLs.
A media campaign is an effective way to leverage stakeholder support. While the
main objective of the media campaign was to increase consumer awareness, the Public
Relations, Advocacy and Advertising Campaign (PRAAC) - which significantly raised
ELI’s profile - was also very effective in obtaining more general support from its
indirect audience, such as manufacturers or government officials. The media presence
of ELI helped secure the cooperation of program stakeholders.
The ELI logo as a quality mark proved to be an effective public education tool.
The ELI logo was able to communicate energy efficiency, quality, and long lamp-life
to consumers. The simple quality message behind the logo made it possible to guide
consumers without having to explain detailed and complicated technical specifications.
A capable ELI testing center can help sustain the logo and specifications in the
local market. Through the procurement of testing and calibration equipment,
provision of technical training to personnel, and technical assistance in securing ISO
certification, ELI leaves a testing center that is capable of testing lighting products for
compliance with ELI specifications for the Philippine market. Because of its capability
and hands-on experience in the global testing of lighting products from the seven ELI
country programs, the DOE-LATL can likewise offer its services to the regional, if not
global, lighting market. Having been granted ISO 17025 accreditation in mid-2003, the
LATL is now deemed as a world-class lighting facility, the first ELI Testing Center in
Asia and one of the very few laboratories in the Asia-Pacific capable of running energy
performance tests for lighting products.
Vendor education is an effective public education tool, but must be sustained if
a long-term impact is desired. Although vendor education for small- and medium-
scale retailers was an effective way of promoting the ELI logo and specifications
within the product supply chain, the ELI-Philippines experience shows that the effects
of this market intervention strategy could not be sustained for periods longer than a
year unless the activity was succeed by follow-up phases.
With start-up assistance in standards development, lighting professionals can
continue the promotion of technical specifications in the C/ I/ I sector. The
FINAL REPORT – ELI-PHILIPPINES 7
Soluziona Philippines, Inc December 2003
IIEE-ELI Manual of Practice on Efficient Lighting, which was co-developed by ELI, is
being used by lighting professionals (i.e., designers, specifiers, contractors, suppliers,
installers, purchasers) as a comprehensive reference on the recommended applications
of energy efficiency lighting technologies.
Regulatory frameworks can be a barrier to DSM implementation. Utilities were
found reluctant to pursue DSM projects because of the lack of specificity of the
regulatory framework for Demand-Side Management, particularly in the regulatory
policies pertaining to the recovery of program costs and lost revenue. By extending
technical assistance in the review and amendment of the 1996 DSM framework, ELI
sought to remove this barrier.
Regulatory intervention for DSM reforms in a newly deregulated environment
can be challenging. DSM became a low priority activity of the regulator and majority
of the utilities in the newly deregulated power sector. New legislation has
overwhelmed the regulator and the rest of the power industry with restructuring,
privatization of state-owned companies, reprioritization of resources towards the core
business of electricity distribution, and the unbundling of electricity rates. The
challenge for ELI was to re-invent DSM as an attractive activity by proposing clearer
benefits in the regulatory framework and by generating viable business models for
utilities. ELI has partially met this challenge as evidenced by the strong collaborative
support of the power industry towards the regulatory reforms ELI has proposed and
by the successful pilot CFL distribution program implemented by one of the utilities.
The most difficult aspect of this strategy was getting the regulator to assign more
priority to ELI’s DSM petition amidst the backlog of deregulation-related cases and
limited operational resources.
Utilities were found willing to design and implement efficient lighting DSM
programs. During the collaborative efforts for DSM reforms, a majority of utilities
believed that a CFL program was the most feasible DSM activity to execute. More
significantly, MERALCO and CEPALCO (the country’s first and fourth largest
utilities) agreed to co-develop CFL Programs with ELI even before the DSM
framework was officially amended. While levels of commitment, cooperation, and
motivation vary between these two utilities, MERALCO and CEPALCO nevertheless
remained positive that their respective CFL programs were commercially viable and
capable of drawing benefits other than regulatory compliance.
The involvement of a wholesale financial institution in a model ESCO
transaction can influence its borrower banks to also support energy efficiency
financing. Prior to the model ESCO transaction with the DOE and DBP, energy
efficiency projects did not easily qualify for loans from environmental portfolios,
ESCO agreements were not accepted as loan collateral, and not a single financial
institution had extended credit to ESCO projects. ELI learned that while banks were,
in principle, interested in ESCO lending, they were waiting for a market leader to pave
the way. ELI was fortunate to have DBP, a wholesale bank, as partner for the high-
profile model ESCO transaction. DBP will ask its borrower banks to open a credit line
for ESCOs who work on the project. In this way, the DBP experience will cascade
down to borrower banks.
FINAL REPORT – ELI-PHILIPPINES 8
Soluziona Philippines, Inc December 2003
Independent players can help strengthen the ESCO industry Prior to ELI, most
of the energy service providers were affiliated with equipment manufacturers, suppliers
and importers. ELI helped diversify the industry by drawing technical expertise from
independent players such as engineering consultants, electrical contractors, and
utilities. Over a dozen independent ESCO organizations, including project
associations and joint ventures, were formalized as a result of ELI’s industry
intervention. These independent ESCOs have proven dynamic and capable players.
GEF assistance can empower local stakeholders to be agents of change who
influence markets beyond the close of the program. Whenever possible, ELI
sought to leverage GEF funds by creating long-term proponents of energy-efficient
lighting. ELI was able to apply this strategy with utilities, banks, lighting professionals,
cooperatives, and ESCOs. Whereas before ELI, these parties were not especially
aware of energy-efficient lighting, thanks to ELI, they now actively seek to sell, buy, or
install efficient lighting technologies. It is reasonable to expect these new attitudes to
persist (this persistence will be measured during post-program Monitoring and
Evaluation).
Consumer cooperatives can be willing market aggregators. With the willingness
of the Metro Manila Federation of Consumer Cooperatives (MMAFECCO) to
become a CFL market aggregator, price negotiations of CFL purchases moved one
level up the supply chain, thereby allowing the federation to directly negotiate pricing
and volume arrangements with manufacturers and importers in lieu of the traditional
distributors. The ELI intervention enabled CFL price reductions by eliminating the
price margin allocated to distributors and by aggregating the CFL order volumes of the
Federation’s member cooperatives.
The sustainability of market transformation strategies can be bolstered through
the creation of guardian institutions. ELI saw the need and potential for a unified
force to transform the lighting market, and thus co-founded the Philippine Lighting
Industry Association (PLIA). Through its 17 member-companies, PLIA has already
set up its own Secretariat office, has committed to a private sector partnership with
government to protect consumers against substandard lighting products, has pledged
its co-financing support to the GEF successor program PELMATP, and can be
expected to be a long-term lobbying arm for efficient lighting in the Philippines.
Another institution co-founded by ELI is the National Advisory Council for Energy-
efficient Lighting (NACEEL), a high-profile public-private policy advisory group that
will continue to exist after ELI closes. In late-2003, NACEEL, with the help of PLIA,
has launched a 30-month project for the multi-sectoral formulation of the
Government Standards and Policies for Efficient Lighting (GSPEL).
Being complementary GEF programs, ELI and PELMATP can share the same
GEF- developed tools without duplicating the ELI activities. With redirected
focus towards the C/I/I sectors, PELMATP can design and implement new market
transformation activities while adopting the legacy tools that ELI has left behind. Of
the ELI legacy tools, PELMATP chose to build upon the ELI logo, the ELI technical
specifications, the amended DSM Framework, the Standard and Default DSM Plans,
the utility CFL Program Business Plans, the reference manual for lighting
professionals and the ESCO procurement documents.
FINAL REPORT – ELI-PHILIPPINES 9
Soluziona Philippines, Inc December 2003
Good program management increases output of program activities. With the
ability to respond to the ever-changing needs of the market, a strong management
team from both the global and local implementing entities was able to deliver several
unexpected and positive outcomes without increasing activity budgets. ELI-
Philippines managed to carry out the Demonstration Lighting activity without GEF
support. The Ensuring Sustainability strategy, which included the creation of
sustaining institutions such as the NACEEL and PLIA, was implemented despite not
being part of the original program design. Likewise, the Country Team was able to
stretch the reach of the media campaign to cover 4 implementation waves. Moreover,
ELI succeeded in generating the support of 71 power industry stakeholders in a new
collaborative process that did not require additional GEF funding.
GEF immunity can be flowed down to country program implementors. The
budgetary allocation of less than USD 10,000 for the services of an ELI legal advisor
through a period of over 2 years was able to free up as much as USD 200,000 in
significant taxes and duties in the country program budget. The savings that resulted
from this activity were then used to fund other ELI activities. Other GEF projects in
the Philippines and in countries with similar tax regimes may have to go through the
same long process for GEF immunity to be passed on to the local implementing
entities.
1.6 PELMATP and the Lessons Learned from ELI-Philippines
The UNDP-GEF-DOE Philippine Efficient Lighting Market Transformation Project
(PELMATP) is a climate-change mitigation program that will address the remaining
technical and market barriers to the widespread utilization of energy-efficient lighting
(EEL) systems in the Philippines. ELI-Philippines sees PELMATP as the succeeding
driver of the ongoing market transformation in the country. The Country Team believes
that there is a strong potential for PELMATP to build on the successes of ELI and
provide follow-through especially on activities that would require assistance through
subsequent phases of the project cycle.
Through consensus-building consultative conferences with the UNDP and DOE, ELI-
Philippines helped define an acceptable and logical program succession strategy for
PELMATP. The UNDP-DOE PELMAT Project Development Team conferred with the
Country Team to determine which of the ELI activities (especially in the C/I/I sectors)
have the highest potential to build on, what effective strategies can be employed, what
lessons can be learned from the ELI experience, and what output and legacy tools can be
adopted in the implementation of PELMATP.
PELMATP can therefore design and implement new market transformation activities
while adopting the legacy tools that ELI has left behind. Being complementary GEF
programs, ELI and PELMATP can share the same GEF-developed tools without
PELMATP duplicating the ELI activities. ELI-Philippines has developed and set into
action as its program legacy the sustaining institutions PLIA and NACEEL,
manufacturers’ use of the ELI logo and specifications, industry consensus towards
proposed regulatory reforms in DSM, utility DSM business plans, ESCO procurement
documents, cooperative aggregation models, and professional training manuals.
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Having identified the successful ELI activities and tools to build on,
PELMATP has agreed to the adoption of the ELI logo and specifications as voluntary
standards for specific bulk procurement, ESCO, DSM and demonstration activities.
PELMATP intends to include activities that will provide technical assistance towards
the adoption of the amended DSM framework as proposed by ELI-Philippines and
seek ERC approval of the Standard and Default DSM Plan Templates ensuring that all
applicable and cost-effective efficient lighting options are considered (ELI
specifications included).
PELMATP proposes to work with CEPALCO to expand its DSM program to other
efficient lighting technologies.
PELMATP will adopt the Model ESCO Transaction bid documents (RFP and ESA)
developed with the assistance of ELI, continue to build the capacity of DBP and
ESCOs and complete the demonstration process as a showcase to the commercial and
industrial sectors.
PELMATP seeks to develop applicable micro-financing models for consumer
cooperatives and provide training on the implementation of selected micro-financing
scheme
PELMATP will collaborate with PLIA in monitoring the local lighting market and
establishing a comprehensive database of lighting product manufacturers/suppliers.
PELMATP intends to align and integrate all activities related to the updating and
formulation of government policies, standards, and guidelines including all ongoing
efforts of the NACEEL and GSPEL Technical Working Group.
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2.0 INTRODUCTION
2.1 Objectives of the ELI-Philippines Program
The overall objective of ELI-Philippines was to reduce emissions of greenhouse gasses by
increasing the penetration of energy-efficient lighting. ELI generated awareness of the
benefits of efficient lighting and promoted the distribution and widespread use of efficient
lighting technologies and services in the residential, commercial, industrial and institutional
sectors of the Philippine society.
The ELI-Philippines strategy sought to address local market barriers that had previously
blocked the full-scale adoption of cost-effective efficient lighting measures, namely:
lack of consumer knowledge of the benefits of efficient lighting, and lack of reliable
product information and labeling;
limited capacity and experience in the commercial/industrial/institutional (C/I/I)
sectors for designing, specifying, and financing cost-effective lighting projects;
low priority placed by building owners and facility managers on even financially
advantageous C/I/I investments in efficient lighting.
2.2 Administrative Arrangements
In January 2000, the IFC, as the GEF executing agency on behalf of the World Bank,
obtained USD 2.5M from the GEF for the implementation of the ELI-Philippines
program.
Soluziona Ingeniería (SZI), formerly Unión Fenosa Ingeniería, S.A. (UFISA), was selected
by the IFC to be one of three Regional Implementing Entities (RIEs) responsible for the
implementation the IFC/GEF Efficient Lighting Initiative. In November 1999, Soluziona
Ingeniería entered into contract with the IFC to administer the program in two of the
seven ELI countries, namely South Africa and the Philippines.
As the RIE, SZI administered the GEF grant funds provided for implementing ELI,
employed project managers and administrative staff in South Africa and the Philippines,
and contracted with local partners and consultants who were to implement specific
program elements in each country.
SZI likewise monitored and tracked the progress and impacts of the program
implementation, and reported to IFC on a regular basis. Financial accounting and progress
reports were submitted to the IFC every quarter, together with program monitoring
reports which were also delivered to the Applied Energy Group (AEG), the ELI
Monitoring & Evaluation (M&E) Contractor. Aside from these, SZI provided the IFC
with comprehensive annual reports that discussed the market impact of ELI activities
undertaken.
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ELI-Philippines officially commenced on 2 May 2000, with the establishment of a full-time
office in the Philippines. Soluziona Philippines, Inc. (formerly Iberpacific, Inc.), Soluziona
Ingeniería’s Philippine consulting subsidiary, locally managed the program activities in the
country.
Soluziona Philippines (also referred to in this report as the ELI Country Team) was
responsible for the managerial, administrative, financial, budgeting, cost control, auditing,
and reporting activities needed for the implementation of the ELI project in the
Philippines, and handled the technical, managerial and administrative supervision of
subcontractors.
In order to maximize the impact of every IFC dollar allocated to each program activity, the
Country Team engaged advertising, energy efficiency and project financing experts through
various subcontracts related to specific ELI activities.
ELI-Philippines awarded the Market Assessment and Public Relations, Advertising and
Advocacy Campaign (PRAAC) contracts through a formal bid process. The selection was
made based on a stringent cost-benefit analysis combined with a qualitative impact analysis
of the submitted proposals.
ELI-Philippines engaged the events management agency Infinite Ideas to assist in the
implementation of the ELI Point-of-Sale (POS) Support Campaign and the
ELI/MMAFECCO Educational Campaign activities. The Country Team supplied research
inputs particularly on the Metro Manila retail market for lighting products.
To provide visibility for ELI and create consumer awareness by assisting customers in
making energy-efficient purchase decisions, ELI-Philippines contracted a media agency,
The Magic Spell, Inc., to conduct a product promotion activity in upscale hardware stores
which had proved difficult to penetrate during the POS Support Campaign
ELI-Philippines tapped international and local consultants to ensure the success of the
utility-led CFL Distribution Programs. The consultants prepared business plans, brought
in international models, developed case studies based on actual implementations, and
identified possible sources of financing that could be tapped by utilities to implement such
CFL distribution programs.
International and local consultants also developed a model ESCO transaction. Their
collective experience and expertise in the performance contracting business was crucial in
defining the terms and conditions that will suit the unique business climate in the
Philippines.
To encourage and facilitate demand-side management activities by utility companies, ELI
contracted the US-based Regulatory Assistance Project (RAP) to plan, design, recommend
improvements to the existing DSM Framework by making explicit the cost recovery
mechanisms for DSM program expenses and revenues.
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2.3 Staffing
The ELI-Philippines office was staffed by a full-time County Director (Program Manager),
a full-time Senior Program Associate (Assistant Program Manager), and two full-time
Program Associates, together with the part-time assistance of a Program Administrator
(Senior Manager).
Having direct responsibility for all management, administrative, financial and technical
aspects of the project, the Country Director provided oversight for all activities
implemented by ELI-Philippines.
The Senior Program Associate managed the day-to-day implementation of the ELI
activities and supervised the preparation of progress and financial reports that were
submitted to SZI and the IFC.
The Program Associates provided assistance to the Senior Program Associate in the
implementation of program activities (i.e. the PRAAC, POS Support Campaign and
Vendor Education). Furthermore, the Program Associates were responsible for the
preparation of monthly, quarterly and annual progress reports, as well as of the program
monitoring and evaluation reports, which were submitted every six (6) months to the
M&E Contractor.
A Program Administrator was engaged until August 2002 to assist the Senior Program
Associate in monitoring the financial transactions of ELI-Philippines. The Program
Administrator was likewise tasked to ensure that the objectives of the ELI Program were
achieved within the approved budget. Starting September 2002, two part-time Program
Associates for financial control carried out the duties and responsibilities of the Program
Administrator.
Three amendments were made to the agreement between Soluziona Ingeniería (formerly
Unión Fenosa Ingeniería, S.A.) and Soluziona Philippines, Inc. (formerly Iberpacific Inc.).
The amended contract for the provision of management services in the ELI project was
executed to reflect the project extension of ELI-Philippines. The first amendment
extended the contract term for eight (8) months from 02 May 2002 to 31 December 2002;
the second, for nine (9) months from 01 January 2003 to 30 September 2003, and the
third, for three (3) months from 01 October 2003 to 31 December 2003.
A Legal Advisor, from the Donato Em Santos Zarate and Rodriguez (DESZR) Law
Office, assisted ELI in all its legal activities, particularly in securing tax exemption rulings
from both the Philippine Bureau of Customs and Bureau of Internal Revenue. The ELI
Legal Advisor likewise managed the application process for the registration of the ELI
logo with the Philippine Intellectual Property Office (IPO).
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3.0 ACTIVITIES
3.1 Overview of Activities
ELI activities were selected based on their cost-effectiveness in meeting the program’s
objectives. ELI-Philippines worked to increase consumer awareness of the benefits of
energy-efficient lighting to create immediate and direct impacts through increased market
penetration of efficient lighting. Likewise, ELI-Philippines sought to bring about a market
transformation with long-term and indirect effects through the implementation of public
education, regulatory intervention and financial transaction support activities. In the end,
ELI-Philippines came up with a mix of activities, designed to be high-impact and
sustainable, targeted towards the residential, commercial, industrial and institutional
sectors.
3.1.1 Enhancement of local CFL market
The heart of ELI-Philippines was a consumer awareness strategy. The tri-media campaign
(TV, radio and print) built general awareness in the market about the economic benefits of
efficient lighting technologies, and established recognition for the ELI logo, carried by all
products meeting the ELI energy performance standard.
ELI-Philippines complemented this public awareness campaign in the retail network by
educating lighting product vendors on the economic and environmental benefits of using
ELI-compliant technologies and providing them with promotional/educational sales tools,
such as point-of-sale (POS) collaterals.
A mandatory government-labeling program drew upon the support of ELI-Philippines for
strengthening local lamp testing capacity and labeling enforcement regulations. The
Country Team provided assistance to this initiative to ensure that the ELI investment in
establishing the identity of the ELI Green Leaf logo was sustained in the market as a
source of reliable consumer information beyond the completion of the project. Given the
pre-ELI state of the lighting market with almost 6 out of 10 CFL brands being illegally
traded, this strategy was designed to contain the market infection of low-cost inferior
compact fluorescent lamps (CFLs) to drive down prices while protecting the market
against mislabeled or non-performing products.
3.1.2 Education for lighting professionals
ELI-Philippines built capacity among lighting professionals to design and develop an
efficient lighting infrastructure in the engineering practice through a program of
professional education, thereby engaging lighting professionals as advocates of efficient
lighting standards, especially in the commercial/industrial/institutional (C/I/I) sectors.
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3.1.3 Increased local capacity for lamp performance testing
ELI-Philippines collaborated with the Department of Energy (DOE) in the transformation
of the lighting industry. The country program provided the funds necessary to acquire
USD 200,000 worth of testing equipment to bolster the testing capabilities of the DOE-
Lighting and Appliance Testing Laboratory (LATL). The LATL tested over 500 CFL
samples from the seven ELI countries, as well as over 240 samples from the local market,
for compliance with the ELI technical specifications.
3.1.4 Support for model CFL leasing programs
The ELI-Philippines program leveraged the IFC's position in the Philippines' capital
markets to enhance access to capital for efficient lighting in the C/I/I sectors. The
Country Team benefited from the previously established relationships between the IFC
and the utilities. Through partnerships with utilities, ELI sought to establish CFL leasing
facilities as extensions of existing electricity and consumer product marketing channels.
ELI-Philippines worked with the Manila Electric Company (MERALCO) and Cagayan
Electric Power and Light Company (CEPALCO) to develop model CFL leasing programs
that benefit consumers and the utilities alike. The programs were designed to be beneficial
to the utilities in a way that did not depend on the regulator’s adoption of an amended
DSM framework assuring the utilities of program cost recovery.
3.1.5 Support to lighting ESCOs
ELI-Philippines likewise leveraged its resources to provide opportunities for the Financial
and Energy Service Company (ESCO) industries to stimulate the performance contracting
business in the Philippines. ELI-Philippines convened symposia to introduce lighting
businesses to lighting ESCO business concepts, project financing and performance
contracting methods and financing sources. This led to the implementation of the Model
ESCO Transaction project involving DOE, the government-owned wholesale bank
Development Bank of the Philippines (DBP), and ELI. The ELI team worked with both
parties and delivered the landmark ESCO bid documents for DBP, laying the groundwork
for future ESCO transactions in the Philippines.
3.1.6 Pursuit of tax immunity
By flowing down GEF immunity through the local implementing entity, ELI-Philippines
was reputed as the first foreign-assisted program in the country to have spared a recipient
government agency from counterpart taxes and customs duties. In December 2002,
ELI/Soluziona Philippines, with the assistance of the IFC HQ Legal Office and the
DESZR Law Office, was granted by the VAT Review Committee of the Bureau of
Internal Revenue exemption of all direct and indirect taxes, most significant of which was
the 10% Value Added Tax (VAT), as the local implementing entity of the IFC/GEF
Efficient Lighting Initiative Trust Fund. This approval was a milestone event occurring
over two years after its initial request.
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The impact of this ruling was two-fold:
The country program was able to make use of the Public Relatioins, Advocacy and
Advertising Campaign (PRAAC) Contingency budget of USD 110,000 for extended
program activities;
A total accumulated amount of almost USD 200,000 was freed up from avoided tax
and custom duties. This 10% savings can be used in other implementation projects
3.2 Market Assessment
In June 2000, ELI-Philippines contracted the consulting firm SGV-Arthur Andersen to
conduct a baseline Market Assessment. The Market Assessment was vital to the program
insofar as it identified baseline figures for the monitoring and evaluation of the ELI-
Philippines program, and acted as a tool in refining the program strategies of ELI-
Philippines. An incidental benefit of the Market Assessment, which appeared to be a
unique occurrence to the Philippine project, was the ability of the Report to generate
follow-up activities from the government and private sector to address the infection of the
market by inferior-quality lighting products.
Findings of the Report showed surprising figures:, CFLs enjoyed a wide and deep
penetration in the lighting market, but this market position was largely due to an influx of
inferior quality, illegal CFLs in the market. Almost 6 out of 10 CFL brands in the market
were being illegally traded. In May 2001, the Country Team formally presented the final
report of this study to manufacturers and key government agencies as a strategic step
towards seeking industry reforms. The report’s findings of a strong CFL black market
infection raised the urgency for manufacturers/importers to establish the Philippine
Lighting Industry Association, Inc. (PLIA). The alarming figures shed light on the need for
consumer education to increase purchases of quality light products. ELI-Philippines
stressed the importance for government and industry to assist one another in eliminating
the influx of substandard and illegally traded CFLs.
The same report was also submitted to the ELI Monitoring & Evaluation (M&E) and ELI
Crosscutting entities, and used by the Country Team in the design of its aggressive Media
Campaign and other market support activities aimed at improving the penetration and
acceptance of high-quality energy-efficient CFLs into the market.
The Report also provided figures on the linear fluorescent and ballast market. Before the
ELI-Philippines project began, the energy-efficient T-8 linear fluorescent lamps had an
18% share of the market, and the electronic ballasts had 10% market share. Through
collaborative efforts with stakeholders to promote efficient lighting technologies in the
Philippines, ELI sought to improve the use and acceptance of these energy-efficient
technologies.
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3.3 Residential Sector
The residential sector was the primary focus of ELI activities in the Philippines. A multi-
faceted strategy was implemented to provide consumer awareness in the residential sector
about energy-efficient lighting products.
In 1994-95, residential lighting accounted for 8% of total electricity consumption in the
Philippines. Findings of the DOE Household Energy Consumption Survey showed that of
the 8,535 households surveyed in 1996, 85% used fluorescent, 81% used incandescent, and
2.68% used CFLs. Incandescent lighting accounted for approximately 53% of residential
lighting electricity demand and presented the most promising opportunity for residential
lighting efficiency improvements. Especially outside Metro Manila, residential lighting was
a significant contributor to peak demand since there are few other end-uses in many
Filipino communities.
3.3.1 Barriers
a. High initial cost of efficient lighting products. Paramount among the market barriers
that inhibit the uptake of CFLs is price. Just before the start of the ELI Program,
CFLs were sold for PHP 250-350 (USD 6-9) while incandescent bulbs were about
PHP 20 (USD 0.50) only.
b. Influx of low-cost inferior quality lighting products in the market. Increased CFL
imports and the emergence of informal retail outlets brought CFLs closer to the
customers, particularly households in the C, D, and E (socio-economic class C is
comprised of the upper and lower middle classes; while D, E are the low-income
classes) market segments. Such informal outlets included small sidewalk stalls, street
vendors and door-to-door peddlers. This market position however was largely due to
an influx of inferior quality CFLs in the market. The market infection was alarming
with almost 6 out of 10 CFL products in the market not meeting the government
minimum product safety and quality requirements and therefore being illegally traded.
According to official trade publications, only 18 out of more than 50 CFL brands had
been granted Import Commodity Clearances1 (ICCs) for CFL imports in 1999 and
2000. With the increasing number of CFLs not carrying ICC labels, consumers were
vulnerable to fake, substandard, and unreliable CFLs. Consumers were therefore left
confused as to the quality and reliability of CFLs given the number of lighting
products available in the market that claim similar lighting characteristics.
c. Inadequate understanding of the use and benefits of efficient lighting products. Since
manufacturers and importers usually do not provide adequate advertising and
promotional resources to introduce new product variants to the market, consumers
were unable to sufficiently understand and compare product specifications in relation
to their use and benefits. Despite labeling and public information programs, there was
generally a lack of trust and confidence in the performance claims displayed in product
packaging.
1The Import Commodity Clearance (ICC) is issued by the Government, through the Department of Trade and Industry, to ensure
the entry and distribution of safe and quality goods into the local market.
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d. Confusing point-of-sale information. Point-of-sale marketing for consumer lighting
products tends to be very poor in the Philippines. Salespeople typically were unable to
provide adequate information on efficient lighting technologies.
e. Insufficient promotion and advocacy programs on application of efficient lighting.
The government and private sector had not aggressively pursued any information,
education and communication campaign that would promote the use of efficient
lighting systems in the residential sector.
f. Inadequate lighting testing facilities. The only existing lighting performance testing
facility in the country lacked the resources and technical expertise required to test the
increasing number of efficient lighting products in the market.
g. No active industry association to work with government to promote the use of
efficient lighting technologies. There was a need for an industry association that will
collaborate with the government and participate actively in the formulation of policies
and standards affecting the lighting industry.
3.3.2 Plan for overcoming the barriers
Through the implementation of the various ELI activities, the Country Team intended to
shift the demand from the base technology (incandescent lamps) to ELI-qualified CFLs.
ELI-Philippines likewise set as a second object the shift from low-quality CFLs to high-
quality CFLs. As a third and incidental objective, the country program also anticipates the
shift made by some low-income consumers from incandescent bulbs to low-quality CFLs
as a result of the program’s market intervention.
In order to meet these goals, the residential ELI strategy addressed the lack of consumer
knowledge and reliable product information and labeling. ELI sought to promote
consumer education through CFL testing and labeling coupled with an aggressive media
campaign that emphasized radio and print advertising. An information and education
campaign was also launched to clarify and rectify the existing consumer perceptions about
CFLs. Jointly, these two strategies were to provide consumers with the ability to discern
reliable product quality and make informed purchase decisions.
ELI-Philippines opted to focus its public education activities in Metro Manila as the bulk
of the CFL market was concentrated in this area. Given that the power quality was much
better in Manila, the Country Team believed that it would be a very good launch pad for
energy-efficient lighting since CFLs were vulnerable to damaging voltage variations. In
addition, many of the public-private stakeholders and policy-makers were situated in Metro
Manila, thus giving ELI good visibility. Although the direct campaigns were targeted
towards the Metro Manila audience, the effects of the campaign spilled over to non-
targeted audiences other parts of the country because of the use of major broadsheets and
TV channels that had nationwide coverage.
In order to conduct reliable tests of CFL quality, ELI planned to build the capacity of the
DOE-LATL to enhance its testing capabilities. Likewise ELI aimed to support the
mandatory-labeling program of the government to help contain the market infection of
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low-cost inferior CFLs to drive down prices while protecting the market against mislabeled
or non-performing products.
ELI intended to educate retailers of lighting products and provide stores with point-of-sale
educational displays to steer consumers towards high quality products. ELI also hoped to
enhance a range of existing school programs by incorporating materials on energy
efficiency.
Lastly, by increasing the demand for, and consequently, the supply of efficient lighting
products, ELI sought to decrease the market prices of CFLs thus overcoming the cost
barrier.
3.3.3 Description of implementation
ELI-Philippines was among the ELI country programs which implemented an education
campaign that, not only promoted the benefits of energy-efficient lighting, but also
cautioned consumers about substandard lighting products flowing into the country market.
In this regard, a majority of the ELI-Philippines’ program was devoted to educating
consumers, vendors and specifiers. It was composed of activities in the following areas:
Product Testing
The Product Testing activity primarily covered the acquisition of testing and calibration
equipment for DOE – Lighting and Appliance Testing Laboratory (LATL) to perform
lamp testing for the global ELI product qualification program. In early 2003, ELI pushed
for the renaming of the laboratory from its original name, Fuels and Appliance Testing
Laboratory to Lighting and Appliance Testing Laboratory, partly in recognition of the
growing importance of its lighting activities.
The LATL provides product-testing services for the Department of Trade and Industry
Bureau of Product Standards (BPS). The BPS issues both the Product Quality and
Product Safety marks for compact fluorescent lamps and a host of other consumer items.
Although the LATL had a strong reputation in appliance testing, its lighting section needed
to establish traceability of its testing standards. Moreover, the laboratory’s original
equipment did not allow other energy performance test procedures for compliance testing
against newer standards such as ELI specifications. Given the plethora of inferior lighting
products flowing into the country, LATL was understaffed and lacked adequate technical
resources to assess the new products. Furthermore, although some lamps met
manufacturers’ claims of 1,000 hours of operation, LATL recognized that consumers
expected the lamps to last 6,000 to 10,000 hours without significant lumen depreciation.
The LATL likewise attested that the facility could not conduct tests with its antiquated
equipment and limited staff.
ELI sought to collaborate with various government agencies such as the DOE and the
DTI as pro-active partners in the transformation of the lighting industry. ELI provided
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the funds necessary to acquire USD 200,000 worth of testing and calibration equipment to
bolster the capabilities of the LATL to test legally imported CFLs.
As early as January 2001, the LATL, with the assistance of ELI, solicited competitive
proposals/quotations from manufacturers/suppliers for the 11 items specified in the 12
October 2000 DOE-DTI-ELI Lamp Product Testing and Qualification Memorandum of
Agreement (MOA). After securing the approval of both the IFC and Soluziona Ingeniería
(SZI), the procurement process began with the securing of tax exemption rulings from
both the Bureau of Customs and Bureau of Internal Revenue, and the drafting of the
Equipment Supply and Purchase Agreements. The equipment Purchase Orders (POs)
were then prepared and finalized by both DOE and ELI. Once signed, the POs were
released to the suppliers and Letters of Credit for the POs were opened in Deutsche Bank.
ELI purchased the following equipment for the DOE-LATL:
Luminous Flux with integrating sphere
Colorimeter
Digital Oscilloscope
Digital Power Meter
Hybrid Recorder
Programmable Logic Controller
Voltage Regulator
Luminous Standard Flux Lamps
Digital Multimeter
Computer
Power Supply
By April 2002, all eleven items of testing equipment specified in the MOA had been
delivered to the DOE-LATL. The completion of deliveries enabled the start of the ELI
Global Testing Activity.
The LATL provided for testing services to test for ELI compliance of over 500 CFL
samples from the seven ELI countries, as well as over 240 samples from the local market
The LATL is well on its way to becoming an internationally recognized testing laboratory
for lighting products. Through ELI’s support, the laboratory has built up capacity for ELI
testing, acquired ISO 17025 accreditation and has gained international random testing
experience.
Related to this activity was the ELI technical assistance in the promotion of the ELI
specifications as a reference specification for the Philippine National Standard (PNS) for
self-ballasted lamps in collaboration with the Technical Committee No. 4 (TC-04) on
Lamps and Related Products of the DTI-BPS. From May 2000 to July 2001, upon the
invitation of the BPS Director, ELI sat in the monthly meetings of BPS TC-04 as an active
observer.
ELI contributions led to the subsequent inclusion in the Philippine National Standard for
self-ballasted lamps of certain energy efficiency and quality standards that approach ELI
specifications, as well as of labeling standards that required details on light output in
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lumens, power consumption in watts, efficacy in lumens per watt and average lamp life in
hours. The so-called “energy label” is yellow in color and must be located on one side
panel of the CFL packaging.
In June 2003, the DOE and DTI jointly approved and signed into agreement the
Implementing Guidelines for the Performance and Labeling Requirements on Self-
Ballasted Lamps for General Lighting Service. These guidelines introduce specifications
on mandatory energy labeling of ballasts and CFLs sold in the country, to ensure the high
quality of lighting products. The energy label will provide consumers with information on
government-measured lamp characteristics such as light output, power consumption,
efficacy, and average life. The CFL Energy Label was unveiled to the public during the
opening ceremony of 2002 National Energy Week.
For three solid years, ELI-Philippines supported this government labeling initiative, which
is expected to serve as a model labeling program for other ASEAN member countries and
the rest of the Asia Pacific region. More importantly, the label would lead consumers
towards the purchase of higher quality, longer lasting and energy-efficient CFLs.
ELI Logo Labeling
ELI logo and technical specifications
ELI’s pre-program market assessments revealed that inadequate information about the energy,
economic and environmental benefits of efficient lighting and a lack of credible sources of such
information discouraged purchases of energy-efficient lighting to varying degrees in all seven ELI
country markets. In response, the global ELI program developed and promotes voluntary technical
specifications that address product efficiency and reliability. Although they integrate elements of widely
used specifications, the ELI specifications are not part of any local or international law or regulation.
CFL products that met the ELI specifications were allowed to bear the ELI Green Leaf logo. The ELI
logo helped purchasers identify efficient, reliable products that perform according to manufacturer
specifications.
Manufacturers interested in participating in ELI needed to show that their products complied with the
ELI specifications. Compliance with the ELI specifications will be determined by review of product
performance data submitted by accredited lighting laboratories. Manufacturers are advised to review
the ELI qualification protocol for guidance on how their lighting products could receive the ELI label.
ELI promotes the following voluntary technical specifications for energy efficient lighting.
• Compact Fluorescent Lamps (CFLs)
• Indoor CFL Luminaires
• Outdoor Residential Luminaires
• Linear Fluorescent Systems
• Public Lighting
• Traffic Signals
ELI qualification is awarded on a product-by-product (rather than manufacturer) basis and is valid for
24 months from the date awarded. At the end of 24 months, manufacturers may retest their products
and resubmit product performance data to ELI to re-qualify their products.
The ELI technical specifications are available at www.efficientlighting.net.
FINAL REPORT – ELI-PHILIPPINES 22
Soluziona Philippines, Inc December 2003
An important aspect of the ELI market intervention strategy was to leave a legacy of
efficient equipment and purchasing practices in the country and in the region. By working
with manufacturers that supplied lighting products to the Philippines and the other ELI
countries, ELI instituted a logo that provided consumers with a quick and easily
identifiable icon for efficiency.
In the Philippines, the ELI Green Leaf logo is the only symbol of quality for energy-
efficient lighting technologies today aside from the government certification mark for
product safety and quality (ICC mark). Coinciding with the 12 October 2000 ELI launch
event was the unveiling of the ELI logo to the Filipino public. In order for lighting
products to carry the logo, it was necessary for such products to meet stringent ELI
technical specifications.
Since the beginning of the program, it had been the objective of the County Team to gain
the support of the “Big Three” lighting manufacturers, namely Philips, GE, and Osram.
The Big Three were briefed on the ELI program, its proponents, as well as the application
process for their products to receive ELI qualification (only qualified products are allowed
to bear the ELI logo). By the end of 2000, all three companies had submitted their CFL
applications for product qualification and had applied for the ELI logo for their CFL
models that met or exceeded ELI specifications. The companies prepared the product
applications at their own cost.
As of 30 September 2003, the Country Team listed approximately 46 ELI-qualified CFL
models currently available in the market, an estimated 50% increase from October 2000
levels. This significant increase can be attributed to at least three factors: (1) ELI-
facilitated entry of Ultralite, an imported, non-Big Three brand into the market; (2) ELI-
driven upgrade of a major brand’s 3,000-hour CFL model to meet ELI specifications; and
(3) commercial pressure generated by ELI activities such as the PR, Advocacy and
Advertising Campaign and the CFL leasing programs with utilities.
The Labeling activity also covered the registration of the ELI Green Leaf logo with the
Intellectual Property Office (IPO) so that it may be legally displayed on ELI-qualified
products sold in the country.
Separate applications were submitted to the IPO in September 2000 for the “EFFICIENT
LIGHTING INITIATIVE” mark, the “ELI” mark, and the ELI Green Leaf logo. The
IPO application process generally covers two phases – the pre-assessment and assessment
phases. With the filing of the applications, the IPO commenced the search and
examination process.
The pre-assessment phase entails the validation by the IPO of all documentation. During
this phase, the IPO communicates any probable recommendation for changes in the
submitted documents. During the assessment phase, the IPO checks and monitors the use
of the ELI logo in the market and wait for possible parties that may contest the use of the
trademarks.
The IPO raised a concern on the similarity of the “ELI” mark with a previously registered
mark of a pharmaceutical company, “ELI LILLY & COMPANY.”
FINAL REPORT – ELI-PHILIPPINES 23
Soluziona Philippines, Inc December 2003
Another comment was received by the ELI team citing a probable objection to the
application for the Green Leaf logo. This was largely due to the logo bearing a “two-prong
plug,” which was not capable of exclusive appropriation. To address this, ELI replied to
the IPO disclaiming the representation of “two-prong plug.” The basic purpose of
disclaimers is to make of record that a significant element of a composite mark is not being
exclusively appropriated by itself apart from the composite. In the case of the Green Leaf
logo, the term “two-prong plug” was a generic item that had to be disclaimed to permit
registration. In no case did the disclaimer prejudice or affect the right of the IFC to
registration.
In May 2002, ELI filed the Declaration of Use for the three marks in compliance with the
requirement of the law that such declaration be submitted within three years from filing
date of applications.
As of 31 December 2003, the ELI team was still awaiting further notices from the IPO
regarding any developments in the ELI logo applications. The IPO is expected to start
releasing certificates of registrations by mid-2004.
Media Campaign
The largest single budget item was for the Media Campaign, which was the cornerstone of
the ELI activities in the Philippines. About 39% of the country program budget was spent
on this activity over the life of the program for media placements, media production, as
well as public relations, advocacy and special events.
With the launch of ELI, the ELI-Philippines team needed
to create an awareness of CFLs, to effectively disseminate
information on ELI and on the advantages of ELI-
qualified CFLs, and ultimately create a demand for ELI-
qualified CFLs. The ELI PR, Advocacy, and Advertising
Campaign (PRAAC) was launched in October 2000 to
highlight the benefits of ELI-qualified CFLs, as well as to
warn consumers about illegally labeled, low-quality
ELI Team with Celebrity Endorser and Promo
products. representatives shuttling around in an ELI Bus
The ELI PRAAC was rolled out in four waves. The first and second
waves covered twelve (12) months from October 2000 to October
2001. A famous local comedian was engaged by ELI’s media agency to
endorse the use of CFLs and create easy recognition for the ELI logo.
A tri-media campaign, coupled with strategic below-the-line media
exposure and Point-of-Sale activities, was implemented to build general
awareness in the market about the economic benefits of efficient
lighting technology, as well as establish recognition for the ELI logo.
Close to 230 ad placements were made from October 2000 to
September 2003 in the three major broadsheets with the highest
circulation (Manila Bulletin, Philippine Daily Inquirer, and the
Philippine Star) and five tabloids (People’s Journal, People’s Tonight,
FINAL REPORT – ELI-PHILIPPINES 24
Soluziona Philippines, Inc December 2003
Abante, Abante Tonight and Inquirer Libre) including one that was offered free in urban
train stations.
The release of the first-ever ELI television commercial (TVC) in the Philippines began in
October 2000 and ended in December 2000. Based on results obtained from the post-
analysis conducted by AC Nielsen, 395 television placements with 77% of the target
market having seen the ELI commercial at least once. Two other ELI television
commercials (30 sec and 15 sec) were released in July 2001. From July to October 2001,
the ELI TVCs had a total of 77 screen spots released in four of the top-rated network
channels with an estimated Gross Rating Points (GRP)2 of 1,148. This value indicated a
relatively high visibility of the commercials. The commercials were shown during popular
television shows, which were targeted for the viewing of large audiences at peak hours
throughout the day.
Similar to the TVCs, radio advertisements were also targeted towards the upper, middle
and lower socio-economic classes. The release of the ELI radio advertisement began in
October 2000 and ended in December 2000. Placements on radio were made in leading
AM satellite stations (DZRH, DZAR, DZMM, and DZBB) at a total of 530 spots. FM
buys were also made in the highest rating FM stations (Joey FM, Yes FM, DWRK, DWLL
and DWBM). New radio advertisements were released in July 2001. Six radio stations were
contracted to air the ELI ads in Metro Manila from July to October 2001, with an
estimated 1,276 radio spots allotted for ELI commercials.
The ELI commercials were released in 12 cinemas throughout Metro Manila for a period
of 9 weeks from September to November 2001, with an estimated total of 3,024 screening
spots. The commercials were displayed prior to the beginning of the movie screenings
throughout the day. Movies with high box-office ratings were chosen for the placement of
the ELI commercials. The new ELI commercials debuted in movie theaters in mid-
September 2001.
ELI commercials were also screened on the large electronic billboard located along one of
the major thoroughfares of Metro Manila from August to September 2001. Frequency of
screening was estimated at roughly three times per day.
ELI commercials were likewise shown on television monitors within two leading
supermarkets (Robinson’s Galleria and Cherry Foodarama Supermarkets) from August to
September 2001. Frequency of screening was at an average of three times per hour
throughout an eight-hour working day.
ELI also leased transit ads on six buses from three bus companies to maintain its presence.
These buses, which have sported the ELI “What a Bright Idea” colors and advertisements
from April to August 2001, plied the major thoroughfares of Metro Manila throughout the
day.
To measure and evaluate the effectiveness of the campaign, ELI commissioned a
marketing specialist and an independent market research outfit to evaluate the impact of
the PRAAC first and second waves, and provide key indicators that reflected the reach and
impact to the consumers. The final report was completed in March 2002. The
2 Gross Rating Points (GRP) – the system by which televiewing is measured or rated
FINAL REPORT – ELI-PHILIPPINES 25
Soluziona Philippines, Inc December 2003
recommendations of this evaluation served as the basis of the design and approval of the
PRAAC third and fourth waves.
While the result of the initial market penetration was positive, a post-campaign evaluation
revealed that a clearer understanding of the significance of the ELI logo was needed in
order to dispel the confusion in the minds of a small portion of consumers who thought
that ELI was a product brand and not a quality mark.
The third wave (from May to December 2002) and fourth wave (from February to
September 2003) were conceptualized to specifically address this need. A new
communication strategy was implemented, this time focusing on print advertisements,
press releases and billboard signages that displayed only the logo and quality standards of
ELI. The third and fourth waves supported its predecessors and built a defined concept of
ELI and the ELI logo in the market. Materials released used more straightforward
messages/headlines in both vernacular and English. Benefits of using ELI-qualified CFLs
were also communicated in more detail. By way of the third and fourth waves, the ELI-
Philippines team sought to maintain the support of manufacturers and its other program
stakeholders through a steady PR effort.
Six ELI billboards were installed in areas of
high visibility along the northbound and
southbound directions of Metro Manila's
busiest highway, EDSA. EDSA or Epifanio
delos Santos Avenue is a major circumferential road linking six cities within Metro Manila.
Billboard placements were made initially from August 2002 to January 2003.
The PRAAC “Fourth Wave” was envisioned as a cost-efficient method to maintain an
awareness of ELI and energy-efficient lighting technologies to allow for a successful
transition to energy-efficient lighting market transformation successor programs such as
the UNDP-GEF PELMATP. There were no heavy productions, nor were there large full-
page type ads. Advertising was drastically reduced to smaller, eye-catching ads. New ad
formats were prepared in both black and white and colored versions: 1col x 53cm side-ads
for broadsheets, and 7cols x 4cm foot(er)-ads for tabloids.. Billboard ads were maintained
almost at the same level as in the third wave to maintain an ELI presence for the
commuting public. PR likewise remained generally constant, in order to cover the
remaining ELI activities.
The commercial pressure generated by this activity has contributed to the significant
increase in the demand, supply and distribution of ELI-qualified CFLs.
School Curriculum
The proposed School Curriculum activities included the development of an “Energy
Efficiency” pamphlet for primary school students and the enhancement of teacher’s
workbooks to include principles on energy-efficient lighting. Both activities would have
entailed collaboration with the Department of Energy, Department of Environment and
Natural Resources (DENR) and the Inter-Agency Committee on Climate Change (IACCC)
and the Department of Education (DepEd).
FINAL REPORT – ELI-PHILIPPINES 26
Soluziona Philippines, Inc December 2003
Upon reviewing the past attempts of other organizations to push for a significant
modification of materials on lighting efficiency as well as a comprehensive training effort
for the teachers through the auspices of the DepEd and the DENR, it was determined that
it would be very difficult for ELI to implement any real change given the proposed budget
allocation for the activity.
ELI realized that it would take a multi-million-peso budget to fund the consultants and
experts to develop the materials, as well to budget for marketing and promotional
activities. Organizational changes within the IACCC and the DENR made project
development even more difficult.
As such, the Country Team proposed that the budget originally lined up for this activity be
added to the Professional Training activity to increase the impact of this line. The Country
Team sees this activity as more appropriately covered by the successor program,
PELMATP.
Point-of-Sales Support and Vendor Education
There was clearly a need to better educate retailers of lighting products about energy
efficiency so that they could sell more premium quality CFLs, thus translating into savings
for consumers and larger profit margins for retailers. By examining the product
distribution chain, ELI was able to determine where to focus and direct its resources.
A massive Point-of-Sales (POS) Support Campaign was designed to meet one of the ELI
objectives: educating vendors and retailers of retail outlets and other points of sale with
knowledge about the ELI quality mark and the energy-efficient, cost-saving benefits
derived from utilizing ELI-qualified CFLs. The POS Campaign was a below-the-line
PRAAC approach that engaged a sizable group of ELI representatives who were tasked to
visit close to 2,000 supermarkets, hardware and specialty stores throughout Metro Manila
that sell lighting products. To facilitate the implementation of the campaign, the Metro
Manila area was divided into five geographical areas, as follows:
Area 1 (Caloocan, Malabon, Navotas and Valenzuela)
Area 2 (Quezon City, Mandaluyong, Pasig and San Juan)
Area 3 (Makati, Manila and Pasay)
Area 4 (Marikina, Taguig, Pateros and Rizal)
Area 5 (Muntinlupa, Cavite, Las Piñas and Parañaque)
During the second half of 2001, twelve POS Specialists
installed promotional materials such as shelf pointers,
mobiles, stickers and leaflet standees on display in
establishments that carry ELI-qualified products. The
POS Specialists also conducted interviews with the
store staff in order to estimate their level of ELI
awareness and to explain the ELI concept and
promote the ELI logo.
FINAL REPORT – ELI-PHILIPPINES 27
Soluziona Philippines, Inc December 2003
Initial feedback from the POS Support Campaign revealed that there had been many
requests from hardware storeowners and sales clerks to be properly educated on the
benefits of ELI-qualified CFLs. To this end, ELI sponsored several Vendor Education
Seminars.
The ELI Vendor Education Seminars were a series of five training sessions held in
February 2002. One seminar was conducted in each of the five geographical areas. Each
seminar sought to educate the hardware store managers and staff about efficient lighting
technologies that were currently being sold in the market, and the significant role they, as
retailers, play in the aspect of market transformation. Equipped with the knowledge of the
benefits in advocating efficient lighting, the vendors became virtual ELI representatives,
with the unique opportunity to make a direct impact in the transformation of the lighting
market.
The four lighting manufacturers of ELI-qualified CFLs, namely: GE Lighting, Osram,
Philips Lighting and Ultralite, were likewise present during the seminars. Each was given
the opportunity to showcase their ELI-qualified products.
The training that ELI provided vendors was not just a simple “look for the Green Leaf
logo”, although that would be a quick and effective way of getting consumers to actively
look for energy-efficient lighting. The training required the vendor to be able to
communicate to consumers the economic and environmental benefits of using ELI-
compliant technologies.
Positive feedback was received from the attendees who signified their interest to sell and
promote ELI-qualified CFLs. A total of 538 participants representing various hardware
stores around Metro Manila attended the seminars.
In mid-2002, a second wave of the POS Campaign was implemented to revisit the almost
2,000 stores covered in the first wave. The purpose of the second wave was to provide
display refills for each store and to conduct a second interview, this time surveying the
general understanding of the vendors about ELI based on information learned from the
first visit and the Vendor Education Seminars. The survey results revealed that there was a
58% increase in the level of awareness of ELI among the hardware store staff, from 27%
during the first campaign to a survey result of 85% in the second POS Campaign.
The idea of a second round of seminars was initially considered, but was later dismissed
through conclusions that repetition within the same calendar year would deliver very little
value vis-à-vis the incremental activity budget.
This high-impact activity, in the end, was able to transform these vendors to become
“agents of ELI”, wherein with their active support, they can elicit a change in the buying
patterns of consumers, as well as the supply and distribution strategies of CFL
manufacturer-importers. With the help of POS specialists, ELI had the opportunity to arm
the retailers with an effective understanding of ELI and its various program activities.
FINAL REPORT – ELI-PHILIPPINES 28
Soluziona Philippines, Inc December 2003
Product Promotion
This activity was formerly classified under the “Product Incentives” budget, however, as of
the approved 06 August 2002 Country Program Budget, “Product Promotion” had been
re-classified as a Public Education activity. This was due to the fact that, similar to most
other ELI countries, ELI-Philippines did not believe in price buy-downs as it was felt that
they would not bring about any positive long-term effects in the market. Furthermore,
CFL manufacturers/importers had already demonstrated overwhelming support for the
ELI logo, and by then, a steady increase in the sales and distribution of ELI-qualified CFLs
had been observed. This is due to the fact that the average price of CFLs had dropped
from a range of USD 6-10 (at the start of the country program) to USD 3-5. This may be
attributed to two factors: (1) the shift in demand from medium quality CFLs to ELI-
qualified CFLs; and (2) the sale of a 6000-hour ELI-qualified CFL from one of the major
brands at the same retail price as a phased out 3000-hour model.
In early 2002, there came an opportunity to do a short-term, high-visibility, high-impact
product promotion effort that was cost-effective.
Planning for the Promo Activity targeting upscale hardware stores in Metro Manila
commenced in mid-2002. The activity was designed to be primarily concentrated at the
Handyman, True Value, Ace Hardware and SM Workshop branches, totaling a minimum
of 31 upscale hardware stores. These stores had been the most difficult to penetrate
during the POS Support Campaign as their respective managements believed that the
activity did not complement the marketing and promotional activities being implemented
in their stores at that time. Nevertheless, the Country Team decided to pursue this activity
given that these stores control a sizeable share of the market.
Further meetings with the agency in charge of the Promo Activity resulted in a two-wave
strategy for the activity. In the first wave, which commenced in February 2003, ELI
promodizers (“ELI representatives” stationed at the points-of-sale) were assigned in the 19
outlets of True Value and Handyman for a period of twelve weeks; while leaflets were
distributed by store staff in the largest patronized ACE Hardware outlet in Metro Manila.
The activity involved direct contact with the consumer and assistance in the CFL
selection/purchase process, distribution of the ELI flyers, and explanation of the ELI
concept. The additional 20 stores complemented the hardware stores visited during the
POS campaigns.
Negotiations between ELI and the management of ACE Hardware and Hardware
Workshop were held from the start of 2003. ELI tried to penetrate the SM-owned
hardware chains and persuade them to co-market the ELI logo, however after several
months of negotiations, it was theorized by the Country Team that continued ELI
promotions would hurt their efforts to import and promote their own non-ELI-qualified
CFL brand.
Due to the delay in finalizing the mechanics for the second wave, the Country Team
decided to maximize the effort for the first wave by stretching it over a longer time period.
The Promo Activity in upscale hardware stores was completed in mid-June 2003. The
activity provided visibility for ELI and created consumer awareness by assisting customers
in making energy-efficient purchase decisions.
FINAL REPORT – ELI-PHILIPPINES 29
Soluziona Philippines, Inc December 2003
The managing agency reported some consumer feedback that had been gained by the
promodizers during the Activity. Some responses were:
CFLs with the ELI logo do contribute to savings on their electricity bill
Many customers are aware of CFLs with the ELI logo
Some customers who have tried ELI-qualified CFLs are not satisfied with the results
because of the short life span of certain CFL brands (one of the major manufacturers
had a low-end product whose short life span drew customer complaints)
ELI-qualified CFLs are expensive
3.3.4 Preliminary Results of ELI Residential Sector Activities
The following were drawn from the findings of the ELI-Philippines PRAAC Evaluation
and POS Campaign Final Reports, and from affirmation made by stakeholders.
a. Decrease in retail prices of efficient lighting products. The average price of CFLs
dropped from a range of USD 6-10 (at the start of the country program) to USD 3-5
(at the end of the program). This was partly attributed to the commercial pressure
generated by the ELI PRAAC. The PRAAC, among other ELI activities, shifted the
demand from low quality to ELI-qualified CFLs. This increase in volume led to a
significant decrease in the wholesale distribution and retail prices of CFLs. There was
likewise market pressure when the most saleable CFL model (the best-selling model
among the Big Three brands), previously rated at 3000 hours, was upgraded to comply
with ELI specifications and yet still sold at the former price.
b. Increase in sales of both ELI-qualified and non-ELI-qualified CFLs. Reports showed
that 87% of surveyed hardware stores noticed an increase in the number of customers
looking for CFLs, while 65% observed an increase in the number of customers asking
about ELI and buying ELI-qualified CFLs. In a separate and independent sales survey
for the ELI M&E team, manufacturers likewise indicated a general increase in sales of
both ELI-qualified and non-ELI-qualified CFLs models. Manufacturers likewise
believe that after three years of ELI, the black market for CFLs has weakened
significantly.
c. Adoption of the ELI standards and specifications by lighting manufacturers/importers
and establishment of recognition for the ELI logo through the ELI quality mark
system. At present (December 2003), five (5) brands and a total of 46 models of ELI-
qualified CFLs are available in the Philippine market, with at least 2 more brands
poised to be certified. The ELI logo served as an effective consumer determinant
leading consumers towards the purchase of energy-efficient lighting products. More
importantly, market transformation through the ELI logo was evident in the lighting
market as shown by: (1) consumer awareness of the ELI logo has exceeded that of the
mandatory government quality mark (ICC mark); (2) there was an increasing number
of distributors carrying the ELI logo; and, (3) entities engaged in bulk procurement
were starting to look for ELI-qualified CFLs as a procurement specification.
d. Increase in general awareness of ELI and the benefits of efficient lighting technologies.
The aggressive media campaign (print advertisements, television and radio
FINAL REPORT – ELI-PHILIPPINES 30
Soluziona Philippines, Inc December 2003
commercials) and Point-of-Sale activities built general awareness in the market about
the economic benefits of efficient lighting technology, and established recognition for
the ELI logo. A market survey showed that the awareness of the ELI quality mark was
measured to be slightly higher than that of the ICC mark for CFLs.
e. Capacity building of lighting testing facility. Through the procurement of testing and
calibration equipment, provision of technical training to personnel and technical
assistance in securing ISO accreditation assistance to the DOE-LATL, ELI provided
the local, regional and global markets a testing center with the capacity and direct
experience of testing efficient lighting products for compliance with ELI
specifications. ELI likewise established the traceability of the testing standards of said
laboratory to other accredited testing facilities.
f. Better supply of information on energy-efficient lighting products at points-of-sale.
The installation of promotional materials such as shelf pointers, mobiles, stickers and
leaflet standees on display in establishments that carry ELI-qualified products helped
58% of the hardware stores visited during the ELI POS Campaign in explaining the
ELI concept to their customers. 42% maintained that the POS collaterals helped them
sell ELI-qualified CFLs.
g. Better information available to consumer from vendors, who became “agents of ELI.”
By equipping vendors with the knowledge of the benefits in advocating efficient
lighting, retailers of lighting products virtually became ELI logo representatives that
have the unique opportunity to elicit a change in the buying patterns of consumers, as
well as the supply and distribution strategies of CFL manufacturers-importers.
h. Creation of the Philippine Lighting Industry Association, Inc. (PLIA) PLIA will
continue to push for energy-efficient lighting to the public and private sector. It will be
the primary agent in lobbying for market transformation reforms through the DTI, as
well as aggregating industry size data. ELI actively participated in PLIA to ensure that
the association's institutional and financial base was strengthened in order to guarantee
its stability and sustainability beyond the ELI-Philippines program. As of the
completion of the country program, PLIA has grown from 9 to 17 member-
companies.
3.3.5 Analysis
In early 2000, the Philippines market was already crowded with over 50 different CFL
brands and variants. About 2 out of 3 households were familiar with efficient lighting
products due to the influx of low-cost CFLs in areas of the local market.
Official trade publications revealed however that only 18 out of these CFL brands and
variants had been granted by the Department of Trade and Industry Import Commodity
Clearances (ICCs) for CFL imports in 1999-2000. Figures indicated that those CFL
importers who were not granted ICCs for failure to meet the product safety and quality
requirements might have been peddling their unreliable and substandard CFL products in
the local market.
FINAL REPORT – ELI-PHILIPPINES 31
Soluziona Philippines, Inc December 2003
This market infection brought about both benefits and risks to the local market. On one
hand, the middle- and low-income households gained access to various CFL products,
including the affordable or low-cost variants. On the other hand, because of the
proliferation of low-cost low quality CFL imports, households were left vulnerable to fake,
substandard and unreliable CFLs. While they readily get access to cheap CFLs, households
may not always get the expected quality, functionality, or value for their money. Common
complaints received from unsatisfied consumers were: (1) CFLs are expensive; (2) CFLs
are dim and less bright than expected; and (3) The actual life of CFLs is lower than what is
claimed on the packaging.
The wide number of CFLs claiming similar lighting characteristics confused those buyers
who were keen at getting quality CFLs at reasonable prices. About half of the households
that did not purchase CFLs in 1999-2000 had complaints and adverse comments on CFLs
as these households had unfavorable experiences and perceptions about CFLs. Such
market reversals were an indication of market trauma.
The mission of ELI was therefore two-fold: (1) to design and implement a program that
would not only shift the demand from the base technology to energy-efficient lighting
products, but also from low-quality to high-quality CFLs; and (2) to sustain the lighting
market transformation by making sure that consumers do not revert back to the base
technology.
Surveys conducted in 2002-2003 show that most of the ELI strategies for the residential
sector proved to be successful in achieving objectives of the program. The Public
Relations, Advocacy and Advertising Campaign together with the Point-of-Sale and
Vendor Education activities have built general awareness in the market about the
economic and environmental benefits of efficient lighting technologies, as well as
established recognition for the ELI Green Leaf logo. Consumers are now therefore
equipped with sufficient knowledge when making purchase decisions.
By creating demand for ELI-qualified lighting products, lighting manufacturers/importers
were prompted to participate in ELI activities. With the increasing number of ELI-
qualified CFL brands and variants, consumers now have access to a variety of high-quality
CFLs at competitive and more affordable prices.
The proposed School Curriculum activities could have also been successfully implemented
given a bigger budget allocation to fund the consultants and experts to develop the
materials, as well to budget for marketing and promotional activities. As such, the Country
Team sees this activity as more appropriately covered by the successor program,
PELMATP.
3.3.6 Lessons Learned
A media campaign is an effective way to leverage stakeholder support.
The ELI logo as a quality mark proved to be an effective public education tool.
FINAL REPORT – ELI-PHILIPPINES 32
Soluziona Philippines, Inc December 2003
A capable ELI testing center can help sustain the logo and specifications in the local
market.
Vendor education is an effective public education tool, but must be sustained if a long-
term impact is desired.
These lessons are further discussed in Section 6.0.
3.4 Commercial / Industrial / Institutional Sectors
ELI-Philippines reached the commercial, industrial and institutional sectors primarily
through the Model ESCO Transaction activity, and through activities with professional
associations and institutions, consumer cooperatives, and utilities. The commercial sector
is characterized by business offices and large shopping malls, most of which are
concentrated in Metro Manila. The industrial sector is the largest single electricity-
consuming sector in the Philippines, accounting for approximately 36% of the system peak
demand.
The Department of Energy (DOE) estimates electrical consumption by sector to be as
follows (in % of total electricity consumption in the Philippines, averaged from 1995 to
2001):
Sector Energy Consumption
Residential 27%
Commercial 20%
Industrial 30%
3.4.1 Barriers
Based on previous studies conducted (DOE Household Energy Consumption Survey in
1995 and ELI Market Assessment in 2000), lighting consumption by sector was 37% for
households, 25% for the commercial sector, and 5% for the industrial sector. The baseline
market assessment conducted in 2000 also revealed that, due to influx of low-quality,
substandard and low-cost CFLs, market penetration of CFLs was at 64% in the residential
sector, and that 3 out of 4 households were already aware of CFL technology.
a. High initial cost of efficient lighting products. Before ELI, high-efficiency, high-quality
low-loss electronic ballasts were several times more expensive than electromagnetic
ballasts. On a system basis, the T-8 (electronic) linear fluorescent system was still two
to three times more costly than the T-12 (magnetic) linear fluorescent system.
b. Availability. Because the markets were still small in early 2000, CFLs, improved linear
fluorescent tubes and advanced ballasts were considered as specialty items to some
extent. Unlike most consumer items found on retail shelves, their availability was
limited as lighting importers and distributors preferred to keep only a minimal number
of units in stock. Generally, orders were made for bulk purchases only.
FINAL REPORT – ELI-PHILIPPINES 33
Soluziona Philippines, Inc December 2003
c. Inadequate incentives in the existing DSM Framework. Utilities were reluctant to
implement DSM because there was no clear-cut regulatory policy to incentivize the
promotion of DSM. The existing regulatory framework for DSM needed amending
before it could assure the utilities of cost recovery, lost revenues and financial
incentives. The regulatory barriers that ELI-Philippines sought to address are as
follows:
Lost revenues. The common perception among utilities was that when electricity
consumers buy and install efficient lighting technologies, the impact was that their
electricity bill would be reduced. Consequently, a decrease in kWh electricity
consumption may translate into lower sales, and in turn, lower profits for the
utilities.
Financing. Generally, the local regulatory agency adopts by practice, not as a
requirement by law, an accounting process which treats DSM program costs as
allowable expenses only when these are actually incurred, before the utilities are
allowed by the Regulator to recover said expenses through rates.
Customers on a minimum bill plan. These customers were not in the position
to benefit from energy savings out of their current minimum or below-minimum
consumption.
Pilot project syndrome, which refers to the general tendency of project managers
and implementors to precede a project with a scaled-down pilot.
Disclosure of DSM costs as a separate line item on the bill. While this makes
the bill more transparent, it is politically unfeasible to do so because of the
negative connotation of the term “costs.”
Excess capacity. This means that marginal or avoided costs are low because the
operational costs of existing supply are more expensive than the costs associated
with energy efficiency.
d. Non-implementation of, and outdated, Building Energy Use Guidelines. The Building
Energy Use Guidelines became a referral code of the National Building Code in 1994
and was never updated. The general requirements of existing energy-efficient lighting
designs were largely based on conventional lighting products, such as incandescent
lamps, T12 fluorescent lamps and electromagnetic ballasts.
e. Lack of successful ESCO transactions to serve as models. The government and
private sector had not been fully successful in demonstrating highly visible ESCO
transactions that included project financing through energy savings. While there were
high-profile DSM projects, there had not been any high-profile demonstrations of
ESCO practices. There was no mature local ESCO industry, nor were reliable
financing resources available. Protocols and procedures for measuring and verifying
energy savings were not available.
f. Lighting product manufacturers and consumers are unable to access financing for
efficient lighting technologies. Commercial and industrial establishments and lighting
manufacturers do not have access to energy efficiency project financing. DBP and
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other financing institutions likewise did not have the experience and technical know-
how to evaluate and develop energy efficiency project portfolios.
g. Building lighting system designers and developers were not informed about the full
benefits of using efficient lighting products in new and existing commercial and
industrial establishments. In particular, technical knowledge on the application of
efficient lighting systems, as well as on the life cycle benefits of different efficient
lighting technologies available, was not readily available.
3.4.2 Plan to overcome the barriers
ELI aimed to remove barriers in the C/I/I sectors by equipping the potential “agents of
ELI” (i.e., people and organizations in a position to make decisions that affect the market
for energy-efficient lighting) with the program’s legacy tools: tools they could use over the
long term to establish and maintain practices that support the use of energy-efficient
lighting.
The more specific objective of ELI-Philippines was to promote the replacement of T-12
lamp and magnetic ballast systems with ELI-compliant T-8 or T-5 linear fluorescent lamp
with electronic ballast systems in C/I/I users. The ELI strategy addressed the limited
capacity and experience in the C/I/I sectors for designing, specifying and financing cost-
effective, efficient lighting projects, as well as the low priority placed on financially
advantageous C/I/I investments in efficient lighting.
ELI-Philippines designed a professional education program to build capacity among
lighting professionals to design and develop an efficient lighting infrastructure.
ELI provided technical assistance to the Energy Regulatory Commission (ERC) in the
promotion of regulatory reforms to remove any real and perceived disincentives for energy
efficiency.
ELI-Philippines also worked with electric utilities in the development of model CFL
leasing programs that benefit consumers and the utilities alike by supporting utilities’
competitive interests irrespective of DSM cost recovery mechanisms.
ELI leveraged its resources to provide opportunities for the financial and Energy Service
Company (ESCO) industries to stimulate the performance contracting business in the
Philippines. Symposia provided an introductory briefing to lighting businesses on lighting
ESCO business concepts, project financing and performance contracting methods and
financing sources. A model ESCO transaction was developed and promoted as the
candidate Model ESCO Transaction that could be used by succeeding ESCO projects as a
basis for the development of their programs.
Although the media campaign primarily targeted the residential consumers, the results of
this activity were expected to spillover to the C/I/I sectors. ELI presentations before
other institutions and agencies have further educated public-private stakeholders in the
C/I/I sectors on the benefits of efficient lighting and warned them about illegally labeled
low quality products.
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3.4.3 Description of implementation
Demonstration Sites
Without having to commit any country program funds to this activity, the Country Team
was nonetheless able to launch a successful one-year efficient lighting retrofit
demonstration project, which provided working models of ELI-compliant technologies
that ESCOs could readily adopt for their own retrofitting projects. Under this ELI-led
initiative, some USD 10,000 worth of lamps, ballasts, fixtures and luminaires were
contributed by seven manufacturers and installed under the donated supervision time of an
ESCO at five highly visible contiguous areas within the Department of Energy. The
participating lamp and ballast manufacturers were Philips, GE, Quantum, Eagle, Osram,
Fumaco and Trilux.
The National Energy Week is held annually to promote the achievements of the Philippine
energy sector, and was a venue to promote energy efficiency in the Philippines among
other energy-related objectives. It was during this time in December 2001 that the DOE
lighting retrofit was successfully completed and showcased. The DOE retrofit was
envisioned to be the pioneer in lighting retrofits; it was conducted by an energy service
company in the Philippines and it served as a high-profile “efficient energy” model for
other government institutions and private establishments to follow. It also provided an
example to financing organizations and government agencies involved in standardizing
energy-efficient practices for the public and private sector. The ELI team aided CPI
Energy, an aspiring energy service company, in conceptualizing the retrofit project and
providing collaboration and organization among lamp, ballast and luminaire manufacturers
in the country. The Country Team assisted in negotiations with DOE and checked the
lamps and ballasts for compliance with ELI specifications.
This activity gave the DOE, the ESCOs and potential ESCO customers the opportunity to
understand what applications qualify as efficient lighting technologies. The success of the
Country Team in leveraging support from manufacturers and ESCOs enabled the re-
alignment of this activity budget to other critical ELI activities.
Professional Training and Standards Development
Originally, the Professional Training activity only covered the preparation and hosting of
energy-efficient lighting seminars for lighting designers and specifiers, which included
electrical engineers, architects, interior designers and electricians. Existing workbooks and
training aids were to be modified/developed largely with the technical expertise of the
Institute of Integrated Electrical Engineers of the Philippines, Inc. (IIEE) to cover new
lighting technologies.
The major deliverable for this activity was the efficient lighting manual, which was to be
used by all building professionals in order to incorporate energy-efficient lighting
technologies in buildings. The manual was intended to serve as a reference guide to be
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used in conjunction with the National Building Code. It would present recommendations
on minimum specifications for procuring lighting equipment, be it for residential,
commercial, or industrial settings. Furthermore, the manual was to be endorsed to the
DOE, who may take steps in educating the Department of Budget and Management
(DBM) and the Commission on Audit (COA) on the benefits of procuring ELI-compliant
lighting products for government facilities.
As this activity included a significant investment in the development of voluntary lighting
standards for professionals, the Country Team proposed to rename this budget line item
from “Professional Training” to “Professional Training and Standards Development.”
The budget previously allocated to the School Curriculum, Demonstration Sites and
Lighting Standards activities was incorporated to the “Professional Training” budget to
ensure the effectiveness of the activity.
ELI collaborated with the IIEE Standards Subcommittee on Efficient Lighting in May
2002 to develop the “IIEE-ELI Manual of Practice on Efficient Lighting.” The Standards
Subcommittee on Efficient Lighting was composed of representatives from the
Department of Energy (DOE), Department of Public Works and Highways (DPWH),
National Power Corporation (NPC), Manila Electric Company (MERALCO), GE Lighting
Philippines, OSRAM Philippines, Philips Lighting, a lighting expert (Asia RP Inc)., a
leading lighting fixture manufacturer/importer (Fumaco Incorporated), and a leading
ballast manufacturer/importer (Quantum Electronics Corporation).
The manual was a response to the lack of reference material with data and information on
the current products, design techniques, maintenance methods, control systems and
energy-efficient devices. It sought to provide IIEE members and lighting designers with a
comprehensive reference book that identified and explained the operation of energy-
efficient lighting products and techniques. It also provided specification and application
guidelines for electrical practitioners, lighting designers, consulting engineers, architects,
interior designers, building administrators, plant engineers, utility personnel, end-users, and
others who make decisions about lighting designs and installations. Electrical engineering
students would also benefit from this manual because it touches on basic light and lighting
concepts and fundamentals. It likewise discussed lighting design concepts as well as
provides technical descriptions of lamps and accessories and how they operate.
An ELI Technical Advisor was engaged to review and edit the initial versions of the
manual. Two thousand copies of the manual were prepared for distribution during the
IIEE Year-end launching in November 2002. The first edition of the manual contains nine
chapters:
Light and Lighting Fundamentals
Fluorescent Lamps
Metal Halide and High Pressure Sodium (HPS) Lamps
Energy-Efficient Fluorescent Ballasts
Lighting systems and Luminaires
Lighting System Design and Calculations
Lighting Control Technologies
Roadway and Area Lighting
Lighting System Maintenance
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The IIEE plans to promote the manual during its regional meetings nationwide to meet its
objective of updating its Continuing Professional Development (CPD) programs for
electrical engineers around the country.
Professional Training Seminars were developed in collaboration with the Philippine
Lighting Industry Association (PLIA) as part of its promotional strategy. Two 2-day
seminars entitled, “Designing Efficient Lighting Systems,” were scheduled in March and
April 2003. Over 60 participants attended the seminars. Participants included
representatives from electric utilities, architectural firms, engineering groups, lighting
suppliers/manufacturers, local government units, Department of Public Works and
Highways, Department of Budget and Management, Department of Transportation &
Communication and the private sector. Some of the attendees even flew in from the island
provinces.
The first five chapters of the IIEE-ELI Manual of Practice on Efficient Lighting were
discussed on the first day of each seminar, in approximately eight hours of classes. On the
second day, the remaining four chapters were covered along with a design workshop. The
attendees were given the chance to make an actual efficient lighting design using state-of-
the-art lighting design software on computers provided by four lighting manufacturers:
Osram, GE, Philips, and Fumaco.
The manual was used as a textbook, and international speakers were invited to be the
instructors for the classroom portion of the seminars.
IIEE and PLIA had expressed their interest in continuing the training seminars even
beyond the ELI-Philippines program. In fact, both had jointly scheduled a third efficient
lighting training seminar in October 2003 without additional support from ELI. The two
organizations intend to offer the seminars on a sustainable basis as part of the IIEE
Continuing Professional Development program.
As part of the information and education campaign, ELI likewise met with other
institutions and agencies to further educate public-private stakeholders in the C/I/I sectors
on the benefits of efficient lighting and warn them about illegally labeled low quality
products. Fire and performance hazards of inferior products as well as the reliability and
economic benefits of ELI-qualified products were also discussed.
Regulatory Intervention
In the second half of 2001, ELI provided technical assistance to the Energy Regulatory
Commission (ERC), in the promotion of regulatory reforms, such as lost revenue
adjustment mechanisms, to remove any real and perceived disincentives for energy
efficiency.
ELI contracted the US-based Regulatory Assistance Project (RAP) to plan, design,
recommend improvements to the existing Demand-Side Management (DSM) Framework
by making explicit the cost recovery mechanisms for DSM program expenses and
revenues.
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On 10 April 2001, the Philippine energy regulatory agency, the Energy Regulatory Board,
now re-organized under recent legislation as the Energy Regulatory Commission, entered
into a Memorandum of Agreement with ELI to review, amend and improve as may be
appropriate the 1996 DSM Regulatory Framework in the Philippines. The objective of this
ELI-ERC collaborative effort was to encourage and facilitate DSM activities by utility
companies.
The framework makes explicit the cost recovery methodologies/mechanisms for DSM
program expenses and lost revenues, and provides incentive mechanisms for the conduct
of DSM activities.
A number of collaborative meetings, spearheaded by ELI-Philippines and attended by the
regulators, relevant government agencies such as the Department of Energy and the
Department of Trade and Industry, the government-run transmission company, the
utilities, power producers, non-government organizations, consumer groups, and the
academe, were conducted during a four-month period beginning July 2001 for the purpose
of discussing the merits of the amendments and the drafting of agreements that signified
the collaborative assembly’s majority and unanimous support of the incorporation of the
proposed amendments.
DSM Plans under the Proposed Framework
In the new framework, the electric utilities are required to submit a customized DSM Plan,
adopt a standard DSM Plan or implement a default DSM Plan. A customized DSM Plan is
a plan that is tailored-fit for the electric utility. The utility is free to choose which DSM
programs will address its specific DSM load shape objectives.
Under the new scheme, a utility can opt to use the standard DSM Plan, which can be
assembled from a menu of nine given DSM activities. Three of the nine DSM options are
efficient lighting programs. These are:
High Efficiency Compact Fluorescent Lamp Lighting Program which aims to replace the less
efficient incandescent lamp with High Efficiency CFLs in the residential and
commercial sectors;
High Efficiency Linear Fluorescent Lighting Program which aims to promote the use of high
efficiency linear fluorescent lamps with high-frequency low-loss electronic ballasts in
the residential and business sectors; and;
High Efficiency Streetlight Lighting Program which aims to encourage the use of high-
pressure sodium lamps instead of mercury vapor lamps.
The standard DSM plan developed collaboratively by ELI-Philippines, the ERC and key
power sector stakeholders includes: a list of standard DSM programs that are cost effective
and feasible to implement in most areas, a standard DSM cost recovery plan reflecting the
estimated cost of each standard DSM program plus utility specific net lost revenues, and a
standard program evaluation.
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The default DSM Plan requires the utilities that fail to submit either a customized or
standard DSM Plan to implement all four (4) DSM programs, namely:
High Efficiency Compact Fluorescent Lamp Lighting Program;
High Efficiency Linear Fluorescent Lighting Program;
Power Factor Correction Program; and,
Consumer Efficiency Awareness Program.
During the planning and development of the standard and default DSM plans, the
collaborative assemblies consistently voted to include energy-efficient lighting programs as
the primary DSM activity of choice.
The general preference for efficient lighting DSM programs, especially the High Efficiency
CFL program, is due to the relative ease of implementation from the perspective of a
utility, and the fact that its implementation has a direct and immediate impact on the load
profile objectives of the utility, as the efficient use of lighting almost always swiftly clips the
early evening peak demand.
ELI-Philippines saw this opportunity for a direct and immediate impact in promoting
efficient lighting over a broad spectrum of customers, and paved the way for the
collaborative efforts with the regulators, government agencies and the power sector
stakeholders to amend the framework for demand side management.
On 26 October 2001, after a seven-month long collaborative process, representatives of at
least 71 power sector stakeholders, made up of private electric utilities, electric
cooperatives, independent power producers, the National Power Corporation, the
Department of Energy, the Department of Trade and Industry, the National Electrification
Administration, non-government organizations, environmentalists, consumer groups, and
the academe, signed a landmark memorandum of agreement that signified their support to
the proposal of the Efficient Lighting Initiative to amend the 1996 Regulatory Framework
for Demand-Side Management in the Philippines.
All reports and documentation necessary to enable the regulatory process to amend the
1996 DSM Framework were formally accepted by the ERC in April 2002. However, aside
from a number of other commitments, ERC is currently prioritizing the backlog of
unprocessed rate unbundling cases from the 141 distribution utilities in preparation for full
industry deregulation. This backlog was further drawn out by a change in management.
For this reason, ERC has so far found it difficult to incorporate DSM-related activities into
their workload. Therefore, as of the closure of the country program (December 2003),
ERC has not made any commitment on when it could schedule its resources for the formal
adoption of the amended DSM Framework.
Model Utility CFL Programs
ELI developed model CFL leasing programs with the first and fourth largest utilities in the
country. ELI worked with local financial institutions to capitalize these programs, and
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assisted utilities in creating program designs that benefit consumers and the utilities alike
by supporting their business interests whether or not an amended DSM framework assures
the utilities of program cost recovery. Dozens of utilities have unrealized plans for CFL
leasing programs. ELI developed models of win-win-win situations between consumers,
utilities, and regulators.
For two years, ELI worked with electric utilities to determine their optimal designs for
programs that promote efficient lighting. Funds were earmarked for working with select
utilities that have demonstrated a predisposition to leasing energy-efficient CFLs, namely,
the Manila Electric Company (MERALCO) and Cagayan Electric Power and Light
Company (CEPALCO).
ELI-Philippines opted to work with these large utilities because their respective numbers
of residential customers could leverage significant market shifts towards ELI-qualified
CFLs.
In October 2001, the CEPALCO 1,000-CFL pilot project, dubbed “Paylight”, was
launched in a residential area of Cagayan de Oro. While CEPALCO ran the program
essentially on its own, ELI provided the utility with 1,000 CFL units from Ultralite
(distributors of Ultralamp), Philips and Osram, as well as leaflets for door-to-door
distribution.
Paylight allowed CEPALCO customers to purchase ELI-qualified CFLs at a discounted
price through an installment plan. Using a shared savings scheme, the consumer benefited
from the energy savings gained from selling CFLs, and the utility was able to recover the
cost of the lamp as well as the administrative and financing costs, including a return on its
investment. Based on the data and information gathered from Paylight, ELI prepared a
business plan which can be used to develop the scaled-up CFL program targeted at
Cagayan de Oro’s 80,000 customers together with some commercial and industrial
businesses.
Armed with the lessons learned from the pilot, CEPALCO indicated its willingness to
implement the scaled-up “Megalight” program with or without the decision of the ERC to
adopt the amendments to the 1996 Demand-Side Management framework. CEPALCO
however would need the ERC’s provisional approval for the incorporation of the CFL
repayment in the monthly electric bill.
In March 2002, after eighteen months of negotiations, ELI and MERALCO signed a
Memorandum of Agreement to prepare a study for implementing the Smartlight CFL
program in Metro Manila. MERALCO agreed to promote the use of energy-efficient
CFLs in the residential center. MERALCO, being the largest electric utility in the
Philippines, holds a market of 4 million residential customers, and its actions tend to set
trends for other utilities in the Philippines. The Meralco CFL program will serve as a
model for smaller, provincial utilities.
Unlike the Megalight CFL program, Smartlight was to be implemented in three phases,
each with one or more smaller programs. Phase I is an Educational and Information
Campaign, Phase II an infrastructure-building stage, and Phase III consists of actual
distribution programs.
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In April 2003, the Utility CFL Distribution Business Plans were officially turned over to
CEPALCO and MERALCO, symbolizing the formal closure of the Paylight and
Smartlight MOAs with the two utilities.
As of December 2003, the MERALCO Marketing Office was intending to present the
Smartlight Business Plan to upper management for approval. Given that the other non-
regulatory benefits of Megalight will suffice, regulatory compliance need not be the driving
reason for MERALCO to implement its CFL program.
ELI-Philippines contracted a group of consultants to share with the utilities their technical
and business knowledge as well as experience in actual CFL leasing programs. The
consultants prepared business plans, brought in international models, developed case
studies based on actual implementations, and sought assistance in financing.
Model ESCO Transaction
In order to make energy-efficient lighting technologies such as T-5 and T-8 linear
fluorescent lamps and high-quality, low-loss electronic ballasts the technology of choice,
ELI leveraged its resources to provide opportunities for the financial and Energy Service
Company (ESCO) industries. Prior to the ELI program, a small industry composed
equipment-suppliers-ESCOs already existed. However, the Country Team believed that
ELI could strengthen the ESCO industry by promoting independent ESCOs to stimulate
the performance contracting business in the Philippines. By supporting the development
of the young ESCO industry, ELI would empower the said industries to be sustainable
agents of change in the C/I/I sector.
With the objective of identifying model ESCO transactions that included lighting retrofit
projects, an ESCO symposium entitled “e$co 2001: Performance Contracting and Project
Finance Symposium for Energy-efficient Businesses,” was convened on 09 May 2001. The
symposium provided an introductory briefing to lighting businesses on lighting ESCO
business concepts, project financing and performance contracting methods and financing
sources. In this meeting, the public-private stakeholders learned about the specific
business and project opportunities and barriers facing lighting firms active in the
commercial, industrial and institutional (C/I/I) sectors. With that, the participants were
able to identify specific projects and project sponsors that can use ELI technical assistance,
and to further define the technical assistance that was most needed.
A viable opportunity existed for a model ESCO project involving ELI, the DOE, and the
government-owned wholesale bank known as the Development Bank of the Philippines
(DBP). The general objective of the project was to develop the terms and guidelines for
the planning, development, bidding and implementation of the DOE-DBP-
ELI/SOLUZIONA Model ESCO Transaction project, and to promote it as the candidate
Model ESCO Transaction that would be used by succeeding ESCO projects as a basis for
the development of their programs.
As per the tri-partite Memorandum of Agreement, the DOE was to perform a systematic
energy audit of the buildings and grounds of the DBP main office, assist ELI in
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establishing baseline standards for the Project, and provide technical inputs whenever
necessary.
The DBP, on the other hand, was to provide the premises of its main office as the project
site for the conduct of an energy audit. In coordination with ELI, the bank was to develop
suitable lending programs and credit policies for the Project, as well as policies or bid rules
in relation to the procurement of ESCO services. DBP had a secondary responsibility in
educating the downstream banking industry (private financing institutions) in energy
efficiency project financing.
ELI tapped a team of international and local consultants to ensure the development of the
model ESCO transaction. Their experience and expertise in the performance contracting
business was crucial in defining the terms and conditions to suit the unique business
climate in the Philippines. Together with ELI, the consultants worked with the different
parties to deliver a business plan laying the groundwork for future ESCO transactions in
the Philippines.
A team from the Energy Efficiency Division of the DOE’s Energy Utilization
Management Bureau (EUMB) carried out the energy audit of the DBP premises during the
first week of August 2002. Audit activities included electrical system measurements, air-
conditioning system measurements, lighting system measurements, and office
equipment/appliances and other miscellaneous loads measurements.
Regular meetings were held among ELI, DOE and DBP to prepare, develop and finalize
the Model ESCO Transaction bid documents, namely the Request for Proposal (RFP) and
the Energy Services Agreement (ESA). The Project Team addressed the comments and
concerns raised by the DBP Legal Department in order to conform to the DBP standard
procedures and protocols.
This activity catalyzed the formation of independent ESCOs (e.g. RNFA-Romago,
CEPALCO ESG & MERALCO Energy Inc.) giving birth to over a dozen independent
ESCOs. Independent ESCOs may be developed by (1) alliances between independent
engineering companies or consultants and engineering contractors, (2) spin-off ESCO
operations from utilities, and (3) independent engineering specialists. Upon the invitation
of the Country Director, Expressions of Interest (EOI) for the Project were received by
ELI from fourteen (14) independent ESCOs as early as the first week of April 2003.
During a consultative meeting called by the Project Team, the ESCOs expressed their
general apprehension on the reluctance of private financing institutions (PFIs) to offer
loans for performance contracting.
To this end, the Project Team invited PFIs to a similar consultative meeting to clarify the
mechanics of the activity in order to facilitate the securitizing of loans by using the ESA as
collateral.
On 17 September 2003, the DBP Team for the ELI Project presented the final versions of
the DBP Model ESCO Transaction Request for Proposal (RFP) and Energy Services
Agreement (ESA) to the DBP Management Committee. The Committee approved and
accepted in principle the said documents. The Bank expressed its intention to proceed with
the subsequent phases of project implementation.
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The RFP and ESA are among the legacy tools that the UNDP-GEF Philippine Efficient
Lighting Market Transformation Project (PELMATP) can integrate into its activities. ELI
expects that these documents can be used as a guide for other ESCOs and financing
institutions to replicate other performance contracts.
Preliminary meetings with the Department of Environment and Natural Resources
(DENR) and the Department of Budget and Management (DBM) generated their interest
in this Model ESCO Transaction. The DENR is considering lighting retrofits in all twelve
(12) buildings of its main office compound in Quezon City. The DBM likewise intends to
implement a lighting retrofitting project covering all three (3) of its buildings in the vicinity
of the Malacañang Palace in Manila. The ELI team however proposed that the DENR
initiate a separate ESCO lighting retrofit project together with the DOE and DBP. The
Country Director remained confident that the experience gained by the DOE and DBP
was sufficient to replicate the procurement of ESCO services.
Lighting Standards for Housing and Rural Electrification
The allocations corresponding to the “Support New Housing” and “Support Rural
Electrification” activities were combined to create the budget line item, “Lighting
Standards.” The merge was proposed as both activities basically required the collaboration
of the Department of Energy, Department of Budget and Management, Commission on
Audit and key utility and lighting experts in drafting the standards and guidelines for the
procurement of energy-efficient lighting technologies.
ELI-Philippines planned to collaborate with the Institute of Integrated Electrical Engineers
of the Philippines (IIEE), DOE and DTI to determine the technical, safety and quality
specifications of the most feasible energy-efficient lighting products that should be
installed in government facilities.
Considering the budget allocation and the proposed activities, as per the 14 January 2002
version of the country program budget, the Country Team deemed it best to merge part of
the “Lighting Standards” budget with the “Professional Training” budget rather than to
commit additional resources to collaborate with the IIEE to develop lighting standards as a
separate and distinct activity. This was due to the fact that both activities had similar
methodologies and outputs (i.e. Efficient Lighting Code). The remaining portion of the
budget was set aside to fund the National Advisory Council for Energy-efficient Lighting’s
Government Standards and Policies for Efficient Lighting Technical Working Group
(GSPEL TWG).
(Please refer to the Professional Training and Standards Development section for more details.)
Micro-Credit Financing Models
ELI attempted to pioneer a new form of market aggregation in the Philippines, notably
working with consumer cooperatives that had multiplied in number and which were spread
throughout the country. Currently, consumer cooperatives sell everything from shoes to
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mobile phones to their member/owners. Since these cooperatives already had an affinity
with and trust of their members and provided “micro-credit” financing to their members,
they appeared ideal market aggregators for CFLs.
ELI initially planned to work with the National Confederation of Cooperatives
(NATCCO). The confederation, in return, recommended that ELI collaborate with their
largest consumer cooperative federation through a pilot CFL distribution project.
In December 2002, ELI executed an agreement among manufacturer-suppliers of energy-
efficient CFLs and the Metro Manila Federation of Consumer Cooperatives
(MMAFECCO). MMAFECCO is a secondary cooperative federation with over twenty
consumer cooperatives under its guidance.
Through the Memorandum of Agreement (MOA) signed by MMAFECCO, ELI and four
lighting manufacturers-suppliers, ELI sought to promote and facilitate the marketing and
distribution of ELI-qualified CFLs and other efficient lighting products through
MMAFECCO’s member consumer cooperatives. Under this MOA, the 22 member
cooperatives have agreed to support the public education campaign of ELI through point-
of-sale installation of promotional/educational materials.
The ELI/MMAFECCO Educational Campaign was launched in February 2003. The
method used to conduct the activity was similar to that of the Point-of-Sale Campaign. The
POS/Education Specialists interviewed and educated the cooperatives and their sales staff
about the ELI concept and ELI-qualified CFL products. Educational materials were
distributed and installed in the visited cooperatives.
On 26 July 2003, ELI organized a meeting between MMAFECCO member cooperatives
interested in selling ELI-qualified lighting products and lighting manufacturers-suppliers, in
order to build relationships between the two groups. Through this activity, MMAFECCO
member cooperatives were given the opportunity to enter into commercial agreements
with manufacturers-suppliers to market and distribute ELI-qualified CFL models, at the
best possible prices and terms.
ELI-Philippines hopes that this activity paves the way for subsequent commercial
agreements between manufacturers/importers and cooperatives in other parts of the
Philippines, and by doing so, accelerates the distribution of ELI-qualified CFL products
through consumer cooperatives.
3.4.4 Preliminary Results of ELI’s Commercial / Industrial / Institutional Sector
Activities
a. Lighting professionals are now equipped with a standards reference and a sustainable
professional training program. ELI-Philippines, together with the IIEE, developed the
IIEE-ELI Manual of Practice on Efficient Lighting. Two thousand (2,000) copies of
the Manual have been distributed and sold by IIEE to lighting designers, specifiers,
contractors, suppliers and other interested parties. The Manual is continuously being
used by IIEE and PLIA for their professional training seminars. In addition, the IIEE
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found that the Manual has influenced positively the procurement processes of some
local government units (LGUs) and institutions/entities.
b. ELI spearheaded the proposal of an Amendment of the existing Demand-Side
Management Framework. ELI provided technical assistance in the review,
amendment and improvement of the 1996 DSM Framework. The core group from
the collaborative assemblies developed and presented the Standard/Default DSM
plans to stakeholders in the power sector to facilitate the submission of DSM plans of
the utilities. The group consisted of representatives from 10 utilities, the ERC, the
RAP and ELI. The Country Program succeeded in building government-industry
consensus towards the approval of the Amended DSM Framework, as manifested in a
collaborative agreement involving 71 power industry stakeholders.
c. The fourth-largest utility launched a pilot CFL program. Paylight allowed CEPALCO
customers to purchase ELI-qualified CFLs at a discounted price through an
installment plan. Using a shared savings scheme, the consumer benefited from the
energy savings gained from selling CFLs, and the utility was able to recover the cost of
the lamp as well as the administrative and financing costs, including a return on its
investment.
d. Two leading utilities developed Business plans for CFL leasing. Based on the data and
information gathered from Paylight, ELI prepared a business plan which can be used
to develop the scaled-up CFL distribution program (“Megalight”) targeted at Cagayan
de Oro’s 80,000 customers together with some commercial and industrial businesses.
ELI likewise developed a business plan for MERALCO’s Smartlight CFL Program.
e. ELI, DOE, and the DBP jointly developed procurement documents for a Model
ESCO Transaction. As part of the Model ESCO Transaction, ELI co-developed the
Request for Proposal (RFP) and Energy Services Agreement (ESA). These documents
would be used for the procurement of ESCO services for the lamp retrofitting project
of DBP. ELI likewise managed to influence other government agencies like the
Department of Environment and Natural Resources (DENR) to consider adoption of
a similar program as DBP. This activity catalyzed the formation of independent
ESCOs (e.g. RNFA-Romago, CEPALCO ESG & MERALCO Energy Inc.) giving
birth to fourteen (14) independent ESCOs.
f. The DBP, a financial market leader, is now willing to provide energy efficiency
financing. As a result of the Model ESCO Transaction, DBP expressed its intention
to expand the coverage of its environmental loan portfolios to include energy
efficiency and ESCO financing by its borrower banks. By educating the country’s
largest wholesale and developmental bank, the transaction model is flowed down to
the retail banking sector by DBP for replication by private financing institutions
(PFIs).
g. Cooperatives became new distribution channels of ELI-qualified CFLs. ELI
facilitated the establishment of consumer cooperatives as a viable distribution channel
for efficient lighting products. At least eight (8) member cooperatives under the Metro
Manila Federation of Consumer Cooperatives (MMAFECCO) declared their interest
to be long term distribution channels for ELI-qualified CFLs, regardless of the type of
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credit offered to their members. ELI organized meetings which gave MMAFECCO
member cooperatives the opportunity to enter into commercial agreements with
manufacturers-suppliers to market and distribute ELI-qualified CFL models, at the
best possible prices and terms.
h. The general awareness of ELI and the benefits of efficient lighting technologies in the
C/I/I sectors have increased. The aggressive media campaign (print advertisements,
television and radio commercials) and Point-of-Sale activities built general awareness
in the market about the economic benefits of efficient lighting technology, and
established recognition for the ELI logo. The Country Team likewise built consensus
towards the adoption of the ELI standards and specifications for other energy-
efficient lighting technologies, such as electronic ballasts, among its other stakeholders
(ERC, MERALCO, CEPALCO, DBP, IIEE, etc.).
i. Creation of the National Advisory Council for Energy-efficient Lighting. ELI
spearheaded the creation of NACEEL to sustain ELI interventions beyond the
program duration of three years. A high-profile public-private policy advisory group
that will continue to exist through the post-ELI phase, NACEEL, together with PLIA
is managing the Government Standards and Policies for Efficient Lighting Technical
Working Group (GSPEL TWG) which intends to develop improved standards and
policies for the procurement and utilization of efficient lighting technologies and
services by national and local agencies. NACEEL is expected to provide the guidance
and possibly the evolutionary basis for the eventual creation of the Philippine Council
for an Energy-efficient Economy (PCEEE).
3.4.5 Analysis
Before ELI began, large commercial and industrial firms were already using a mix of
lighting technologies for their facilities and offices. Large firms primarily used fluorescent
lamps and complemented them by either CFLs or incandescent lamps for specific areas.
Many firms were shifting from incandescent lamps to more efficient lighting products.
However, there was still room for growth in CFL usage among small and medium-sized
firms.
The success of the ELI activities for the C/I/I sectors depended on how the strategies
implemented aligned with the relevant activities in the country’s energy and economic
development strategies.
Although all reports and documentation necessary to enable the regulatory process to
amend the 1996 DSM Framework have been formally accepted by the ERC, the regulatory
body has yet to officially adopt the amended framework. The delay in the adoption of the
said framework was largely due to the shift in priorities of the ERC to the deregulation and
privatization of the power industry.
The RFP and ESA developed for the Model ESCO Transaction are among the legacy tools
that the UNDP-GEF PELMAT Project can integrate into its activities. These documents
are to be used for the procurement of ESCO services for the light retrofitting project of
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DBP. The Bank has expressed its intention to proceed with the subsequent phases of
project implementation.
ELI hopes that the said documents can be used as a guide for other ESCOs and financing
institutions to replicate other performance contracts; other government agencies like the
Department of Environment and Natural Resources (DENR) have been considering the
adoption of a similar program as DBP.
Some of the Philippines’ socio-economic, political and financial conditions prevailing at
the time of implementation hindered the activities related to the amended DSM
Framework and the Model ESCO Transaction from proceeding to or completing the
subsequent phases of project implementation. Developing the strategies for these
activities took longer than the life of the country program as utilities and the Regulator
were faced with the challenge of deregulation and privatization of the power industry,
while energy efficiency financing was considered a relatively new concept; consequently the
financial and C/I/I sectors’ learning curve was gradual. In this regard, ELI-Philippines
believes that it would be good for PELMATP to implement follow-through activities with
these stakeholders.
MERALCO and CEPALCO’s response to the technical assistance offered by ELI-
Philippines varied according to their respective socio-political and financial conditions.
Enjoying much better relationships with its residential customers, CEPALCO was eager to
implement a pilot CFL distribution program, which it used as a basis to design the scaled-
up CFL distribution program for the entire residential class. MERALCO, on the other
hand, was reeling from a financial crisis, partially due to unfavorable events such as the
Supreme Court ruling on tax refunds. The less conducive conditions saw the country’s
largest utility planning its conservative DSM program over a more cautious
implementation schedule. Both utilities however were willing to be driven by utility DSM
benefits other than regulatory intervention.
The creation of the two sustaining institutions, NACEEL and PLIA, was not originally
programmed and evolved out of the objective to ensure that the post-program market
transformation is guarded by a strong industry association and supported by a public-
private policy group. Interactive program design allowed surprise outcomes such as these.
The pre-program Market Assessment revealed that the C/I/I sectors obtained information
on new lighting products and technologies primarily from broadcast and print media
advertisements, and direct marketing for information on lighting products. Other sources
of information were suppliers and sales representatives of lighting products, trade shows
and conferences, and electrical hardware stores.
In this regard, ELI recruited the utilities, banks, lighting professionals, ESCOs, and
cooperatives to become agents of change in the C/I/I sector. By providing technical
assistance for the development of legacy tools, the said stakeholders become promotional
agents of ELI and continue the market transformation over the long tern.
3.4.6 Lessons Learned
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With start-up assistance in standards development, lighting professionals can continue
the promotion of technical specifications in the C/ I/ I sector.
Regulatory frameworks can be a barrier to DSM implementation.
Regulatory intervention for DSM reforms in a newly deregulated environment can be
challenging.
Utilities were found willing to design and implement efficient lighting DSM programs.
The involvement of a wholesale financial institution in a model ESCO transaction can
influence its borrower banks to also support energy efficiency financing.
Independent players can help strengthen the ESCO industry.
GEF assistance can empower local stakeholders to be agents of change who influence
markets beyond the close of the program.
Consumer cooperatives can be willing market aggregators.
These lessons are further discussed in Section 6.0.
3.5 Ensuring Sustainability
In addition to its main market transformation activities, ELI-Philippines engaged in
institution-building activities and provided support to other energy efficiency programs so
as to leave behind agents of ELI that would continue to promote energy-efficient lighting
beyond the term of the program. The Country Team provided assistance in the
development of complementary efficient lighting programs such as the UNDP-GEF
Philippine Efficient Lighting Market Transformation Project (PELMATP). ELI likewise
supported the DOE-LATL application for ISO 17025 accreditation under the DTI-BPS
Lab Accreditation Scheme (BPSLAS). Equipped with ESCO procurement tools, the
Development Bank of the Philippines will be able to complete the model ESCO
transaction on its own and pursue other ESCO opportunities with cooperating private
finance institutions.
In order to sustain the market transformation beyond the program term, ELI established
industry institutions (PLIA and NACEEL) that will continue to push for energy-efficient
lighting in the public and private sector. The Country Team also promoted ELI strategies
and specifications in new international markets and provided support activities that will
allow ELI-Philippines to promote and share its experiences in the Philippines with other
agencies and programs around the world.
(Please refer to the next chapter for more details on Sustainability and Replication.)
3.5.1 Supporting Successor Programs
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Initially labeled as “Meetings with Follow-Through Implementors,” this activity enabled
the Country Team to provide assistance in the development of complementary efficient
lighting programs such as the UNDP-GEF Philippine Efficient Lighting Market
Transformation Project (PELMATP).
The PELMATP is a climate change mitigation program that will be working towards the
accelerated and wide-scale commercialization and utilization of energy-efficient lighting in
the Philippines by tackling or removing technical and market barriers using activities that
continue or complement those of ELI-Philippines.
ELI had called for a firmer commitment from UNDP and DOE in the adoption of the
ELI logo and specifications as parallel voluntary technical specifications for PELMATP.
The Country Director also raised the significance of the narrowing of the gap between the
closure of ELI-Philippines and the commencement of PELMATP and recommended that
the UNDP-GEF fast track the implementation of the project.
Subsequent reviews of the PELMAT Project Brief by the GEFSEC and IFC have initiated
further consultative meetings between UNDP Philippines, DOE and ELI-Philippines for
the purpose of formulating a common succession strategy. Just about the time that the
country program closed, ELI, UNDP and DOE jointly developed and finalized a matrix of
activities that called for PELMATP's adoption of the ELI specs and other legacy tools left
behind by DOE-LATL, NACEEL, PLIA, ERC, MERALCO, CEPALCO, DBP, IIEE
and cooperative-related activities.
During these meetings, ELI continued to express its hope that UNDP and DOE could
adopt the ELI logo and specifications as tools to continue the market transformation.
3.5.2 DOE-LATL Laboratory Accreditation
This activity was designed to provide technical assistance to support the DOE-LATL
application for ISO 17025 accreditation under the DTI-BPS Lab Accreditation Scheme
(BPSLAS).
ELI believed that the global ELI program would gain a very important ally by assisting
LATL in their ISO 17025 lab accreditation requirements. ELI encouraged the LATL
accreditation so as to provide ELI’s global random testing effort with a credible testing
laboratory, located in an ELI country, that had the technical expertise and global quality
accreditation to withstand manufacturer challenges. In exchange for the technical
assistance from ELI, the LATL agreed to test 200 CFL models for ELI.
In June 2003, a laboratory certification expert from the US-based Laboratory Quality
Systems conducted a five-day Lamp Testing Competency Training Program. The training,
which improved the capability of laboratory personnel in specific areas of lamp testing and
quality system auditing, was one of the commitments of ELI to DOE as part of the
foreign technical assistance component of the Laboratory Accreditation MOA, and was a
necessary step in the accreditation process for the DOE-LATL Lab Accreditation.
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By early 2003, the laboratory received its ISO 17025 accreditation. The accreditation
covers electrical testing of compact fluorescent lamps on the following performance
characteristics: light output, power input, input voltage, power factor, input current and
efficiency. Mutual recognition under the Asia Pacific Laboratory Accreditation
Cooperation (APLAC) is anticipated by the first quarter of 2004.
Because LATL is seen as an authority in lighting testing standards in the ASEAN,
possibilities exists for LATL to do support testing for the respective endeavors of the
China Certification Center for Energy Conservation Products (CECP), the UNDP-GEF
China Green Lights, and the UNDP-GEF Philippine Efficient Lighting Market
Transformation Project.
3.5.3 Setting-up Lighting Industry Association / NACEEL Technical Assistance
This activity entailed laying the groundwork for establishing industry associations that will
continue to push for energy-efficient lighting in the public and private sector. The
Philippine Lighting Industry Association (PLIA) was founded by ELI and seven key
representatives of the lighting industry to be the primary agent in lobbying for market
transformation reforms through the DTI, as well as for aggregating industry data. Some
short-term goals include: meeting with government such as DTI to discuss problems with
illegal trading, import taxes and tariffs; and endorsing and promoting the mandatory
product labeling campaign in collaboration with DTI-BPS and DOE.
ELI provided assistance in the start-up legal, administrative and logistical matters related to
the organization and expansion of PLIA. ELI actively participated in PLIA to ensure that
the association's institutional and financial base was strengthened in order to guarantee its
stability and sustainability beyond the ELI-Philippines program. As of the completion of
the country program, PLIA has grown from 9 to 17 member-companies. It has
established its Secretariat in September 2003 and remains financially sustainable. (Please refer
to the next chapter for more details on PLIA)
PLIA subcommittees originally initiated the establishment of the Government Standards
and Policies for Efficient Lighting Technical Working Group (GSPEL TWG) that is now
being hosted by the National Advisory Council for Energy-efficient Lighting (NACEEL).
The GSPEL TWG intends to generate effective standards and policies that will be
patterned after other successful programs in the ASEAN Region. This should lead to the
phase out of inefficient technologies and practices, and replacing them with newer proven
and more efficient ones for facilities and roadways. These activities continue the original
goals of forming and strengthening public-private partnerships with the Philippine
Government.
It was envisioned that while the Government will be the initial implementor of these
standards and policies, the Private sector will likewise follow suit and implement the
Facility Policies and Standards in private facilities in the future. The TWG will deliver
efficient lighting product specifications, best practices guidelines for integrating efficient
lighting into government facilities, and minor, rural and barangay3 roadway lighting
specifications.
3 barangay – a village community, the smallest local government unit in the Philippines
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As part of the ELI-Philippines legacy, ELI provided NACEEL through PLIA a USD
20,000 Technical Assistance grant. The grant will finance part of the costs incurred by the
GSPEL TWG in preparing the Framework and Implementing Rules and Regulations for
the energy-efficient lighting procurement policy, provisionally called the “Government
Standards and Policies for Efficient Lighting” (GSPEL)..
The GSPEL project has been set for implementation for a period of thirty (30) months.
The grant funds provided by ELI are estimated to cover the project costs for the first
eighteen (18) months. PLIA/NACEEL shall be responsible for providing or sourcing
funds to cover the project costs for the next twelve (12) months to cover the continued
implementation and completion of the project. PELMATP has been identified as a
possible funding source.
PLIA, as NACEEL’s authorized trustee, will administer the grand funds in trust for
NACEEL in connection with the planning and implementation of the GSPEL project by
the TWG of NACEEL. It will likewise ensure that all the deliverables under the said
project comply with the ELI market transformation objectives and the technical
specifications of the ELI Global Program, as may be applicable.
The TWG, which consist of 22 ranking officials from PLIA, IIEE, DTI-BPS, DOE,
DPWH, DBM, DILG, MERALCO, and CEPALCO, will be divided into two (2) sections:
Facility TWG and Roadway TWG. Each section will have a Procurement Standards and a
Policy Development team. The Facility TWG will have an additional team that is tasked to
develop Facility Standards. At the end of the 30-month period, the GSPEL TWG will
deliver procurement specifications and policies for Facility and Roadway Lighting and
lighting standards for facilities.
3.5.4 Supporting ELI Promotions Overseas
This activity was designed to promote ELI strategies and specifications in new
international markets and to support activities that will allow ELI-Philippines to promote
and share its experiences in the Philippines with other agencies and programs around the
world. The budget allocated to this activity was used to fund ELI’s participation in
international workshops and conferences.
In September 2001, the Country Director was invited to be a speaker at the UNDP-GEF-
NCST Vietnam Energy-efficient Public Lighting Project (VEEPL) Workshop in Hanoi,
Vietnam. VEEPL is a UNDP-GEF project dedicated to promoting energy efficiency in
public lighting sectors in Vietnam. The workshop aimed to create awareness among the
national authorities and concerned stakeholders of the benefits of energy efficiency
practices.
VEEPL being in its project development (GEF PDF-B) stage gained insights from the
experiences and achievements of ELI. General agreement was reached by the VEEPL
advisors on the following points:
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Each country deserves its own specific and customized lighting market transformation
strategies. Due to the cultural similarities between Vietnam and the Philippines, the
ELI presentation proved very insightful.
UNDP-GEF need not invest funds for a new set of lighting technical specifications
and protocol, rather they were encouraged to adopt ELI specifications or base
successor programs upon it.
In May 2002, the Country Director participated the 5th European Conference on Energy-
efficient Lighting - Right Light 5 in Nice, France. The Right Light 5 Conference was staged
in succession to the IEECB 2002 Conference on Improving Electricity Efficiency in
Commercial Buildings. The joint conference gathered close to 400 key players from
various commercial building and lighting sectors worldwide.
The sessions covered various topics, among which was the IFC/GEF Efficient Lighting
Initiative. During the session on ELI, the Country Director presented the ELI Philippine
paper entitled, “Regulatory Intervention towards the Empowerment of Electric Utilities as
Agents of Lighting Market Transformation in the Philippines.” The paper outlined the
Philippine lighting market scenario, DSM and the utility sector, IFC-Regulator
collaboration to amend the Philippine DSM Framework, and electric utilities as agents of
lighting market transformation.
ELI also attended the 3rd International Conference on Energy Efficiency in Domestic
Appliances and Lighting (EEDAL '03) and related global ELI meetings in Turin, Italy
during the period 28 September to 04 October 2003. The Country Director participated in
the conference as part of the ELI delegation. In the margins of this conference, the global
ELI team also held strategic planning discussions on NextGen ELI.
Likewise, the Country Director was invited to present at the SAEFL-GEF Workshop on
Business Models for Protecting the Global Environment held in Geneva, Switzerland in
November 2003. The workshop intended to identify and promote successful business
models initiated by the GEF and other agencies, which enable technology transfer and
sustainable development in a cost-effective manner. ELI-Philippines was used as a model
for engaging the private sector in an energy-environmental market transformation program
funded by the GEF. The Swiss government covered most of the costs of this activity.
3.5.5 Supporting the Next Generation of ELI
ELI-Philippines has been providing technical assistance to the China Certification Center
for Energy Conservation Products (CECP) in the preparation for their long-term role as
the custodian of the ELI logo and specifications. With the assistance of ELI-Philippines,
CECP has been tasked to develop a business plan for the Next Generation of ELI
(NextGen ELI).
The Country Team hosted the CECP strategic planning mission to Manila in August 2003.
The CECP mission learned how the ELI public-private stakeholders have responded to
and used the ELI logo and specifications in the last three years, and of how these tools will
be used in the next five years in support of the local lighting market transformation. The
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mission likewise provided an opportunity for CECP and ELI-Philippines to collaborate on
the Business plan that will be used to guide the ELI logo custodian during the transition
phase of the NextGen ELI program.
A reciprocal visit to China took place in November 2003 to allow the Country Director to
guide CECP through the IFC-approved outline of the Business plan and to compare their
progress draft with the said outline.
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4.0 SUSTAINABILITY AND REPLICATION
The Ensuring Sustainability component of the ELI-Philippines program was created out of the
necessity to ensure that the advancements and gains that ELI had achieved over the course of the
program were sustained through the complementary activities of specific agencies and groups
that recognize the importance and benefits of promoting the use of energy-efficient lighting
technologies in the country.
The Ensuring Sustainability component had four major objectives:
1) Open and maintain communication channels with groups that have been identified
as possible heirs to the ELI legacy. Several organizations had been identified, but
three stood out as the principal successor to ELI’s activities – UNDP/GEF, DOE-
LATL and NACEEL.
United Nations Development Programme – Global Environment Facility
(UNDP-GEF)
Of particular significance is the role UNDP-GEF should play in the adoption and continued
promotion of the ELI Logo and the global ELI Qualification Specifications. Because of their
resources and expertise in climate change mitigation at their disposal, they are in the best
position to manage the key concepts that go into the transformation of the global lighting
market.
Like IFC/GEF, UNDP-GEF has in the pipeline a lighting market transformation project for
the Philippines known as the Philippine Efficient Lighting Market Transformation Project
(PELMATP). Its primary objective is to remove the remaining technical, financial and
market barriers for the large-scale promotion and commercialization of energy-efficient
fluorescent lighting systems for the residential and C/I/I sectors in the Philippines.
The ELI team had an opportunity to meet the PELMAT project administrators to assist
them in fine-tuning their program objectives and activities to complement ELI's objectives
and accomplishments.
The ELI-Philippines team was also invited to share its experiences with the UNDP-GEF's
Vietnam Energy-efficient Public Lighting (VEEPL) program last September 2001. Over the
course of the convention, consensus was reached among the participants to not invest funds
for a new set of lighting specifications and protocol in their project; rather, they were
encouraged to adopt ELI or base successive programs upon it.
Department of Energy – Lighting and Appliance Testing Laboratory (DOE-LATL)
The Department of Energy had always been a staunch supporter of ELI's market
transformation activities, most especially the Product Qualification and Testing program with
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the Lighting and Appliance Testing Laboratory (LATL), formerly Fuels and Appliance
Testing Laboratory (FATL).
In April 2002, LATL received USD 200,000 worth of testing equipment procured with ELI
funds LATL gained experience and proficiency in its use, and can effectively test products to
check if they meet ELI qualification levels. In time, as DOE-LATL acquires more expertise
and auxiliary testing equipment, they can consider extending their testing capabilities to other
UNDP-GEF programs around the Asian region. This capacity-building strategy was very
much consistent with how the ELI program engaged and readied the DOE-LATL to service
the random testing needs of the global ELI community.
To further establish LATL as a world-class testing laboratory capable of effectively
supporting the global testing activity, ELI sought to build capacity at the LATL by providing
technical assistance to upgrade its laboratory and testing standards, complying with ISO
17025 standards. Having been granted ISO 17025 accreditation in mid-2003, the LATL is
now deemed as a world-class lighting facility, the first ELI Testing Center in Asia and one of
the very few laboratories in the Asia Pacific capable of running energy performance tests for
lighting products.
National Advisory Council for Energy-efficient Lighting
To sustain ELI interventions beyond the program duration of three years, ELI spearheaded
the creation of the National Advisory Council for Energy-efficient Lighting (NACEEL).
NACEEL was designed to serve as an effective private and public sector magnet to other
stakeholders. It provided guidance to ELI-Philippines strategy formulation, and supported
the country program’s activities and interventions with a pool of integrity. NACEEL is
expected to provide the guidance and possibly the evolutionary basis for the eventual
creation of the Philippine Council for an Energy-efficient Economy (PCEEE).
On 5 March 2001, two landmark resolutions were passed by the NACEEL Board, first, to
convene the May 2001 ESCO Symposium, and second, to endorse ELI’s CFL Leasing
Programs with MERALCO and CEPALCO.
Four other resolutions were approved by the Board during the Council’s 15 May 2003 Board
Meeting. They were: (1) to increase the number of trustees from five to seven to include the
Secretary of the Department of Budget and Management (DBM) and the President of the
Philippine Lighting Industry Association, Inc. (PLIA); (2) to create a Technical Working
Group for the newly formed Government Standards and Policies for Efficient Lighting
(GSPEL); (3) to accept in principle 1 Million Pesos (USD 20,000) Technical Assistance from
ELI through PLIA, Inc.; and (4) to support the ongoing efforts of MERALCO and
CEPALCO in developing energy-efficient CFL Programs for their respective customers.
Presently chaired by DOE Secretary Vincent S. Pérez, the NACEEL is composed of:
Ramon C. Abaya, Chairman of the Cagayan Electric Power and Light Co., Inc.
(CEPALCO)
Jesus P. Francisco, President and COO of the Manila Electric Company (MERALCO)
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Stephen G. Cu, President of the Philippine Lighting Industry Association, Inc. (PLIA)
The Secretary, Department of Energy
The Secretary, Department of Trade and Industry
The Secretary, Department of Budget and Management
Alexander DR Ablaza, Country Director of ELI-Philippines
2) Leave behind tools that can be used to promote energy efficiency, be it through
direct or indirect means:
ELI Logo and Specifications
Amended DSM Framework – This document, through its amendments, hopes to provide
utilities with enough incentives to implement DSM activities in their locality. This seeks
to eliminate the financial and technical barriers that DSM currently suffers.
Standard and Default DSM Plans – These two documents should essentially eliminate the
perceived notion that DSM activities are difficult to develop and not financially
beneficial to implement. By including three Energy-efficient Lighting programs (High-
Efficiency CFL, High-Efficiency Linear Fluorescent Lighting and High Pressure Sodium
Streetlighting Programs) to choose from, utilities will be able to indirectly effect a
significant rise in the use of energy-efficient lighting products in the Philippines.
CFL Leasing Business Plan – This document will arm utilities with the factual and technical
basis to execute a successful CFL program in their areas. This will also include an
implementation strategy that can be generally used in most cases. The Business plan will
serve as a "Model Plan" that can be used to replicate CFL programs around the
Philippines.
Model ESCO Transaction Request for Proposal (RFP) and Energy Services Agreement (ESA) –
These documents will be used for the procurement of ESCO services for energy services
performance contracting. They can be used as a guide for other ESCOs and financing
institutions to replicate other performance contracts. These will present companies and
financing institutions with a new paradigm on EE projects - that it is a solid win-win
investment for both the ESCO and the company.
IIEE-ELI Manual of Practice on Efficient Lighting – This manual will serve as a
comprehensive reference book that identifies and explains the operations of energy-
efficient lighting products and techniques. It will also provide specifications and
application guidelines for electrical practitioners who make decisions about lighting
designs and installations.
3) Support overseas efficient lighting projects such as the 5th European Conference on
Efficient Lighting (Right Light 5) held in Nice, France in May 2002; the Vietnam Energy
Efficiency and Public Lighting (VEEPL) program, which has officially adopted ELI specs
partially as a result of ELI assistance; the 3rd International Conference on Energy Efficiency
in Domestic Appliances and Lighting (EEDAL '03) in Turin, Italy in September 2003; and
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the SAEFL-GEF Workshop on Business Models for Protecting the Global Environment
held in Geneva, Switzerland in November 2003.
4) Lay the groundwork for establishing industry associations that will continue to push
for energy-efficient lighting to the public and private sector.
Philippine Lighting Industry Association
On 15 January 2002, the Philippine Lighting Industry Association (PLIA) was formally
registered with the Securities and Exchange Commission. PLIA, founded by ELI and seven
key representatives of the lighting industry in November 2001, will be the primary agent in
lobbying for market transformation reforms through the Department of Trade and Industry
(DTI), as well as aggregating industry size data.
PLIA has been extending affiliate membership to other companies in the lighting industry
and institutionalizing its laws and articles. Some short-term goals include meeting with
government such as DTI to discuss problems with illegal trading, import taxes and tariffs;
and endorsing and promoting the mandatory product labeling campaign in collaboration
with DTI-BPS and DOE
It is PLIA’s vision to promote the interest of the Philippine Lighting Industry consistent with
Consumer Welfare. With this in mind, PLIA aims to develop and promote the progress of
the Philippine Lighting Industry and safeguard its welfare and interest. It hopes to work in
cooperation with non-government organizations involved with lighting products and
standards, and contribute significantly to the growth of the lighting industry in the ASEAN
region. It seeks to foster fair and healthy business trade practices among its members
through mutual cooperation and understanding. It will continually improve the
manufacturing and marketing of lighting products.
PLIA intends to respond to the ever-changing need and welfare of the Filipino consumers.
It likewise aims to generate employment opportunities and upgrade engineering and
production skills.
PLIA will collaborate with the government sector and participate actively in the formulation
of policies and standards affecting the lighting industry while at the same time contributing
to the common good and overall economic well being of the nation.
Through the collective efforts of the UNDP, DOE, NACEEL, ERC and all other public-private
stakeholders, who have, at one time or another, contributed to the achievements of ELI-
Philippines through the life of the program, ELI-Philippines believes that the market
transformation can be sustained over the long term.
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5.0 MONITORING AND EVALUATION
IFC/GEF, under a separate contract, has been conducting Monitoring & Evaluation (M&E)
activities led by the prime contractor Applied Energy Group (AEG). AEG has local M&E
representatives in each of the seven ELI countries. In the Philippines, the Center for Research
and Communication (CRC) served as in-country liaisons for the M&E project, providing in-
country oversight and interpretation, while Taylor-Nelson/Sofres (TNS) Philippines was tapped
as the In-Country Market Research Firm.
The purpose of the M&E activity is to measure the extent to which components of the ELI
program as implemented in the participating countries have achieved their objective of moving
the market toward a sustainable increase in the availability and adoption of high efficiency
lighting equipment.
A secondary aim of the project is to impose a state-of-the-art yet “standardizable” monitoring
and evaluation protocol for market transformation programs, such as ELI, that are aimed at
achieving reductions in greenhouse gas emissions (GHG). Indeed, if the international lending
community is to engage in end-user strategies for achieving GHG mitigation to complement
more traditional energy supply strategies, then it must have a way to be certain that such
investments have their intended effect on both the market for energy and, ultimately, the
environment.
ELI-Philippines worked closely with its M&E counterparts by providing them with baseline
surveys and market assessment studies, timely reports that detailed the design, implementation
and follow-up activities of the Country Team, and other specific monitoring assistance that were
required by both the global and local M&E Teams.
Earlier in the program, regular monthly meetings were held between ELI-Philippines and CRC to
give updates on the progress of ELI activities and discuss proposed strategies for the
implementation of future activities.
Together with the local M&E representatives from CRC, the Country Team hosted a series of
meetings for ELI M&E Overall Program Officer and M&E Country Manager for the Philippines
Joseph Lopes in March 2001. The Country Team arranged for Lopes to meet with
representatives from MERALCO and Arthur Andersen to get assistance in determining baseline
figures against which to measure ELI’s market transformation impacts.
In April 2001, the Country Team prepared two documents which provide a basis for the
quantitative and qualitative evaluation of ELI’s the progress and effectiveness. The Results
Based Monitoring Results Framework for ELI Management and Evaluation (RBM Form 1)
detailed the outputs, outcomes and impacts in relation to activities of ELI-Philippines. This
RBM Form 1 served as the basis for the development of the Results Based Management
Performance Indicators (RBM Form 2). The RBM Form 2 identified the performance indicators
of the outcomes/impacts specified in RBM Form 1, as well as their corresponding goals/targets.
Both documents provided AEG with sufficient data to come up with the Philippine Baseline
Report, which the global ELI M&E team submitted to the IFC in November 2001.
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ELI conducted meetings with the In-Country M&E team as requested. ELI-Philippines likewise
provided assistance to the local M&E entities in negotiating with manufacturers for their
cooperation in the trade ally surveys conducted by TNS Philippines and in other M&E activities
carried out by CRC. CRC, during one of their meetings with ELI, informed the Country Team
that they were experiencing difficulty in accomplishing M&E activities as the manufacturers were
reluctant to supply the M&E teams with certain sensitive information. In order to gain the
support of manufacturers, ELI arranged, on behalf of the M&E Team, for the aggregate results
of the trade ally survey and market research to be communicated back to the manufacturers.
In June 2003, Lopes went on his final country mission to Manila to conduct interviews and hold
meetings with the public-private stakeholders of ELI, as well as review the results of the country
program. The Country Team arranged for Lopes to meet with representatives from MERALCO,
CEPALCO, PLIA and DOE.
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6.0 OVERALL ANALYSIS AND LESSONS LEARNED
The pre-ELI-Philippines Lighting Market Assessment revealed a wide and deep penetration of
compact fluorescent lamps (CFLs), with a market reach of approximately 64% of target
households and. 77% of large firms.
The local market was crowded with over 50 different CFL brands and variants offered through
various channels and outlets. Over a majority of households were familiar with CFLs, partly due
to the influx of low cost, low-quality CFLs. Almost 6 out of 10 CFL brands were being traded
illegally, as they had not been granted the government’s Import Commodity Clearance (an
assurance of minimum safety and quality).
The market infection brought about both benefits and risks to the local market. Although more
households gained access to efficient lighting products, consumers were left vulnerable to fake,
substandard and unreliable CFLs due to the proliferation of low-cost, low quality CFL imports.
The mission of ELI was therefore two-fold: (1) to design and implement a program that would
not only shift the demand from the base technology to energy-efficient lighting products, but
also from low-quality to high-quality CFLs; and (2) to sustain the lighting market transformation
by making sure that consumers do not revert back to the base technology.
ELI-Philippines sought to achieve its program objectives through the implementation of
activities using the approaches and strategies from the ELI toolkit. A significant advantage of the
design of the country program was its flexibility, which enabled ELI-Philippines to respond to
changes in the prevailing market conditions.
ELI-Philippines used the following strategies:
Public Education, Marketing and Standards. Advocated the adoption of lighting
technical standards and specifications through the ELI quality mark system, built capacity of
the LATL to perform ELI testing, influenced purchase decisions through a media campaign,
recruited professionals to continue the lighting market transformation.
Electric Utility Programs. Proposed regulatory reforms for the ERC, developed business
plans for CFL programs for two leading utilities.
Transaction Support. Initiated a model ESCO transaction with the DOE and the
country’s largest wholesale bank.
Market Aggregation. Involved consumer cooperatives in bulk purchasing activities.
Through guidance from IFC, ELI-Philippines also introduced a strategy that was not initially part
of the program design. The Ensuring Sustainability component of the country program was
created to ensure that the advancements and gains achieved by ELI were maintained. To this
end, ELI-Philippines supported and assisted in the development of the successor program,
PELMATP. It created and established sustaining institutions such as NACEEL and PLIA that
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will continue to push for energy efficiency to the public and private sector. ELI-Philippines also
promoted ELI strategies and specifications in international markets.
Most of the strategies implemented by ELI successfully achieved the objectives of the program.
The Public Relations, Advocacy and Advertising Campaign together with the Point-of-Sale and
Vendor Education activities have built general awareness in the market about the economic and
environmental benefits of efficient lighting technologies, and established recognition for the ELI
Green Leaf logo. Consumers are now able to make educated lighting purchase decisions.
ELI created demand for ELI-qualified lighting products, thereby creating an incentive for
lighting manufacturers/importers to participate in ELI activities. With the increasing number of
ELI-qualified CFL brands and variants, consumers now have access to a variety of high-quality
CFLs at competitive and more affordable prices.
The success of the ELI activities for the C/I/I sectors depended on how they aligned with the
relevant national energy and economic development strategies.
The pre-ELI Market Assessment revealed that the C/I/I sectors obtained information on
lighting products primarily from broadcast and print media advertisements. Other sources of
information were suppliers and sales representatives of lighting products, trade shows and
conferences, and electrical hardware stores.
ELI therefore recruited the utilities, banks, lighting professionals, ESCOs, and cooperatives to
become agents of change in the C/I/I sector. By providing technical assistance for the
development of tools for implementing energy-efficient lighting retrofits, the said stakeholders
become promotional agents of ELI, and will the market transformation beyond the life of the
program.
ELI succeeded in building government-industry consensus towards the approval of the Amended
DSM Framework, as manifested in a collaborative agreement involving 71 power industry
stakeholders. Although all reports and documentation necessary to enable the regulatory process
to amend the 1996 DSM Framework have been formally accepted by the ERC, the regulatory
body has yet to officially adopt the amended framework. The delay in the adoption of the said
framework was largely due to the shift in priorities of the ERC to the deregulation and
privatization of the power industry.
The RFP and ESA developed for the Model ESCO Transaction are among the tools that ELI
leaves behind as its legacy; the UNDP-GEF PELMAT Project can integrate them into its
activities. With the intent of the DBP to proceed with the subsequent phases of project
implementation, these documents will also be used for the procurement of ESCO services for
the lamp-retrofitting project of the Bank.
ELI hopes that the said documents can be used as a guide for other ESCOs and financing
institutions to replicate other performance contracts, given that other government agencies like
the Department of Environment and Natural Resources (DENR) have been considering the
adoption of a program similar to that of the DBP.
In the forty-four (44) months of country program implementation, the Country Team draws the
following lessons:
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Lessons Learned
1. Interactive program design allowed strategies to adjust with the changing market
conditions. The ELI-Philippines team was able to realign its activities in response to
changes in the social, political, or economic conditions that affected the local lighting market.
Some budgets were re-aligned because of the poorer feasibility of sustaining the activities
they were originally programmed, and efforts were directed towards activities with higher
probabilities of success. For example, the Lighting Standards (for Housing and Rural
Electrification) activity was merged with the “Professional Training and Standards
Development.” In line with this effort to unify all lighting policy standardization endeavors,
ELI initiated the establishment of the Government Standards and Policies for Efficient
Lighting Technical Working Group (GSPEL TWG), which aims to generate effective
standards and policies, and to replace inefficient technologies and practices with more
efficient ones. Another example is the realignment of the school curriculum activity due to
some constraints encountered during the course of implementation.
2. The baseline market assessment paved the way for other beneficial and strategic
endeavors. Aside from gaining baseline measurements of the market for monitoring and
evaluation purposes, the Market Assessment allowed the Country Team to create strategies
tailored to market conditions, and to provide information to government which raised
awareness of a need for industry reforms, especially relating to illegally-traded CFLs. More
significantly, it became a potent tool in consolidating the lighting industry for the purposes of
establishing the Philippines Lighting Industry Association (PLIA).
3. A media campaign is an effective way to leverage stakeholder support. While the main
objective of the media campaign was to increase consumer awareness, the Public Relations,
Advocacy and Advertising Campaign (PRAAC) - which significantly raised ELI’s profile -
was also very effective in obtaining more general support from its indirect audience, such as
manufacturers or government officials. Promotional activities implemented over the three-
year program period not only influenced consumer buying habits, but just as effectively made
it easier for the program to win the cooperation of government agencies, utilities,
professionals, retailers, distributors, importers and manufacturers. The significant media
presence of ELI, through tri-media advertising and press releases, demonstrated to program
stakeholders ELI’s wide consumer reach, which in turn facilitated their “bandwagon”
recruitment for the non-residential activities of ELI-Philippines. A properly designed and
executed media campaign, albeit primarily directed at consumers, can therefore be very
effective in leveraging support from the private sector and government.
4. The ELI logo as a quality mark proved to be an effective public education tool. The
ELI logo was able to communicate energy efficiency, quality, and long lamp-life to
consumers. The simple quality message behind the logo made it possible to guide consumers
without having to explain detailed and complicated technical specifications. The response of
the market to the ELI logo included: (1) consumer awareness of the ELI logo has exceeded
that of the mandatory government quality mark (ICC mark); (2) new and previously listed
manufacturers continued to apply for product qualification; (3) an incremental growth in the
number of distributors trading ELI-qualified products; and, (4) some entities engaged in bulk
procurement were starting to base their procurement standards on the ELI technical
specifications..
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5. A capable ELI testing center can help sustain the logo and specifications in the local
market. Through the procurement of testing and calibration equipment, provision of
technical training to personnel, and technical assistance in securing ISO certification, ELI
leaves a testing center that is capable of testing lighting products for compliance with ELI
specifications for the Philippine market. Because of its capability and hands-on experience in
the global testing of lighting products from the seven ELI country programs, the DOE-
LATL can likewise offer its services to the regional, if not global, lighting market. Chinese
manufacturers for instance, now have an option to consider the DOE-LATL as an alternate
facility aside from the testing laboratories in Beijing and Shanghai. On the local level, this
testing center, given its actual experience in global ELI testing, has the capability to test
lighting products for compliance with ELI technical specifications under the proposed
UNDP-GEF Philippine Efficient Lighting Market Transformation (PELMAT) Project.
6. Vendor education is an effective public education tool, but must be sustained if a
long-term impact is desired. Although vendor education for small- and medium-scale
retailers was an effective way of promoting the ELI logo and specifications within the
product supply chain, the ELI-Philippines experience shows that the effects of this market
intervention strategy could not be sustained for periods longer than a year unless the activity
was succeed by follow-up phases. It was observed that the value of promotional devices such
as flyers, mobiles, pointers, and other POS materials lasted only for a limited period of time.
Budgets were therefore allocated for repeated waves to achieve long-term results. Enterprises
and retails stores also changed product lines periodically, and transactions and relationships
between product distributors and retailers appeared to be volatile. There was also a high
turnover rate for POS personnel, who, after receiving vendor education, were jointly
responsible for communicating the ELI message to consumers.
7. With start-up assistance in standards development, lighting professionals can
continue the promotion of technical specifications in the C/ I/ I sector. The IIEE-
ELI Manual of Practice on Efficient Lighting, which was co-developed by ELI, is being used by
lighting professionals (i.e., designers, specifiers, contractors, suppliers, installers, purchasers)
as a comprehensive reference on the recommended applications of energy efficiency lighting
technologies. The publication of this manual enabled lighting professionals to continue
professional education activities. Before the program closed, IIEE set concrete plans to
continue the: (1) reproduction, promotion and sale of the manual; and, (2) conduct of
professional training seminars, with the manual as reference. In the long run, these
professionals are expected to become active agents of market transformation in the C/I/I
sector in the years beyond the ELI program.
8. Regulatory frameworks can be a barrier to DSM implementation. Utilities were found
reluctant to pursue DSM projects because of the lack of specificity of the regulatory
framework for Demand-Side Management, particularly in the regulatory policies pertaining
to the recovery of program costs and lost revenue. By extending technical assistance in the
review and amendment of the 1996 DSM framework, ELI sought to remove this barrier.
The amendment addressed lost revenues, inadequate financial incentives, and cost recovery.
The formal adoption of the ELI-proposed amendments has been delayed by the political and
organizational changes in the regulatory body, and by its backlog of cases.
9. Regulatory intervention for DSM reforms in a newly deregulated environment can be
challenging. DSM became a low priority activity of the regulator and majority of the utilities
in the newly deregulated power sector. New legislation has overwhelmed the regulator and
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the rest of the power industry with restructuring, privatization of state-owned companies,
reprioritization of resources towards the core business of electricity distribution, and the
unbundling of electricity rates. The challenge for ELI was to re-invent DSM as an attractive
activity by proposing clearer benefits in the regulatory framework and by generating viable
business models for utilities. ELI has partially met this challenge as evidenced by the strong
collaborative support of the power industry towards the regulatory reforms ELI has
proposed and by the successful pilot CFL distribution program implemented by one of the
utilities. The most difficult aspect of this strategy was getting the regulator to assign more
priority to ELI’s DSM petition amidst the huge backlog of deregulation-related cases and
limited operational resources. Needless to say, regulatory intervention in support of DSM
would have faced less obstacles through a status quo legislative and regulatory environment.
10. Utilities were found willing to design and implement efficient lighting DSM
programs. During the collaborative efforts for DSM reforms, a majority of utilities believed
that a CFL program was the most feasible DSM activity to execute. More significantly,
MERALCO and CEPALCO (the country’s first and fourth largest utilities) agreed to co-
develop CFL Programs with ELI even before the DSM framework was officially amended.
While levels of commitment, cooperation, and motivation varied between these two utilities,
MERALCO and CEPALCO nevertheless remained positive that their respective CFL
programs were commercially viable and capable of drawing benefits other than regulatory
compliance. CEPALCO was more eager to pursue the scaling up of its CFL distribution
program for its residential customers after drawing lessons from its pilot program.
MERALCO likewise expressed willingness to seek management approval of its CFL program
business plan, albeit structured more conservatively through three implementation phases.
11. The involvement of a wholesale financial institution in a model ESCO transaction
can influence its borrower banks to also support energy efficiency financing . Prior to
the model ESCO transaction with the DOE and DBP, energy efficiency projects did not
easily qualify for loans from environmental portfolios, ESCO agreements were not accepted
as loan collateral, and not a single financial institution had extended credit to ESCO projects.
ELI learned that while banks were, in principle, interested in ESCO lending, they were
waiting for a market leader to pave the way. ELI was fortunate to have DBP, a wholesale
bank, as partner for the high-profile model ESCO transaction. DBP will ask its borrower
banks to open a credit line for ESCOs who work on the project. In this way, the DBP
experience will cascade down to borrower banks. As a wholesale financial institution, DBP
will play a crucial role in instituting energy efficiency and ESCO lending in the local retail
banking sector.
12. Independent players can help strengthen the ESCO industry. Prior to ELI, most of the
energy service providers were affiliated with equipment manufacturers, suppliers and
importers. ELI helped diversify the industry by drawing technical expertise from
independent players such as engineering consultants, electrical contractors, and utilities. ELI-
Philippines believed that independent ESCOs should be among the active players in this
growing industry. Independent ESCO practice helps ensure that the technical performance
and economic benefits of EE improvements and facilities are optimized by employing the
most suitable combinations of brands, product models and technologies. Some new and
independent ESCOs were observed to be either: (1) alliances between independent
engineering companies or consultants and engineering contractors; (2) spin-off ESCO
operations from utilities; and, (3) independent engineering specialists. Over a dozen
independent ESCO organizations, including project associations and joint ventures, were
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formalized as a result of ELI’s industry intervention. These independent ESCOs have
proven dynamic and capable players.
13. GEF assistance can empower local stakeholders to be agents of change who
influence markets beyond the close of the program. Whenever possible, ELI sought to
leverage GEF funds by creating long-term proponents of energy-efficient lighting. ELI was
able to apply this strategy with utilities, banks, lighting professionals, ESCOs and
cooperatives. Whereas before ELI, these parties were not especially aware of energy-
efficient lighting, thanks to ELI, they now actively seek to sell, buy, or install efficient lighting
technologies. It is reasonable to expect these new attitudes to persist (this persistence will be
measured during post-program Monitoring and Evaluation).
14. Consumer cooperatives can be willing market aggregators. With the willingness of the
Metro Manila Federation of Consumer Cooperatives (MMAFECCO) to become a CFL
market aggregator, price negotiations of CFL purchases moved one level up the supply chain,
thereby allowing the federation to directly negotiate pricing and volume arrangements with
manufacturers and importers in lieu of the traditional distributors. The ELI intervention
enabled CFL price reductions by eliminating the price margin allocated to distributors and by
the desire of the federation to aggregate the CFL order volumes of its member cooperatives.
15. The sustainability of market transformation strategies can be bolstered through the
creation of guardian institutions. . ELI saw the need and potential for a unified force to
transform the lighting market, and thus co-founded the Philippine Lighting Industry
Association (PLIA). Through its 17 member-companies, PLIA has already set up its own
Secretariat office, committed to a private sector partnership with government to protect
consumers against substandard lighting products, pledged its co-financing support to the
GEF successor program PELMATP, and can be expected to be a long-term lobbying arm
for efficient lighting in the Philippines. Another institution co-founded by ELI is the
National Advisory Council for Energy-efficient Lighting (NACEEL), a high-profile public-
private policy advisory group that will continue to exist after ELI closes. In late-2003,
NACEEL, with the help of PLIA, has launched a 30-month project for the multi-sectoral
formulation of the Government Standards and Policies for Efficient Lighting (GSPEL).
16. Being complementary GEF programs, ELI and PELMATP can share the same GEF-
developed tools without duplicating the ELI activities. With redirected focus towards
the C/I/I sectors, PELMATP can design and implement new market transformation
activities while adopting the legacy tools that ELI has left behind. Of the ELI legacy tools,
PELMATP chose to build upon the ELI logo, the ELI technical specifications, the amended
DSM Framework, the Standard and Default DSM Plans, the utility CFL Program Business
Plans, the reference manual for lighting professionals and the ESCO procurement
documents.
17. Good program management increases output of program activities. With the ability
to respond to the ever-changing needs of the market, a strong management team from both
the global and local implementing entities was able to deliver several unexpected and positive
outcomes without increasing activity budgets. ELI-Philippines managed to carry out the
Demonstration Lighting activity without GEF support. The Ensuring Sustainability strategy,
which included the creation of sustaining institutions such as the NACEEL and PLIA, was
implemented despite not being part of the original program design. Likewise, the Country
Team was able to stretch the reach of the media campaign to cover 4 implementation waves.
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Moreover, ELI succeeded in generating the support of 71 power industry stakeholders in a
new collaborative process that did not require additional GEF funding.
18. GEF immunity can be flowed down to country program implementors. The budgetary
allocation of less than USD 10,000 for the services of an ELI legal advisor through a period
of over 2 years was able to free up as much as USD 200,000 in significant taxes and duties in
the country program budget. The savings that resulted from this activity were then used to
fund other ELI activities. Other GEF projects in the Philippines and in countries with
similar tax regimes may have to go through the same long process for GEF immunity to be
passed on to the local implementing entities.
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7.0 FUTURE ACTIVITIES
With the closure of the country program in September 2003, ELI-Philippines is confident that
the advances it has gained during the last three years will be sustained through the
complementary activities of agencies and groups that recognize the benefits of promoting the use
of energy-efficient lighting technologies.
ELI expects the Department of Energy (DOE) to follow through its market intervention
strategies by adopting the ELI tools for use in the proposed UNDP-GEF Philippine Efficient
Lighting Market Transformation Project (PELMATP).
PELMATP was designed to build on the major accomplishments of the ELI program, and
include activities that will further promote the work initiated by its predecessor program.
PELMATP will make use of policies, frameworks and pilot projects laid out under the ELI
program.
PELMATP has agreed to adopt the ELI logo and technical specifications as its voluntary
standard. PELMATP has likewise proposed to integrate follow-through activities with the
following stakeholders:
7.1 Department of Energy – Lighting and Appliance Testing Laboratory
The ISO 17025 Certified Department of Energy – Lighting and Appliance Testing
Laboratory (DOE-LATL) will continue to uphold and recognize the ELI logo and
specifications through the implementation of PELMATP. Their increased capacity and
expertise will allow LATL to offer its testing services to the Asia-Pacific region and to the
ELI countries if and when the self-sustaining ELI service becomes operational.
PELMATP activities for LATL include the accreditation of DOE-LATL for energy
performance testing of ballasts, linear fluorescent lamps and high intensity discharge lamps;
the procurement of incremental test equipment for ballasts and linear fluorescent lamps;
the upgrading of LATL technical skills and acquisition of international lighting reference
materials; and the upgrading of its R&D capacity.
PELMATP, through LATL and its collaboration with DTI-BPS and PLIA, will be
monitoring the local lighting market and perform information dissemination. The LATL
will likewise continue to provide its services for the ELI product testing and qualification
program.
7.2 Institute of Integrated Electrical Engineers of the Philippines, Inc.
The Institute of Integrated Electrical Engineers of the Philippines (IIEE) together with
experts from PLIA has expressed its interest in continuing the “Designing Efficient
Lighting Systems,” professional training seminars post-ELI. Both organizations jointly
scheduled a third efficient lighting training seminar in October 2003 without additional
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support from ELI. The two organizations intend to offer the seminars on a sustainable
basis as part of their Continuing Professional Development offerings.
PELMATP intends to continue the training of building designers/developers, architects,
LGU building officials, and building maintenance personnel on the application of efficient
lighting using the IIEE-ELI Manual of Practice on Efficient Lighting as major reference.
The Energy Management Association of the Philippines (ENMAP) and the National
Engineering Center of the University of the Philippines (UP-NEC) will be tapped as
partners of IIEE and PLIA.
7.3 Development Bank of the Philippines and other Financing Institutions
With the approval of the DBP-DBP-ELI Model ESCO Transaction Project, including its
procurement documents and its proposed budget, the Development Bank of the
Philippines has expressed their intention to proceed with the subsequent phases of project
implementation.
Upon the initiation of ELI, the country’s largest wholesale bank will extend its
environmental credit facilities to include energy efficiency and ESCO project financing by
private financing institutions (PFIs). The Bank will likewise educate PFIs on the
framework necessary to implement EE and ESCO financing for ESCO services.
PELMAT will continue to build the capacity of DBP and ESCOs and complete the
demonstration process as a showcase to the commercial and industrial sectors. It shall
adopt the Model ESCO Transaction bid documents (RFP and ESA) developed with the
assistance of ELI, as model procurement documents for subsequent ESCO transactions by
other government/ private entities. PELMATP will likewise design and implement a
model loan agreement between the ESCO and the bank. The activity will be supplemented
with capacity building for commercial and industrial establishments on ESCO operations,
financing, developing of measurement and verification procedures.
7.4 Cagayan Electric Power and Light Company
With the ERC’s provisional approval of the incorporation of the CFL repayment in the
monthly electric bill and the eventual amendment of the DSM Framework, CEPALCO
will most likely implement its scaled-up Megalight CFL Leasing Program amongst its
80,000 customers.
PELMATP intends to collaborate with CEPALCO to expand its DSM program to other
efficient lighting technologies. PELMATP will also facilitate the development and
approval of cost recovery schemes for DSM programs.
7.5 Department of Trade and Industry – Bureau of Product Standards
The Department of Trade and Industry, in conjunction with PLIA and the Philippine
Product Safety and Quality Foundation (PPSQF), will continue to work with the DOE-
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LATL in monitoring the use of the ELI logo as a mark of product excellence and
efficiency.
PELMATP, through LATL and its collaboration with DTI-BPS and PLIA, will be
monitoring the local lighting market and performing information dissemination.
7.6 Energy Regulatory Commission
The Energy Regulatory Commission (ERC) hopes to convene a public hearing and
conduct a technical evaluation for the approval of the ELI proposed amendments that will
facilitate the implementation of the DSM framework, provided they have completed their
obligations with respect to the ongoing processing of rate cases in preparation for the
deregulation of the power sector.
PELMATP will work towards the ERC approval and enforcement of amended DSM
framework. PELMATP will also seek ERC approval of the Standard and Default DSM
Plan Templates ensuring that all applicable and cost-effective efficient lighting options are
considered (ELI specifications included).
7.7 National Advisory Council for Energy-efficient Lighting
Established in October 2000, NACEEL is meant to catalyze an alliance between the
government and the private sector and is envisioned to evolve into the Philippine Council
for an Energy-efficient Economy.
As of the time of this final report, NACEEL has formally launched the Government
Standards and Policies on Efficient Lighting (GSPEL) Project and appointed PLIA to lead
the GSPEL Technical Working Group.
NACEEL will be the overall body to supervise the activities of the GSPEL TWG.
Through this Project, NACEEL seeks to re-align and integrate all activities related to the
updating and formulation of government policies, standards, and guidelines including all
ongoing efforts of the NACEEL and GSPEL Technical Working Group.
Upon the completion of the GSPEL Framework and Implementing Rules and
Regulations, NACEEL will facilitate the promotion of said standards and policies in and
among the government agencies through the Department of Budget and Management
(DBM) and the Commission on Audit (COA).
7.8 Philippine Lighting Industry Association, Inc.
The Philippine Lighting Industry Association (PLIA) will participate actively in the
formulation of policies and standards affecting the lighting industry and to serve as catalyst
in the market transformation towards efficient lighting. In collaboration with the DOE and
the DTI-BPS, it will endorse and promote the mandatory product labeling campaign.
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PLIA will likewise play a significant part in successor market transformation programs (i.e.,
PELMATP) and, where possible, initiate market aggregation programs that will promote
ELI-compliant technologies of its member companies
PELMATP intends to collaborate with PLIA in monitoring the local lighting market and
establishing a comprehensive database of lighting product manufacturers/suppliers.
Together with PLIA and IIEE, PELMATP will work towards the conduct of annual
lighting industry conventions and the establishment of the Lighting Research Center
7.9 Other Stakeholders
Energy Service Companies (ESCOs). The success of the Model ESCO Transaction
developed by the ELI-Philippines removed certain critical barriers to energy-saving
performance contracting. Confidence of the young ESCO industry was developed with the
involvement of the banking sector and the crafting of ESCO procurement documents.
Also, new independent players, whose operations were formalized through the term of
ELI-Philippines, now form part of the growing ESCO industry in the Philippines.
PELMATP activities for ESCOs include the promotion of ESCO-led energy-efficient
lighting projects. The Project intends to design energy performance models for efficient
lighting through 1) the development of simplified and user-friendly guidelines for the use
of the available credit facility in DBP that can be used for Energy Performance
Contracting services, and 2) the establishment of monitoring and verification protocols for
future ESCO contracts. It will likewise establish the market for ESCO Services by
promoting partnerships between ESCOs and engineering companies, construction firms,
and/or finance companies.
Consumer Cooperatives. With the MMAFECCO’s willingness to become a market
aggregator, the federation may take advantage of the models described in the ELI Aide
Memoire (the ELI document through which the lessons gained in this activity were
captured) to develop a business plan which the cooperatives can use to establish
commercial agreements and negotiate pricing and volume arrangements with
manufacturers and importers.
Vendors of Lighting Products. Through the training ELI provided, vendors are now
able to communicate to consumers the economic and environmental benefits of using
energy-efficient lighting technologies. Retailers of lighting products will continue to be
ELI’s agents of change, with an opportunity to make a direct impact in the transformation
of the lighting market.
FINAL REPORT – ELI-PHILIPPINES 71
Soluziona Philippines, Inc December 2003
APPENDIX A: LIST OF PREPARED DOCUMENTS
The documents listed below are available in the ELI database. Documents in the internal archive
(i.e., quarterly and annual reports, financial reports, memos to/from the IFC, M&E documents,
and other internal documents) are accessible only to the ELI Family, while those in the public
archive (www.efficientlighting.net/admin) may be viewed by all advocates of energy-efficient
lighting and downloaded for free.
INTERNAL DATABASE
Country Annual Reports
Philippines Annual Report for 2000 (May-Dec 2000)
Philippines Annual Report for 2001 (Jan-Dec 2001)
Philippines Annual Report for 2002 (Jan-Dec 2002)
Philippines Annual Report for 2003 (Jan-Sept 2003)
Country Quarterly Reports
Philippines Quarterly Report, 3rd Quarter (May-Sept 2000)
Philippines Quarterly Report, 4th Quarter (Oct-Dec 2000)
Philippines Quarterly Report, 5th Quarter (Jan-Mar 2001)
Philippines Quarterly Report, 6th Quarter (Apr-Jun 2001)
Philippines Quarterly Report, 7th Quarter (Jul-Sept 2001)
Philippines Quarterly Report, 8th Quarter (Oct-Dec 2001)
Philippines Quarterly Report, 9th Quarter (Jan-Mar 2002)
Philippines Quarterly Report, 10th Quarter (Apr-Jun 2002)
Philippines Quarterly Report, 11th Quarter (Jul-Sept 2002)
Philippines Quarterly Report, 12th Quarter (Oct-Dec 2002)
Philippines Quarterly Report, 13th Quarter (Jan-Mar 2003)
Philippines Quarterly Report, 14th Quarter (Apr-Jun 2003)
Philippines Quarterly Report, 15th Quarter (Jul-Sept 2003)
M&E Reports
Philippines M & E Report (as of June 2002)
Philippines M & E Report (as of Dec 2002)
Philippines M & E Report (as of June 2003)
Philippines M & E Report (as of Sept 2003)
Financial Reports
ELI Phils Budget as of 28 Jun 00
ELI Phils Budget as of 25 Apr 01
ELI Phils 2000 Audit Report
ELI Phils 2001 Audit Report
Internal Memos
ELI-Philippines Logo Application Process (Jan 2003)
ELI Phils No-Cost Extension Memo (05 Oct 2001)
ELI Phils No-Cost Extension Memo, (28 Nov 2001)
FINAL REPORT – ELI-PHILIPPINES a
Soluziona Philippines, Inc December 2003
ELI Phils No-Cost Extension Memo (14 Jan 2002)
ELI Phils No-Cost Extension Memo (06 Aug 2002)
ELI Phils No-Cost Extension Memo (28 Jan 2003)
ELI Phils No-Cost Extension Memo (20 Nov 2003)
ELI IFC Memo on PELMATP (21 Nov 2003)
ELI Phils Memo on FATL Lab Accreditation (05 Apr 2002)
ELI Memo to IFC (20 Jul 2001)
Some Contracts, Subcontracts, and MOAs
UFISA-IBERPACIFIC Subcontract for ELI Phils Inception (24 Apr 00)
UFISA-IBERPACIFIC Master Agreement for ELI Phils Implementation (02 May 00)
UFISA-IBERPACIFIC Contract Amendment 01
UFISA-IBERPACIFIC Contract Amendment 02
UFISA-IBERPACIFIC Contract Amendment 03
PRAAC 1-2 Services Agreement (Oct 2000)
DOE-DTI-ELI MOA for Lamp Product Testing & Qualification (Oct 2000)
MOA for the ELI Technical Assistance for ERB DSM Framework (Mar 2001)
CEPALCO-ELI MOA for the Smartlight CFL Leasing Program (Mar 2001)
CEPALCO-ELI Supplemental Agreement (Jul 2001)
Collaborative MOA to Amend DSM Framework (Oct 2001)
MERALCO-ELI for Smartlight CFL Leasing Program (Mar 2002)
IIEE-ELI Efficient Lighting Standards Development MOA (May 2002)
DOE-DBP-ELI MOA for Model ESCO Transaction (Jul 2002)
DOE-ELI Supplemental MOA 01-01 for Global Testing (Jul 2002)
LATL Accreditation MOA (Dec 2002)
MOA for the ELI CFL Distribution Program for Cooperatives (Dec 2002)
DOE-ELI Supplemental MOA 03-01 for Global Testing (Apr 2003)
LATL Accreditation Supplemental MOA (Apr 2003)
Technical Reports (Others)
RAP Appraisal Mission Report (Apr 2001)
MERALCO CFL Distribution Program Part 1
MERALCO CFL Distribution Program Part 2
MERALCO CFL Distribution Program Part 3
DOE-LATL Business Plan (Aug 2003)
Proposal for Roadshow (May 2001)
IFC Comments on PELMATP Project Brief – 19 Sept 03
Minutes of PELMATP Meeting – 17 Oct 03
FINAL REPORT – ELI-PHILIPPINES b
Soluziona Philippines, Inc December 2003
PUBLIC DATABASE
A Market Assessment Study on Efficient Lighting Products in Philippine Urban Centers (Nov
2000)
RAP Initial Report and Recommendations (May 2001)
ELI Phils Recommended Philippines Regulatory Reforms (Jan 2002)
Amended Framework for Demand-Side Management in the Philippines
ELI-Philippines Proposed Default DSM Plan
ELI-Philippines Proposed Standard DSM Plan
Regulatory Intervention towards the Empowerment of Electric Utilities as Agents of Lighting
Market Transformation in the Philippines
CEPALCO CFL Distribution Program Part 1
CEPALCO CFL Distribution Program Part 2
ELI-Philippines ESCO Project Briefing
DBP Model ESCO Transaction Request for Proposal (Sept 2003)
DBP Model ESCO Transaction Energy Services Agreement (Sept 2003)
Model ESCO Transaction Final Report (07 Dec 03)
National Advisory Council for Energy-efficient Lighting
NACEEL GSPEL Concept Paper (May 2003)
NACEEL Board Resolution 2001-1
NACEEL Board Resolution 2001-2
NACEEL Board Resolution 2003-1
NACEEL Board Resolution 2003-2
NACEEL Board Resolution 2003-3
NACEEL Board Resolution 2003-4
ELI-Philippines Launch of Efficient Lighting Manual (November 2002)
ELI-MMAFECCO Educational Campaign
Aide Memoire on Consumer Cooperative Activity (17 Nov 03)
ELI Phils Testing Equipment Summary
LATL Accreditation Seminar Appraisal Report (Jun 2003)
Energy Labeling in the ASEAN
ELI-Philippines Program Brief (January 2003)
ELI-Philippines Point-of-Sale Support Campaign
ELI-Philippines Vendor Education Seminar
ELI-Philippines Public Relations, Advocacy and Advertising Campaign (PRAAC) Evaluation
ELI-Philippines PRAAC POS Flyer
ELI-Philippines PRAAC POS Leaflet
ELI-Philippines PRAAC POS Mobile
FINAL REPORT – ELI-PHILIPPINES c
Soluziona Philippines, Inc December 2003
ELI-Philippines PRAAC POS Sticker
ELI-Philippines PRAAC POS Pointer
ELI-Philippines PRAAC Billboard Ads
ELI Phils PRAAC Print Advertisement (energy label)
ELI Phils PRAAC Print Advertisement (kaunti)
ELI Phils PRAAC Print Advertisement (maliwanag)
ELI Phils PRAAC Print Advertisement (panalo)
ELI Phils PRAAC Print Advertisement (sikat)
ELI-Philippines PRAAC NextGen ELI Ad
ELI-Philippines PRAAC Print Advertisements (side ads)
ELI-Philippines PRAAC Press Release (Nov 2001/MB)
ELI-Philippines PRAAC Press Release (Nov 2001/MT)
ELI-Philippines PRAAC Press Release (Jul 2002/T)
ELI-Philippines PRAAC Press Release (Aug 2003/I)
ELI-Philippines PRAAC Press Release (Aug 2003/T)
ELI-Philippines PRAAC Press Release (Oct 2003/PS)
Power Industry Pushes Demand-Side Management
DBP to Open Facility for Good Energy Projects
DOE, ELI Ink “Energy Efficiency” Pact
A Landmark Model ESCO Transaction for the ESCO Sector
FINAL REPORT – ELI-PHILIPPINES d
Soluziona Philippines, Inc December 2003
APPENDIX B: LIST OF SUBCONTRACTS
Title Contracting Parties Date Signed Purpose Budget
Amount
COUNTRY PROGRAM MANAGEMENT
Agreement between UFISA and Iberpacific Inc. to:
Subcontract for the Provision of 1. Provide logistic services to support the ELI Phils Inception
Union Fenosa Ingenieria, S.A.
Inception Mission and Recruitment April 2000 Mission USD13,904
Iberpacific Inc.
Services into the ELI Project 2. Select an experienced individual to fill the position of Project
Program Manager
Contract for the Provision of Agreement between UFISA and Iberpacific Inc. to design and manage
Union Fenosa Ingenieria, S.A.
Management Services into the ELI May 2000 all activities pertaining to the conduct of the IFC/GEF Efficient USD130,934
Iberpacific Inc.
Project Lighting program in the Philippines
Amended Contract for the Agreement between Soluziona Ingenieria and Soluziona Philippines to
Soluziona Ingenieria, S.A.
Provision of Management Services April 2002 extend the contract term for 8 months from 02 May 2002 to 31 USD158,004
Soluziona Philippines, Inc.
in the ELI Project – 01 December 2002, subject to the approval of the IFC
Amended Contract for the Agreement between Soluziona Ingenieria and Soluziona Philippines to
Soluziona Ingenieria, S.A.
Provision of Management Services Feb 2003 extend the contract term for 9 months from 01 January 2003 to 30 USD177,754.50
Soluziona Philippines, Inc.
in the ELI Project – 02 September 2003, subject to the approval of the IFC
Amended Contract for the Agreement between Soluziona Ingenieria and Soluziona Philippines to
Soluziona Ingenieria, S.A.
Provision of Management Services Oct 2003 extend the contract term for 3 months from 01 October 2003 to 31 USD24,850.74
Soluziona Philippines, Inc.
in the ELI Project – 03 December 2003, subject to the approval of the IFC
MARKET ASSESSMENT
Agreement between Philip I. De Belen and ELI to plan, prepare,
execute and supervise the implementation of the market study based
Subcontract for the Market on the objectives set by ELI/Soluziona; provide general counsel to
Philip I. De Belen
Assessment Study of Meralco April 2002 CLIENT in the area of marketing research design and management; USD9,990
Soluziona Philippines, Inc./ELI
Customers ensure the expeditious implementation of the Market Study, and the
timely presentation of the research finding and reports.
FINAL REPORT – ELI-PHILIPPINES e
Soluziona Philippines, Inc December 2003
Title Contracting Parties Date Signed Purpose Budget
Amount
PUBLIC EDUCATION
Agreement between PAC.comm and ELI to conduct a Public
Relations and Advocacy Advertising Campaign. The campaign will be
Subcontract for Public Relations,
in 2 waves covering the period 12 October 2000 to 11 October 2001.
Advocacy and Advertising PAC.comm Dec 2001
Objective is to empower consumers in making informed purchase USD761,000
Campaign (PRAAC) Services – Iberpacific Inc. / ELI
decisions with respect to lighting products to the end that the
First and Second Wave PRAAC
Program objectives may be attained.
Agreement between Philip I. De Belen and ELI to conduct the Usage,
Subcontract for the Usage,
Attitude, and Image Research Study to validate the results of the
Attitude, and Image Research
implementation of the First and Second Wave PRAAC. The UAI is a
Study of the First and Second Philip I. De Belen
Jan 2002 quantitative study of research data designed to validate the results of USD9,990
Wave Public Relations, Advocacy Iberpacific Inc. / ELI
the implementation of the PRAAC in the Philippines, and determine
and Advertising Campaign
current market transformation achieved by launching the program.
(PRAAC)
Agreement between The Magic Spell, Inc. and ELI to conduct a
Public Relations and Advocacy Advertising Campaign. The campaign
Subcontract for the Third and
will be in 2 waves covering the period 01 April 2002 to 30 September
Fourth Wave Public Relations, The Magic Spell, Inc.
Nov 2003 2003. Objective is to empower consumers in making informed USD198,000
Advocacy and Advertising Soluziona Philippines, Inc./ELI
purchase decisions with respect to lighting products to the end that
Campaign (PRAAC)
the Program objectives may be attained.
Agreement between The Magic Spell, Inc. and ELI to conduct a
Promotional and Merchandising Program for Upscale Hardware
Subcontract for the Promotional The Magic Spell, Inc. Stores. The Activity will cover the period November 2002 to June
Nov 2003 USD20,000
and Merchandising Services Soluziona Philippines, Inc./ELI 2003 and will concentrate on stores that were the most difficult to
penetrate during the POS Support Campaign.
FINAL REPORT – ELI-PHILIPPINES f
Soluziona Philippines, Inc December 2003
Title Contracting Parties Date Signed Purpose Budget
Amount
Agreement between The Magic Spell, Inc. and ELI to conduct a
Public Relations and Publicity Program for ELI. Objective is to build
Subcontract for the Public
The Magic Spell, Inc. a positive image of ELI and contribute to the market transformation
Relations and Publicity Program Aug 2002 USD7,000
Soluziona Philippines, Inc./ELI of the Philippine publics towards the use of enregy-efficient lighting
for Year 2002
products qualified by ELI.
Agreement between Infinite Ideas and ELI to conduct a Point-of-Sale
Support Campaign. The campaign will cover the period November
Subcontract for the Events
Infinite Ideas, Inc. 2001 to January 2002. Objective is to inform consumers of the
Management Services for the ELI Nov 2002 USD45,000
Soluziona Philippines, Inc./ELI availability of ELI-qualified products in retail outlets, most specially
Point-of-Sale (POS) Campaign
the hardware stores where these products are commonly purchased.
Agreement between Infinite Ideas and ELI to conduct Vendor
Education Training Seminars. Objectives are: to inform orient
vendors and hardware owners about the benefits of efficient lighting
Subcontract for the Events
Infinite Ideas, Inc. and the ELI quality mark; to secure assistance in selling the ELI-
Management Services for the ELI Nov 2002 USD11,000
Soluziona Philippines, Inc./ELI qualified products, and guiding customers to choose high-quality,
Vendor Education Seminars
reliable, efficient lighting products; to further convince hardware
owners to push their ELI-qualified CFL stocks
Agreement between Asia RP, Inc. and ELI to assist ELI:
1. in the preparation and design of the IIEE-ELI Manual of
Practice on Efficient Lighting, and in the preparation and
Subcontract for Technical Asia RP, Inc. implementation of the IIEE Efficient Lighting Seminars and
Sept 2003 USD8,630
Consulting Services Soluziona Philippines, Inc./ELI turnover training for IIEE to perpetuate the said seminars.
2. in the development of the technical lighting specifications related
to the DOE-DBP-ELI/Soluziona Model ESCO Transaction.
FINAL REPORT – ELI-PHILIPPINES g
Soluziona Philippines, Inc December 2003
Title Contracting Parties Date Signed Purpose Budget
Amount
3. in the development of the logistical framework and project scope
related to the ELI-NACEEL Government Standards and Policies
for Efficient Lighting (GSPEL) project. Primary task of the
Consultant to will be to drive the process and integrate the
relevant technical consulting components into the Activity.
ELECTRIC UTILITY PROGRAMS
Agreement between the Regulatory Assistance Project (RAP) and ELI
to plan, design and recommend improvements to the 1996 DSM
Subcontract for Regulatory Regulatory Assistance Project
May 2001 Framework and secure formal approval by the Energy Regulatory USD52,150
Intervention Consulting Services Iberpacific Inc. / ELI
Board of recommended improvements
Energy Efficiency Institute, Agreement between Energy Efficiency Institute, Inc. and ELI to
Subcontract for Technical Inc. (Thomas A. Buckley, facilitate the technical, financial and business development aspects for
Oct 2001 USD36,400
Consulting Services Harlan Lachman, Paul Cillo) two Smartlight CFL Leasing Programs.
Iberpacific Inc. / ELI
Agreement between Energy Efficiency Institute, Inc. and ELI to
Energy Efficiency Finance facilitate the technical, financial and business development aspects for
Subcontract for Financial
Corp. (John C. Maclean) Oct 2001 two Smartlight CFL Leasing Programs and one Model ESCO USD30,900
Consulting Services
Iberpacific Inc. / ELI Transaction
Agreement between Local Consultants and ELI to facilitate the
Federico V. Ortiz, III
Subcontract for Business technical, financial and business development aspects for two
Marietta M. Fondevilla Oct 2001 PHP1,665,000
Development Consulting Services Smartlight CFL Leasing Programs and one model ESCO Transaction
Iberpacific Inc. / ELI
Amendment to the Subcontract for Federico V. Ortiz, III Agreement between Local Consultants and ELI to amend the
Business Development Consulting Marietta M. Fondevilla May 2002 Subcontract to expand the scope of works to include the development PHP492,500
Services Soluziona Philippines, Inc./ELI and management of the DBP ESCO project
FINAL REPORT – ELI-PHILIPPINES h
Soluziona Philippines, Inc December 2003
Title Contracting Parties Date Signed Purpose Budget
Amount
Amendment to the Subcontract for Federico V. Ortiz, III Agreement between Local Consultants and ELI to amend the
Business Development Consulting Marietta M. Fondevilla July 2003 Subcontract to expand the scope of works to include the management PHP347,500
Services Soluziona Philippines, Inc./ELI of the bid process for the DBP ESCO project
TRANSACTION SUPPORT
Subcontract for the Pre-event
Agreement between Infinite Ideas, Inc. and ELI to design and
Preparations for the ESCO
Infinite Ideas, Inc. manage all activities pertaining to the pre-event preparations for the
Performance Contracting and June 2001 PHP479,518.20
Iberpacific Inc. / ELI ESCO Performance Contracting and Project Finance Symposium for
Project Finance Symposium for
Energy Efficiency Businesses
Energy Efficiency Businesses
Subcontract for the ESCO
Agreement between Infinite Ideas, Inc. and ELI to design and
Performance Contracting and
Infinite Ideas, Inc. manage all activities pertaining to the ESCO Performance and
Project Finance Symposium for June 2001 PHP485,000
Iberpacific Inc. / ELI Contracting and Project Finance Symposium for Energy Efficiency
Energy Efficiency Businesses
Businesses event proper.
Event Proper
MARKET AGGREGATION
Subcontract for Business
Federico V. Ortiz, III Agreement between Local Consultants and ELI to facilitate the
Development Consulting Services
Marietta M. Fondevilla Aug 2002 business development assistance in the design, development and PHP1,159,000
for the CFL Distribution through
Iberpacific Inc. / ELI implementation of a CFL Program for Consumer Cooperatives
Consumer Cooperatives
ENSURING SUSTAINABILITY
Agreement between Infinite Ideas, Inc. and ELI to design and
Subcontract for the 05 March 2001 Infinite Ideas, Inc.
March 2001 manage all activities pertaining to the conduct of the NACEEL Board PHP111,844.36
NACEEL Board Meeting Iberpacific Inc. / ELI
Meeting.
Agreement between Laboratory Quality Systems, LLC and ELI to
Laboratory Quality Systems,
Subcontract for Technical Training prepare, design and implement a five-day technical training seminar
LLC June 2003 USD8,300
Services for the laboratory staff of the DOE-LATL as a requirement for ISO
Soluziona Philippines, Inc./ELI
17025 laboratory accreditation.
FINAL REPORT – ELI-PHILIPPINES i
Soluziona Philippines, Inc December 2003
APPENDIX C: LIST OF PARTNERSHIPS
Agreements with Government/Stakeholders Contracting Parties Date Signed Purpose
DOE Agreement between DOE, DTI and ELI for the ff. objectives:
Memorandum of Agreement for the ELI
DTI Oct 2000 1. Procure testing equipment for DOE-FATL
Lamp Product Testing and Qualification
Iberpacific Inc. / ELI 2. Send one representative each from DOE and DTI for training
Supplemental Agreement 01-01 for ELI DOE Agreement between DOE and ELI regarding the method and procedure of
March 2002
Global Testing Iberpacific Inc. / ELI CFL testing and evaluating test data.
Amendment Agreement 03-01 for the ELI DOE Agreement between DOE and ELI on the amendments to the duration of
May 2003
Lamp Product Testing and Qualification IFC / ELI the project and the testing schedule.
MERALCO
CEPALCO Majority agreement on the resolution to convene a symposium on
NACEEL Board Resolution 2001-1 DOE March 2001 performance contracting and project financing for energy efficiency
DTI businesses.
Iberpacific Inc. / ELI
MERALCO
CEPALCO Majority agreement on the resolution to promote, support, assist in securing
NACEEL Board Resolution 2001-2 DOE March 2001 sectoral cooperation, and endorse to the general public the Smartlight CFL
DTI Leasing Program
Soluziona Philippines, Inc./ ELI
MERALCO Majority agreement on the resolution to increase the number of Trustees of
CEPALCO
the Board from five to seven by including the Secretary of the Department
NACEEL Board Resolution 2003-1 DOE May 2003
DTI of Budget and Management (DBM) and the President of the Philippine
Soluziona Philippines, Inc./ ELI Lighting Industry Association (PLIA).
MERALCO Majority agreement on the resolution to authorize the establishment of a
CEPALCO Technical Working Group (TWG) that will be tasked to prepare the
PLIA Framework and/or Implementing Rules and Regulations for the energy
NACEEL Board Resolution 2003-2 DOE May 2003 efficient lighting procurement policy advocated by the Philippine
DTI government and provisionally called the "Government Standards and
DBM Policies for Efficient Lighting" (GSPEL)
Soluziona Philippines, Inc./ ELI
FINAL REPORT – ELI-PHILIPPINES j
Soluziona Philippines, Inc December 2003
Agreements with Government/Stakeholders Contracting Parties Date Signed Purpose
MERALCO
CEPALCO Majority agreement on the resolution to authorize in principle NACEEL’s
PLIA
acceptance of the offer of a Technical Assistance grant by ELI Philippines
NACEEL Board Resolution 2003-3 DOE May 2003
DTI in the amount P1,000,000.00 for the purpose of financing the costs that
DBM may be incurred by the Technical Working Group (TWG)
Soluziona Philippines, Inc./ ELI
MERALCO
CEPALCO Majority agreement on the resolution to authorize in principle NACEEL’s
PLIA
endorsement and support of the adoption and implementation by Meralco
NACEEL Board Resolution 2003-4 DOE May 2003
DTI and Cepalco of their respective Business Plans for Energy Efficient
DBM Compact Fluorescent Lamp (CFL) Programs;
Soluziona Philippines, Inc./ ELI
Agreement between the Manila Electric Company (MERALCO) and ELI to
Memorandum of Agreement for the Meralco MERALCO plan and design the Smartlight CFL Program for MERALCO, which
March 2002
Smartlight CFL Program Soluziona Philippines, Inc./ ELI involves the preparation of a Market Assessment and High-Level Business
Plan.
Memorandum of Agreement for the ELI
Technical Assistance for ERB DSM Energy Regulatory Board Agreement between the Energy Regulatory Board (ERB) and ELI to
March 2001
Framework Iberpacific Inc. / ELI review, improve, supplement and amend the 1996 DSM Framework
Agreement between the Cagayan Electric Power and Light Company
Memorandum of Agreement for the CEPALCO (CEPALCO) and ELI to plan, design, implement and administer the
March 2001
Smartlight CFL Leasing Program Iberpacific Inc. / ELI Smartlight CFL Leasing Program in Cagayan de Oro
Agreement between the Cagayan Electric Power and Light Company
Supplemental Agreement CEPALCO-ELI CEPALCO (CEPALCO) and ELI to incorporate amendments in certain terms and
July 2001
Smartlight CFL Leasing Program Iberpacific, Inc. / ELI conditions in the Memorandum of Agreement
FINAL REPORT – ELI-PHILIPPINES k
Soluziona Philippines, Inc December 2003
Agreements with Government/Stakeholders Contracting Parties Date Signed Purpose
Collaborative agreement among Private Utilities (PU’s), Rural Electric
Cooperatives (REC’s), the National Power Corporation (NPC), concerned
Stipulation and Agreement on the Proposal
government agencies, consumer groups, members from the academe,
to Amend Certain Provisions of the 71 Stakeholders in the Philippine
Oct 2001 environmentalists, and non-governmental organizations which advocates
Framework for Demand-Side Management Power Industry
the acceptance of specific ELI proposed amendments to the framework
(DSM) in the Philippines
that will facilitate the development of DSM programs by the utilities.
Agreement between the Institute of Integrated Electrical Engineers (IIEE)
and ELI to plan, develop and promote standards on efficient lighting to be
Memorandum of Agreement for the
used by electrical engineers and other lighting specifiers. This activity
Development and Promotion of the IIEE- IIEE
May 2002 involves the preparation and development of an “IIEE-ELI Manual of
ELI Manual of Practice on Efficient Soluziona Philippines, Inc./ ELI
Practice on Efficient Lighting”, and the promotion of the Manual in events
Lighting
hosted by IIEE.
Agreement between DOE, DBP and ELI to develop the terms and
guidelines for the planning, development, bidding and implementation of
DOE
Memorandum of Agreement for the DOE- the DOE-DBP-ELI/Soluziona Model ESCO Transaction project, and to
DBP
DBP-ELI/Soluziona Model ESCO July 2002 promote it as the candidate of the Model ESCO Transaction that can be
Soluziona Philippines, Inc./ ELI
Transaction used by succeeding ESCO projects as a basis of the development of their
programs.
MMAFECCO
GE Lighting Philippines, Inc.
Agreement between MMAFECCO, GE, Osram, Philips, Avesco and ELI
Osram Philippines Ltd. Corp.
Memorandum of Agreement for the to plan, develop and implement the “GEF/ELI CFL Distribution Program
Philips Electronics & Lighting,
GEF/ELI CFL Distribution Program for Dec 2002 for Cooperatives”. The program is designed to promote and facilitate the
Inc.
Cooperatives marketing and distribution of ELI-qualified CFLs and other efficient
Avesco Marketing Corp.
lighting products through consumer cooperatives.
Soluziona Philippines, Inc./ ELI
FINAL REPORT – ELI-PHILIPPINES l
Soluziona Philippines, Inc December 2003
Agreements with Government/Stakeholders Contracting Parties Date Signed Purpose
Agreement between DOE and ELI to plan, develop and implement the
“GEF/ELI Program for DOE-FATL Laboratory Accreditation.” The
objective of this Program is to build the capacity of the DOE-FATL to
Memorandum of Agreement for the DOE- DOE comply with the global standards on laboratory testing, and to conduct the
Nov 2002
FATL Accreditation IFC / ELI laboratory testing activities on a sustained basis, subject to compliance with
the requirements of the statutory laws and implementing rules and
regulations.
Agreement between DOE and ELI on the amendments to the Covenants
Amendment Agreement for the DOE- DOE
May 2003 of DOE and ELI/Soluziona and to the term and effectivity of the MOA.
FATL Laboratory Accreditation IFC / ELI
Agreement between IBRD/IFC/Soluziona/ELI and PLIA/NACEEL to
provide and transfer, by way of a grant, funds to finance in part the costs
Grant Agreement for the Technical IBRD/IFC/Soluziona/ELI that may be incurred by the NACEEL’s Technical Working Group in
Sept 2003
Assistance for the GSPEL Project PLIA/NACEEL preparing the Framework and Implementing Rules and Regulations for the
Government Standards and Policies for Efficient Lighting.
FINAL REPORT – ELI-PHILIPPINES m
Soluziona Philippines, Inc December 2003
APPENDIX D: LIST OF PURCHASE ORDERS
Purchase Orders Supplier Date Signed Amount Purpose
Purchase of Integrating Sphere and
PO No. ELI-01-001 LMT Lichtmesstechnik GMPH Berlin 14 September 2001 USD118,080.00
Colorimeter
Purchase of Digital Oscilloscope, Digital
PO No. ELI-01-002 Yokogawa Philippines, Inc. 14 September 2001 USD52,150.00
Power Meter, Hybrid recorder
PO No. ELI-01-003 Computer Support Center, Inc. 14 September 2001 USD1,400.00 Purchase of Automatic Voltage Regulator
National Physical Laboratory of Purchase of Luminous Flux Standard
PO No. ELI-01-004 14 September 2001 USD6,850.00
United Kingdom Lamps
Purchase of Programmable Logic
PO No. ELI-01-005 Yokogawa Philippines, Inc. 14 September 2001 USD6,850.90
Controller
PO No. ELI-01-006 Avesco Marketing Corporation 14 September 2001 USD12,400.00 Purchase of Digital Multimeter
PO No. ELI-01-007 Electroworld 14 September 2001 USD1,565.94 Purchase of Computer
PO No. ELI-01-008 KEPCO Power 14 September 2001 USD3,117.49 Purchase of Power Supply
FINAL REPORT – ELI-PHILIPPINES n
Soluziona Philippines, Inc December 2003
APPENDIX E: FINANCIAL STATEMENT
IFC/GEF Efficient Lighting Initiative - Philippines
ORIGINA L COUNTRY PROGRA M BUDGET (in US Dollars)
as o f Jan uary 2000
Original Country
Project Components Program Budget*
(May 2000 to A pr 2002)
Preliminary Market A ssessment 50,000
Public Education 1,850,000
Pro duc t Testin g 250,000
Q uality Spec ific atio n s &Labelin g 75,000
Lo c al Struc tured Learn in g &Train in g 25,000
Co n sum er Educ atio n 900,000
Pro fessio n al Educ atio n 400,000
Sc ho o l Curric ulum En han c em en ts 200,000
Electric Utility Programs 200,000
Transaction Support 225,000
Market A ggregation 75,000
Lo c al Market Aggregatio n 75,000
In tern atio n al Market Aggregatio n -
Product Financial Incentives 100,000
TOTA L (USD) 2,500,000
* Original Budget based on Table VIII-3, Implementation Budget, IFC/GEF ELI Tranche II Project
Document dated January 2000.
FINAL REPORT – ELI-PHILIPPINES o
Soluziona Philippines, Inc December 2003
IFC/GEF Efficient Lighting Initiative - Philippines
REVISED COUNTRY PROGRA M BUDGET (in US Dollars)
as o f No v em ber 2003 (c o n td)
Revised Country
Project Components Program Budget*
(May 2000 to Dec 2003)
Market A ssessment 35,261
Public Education 1,307,928
Pro duc t Testin g 221,913
Labelin g w ith ELI lo go 4,032
Media Cam paign , PRAAC (1st &2n d Wav e) 777,671
Media Cam paign , PRAAC (3rd &4th Wav e) 207,195
PRAAC Ev aluatio n 9,146
Sc ho o l Curric ulum n/a
Ven do r Educ atio n 9,949
Po in t-o f-Sale (PO S) Suppo rt 43,101
Pro duc t Pro m o tio n 20,000
Pro fessio n al Train in g an d Stan dards Dev elo pm en t 14,922
Dem o n stratio n Sites n /a
Electric Utility Programs 157,888
Mo del Utility CFL Pro gram s 88,683
ERB / ERC Tec hn ic al Suppo rt 69,205
Transaction Support 100,305
ESCO Tran sac tio n Suppo rt 100,305
Lightin g Stan dards n /a
Market A ggregation 23,016
Mic ro -Credit Fin an c in g Mo dels 23,016
Product Financial Incentives n/a
Ensuring Sustainability 36,837
Suppo rtin g Suc c esso r Pro gram s 3,105
DO E-FATL Labo rato ry Ac c reditatio n 20,000
Settin g up Lightin g In dustry Asso c iatio n 8,415
Suppo rtin g ELI Pro m o tio n s O v erseas 5,317
continued
FINAL REPORT – ELI-PHILIPPINES p
Soluziona Philippines, Inc December 2003
IFC/GEF Efficient Lighting Initiative - Philippines
REVISED COUNTRY PROGRA M BUDGET (in US Dollars)
as o f No v em ber 2003 (c o n td)
Revised Country
Project Components Program Budget
(May 2000 to Dec 2003)
Ensuring Sustainability - Contingency 30,000
NACEEL Seed Fun d/PLIA an d Clo sin g Ac tiv ities 30,000
Program A dministration and Logistics* 808,765
Co un try Team Serv ic es (So luzio n a Phils.) - n et o f reten tio n 663,658
Co un try Team Serv ic es (So luzio n a Phils.) - RIE reten tio n 53,506
Legal Serv ic es 15,512
O ffsho re Ban k Charges 1,053
Lo c al Ban k Charges 3,000
In tern atio n al Co m m un ic atio n 1,322
Trav el an d Tran spo rtatio n 7,731
In c iden tal Marketin g an d Represen tatio n 21,901
Subto tal, CPM (gro ss) 767,683
Add: Co un try Share fo r Cro ss-c uttin g Website Main ten an c e n /a
Add: Un realized Fo rex Lo ss (Gain ) 40,471
Add: Co un try Share o f RIE Adm in . &Tec h. Suppo rt Exp. 24,668
Less: RIE po rtio n o f CPM (24,057)
TOTA L (USD) 2,500,000
* In addition to administration, this included program activities undertaken by the Soluziona Team such as meetings
with DOE, DTI, LATL, DBP, NACEEL, PLIA, ESCOs, utilities, manufacturers, regulators, cooperatives, and
other stakeholders.
FINAL REPORT – ELI-PHILIPPINES q
Soluziona Philippines, Inc December 2003
IFC/GEF Efficient Lighting Initiative - Philippines
A UDITED PROGRA M EXPENSES (in US Dollars)
as o f 05 Marc h 2004
A udited Program Expenses*
Project Components
(May 2000 to Dec 2003)
Market Assessment 39,279
Public Education 1,323,576
Electric U tility Programs 156,097
Transaction Support 90,700
Market Aggregation 22,077
Product Financial Incentives n/a
Ensuring Sustainability 33,655
Ensuring Sustainability - Contingency ** 30,601
Program Administration and Logistics*** 722,202
TOTA L (USD) 2,418,186
Less: U nrealized Forex Gain/Loss (29,131)
Add: Cash on Hand, SZP 57,439
Add: Cash on Hand, SZI 53,506
CLOSING TOTA L (USD) 2,500,000
* Based on independent audits of program expenses in Philippine pesos; includes January 2004
disbursements for expenses incurred before 31 December 2003.
** Contingency budget under "Ensuring Sustainability" allocated for NACEEL Seed Fund/PLIA and
Closing Activities.
*** In addition to administration, this included program activities undertaken by the Soluziona team, such
as meetings with DOE, DTI, LATL, DBP, NACEEL, PLIA, ESCOs, utilities, manufacturers,
regulators, cooperatives, and other stakeholders.
FINAL REPORT – ELI-PHILIPPINES r
Soluziona Philippines, Inc December 2003
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