This project was approved by the Global Environment Facility (GEF) for an allocation of $5 million and implemented by the International Finance Corporation (IFC) through the World Bank.

One challenge for reducing the threat of global climate change has been broadening the appeal of more energy efficient technology, such as compact fluorescent light-bulbs (CFLs). CFLs often have higher initial purchase costs for consumers but can pay for themselves quickly since they use only 25% of the energy to produce similar or better quality lighting and last up to 13 times longer than a traditional bulb.

Using a combination of direct subsidies, distribution channel development, product promotions and consumer and professional education to promote the widespread adoption of CFLs in the residential sector in Poland, this effort sought to raise awareness and improve the market for CFLs while working with in-country businesses. Specifically, the Poland Efficient Lighting Project (PELP) provided subsidies to decrease the manufacturer’s factory prices for eligible CFLs at the beginning of the product distribution chain. Based on lessons learned from earlier projects, PELP also included an extensive monitoring and evaluation program to determine the environmental, economic and market transformation effects of the overall program.

Consumption and production patterns, economic growth.

• During a three year period, PELP sold 1,22 million CFLs resulting in direct electricity savings of 436 gigawatt hours (GWh) and associated avoided carbon dioxide emissions of 519,700 tons at a cost of US$7,48/ton.

• CFL sales increased in Poland at more than double the rate in the rest of Central and Eastern Europe, with prices of CFLs declining by more than 34% during the program.

• Importantly, these price decreases were sustained after the program and have not returned to pre-subsidy levels.

• Consumer awareness has increased and 97% of the consumers have stated their intention to replace their CFLs with another CFL when the current one burns out.

• The final evaluation estimated that with CFL penetration increasing from 11.5% of households prior to PELP to 33.2% in three years, the program influenced a leveraged electricity savings of 2320 GWh and associated avoided carbon dioxide emissions of 2755 tons at a cost of US$1.41/ton.

• A demonstration project needs to be designed from the very beginning with a clear strategy for end results and with a clear understanding of how project activities and outputs should influence the market.

• A demonstration of the financial feasibility of a new technology needs to be based on the achievement of agreed and measurable benchmarks.

• A sound monitoring and evaluation system, built-in as an integral part of project design and implementation is essential to understanding project impacts. In the absence of agreed benchmark indicators and rigorous monitoring and reporting of results, the success or failure of the project is difficult to determine and the demonstration value of the project is undermined.

Hutton Archer
Global Environment Facility Secretariat
1818 H Street, NW
Washington, DC 20433 USA
Tel. (202) 458 7117; Fax (202) 522 3240
Email: harcher@worldbank.org
Webpage: www.gefweb.org