Program Design

Program Design

Program Design
 
Program design is an important first step in the process of creating a compact flourescent lamp (CFL) program. This section focuses on two distinct program approaches; the bulk procurement approach and the market channel-based approach have been used with the support of the World Bank, to implement CFL conversion programs throughout the world. This section of the toolkit helps practitioners select an appropriate program approach by guiding users through a step-by-step guide to program planning.
 
If you are interested in policy approaches to sustainable lighting, you can visit En.lighten, an intiative that addresses the challenge of accelerating global market transformation to environmentally sustainable lighting technologies. If you are interested in standards and labeling, the Collaborative Labeling and Standards Program (CLASP) have a comprehensive database of tools and templates.
 

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Market research and surveys of local populations are an essential step in the program planning process. They help to set a baseline understanding of market conditions and behavior.

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  • Market maturity
  • Baseline survey
  • Formulating objectives
    • When designing a program for CFL procurement it is difficult to make informed choices on program design approaches without understanding the current level of market maturity. Market research and surveys should be employed to create a baseline of data. There are many factors that determine market maturity. In order to get a complete picture of market conditions, information must be compiled on a wide range of factors.

       

      The below information represents, at a minimum, the information that needs to be collected before designing your program approach.

       

      Elements to survey

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      Collecting this information will help to create a snapshot of market conditions and an understanding of local behavior, this information will define the objectives for the program. The best way to collect this information is through a survey of the selected population.

    • In order to collect this information that will inform program objectives, a baseline survey must be administered to the relevant community. The sample size for such a survey depends on the number of different types of customers to be targeted and should be based on statistical criteria. CDM requires that the survey be conducted with 10 percent accuracy at a 90 percent confidence level. Information collected as part of the baseline survey generally includes the elements shown in the graph below.

       

      This toolkit includes examples of baseline surveys and reports describing the results. Visit the Templates and Examples section of the Knowledge Center to learn more.

      Elements to survey

       

    • After analyzing results from market and customer surveys, now it is necessary to formulate specific objectives for the CFL program. As an example of how objectives inform design approach, see below a table of four real CFL programs.  Their objectives and essential elements of their program design approach are presented.

      Country approach examples

After gathering information on market conditions and baseline user information it is now possible to identify program objectives and select a design approach that best compliments those objectives. Bulk procurement and market channel-based program approaches will be focused on in this toolkit.

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  • Selecting a Program Design Approach
  • Bulk Procurement Approach
  • Market channel Approach
    • Selecting a Program Design Approach

       

      Only bulk procurement and market channel-based program approaches will be focused on in this toolkit, however it is important to understand the relative strengths and limitations of every available design approach, knowing these attributes will clarify what the best approach for your program is.

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      Next is a brief description of each program design approach, to read more further information about the advantages and disadvantages of each and find out additional information about approaches that are not covered, visit the Program Design section of our Knowledge Center.

       

    • Bulk Procurement Approach:

       

      Bulk procurement refers to the purchase of a large quantity of energy-efficient lamps by the utility or a government agency, and distribution of the lamps to customers. Bulk procurement is generally conducted using a competitive bidding process wherein the purchasing entity defines the technical specifications of the lamps to meet energy-efficiency goals. The targeted customers are identified and lamps are then distributed to these customers. Depending on the program design, the customers may be charged for the lamps (at the cost of procurement and distribution or at a lower price based on a subsidy) or may receive them at no cost. The distribution of the lamps may be done by the government, utility or by contractors engaged by the utility. See below for a table view of the advantages and disadvantages of this approach. 

       

      Bulk procurement approach

    • Market channel Approach:

       

      Market channel based approaches utilize the existing supply and distribution channels to promote and facilitate increased utilization of CFLs. Instead of one or two CFL types under the bulk procurement approach, the market channel based approach promotes the use of many CFL types and wattages, provided they meet some predetermined technical quality specifications. The mechanisms used in these programs may include a combination of rebates, coupons, branding, cooperative advertising and promotion, and financing through the utility bills. In this section we will go through the advantages and disadvantages of market channel-based programs. See below for a table view of the advantages and disadvantages of this approach.

       

      Market channel approach

After selecting your design approach it is essential that key parameters of the program be defined                 

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  • Defining Program Parameters
    • Defining Program Parameters

       

      Key parameters of the program include the following important elements.

       

      Program parameters

       

      The size of a CFL program is mainly determined by number of CFLs, but also includes other factors. The primary criterion for selecting the number of CFLs to be procured and distributed is the desired level of peak energy reduction and/or energy savings. However, other considerations may include the following:

       

      Criteria for selecting program size

       

      Selecting a very small program size will mean a lower program cost but may limit the effectiveness of the program. Large progams will have implications not only for cost but also on the existing market and distribution channels. Therefore it is very important to create an appropriately sized CFL program.

CFL lamp quality has a large impact on the successfulness of CFL procurement programs. The best way to ensure that a program receives high-quality lamps is to have strict technical specifications for the program that providers must meet.

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  • Technical Specifications
    • Technical Specifications

       

      In order to ensure that a CFL program will promote overall market transformation toward the use of high-quality CFLs it is paramount to ensure high quality CFLs are distributed via the program. Before entering the competitive bidding stage, it is important to define technical specifications to ensure bidders are able to provide CFLs not only at a low cost but at a high quality. CFL technical specifications include a variety of information that provides guidelines for the type of bulb and performance of the bulb, guidelines on the following should be included:

       

      Technical specification options

       

       

       

      Technical specifications are discussed in detail in the Knowledge Center. There you will find detailed descriptions of the above topics, as well as information on key issues and links to technical specification standards from all over the world.

       
      After quantifying market conditions, selecting a program design approach, defining the parameters of your program and creating technical specifications, you can now move on to fully developing, financing and implementing your CFL program. Click on Next to move to the next phase.