Savings with a Twist: Market Transformation and Acquisition Working Together (and Showing Both)

Teri Duncan, Portland Energy Conservation, Inc.
Diane Ferington, Energy Trust of Oregon, Inc.
Marci Sanders, Northwest Energy Efficiency Alliance
Ken Keating, Bonneville Power Administration

Keywords

Abstract

In the fall of 2004, the Energy Trust of Oregon, Inc. (Energy Trust), launched a pilot promotion to offer low pricing on Compact Fluorescent Lamps (CFLs) with select manufacturers and retailers of ENERGY STAR® qualified lighting. The promotional name of the pilot was Savings with a Twist™. The Energy Trust chose an upstream buy-down approach over coupons because of its low cost and straightforward implementation. Building on the pilot’s successes, the lessons learned, and the cost-effective approach, the Bonneville Power Administration (BPA) joined the Energy Trust to go region-wide in 2005. The program was implemented as a regional Market Transformation initiative through the Northwest Energy Efficiency Alliance (Alliance).

The strategy provided access to under-served and alternative markets such as rural areas and grocery stores. It offered high-quality bulbs at low prices, thus satisfying the dual goals of
advancing market transformation while gaining quick savings. Direct evidence of market transformation appeared early in the promotion. This paper describes how the promotion was forced to adapt when markets reacted explosively, creating unexpectedly high demand; how the program changed in response to the market reaction; and how industry accepted the change. The paper will include lessons learned about working within the market to acquire cost-effective savings using a market transformation model. It will also provide evidence of the market changes through examination of several Alliance evaluation efforts: comparing the 2004 lighting purchaser survey to the 2005 survey; comparing the spring 2005 lighting shelf survey to the fall survey; and a Market Progress Evaluation Report scheduled for release in early 2006.