Conservation Potential of Compact Fluorescent Lamps in India and Brazil

We evaluate the conservation potential of compact fluorescent lamps (CFLs) for managing the rapidly increasing electrical energy and peak demand in India and Brazil. The analysis is undertaken from the three separate perspectives of the national economies, the consumers and the utilities. We find that because residential electricity is subsidized, the consumers have little or no incentive to purchase and install the CFLs, unless they too are subsidized. However, the benefits of CFL installation to the utility are so large that subsidizing them is a paying proposition for the utility in almost all cases. We then explore the barriers to immediate large-scale introduction of these lamps in the two countries. Specific technical and marketing problems are identified and discussed, which would require solution before such an introduction can be attempted. Lastly, we list the range of policy instruments, in addition to a subsidy scheme, that can be used for promoting the diffusion of these lamps in the domestic and commercial sectors.