ESCO Businesses Achieve Energy Saving Targets

In April 2003, the Kanto Bureau of Economy, Trade and Industry, a regional branch of the Ministry of Economy, Trade and Industry, completed research on the present status of ESCO businesses. ESCO is short for Energy Service Companies, a new, innovative business sector that provides comprehensive energy conservation services based on energy-saving assessments that include planning, construction, management and verification. The ESCO sector is regarded as potentially important in achieving efficient energy saving measures.

The research shows that most ESCOs are likely to attain their proposed energy-saving targets based on results to date, though verification of target achievement is conducted less than a year after completion of recommended modifications.

Interviews were conducted with 11 clients and case studies performed of seven public and medical facilities in order to grasp the reactions of ESCO clients and identify problems related to ESCO operations.

The report points out that triggers such as enactment of local ordinances, demands for cost reduction, and proactive key promoters are indispensable for successful implementation of ESCO services in public facilities and alike. The report raises the need for recognition of ESCO services by the financial sector and others, enhancement of the subsidy system, utilization of the Private Finance Initiative (PFI) method, and development of a publicly guaranteed system designed for ESCOs to expand ways to raise funds as issues for the future.

*PFI method:
The Private Finance Initiative (PFI) aims to utilize the funds, management and technologies of the private sector for construction, maintenance and management of public facilities. In Japan, the Law Concerning Promotion of Public Facilities Development by Using Private Funds was enacted in July, 1999.



Posted: 2003/07/02 08:52:13 AM
Japanese version