Country:Korea
Year:1991
Policy status:In Force
Date Effective:1991
Policy Type:Economic Instruments>Fiscal/financial incentives>Loans
Policy Target:Buildings>Building Code, Buildings>Building Code>Energy performance, Buildings>Building Type>Residential, Buildings>Energy Class>Low Energy, Buildings>Existing buildings, Commercial/Industrial Equipment>Heating ventilation and air conditioning (HVAC), Commercial/Industrial Equipment, Lighting>Commercial, Lighting>Residential, Industry>Industrial equipment>Boilers, Industry>Industrial equipment>Compressors, Industry>Industrial equipment>Distribution transformers, Industry>Industrial equipment>Pumps, Industry>Industrial subsectors, Industry>Industrial processes, Industry>Industrial subsectors>Energy-intensive, Industry>Industrial subsectors>Small- and Medium-sized Enterprises (SMEs)
Agency:Ministry of Trade, Industry & Energy (MOTIE), Korea Energy Agency (KEA)
URL:http://www.energy.or.kr/renew_eng/main/main.aspx
Funding:national public funding
Description:

The ESCO program was introduced to Korea in order to extend energy conservation polices and measures led by the government to the private sector. Major project areas of ESCOs include energy-efficient facility investment, maintenance services and energy management monitoring for such facilities. The ESCO program started with registration of 4 companies in 1992, but the number of registered ESCOs amounted to 235 as of 2011. ESCOs focus mainly on high efficiency lighting, waste heat recovery, heating and cooling systems, and process improvement. Combining the advantages of the Shared Savings Model with those of the Guaranteed Savings Model is New Shared Savings Model. It was introduced as a new contract model in February 2011. Investment During the introduction stage of the ESCO program from 1993 to 1997, the average annual investment amounted to KRW 3,687 million. Thanks to vigorous support from the government, annual investment has been increasing since 1998. In 1998, investment reached KRW 29,571 million over 139 cases. By 2011, the investment had risen to KRW 285,390 million for 202 cases. Investment of ESCOs had been limited to Combined Heat and Power (CHP) facilities and high efficiency lighting systems until 1997, but from 1998 it diversified to include such areas as waste heat recovery facilities; cooling and heating systems; and process improvement.

The ESCO Program provides financial support to businesses that retrofit energy facilities and guarantee the ensuing savings effect. ESCOs, Energy Service Companies are companies that invest in energyefficiency facilities and rovide maintenance services and energy management monitoring for customers. They recover the investment from the energy savings achieved from their services. Starting out with the registration of four companies in 1992, the number of registered ESCOs grew to 220 by 2014. ESCOs mainly focus on high efficiency lighting, waste heat recovery, heating and cooling systems, and process equipment improvement.

Last modified: Thu, 18 Feb 2016 17:27:26 CET