Current state of ESCO activities in Asia: ESCO industry development programs and future tasks in Asian countries

Panel: Panel 2. Policy implementation: learning from the past, improving the future

Authors:
Chiharu Murakoshi, Jyukankyo Research Institute, Japan
Hidetoshi Nakagami, Jyukankyo Research Institute, Japan

Abstract

In Japan and other Asian countries, ESCO markets are under formation. Introduction of ESCOs to Asia took place in the 1990s. A vigorous ESCO market is already forming in Japan, South Korea, China, and Thailand. Also, in Malaysia, and the Philippines, ESCO market development is proceeding. How did these countries introduce ESCO industries? What kind of activities are being carried out, and what are future tasks? As a first step in implementing ESCO development programs, developed countries have used government support, while emerging countries have co-operated with international organisations. By classifying the types of programs and examining activities currently under way, we can understand necessary conditions for developing an ESCO industry.

When we classify programs of various countries, we see that most countries implement the same kinds of measures. However, the results vary. Some countries are progressing with market development, while others have not reached the point of market formation. Analysis of factors leading to these variations is important to the future development of ESCO industries.

In this paper, we describe the current state of ESCO activities in Japan and emerging countries, and we examine ESCO development programs of each country. In particular, by comparing measures taken in countries with successful ESCO market development, such as Japan, China, Thailand and India with those still trying to develop ESCO markets, such as Malaysia, and the Philippines, we analyse factors leading to success, and we illuminate future tasks for each country.