ECCJ / Country Reports / Presentation in METI Group Training Course(2005.1) / MALAYSIA

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MALAYSIA

II-2. Energy Conservation Measures for the Commercial/Residential Sector
Promotion of ESCO Business
What Is the ESCO Business?

- A business that offers comprehensive services on energy conservation to clients, who in return will offer a part of their energy saving gains (saving on utility bill, etc.)
- The business has two forms: "Guaranteed savings agreement" where customers cover business costs and "Shared savings agreement" where the ESCO business covers business costs. These options enable service provision according to customer needs.
*ESCO stands for Energy Service Company.

Overview of the ESCO business

Guaranteed method

II-2. Energy Conservation Measures for the Commercial/Residential Sector
Promotion of ESCO Business ESCO-Related Market Scale

- ESCO-related markets have shown rapid growth in recent years with substantial room for market expansion. (FY2002 purchase orders: Approx. 51.5 billion yen)

- A research estimates its
potential market size as 2,470
billion yen.
(Source: The ECCJ's ESCO Introduction
Promotion Study Group Report)
- The market scale of the ESCO
business in the US in 2000 is
approx. US$ 2 billion.

Scale of ESCO-related markets

Source: JAESCO (Japan Association of Energy
Service Companies) survey

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