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ECCJ / AOTS Philippines training course Philippines

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.

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.

II-2. Energy Conservation Measures for the Commercial/Residential Sector
Support for the Introduction of ESCO Business
  • Support, in the forms of partial subsidy for initial investments, low-interest loans, etc., is extended to private enterprises and local governments implementing the ESCO business.
  • A model ESCO project will be introduced also at a national facility, i.e. METI building from FY2004 onwards.

II-3. Energy Conservation Measures for the Transportation Sector
Promotion of Cars with the “Idling-Stop” System
  • Idle-free driving can improve fuel economy by approx.10%. Even greater energy conservation effect is expected in city areas, where idling frequency is high.
  • Partial subsidy for the purchase of cars equipped with the "idling-stop" system was introduced in FY2003.
  • Promotion campaigns for the "idling-stop" systems are held in the forms of PR events, etc.

II-3. Energy Conservation Measures for the Transportation Sector
Fuel Economy Disclosure and Labeling System for Vehicles
  • The system was introduced in January 2004 to deepen consumer interest/ understanding on fuel economy and promote cars with high fuel performance.
    • Disclose Fuel Economy Performance The disclosure is targeted for cars of which fuel economy standards are set based on the energy conservation law. Either the status of "fully compliant"or "plus 5% of the fuel economy standard" will be publicly displayed.
    • Label a Fuel Economy Identifiable Sticker Label a sticker on the body of a car that conforms either to "fully compliant with the fuel economy standard" or "plus 5% of the fuel economy standard".

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