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II-3. Energy Conservation Measures for the Commercial/Residential Sector
Reinforced Energy Conservation Measures in Residence & Building Sector
Modified points of the law
Reinforced measures against stock
Compulsory submission of the notification of energy-saving measures to the competent authorities by a party who will extensively repair non-residential buildings of a certain floor size (a total floor area of 2,000 m2 or more) etc. (The current law only requires the responsibility of parties who newly build, extend, or rebuild buildings.)
Reinforced measures for residences
Compulsory submission of notification of energy-saving measures to the competent authorities for residences of a certain size (a total floor area of 2,000 m2 or more) as in the case of non-residential buildings. (The current law only requires the concerned parties to make efforts to do so.)
* Competent authorities: Prefectural authorities, with district construction surveyors, governing construction authorization procedures
* Energy-saving measures: Insulation of exterior walls, windows, etc. and effective use of air conditioning systems or the like
* Extensive repair: Extensive repair or rearrangement of exterior walls, windows, etc, and new installation or extensive repair of air conditioning systems or the like


【Contents of modification】

II-3. Energy Conservation Measures for the Commercial/Residential Sector
Thorough Energy Management Utilizing ITPromotion of Commercial Building Energy Management System (BEMS)
  • Use IT technology to promote and facilitate a system that supports energy demand management for commercial buildings (e.g., a system that ensures recognizing real-time room conditions in buildings by temperature sensors and/or the optimal operation of lighting and air-conditioning responding to conditions in the room).

II-3. Energy Conservation Measures for the Commercial/Residential Sector
Promotion of ESCO BusinessWhat Is ESCO Business?
  • A business that offers comprehensive services on energy conservation to clients, who in return will offer part of their energy saving gains (saving on utility bills, 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-3. Energy Conservation Measures for the Commercial/Residential Sector
Promotion of ESCO BUSINESSESCO-Related Market Scale
  • ESCO-related markets have shown rapid growth in recent years. However, market size in FY2004 decreased due to the decreased number of large-scale projects in the industrial sector. Yet chances are high that market size will further expand in the future. (FY2004 orders established: Approximately 37.4 billion yen)
  • Research estimates its potential market size at 2,470 billion yen. (Source: The ECCJ’s ESCO Introduction Promotion Study Group Report)
  • The market scale of ESCO business in the US in 2000 is approximately US$2 billion.
Source: JAESCO (Japan Association of Energy Service Companies) survey

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