An Analysis of International Information of Energy Services Company (ESCO) Industry and the Impacts on Taiwan's ESCO Industry by Economic Modeling 

Abstract:

In response to the global trend of energy conservation and carbon reduction as well as the implementation of Taiwan’s energy conservation, the Executive Yuan officially announced and implemented the “Economic Power-Up Plan” in 2012, which also including the promotion of Energy Service Company (ESCO) Industry in order to achieve the goal of Taiwan’s sustainable energy development. Furthermore, the conclusion of “National Energy Conference,” which held during January 26-27, 2015, also clearly stated that Taiwan will enhance and promote the development of ESCO Industry. Under the above backdrop, this project mainly focuses on three major themes, which are the study of developmental strategies of ESCO Industries overseas, the analysis of Taiwan’s potential on the development of ESCO Industry, and the collection of important information about the export of Taiwan’s ESCO Industry. First, this project compares and analyzes key promoting policies and measures of ESCO Industries among USA, Germany, U.K. as well as Mainland China, and tries to draft Taiwan’s ESCO promoting policies and measures in line with the development and the institutional environment of Taiwan’s ESCO industry. 

Secondly, there are three economic factors, which may affect the development of ESCO industry, including: 

(1) higher energy prices may favor the development of ESCO industry; 

(2) the influence of energy market liberalization on energy prices is uncertain; 

(3) higher energy intensity levels generally imply a higher potential for energy savings. 

Considering the measure of tax incentives, we find that adopting tax incentives may induce countries to save energy and raise potential output of ESCO industry. 

Finally, this project focuses on Taiwan’s ESCO potential export markets (especially, the ESCO markets in Mainland China, Thailand and the Phillippiness), and collects the important ESCO regulations and market information in those target markets in order to help Taiwan to know well about the related important information on ESCO markets with exporting potential, and assist Taiwan’s export of ESCO Industry and its industrial output expansion.