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

Abstract:

“Paris Agreement,” adopted by United Nations Climate Change Conference (COP21) in December 2015 was officially launched on November 4, 2016. It will promote the global efforts to achieve the long-term goals of energy conservation and carbon reduction. Meanwhile, Taiwan also promulgated related measures and laws to promote an enabling environment for the development of ESCO industry, including: (i) According to the conclusion of “National Energy Conference”, which was held during January 26-27, 2015, Taiwan will enhance and promote the development of ESCO industry; (ii) Taiwan promulgated the “Greenhouse Gas Reduction and Management Act” on July 1, 2015, and the Executive Yuan also adopted a draft amendment to the “Power Industry Act” on July 16, 2015 and then confirmed the "green power first"and and "two-stage reform approachs on October 20, 2016. The amendment bill will be required to have the legislative approval in the future. According to the above research background, this project mainly focuses on three major themes and research tasks, 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 models of cooperation between electricity industries and ESCO industries in six cases, such as cases in USA and U.K. etc. and tries to draft Taiwan’s ESCO promoting policies and measures to support the cooperation between these two industries, and makes sure those policies and measures will be in line with the changing of Taiwan’s “Power Industry Act”; 

Secondly, this project will apply economic model to evaluate the potential impact on ESCO industry after implementing white certificate scheme and Greenhouse Gas Emission Reduction and Management Act or build revolving fund. 

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