ASIA PACIFIC GETTING EFFICIENT

Energy Efficient Buildings: Asia Pacific; ESCO Market Dynamics, Performance Contracting, Energy Efficiency Retrofits, Green Building Certifications, Financing Structures, Market Analysis and Forecasts
Hoonho (Andy) Bae and Clint Wheelock, 3Q 2010 (Pike Research)

"…Due to rapid economic growth in Asia, especially the Association of Southeast Asian Nations (ASEAN), India, and China, demand for energy is rising quickly. As a result, there is a good bit of focus within the market on investing in energy efficiency…Meanwhile, the cost of new construction in APAC is continuing to increase. As a result, improving existing buildings is becoming the more cost-effective approach. Developers and building owners will trend toward reinvesting in and upgrading existing facilities.

"APAC energy service companies (ESCOs) are meeting demand by providing energysaving systems and comprehensive services adapted to customer business facilities and building spaces…ESCOs in APAC offer optimized energy solutions and mid- to long-term roadmaps…[Energy specialists] analyze customers’ overall energy status, identify energy losses, and recommend optimized energy-saving solutions…The ESCOs then provide the necessary engineering, procurement, consulting, and construction services…Typically, the retrofit for energy savings can be fully developed and delivered to the customers under lump-sum turnkey contracts."

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"…[T]he promotion of sustainability is one of the greatest challenges that APAC countries face. Most governments and organizations in APAC are attempting to create a culture that is fully committed to a clean and green environment for future generations by promoting energy conservation. The building industry started to move toward the promotion of sustainable building in early 1990s…The goal is to optimize the operation of mechanical and electrical equipments and systems…[for building owners, operators, occupants and for the environment]…

"Developed APAC countries such as Japan, Korea, Singapore, and Australia are the early adopters of proactive environmental measures that are part of corporate social responsibility (CSR) initiatives. Competitive ESCOs are utilizing the outcomes of these measures…[to develop] comprehensive [engineering, construction, maintenance, designing, and consulting] solutions…[for] long-term reductions in energy use…ESCOs have also started to help customers gain access to subsidy schemes in energy savings performance contracts (ESPCs)…[and obtain] credits under the Clean Development Mechanism (CDM)."

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"ASEAN and developing countries in APAC have…[met] market barriers related to the lack of technology, financial support, and human resources. Still, their efforts to reduce CO2 emissions will continue and market perception will shift…

Pike Research anticipates that both the energy market and demand will continue to grow at a rapid rate, as the region’s GDP continues to increase. Due to more competition in theenergy market and increases in energy use and price, demand in the energy efficiency industry will rise…Pike Research also foresees…[that] the ESCO industry will keep growing for the next several years in the APAC region. ASEAN, India, and China will lead…"