Current market development of energy performance contracting: A comparative study between Hong Kong and Taiwan

Pan Lee, Tsun Ip Lam, Ren Jye Dzeng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)

Abstract

Purpose – The purpose of this paper is to investigate the current market development of Energy Performance Contracting (EnPC) in Hong Kong and Taiwan, focussing on four key aspects: first, the potential building energy retrofits as an investment for future savings; second, themotivations for building owners toward the use of EnPC; third, the reasons for building owners not using EnPC; and fourth, the different approaches of Hong Kong and Taiwanese governments toward the promotion of EnPC. Design/methodology/approach – A dual-questionnaire survey was conducted both in Hong Kong and Taiwan, where the same set of questionnaire was sent to the key personnel of the energy services companies (ESCOs) in both regions as identified from the latest member lists of representative trade associations, supplement with 11 structured interviews. Findings – Apart from explainable differences, the results show the top rankings by the respondents of Hong Kong and Taiwan as follows: “Potential retrofit works” including lighting replacement with efficient fluorescent and light emitting diode lamps and improvement of air-con system. “EnPC Motivations” including owners’ lack of upfront capital and use of energy savings for other purposes may yield better returns; ESCOs’ provision of turnkey services. “Reasons not considering EnPC” including worry about its complexities; lack of familiarity with EnPC and long payback periods. As for promotional efforts for EnPC, the Taiwan government has taken more initiatives to foster its use both technically and financially. Practical implications – This study identifies market-related motivators and deterrents as experienced by ESCOs in implementing EnPC projects in two developed Asian economies. Originality/value – This study provides insightful information for the stakeholders about the latest market development of EnPC in Hong Kong and Taiwan.
Original languageEnglish
Pages (from-to)371-395
Number of pages25
JournalJournal of Property Investment and Finance
Volume32
Issue number4
DOIs
Publication statusPublished - 1 Jan 2014

Keywords

  • Deterrents
  • Energy efficiency investment
  • Energy performance contracting
  • Hong Kong
  • Incentives
  • Taiwan

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Finance
  • Economics, Econometrics and Finance(all)

Cite this