Kim Session21 ACEF2008

8/14/2019 Kim Session21 ACEF2008

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JUNE 2008JUNE 2008

ASIA CLEAN ENERGY FORUMSIA CLEAN ENERGY FORUM


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KOREAs Financial Support SystemKOREAs Financial Support System

Fund established in 1980 Loan

: long term, low rate of interest loans for investing in

energy efficiency & conservation facilities

Tax incentives: 10% tax deduction (income tax or corporation tax) for

investments of energy efficiency & conservation facilities

Managed by MKE(government) and operated by KEMCO


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Projects of LoanProjects of Loan

Rational use of energy

Establishment of cogeneration facilities for industry or building,

installation of energy efficiency & conservation facilities andESCO projects etc.

Integrated Energy Supply

District Heating, Community Energy System, Industrial ComplexCHP (Combined Heat and Power System)

Dissemination of New & Renewable energy

Installation of equipment using alternative energy such as solar-

heat, solar-light and bio-energy etc.


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Loan Scale in 2008Loan Scale in 2008

CategoryBudget

(million USD)

Rational Use of Energy 480

Integrated Energy Supply 100

Dissemination of New & Renewable energy 130

Total 710

(1 USD 1,000 won)

Rate of interest : 3.25~6% (variable)

Repayment period : 4~15years (according to facilities or project)


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to apply to recommend

toapplyfortheloan

togivetheloan lend

agreem

ent to

notify

Applicant KEMCO

BANK

Loan ProcedureLoan Procedure


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ESCO System in KOREAESCO System in KOREA

System is in operation since 1992 ESCO should be registered before applying for a loan 156 ESCOs have registered as of 2007

But, Active ESCOs are about 30~40

Energy Performance Contracting model is almost theShared Savings model (about 98%)


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Shared savings model(ESCO: Fund raising and profit sharing)

Guaranteed savings model(ESCO: energy performance guarantee / Energy user: Fund raising)

Two main models for EPCTwo main models for EPC

ESCO Energy user

ESCO Energy user

fund raise

fund raise


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ESCOInvestment in facility

Energy user

sharing of cost savings

Financial support Policy improvement

Advertisement Market expansion

MKE & KEMCO

System of supporting ESCOSystem of supporting ESCO

MKE : Ministry of Knowledge EconomyKEMCO : Korea Energy Management Corporation


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Class 1(plant) Class 2(building) Class 1 2 Total

18 companies 47 companies 91 companies 156 companies

N

o.ofESCOs

Number of registered ESCOsNumber of registered ESCOs

1 5 9

1 6 3 1 6 31 5 9

1 6 61 5 8 1 5 6

4 5 76 9

1 6

2 8

5 5

1 0 3

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

1 6 0

1 8 0

' 9 2 ' 9 3 ' 9 4 ' 9 5 ' 9 6 ' 9 7 ' 9 8 ' 9 9 ' 0 0 ' 0 1 ' 0 2 ' 0 3 ' 0 4 ' 0 5 ' 0 6 ' 0 7


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ESCOFund(MUSD)

No.ofProject

s

Investment by facility (9307)Investment by facility (9307)

115

35

118 122

81

621

274 276

81239

1,771

139245 244 173

13 530

50

100

150

200

250

300

Lightin

g

Coge

neratio

n

Boile

r

P

roce

ssImprov

emen

t

Heat

Recove

ry

Heating

/Coolin

g

Power

Runnin

g

Others

-

400

800

1,200

1,600

2,000

ESCO Fund(million USD)

No. of Projects


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Waste Heat Recovery System

- Heat Recovery Boiler

- Mechanical(Thermal) Vapor Recompressor

- Heat exchanger for heating or cooling

Co-Generation (Steam + Electricity)

Process Improvement

- Naphtha Cracking Heater Coil replacement- Ejector type replacement (Steam EG)

Examples of energy conservation in Industry


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Ice thermal storage system Lighting System Co-generation system (Apartment) Heat recovery system (AHU, Steam) Building automation control unit Variable Voltage Variable Frequency

Examples of energy conservation in Building


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Energy Saving Performance (9307)Energy Saving Performance (9307)

Savings(MUSD

)

th

ousandtoe

36

77

15

78

32

9

110

37

284

148

113 108

22

291

3919

0

20

40

60

80

100

120

Lighting

Coge

neration

Boiler

Proc

essI

mprov

emen

Heat

Recovery

Heating

/Coolin

Power

Others

0

50

100

150

200

250

300

350Savings(million USD)

thousand toe


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Operating Fund (1998)- Fund for small & medium sized ESCOs

Credit loan system (1998)- Getting a credit loan from bank

Factoring system (1999) Guaranteed savings contract model (2004) Excellent ESCO (2006)

- accreditation program to superior ESCO

Policies for supporting ESCOs


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Financial support to 108 groups of energysaving facilities

Hard to estimate the effect of energy savings

Group Major Facilities

IntegratedEnergy Supply

District Heating & Cooling, Community Energy System,Combined Heat & Power for industrial complex

Energy efficientfacilities

furnace, kiln, dyeing machine, drying machine, pulper,MVR, TVR, accumulator, air handling unit, Cogeneration,building automation control unit , heat recovery boiler,

heat exchanger etc.

Certified highefficientproducts

Induction motor, pump, gas boiler, UPS, transformer,fluorescent lamp & ballast, inverter, vending machine,

fan, blower, LED traffic light etc.


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Result of Korean Governments strong will toenergy saving

Economic structure in Korea


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for more informatione-mail : [email protected] or

[email protected]

Thank you
mailto:[email protected]:[email protected]:[email protected]:[email protected]

Kim Session21 ACEF2008

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Transcript of Kim Session21 ACEF2008