KEPID

Overview

If energy users are trying to supplement existing energy use facilities to save energy, but if they fail to go on their projects with technological and economic burden, ESCO operators provide technology and funds and recover investment costs from energy savings in investment facilities.

Characteristic

• It is the investment using the fund of the third party.
• ESCO finances the initial investment for the installation of energy saving facilities.
• We distribute energy conservation performance (saving amount).
• The cost of saving by facility investment is allocated by customers (savings facility users) and specialized companies by agreement, and when the investment expenses of energy saving special companies are completed, the energy saving facilities invested first by customers are owned by customers.

Legal basis

• The legal basis for ESCO is clearly described in the Energy Use Rationalization Act, the Enforcement Decree of the Energy Use Rationalization Act and the Enforcement Regulations.

Financing plan

Tax support

• In the case of facilities matching with Article 25-2, "Tax on Investment in Energy Conservation Facilities", the amount equivalent to the investment amount (1% of large corporations, 3% of medium enterprises and 6% of small businesses) is deducted from income tax or corporation tax.

Direction of government policy

• Full Implementation of Low-carbon Green Growth Basic Law (Apr. 14, 2004)
  30% decrease of emission estimates by 2020 National Greenhouse Gas Reduction Plan (Dec. 11, 2007)
• Carbon emission trading (Jan. 12, 2015)
  About 525 carbon emission trading companies were chosen as greenhouse gas and energy target management companies (Jan. 12, 2015)

Go to Korea Association of ESCO