Financial risk management for energy service project under the Tokyo emission trading system

Abstract

Recently, energy service providers (ESP) have increased due to deregulation in the power market. They install energy supply equipment at their own cost and supply the necessary energy to the client. The Tokyo Metropolitan Government started Asia's first cap-and-trade program in April 2010. This program caps energy-related carbon dioxide emissions from some 1,330 offices and factories in Tokyo. Then, ESPs have to manage the many risks of energy service project directly linked to the profits. In this paper, we describes the risk analysis and investment optimization for energy service projects using financial engineering.

Managing energy consumption by adapted energy performance contracting modes in rural China

“…High reliance on government subsidies. Currently, financial subsidies are the main driving force behind energy efficiency retrofits and clean heating in farm buildings [ 9 ]. On the one hand, the central government's financial support policy plays a fundamental role in promoting the development of clean heating and energy efficiency in rural areas.…”