An ISM Approach For The Risk Factor Analysis And Strategy Research On Energy Services Company In China

With the fierce international competition and the high speed development of economy, energy consumption and environmental pollution is increasing and energy conservation has become the major key problem the world faces. China is rich in natural resources but the energy efficiency is no more than 10% and has become the world biggest energy consumption country in 2010 beyond America. The need and management of energy has proposed new require to realize the goal of sustainable development and point out a new strategic orientation for energy-saving and cost-reducing of industry structure.Energy Performance Contracting(EPC) is a market-oriented new service mechanism whose guide is energy conservation. Its essence is a kind of energy-saving investment which uses reduced energy cost to pay the full cost of energy-saving projects and shares the energy-saving benefit. Its flexibility and validity on energy conservation and emission reduction has obtained general acceptance and get some economic benefit since introduced in China in 1998. The government also have introduced some policies to promote the EPC development.But undeniably, the development of EPC isn't smooth in China and there are many factors influencing its process. As the main executor of EPC, Energy Services Company(ESCO) faces many risk factors from inside to outside. How to identify and manage these risk factors scientifically and reasonably has become an essential problem affecting the ESCO spread.This paper has analyzed the risk factors influencing ESCO in China based on ESCO view and on the basis of risk management. First, analyzed the production mechanism of ESCO risk, identified the risk factors by case study and literature review and built the risk index system of ESCO. Second, applied ISM and MICMAC to analyze the ESCO risk factors which have a risk hierarchy division and risk transfer mechanism analysis and the driving and dependency power analysis. This paper has analyzed the hierarchy structure and causal relationship between various risk factors, found the key risk factor based on the ISM formation model, revealed the generation and transmission mechanism of specific risk factors. Finally, proposed some corresponding risk control strategy and suggestion aiming at different levelsrisk factors of ISM formation model combined with the actual case of ESCO from both government and itself in China.The result of this paper has not only put forward a new thought and method for ESCO risk management but also has a better guiding significance for EPC project and expand the application surface of ISM at the same time. Hoping to help ESCO adapt to our country, facilitate the co-development of ESCO and energy consumption industry, make a contribution to energy conservation in China.