||Since Kyoto Protocol took effect on Feb.16, 2005, Greenhouse gas emission reduction and Energy tax levy become a hot topic immediately. In addition, an action plan has been raised at the second National Energy Conference in 2005, for promoting ESCOs (Energy Service Companies) to improve energy efficiency and achieve energy conservation by conducting Energy Saving Performance Contract(ESPC). Hopefully these results will attain substantial reduction of carbon dioxide emission goals. International ESCO development model involves inter-industry integration, it faces many barriers，such as financing, insurance, measurement and verification, risk guarantee, tax exemption, small-scale market---etc. The financing barriers are the most importment problem in the development of ESCOs.|
In the study, Yin case studies are used to collect and analyze national barrier factors in financing. feasible financing mechanisms were explored in this study for ESCO , by participating in TAESCO’s activities and interviewing with key persons in energy service companies, financial institutions and ESCO industry experts.
The achievements of this study are：(1)ESCO industry prospects is optimistic conservative.(2)The business models have different opinions for localized development.(3)The key barrier factors are consistent with the types of barriers reported in the literatures on ESCO industry in other countries.(4)The industry has a few successful energy saving projects only, and then general business loans and own funds are the main way in ESCO financing.(5)The biggest gap of the financing with financial institutions is that banks do not have experience in ESCO industry.(6)There are three feasible financing mechanisms, which can be promoted on national ESCO industry.
Finally, implementation of the results proposed three appropriate localization financing mechanisms(ESCO Credit Guarantee, Firefly Project Fund, Development Fund or Project Best Lending) will be worthy to explore empirically in the future.