Business

Energy Diagnosis

Energy Diagnosis Overview

Technical consulting that energy diagnosis specialized institutions (hereinafter referred to as the “diagnosis Institutions”) identify energy usage flows of individual business sites to discover energy loss factors, and suggest optimal improvement plans through energy-saving measures, economic analysis, etc.

Energy Diagnosis Specialized Institution

An institution designated by the Minister of Trade, Industry, and Energy as an institution equipped with energy-related equipment and technical manpower to perform energy diagnosis professionally.

Energy Diagnosis Steps

Preliminary Survey
Energy use facilities and facility-related status/energy usage type / Preliminary survey for on-site diagnosis such as product production and facility operation status
On-site Diagnosis
Identifying the operating performance and status of each energy operating system inspection/facility, and conducting field-oriented diagnosis by measuring equipment
Deriving energy loss factors and improvement plans, and analyzing the economic feasibility of investment in improvement plans
Analysis & Report Preparation
Detailed analysis of improvement plans derived during on-site diagnosis and preparation of energy diagnosis report
* Relevant Basis: [Attached 1] Scope and Laws of Energy Diagnosis, Ministry of Trade, Industry, and Energy Notice No. 2019-223 ‘Energy Diagnosis Operational Regulations’

Diagnosis Subjects

Businesses with a high energy consumption of 2,000toe or more in total annual energy consumption of file, heat, and electricity excluding energy consumption of materials and transportation facilities (vehicles/aircraft/ships, etc.), self-generated power, power for sales, etc.

* Relevant Basis: Article 32 (Energy Audit) of the Energy Use Rationalization Act

Energy Diagnosis Cycle

Annual Energy Consumption Energy Diagnosis Cycle
200,000toe or more 5 years (Partial Diagnosis: 3 years)
Less than 200,000toe 5 years
* Relevant Basis: [Attached 3] Energy Diagnosis Cycle, Article 36 (Energy Diagnosis Cycle, etc.) of the Enforcement Decree of the Energy Use Rationalization Act
  • The annual energy consumption is based on the annual energy consumption of the previous year in the year of energy diagnosis.
  • Energy diagnosis (hereinafter referred to as “partial diagnosis”) is possible for those who use more than 200,000toe of energy per year by dividing by area based on the amount of use of 100,000toe or more

Energy Diagnosis Process

Steps Key Details Remarks
Step 1 Diagnosis Implementation Guide
  • The public corporation notifies the subject of diagnosis of the matters necessary for diagnosis (by the end of August of the previous year of diagnosis)
Public Corporation -> Diagnosis Subject
Step 2 Diagnosis Application & Contract
  • Diagnosis subject selects a diagnosis institution, applies for diagnosis, and concludes diagnosis contract (1 month before the end of diagnosis cycle)
Diagnosis Subject -> Diagnosis Institution
Step 3 Notice of Diagnosis Schedule
  • Diagnosis institution notifies the diagnosis execution schedule agreed with the diagnosis subject (up to 3 days before the start of diagnosis)
 Diagnosis Institution ->Public Corporation
Step 4 On-site Diagnosis & Report Preparation
  • Analysis of energy usage status, the discovery of measurement and problems, cause analysis and improvement plan
  • Final discussion on economic feasibility analysis and diagnosis results (critique)
  • Preparation and submission of a detailed analysis diagnosis report of improvement plans and investment economic feasibility
Diagnosis Institution -> Public Corporation
Step 5 Customer Satisfaction Survey
  • Diagnosis subject takes a survey on the customer satisfaction leve4l of the energy diagnosis of the diagnosis institution after the diagnosis is completed
Diagnosis Subject ->Public Corporation
Step 6 Submission of Diagnosis Report
  • Diagnosis Institution finally submits diagnosis report/energy management standard checklist/implementation investment plan
Diagnosis Institution -> Public Corporation
Step 7 Improvement Implementation Status Survey
  • Improvement plan for 3 years from the following year after the diagnosis is completed
  • Implementation status survey and technical guidance
 Diagnosis Institution ->Diagnosis Subject
Prior Agreements
  • Provision of data, related drawings, etc. necessary for energy diagnosis
  • On-site guidance and explanation of target facilities and equipment
  • Support for preparation for measurement and testing and holding equipment
  • Provision of previously prepared energy managementstandard checklist, etc.

Scope of Energy Diagnosis by Type of Diagnosis Institution

Class 1 Diagnosis Institution Diagnoses all business sites in food, textile, paper and wood, chemical, ceramics, metal, industry, others, and building industry
Class 2 Diagnosis Institution Diagnoses all businesses sites in industrial others and building industry, and industries of less than 10,000toe in food, textile, paper and wood, chemical, ceramics, and metal industry
* Industry classification is based on energy consumption statistics (energy consumption report).
* The classification of Class 1 and Class 2 of the diagnosis institution is the classification of the scope of diagnosis, regardless of the diagnosis quality of the diagnosis institution.

Minimum Standards for the Number of Days and ManpowerRequired for Energy Diagnosis

Energy diagnosis complies with the minimum standards for the number of days and manpower required corresponding to the annual energy consumption (grade) of the diagnosis subject.

Energy Consumption Grade No. of Days Required Manpower Required (No. of Persons) Total No. of Days &Manpower Required
On-site Diagnosis Report Preparation Total
200,000toe or more A5 29 21 50 4 200
100,000toe or more, less than 200,000toe A4 25 18 43 4 172
50,000toe or more, less than100,000toe A3 21 15 36 4 144
20,000toe or more, less than 50,000toe A2 17 12 29 4 116
10,000toe or more, less than20,000toe A1 14 9 23 4 92
5,000toe or more, less than10,000toe B 11 8 19 3 57
2,000toe or more C 8 5 13 3 39
* Relevant Basis: [Attached 1] Scope and Laws of Energy Diagnosis, Ministry of Trade, Industry, and Energy Notice No. 2019-223 ‘Energy Diagnosis Operational Regulations’
  • 1 working day of on-site diagnosis is based on 8 hours.
  • The required manpower must be technical manpower registered with the relevant diagnosis institution, and when the minimum standard is diagnosed, the number of technical manpower falling under item [H] is limited to 1 or less.
Precautions

In the case of the number of days and manpower required not meeting the minimum standards or in the case of unregistered technical manpower performing the diagnosis, it may not be recognized as a legitimate energy diagnosis, and measures such as re-diagnosis may be taken.

Investment Support System for Implementing the Energy Diagnosis Result Improvement Plan

Energy Saving Company (ESCO) Investment Project

Subject of Support ESCO that has concluded a performance-determining contract or business-financing performance guarantee contract with an energy user, or an energy user who has signed a user-financing performance guarantee contract with ESCO
Subject Business of Support Projects falling underthe Section 1 of the [Attached 1] Details of Financial Support, Ministry of Trade, Industry, and Energy Announcement No. 2021-42 ‘Guidelines for Financial Support for Energy Usage Rationalization Projects in 2021’
- However, the performance-determining contract is limited to [Attached 3] ESCO Investment Project Performance-determining Contract Financial Support Project.
Application COnditions Support mainly focused on SMEs
· Support Limit per Business Site in the Current Year: Within KRW 15 billion
· Loan Period: 3 years deferred and repayment over 7 years
· Support Ratio: Within 100% of the required funds

Application Process

[Business-financing Performance Guarantee Contract & Performance-determining Contract]
[User-financing Performance Guarantee Contract]
* Performance-determining contract does not guarantee.

Saving Facility Installation Project

Subject of Support Those who intend to promote the installation of saving facilities listed in the [Attached 1] Details of Financial Support, Ministry of Trade, Industry, and Energy Announcement No. 2021-42 ‘Guidelines for Financial Support for Energy Usage Rationalization Projects in 2021’
Subject Business of Support Projects falling under the Section 2 of the [Attached 1] Details of Financial Support, Ministry of Trade, Industry, and Energy Announcement No. 2021-42 ‘Guidelines for Financial Support for Energy Usage Rationalization Projects in 2021’
- However, those specified separately in the [Attached 1] Details of Financial Support, Guidelines for Financial Support are exceptions.
Application COnditions Support mainly focused on SMEs
· Support Limit per Business Site in the Current Year: Within KRW 15 billion
· Loan Period: 3 years deferred and repayment over 5 years
· Support Ratio: Within 70% of the required funds (90% for SMEs)

Application Process

* The above application process is applicable for projects subject to evaluation and projects subject to non-evaluation are recommended after reviewing the suitability of facilities subject to financial support without going through a separate evaluation (For projects subject to non-evaluation, please refer to Article 9 Section 1 of the Guidelines for Financial Support