Technological capability development in China's energy service company industry

Technological capability (TC) plays a strategic role in the competitive advantage of not only individual corporate entities but also entire industries. This paper investigates the crucial factors that affect technological capability development by Energy Service Companies (ESCOs) in China. It identifies how differently sized ESCOs make progress in developing TCs. Through looking at the successes achieved by developed countries in the field of energy conservation, ESCOs are able to improve energy efficiency and reduce emissions and are deemed to provide an effective means of conserving energy in China. Existing literature indicates that limited TC levels of are one of the crucial barriers facing Chinese ESCOs. Through investigating three different sizes of Chinese ESCO - small, medium-sized and large - this paper provides a framework to present the idea that Chinese ESCOs' TC development is affected by four key internal and external capabilities: management capability, investment capability, innovation capability and linkage capability. Through comparative analysis, the paper establishes that small and medium-sized private ESCOs are mainly affected by investment and linkage capabilities. Large state-owned ESCOs are mainly affected by innovation and management capability. In addition, all three types of ESCO exhibit a strong desire to develop their technological capability, but small and medium-sized ESCOs exhibit a stronger desire to conduct research and development (R&D) than large ESCOs, whilst large ESCOs prefer to increase their technical reserves through acquisition. This paper identifies factors that affect Chinese ESCOs' TC, but it does intend to address the problem of how to reduce the negative effects of limited TC or the question of how to improve the TC development of Chinese ESCOs effectively. This paper contributes to the field of TC development in the ESCO industry.

Do intelligent heating controls out-smart ordinary users?

Nearly a third of UK gas and electricity is used in homes, of which 80% is for space heating and hot water provision. Rising consumer bills, concerns about climate change and the surge in personal digital technology use has provoked the development of intelligent domestic heating controls. Whilst the need for having suitable control of the home heating system is essential for reducing domestic energy use, these heating controls rely on appropriate user interaction to achieve a saving and it is unclear whether these ‘smart’ heating controls enhance the use of domestic heating or reduce energy demand. This paper describes qualitative research undertaken with a small sample of UK householders to understand how people use new heating controls installed in their homes and what the requirements are for improved smart heating control design. The paper identifies, against Nielsen’s usability heuristics, the divergence between the householder’s use, understanding and expectations of the heating system and the actual design of the system. Digital and smart heating control systems should be designed to maximise usability so that they can be effectively used for efficient heating control by all users. The research highlights the need for development of new systems to readdress the needs of users and redefine the system requirements.