Contract energy management concepts and mechanisms

EPC (Energy Perf ormance Contracting) is a new type of market-oriented energy-saving mechanism. The essence is the energy-saving business method of paying the full cost of energy-saving projects with reduced energy costs.

This energy-saving investment method allows customers to upgrade their plants and equipment with future energy-saving benefits to reduce current operating costs; or energy-saving service companies provide energy-saving services to customers by committing energy-saving benefits to energy-saving projects or contracting overall energy costs. The energy management contract is signed between the enterprise (user) and the energy-saving service company that implements the energy-saving project, which helps to promote the implementation of energy-saving projects. According to the specific business methods, it can be divided into shared contract energy management business, committed contract energy management business, and energy cost custody contract energy management business.

The essence of the contract energy management mechanism is:

An energy-saving investment method that pays for the full cost of energy-saving projects with reduced energy costs. Such an energy-saving investment approach allows users to use future energy-saving benefits to upgrade plants and equipment, as well as reduce current operating costs. The energy management contract is signed between the enterprise (user) that implements the investment in energy-saving projects and the specialized profitable energy management company, which helps to promote the development of energy-saving projects. Under the traditional energy-saving investment mode, all risks and all profits of energy-saving projects are borne by enterprises that implement energy-saving investment; in contract energy management methods, enterprises are generally not required to make large investments in energy-saving projects.

I. Introduction and concept of contract energy management:

ENERGY MANAGEMENT CONTRACT (EMC) is a new energy-saving mechanism based on market operation developed in western developed countries in the 1970s. Instead of selling products or technologies, contract energy management promotes a financial management approach that reduces energy costs. EMC's operating mechanism is an energy-saving investment service management; after customers see energy-saving benefits, EMC will share energy-saving results with customers and achieve the same effect. The development of specialized “energy-saving service companies” (referred to as ESCO in foreign countries, referred to as EMC companies in foreign countries) based on this mechanism and profit-oriented is also very rapid, especially in the United States, Canada and Europe, ESCO has developed into one An emerging energy-saving industry.

Contract energy management is a set of products provided by EMC through the signing of energy-saving service contracts with customers, including: energy audit, project design, project financing, equipment procurement, engineering construction, equipment installation and commissioning, personnel training, energy saving confirmation and guarantee. Energy-saving service, and a business operation mode that recovers investment and profits from the energy-saving benefits obtained by customers after energy-saving renovation.

Customers of EMC's services do not need to bear the funds, technology and risks of energy-saving implementation, and can reduce energy costs faster, gain the benefits of implementing energy-saving, and obtain equipment provided by EMC.

Second, the characteristics of contract energy management projects:

High energy efficiency

The energy saving rate of the project is generally 10%-40%, up to 50%.

Customer zero investment

All design, audit, financing, procurement, construction monitoring, etc. are all responsible for EMC, and no customer investment is required.

Energy saving is guaranteed

EMC can promise consumers energy savings and ensure that customers can immediately reduce energy costs.

Short investment recovery

The investment amount of the project is large, and the investment recovery period is short. The average payback period is 1-3 years from the projects already implemented.

More energy efficient

EMC provides comprehensive services such as energy diagnosis, improvement program evaluation, engineering design, engineering construction, supervision and management, capital and financial planning, and is responsible for energy management.

More advanced technology

EMC is backed by the latest and most advanced energy-saving technologies and products at home and abroad, and is dedicated to energy-saving projects.

Low customer risk

Customers do not need to invest large sums of money to introduce energy-saving products and technologies, professional services, and the risk is very low.

Improve cash flow

With EMC's implementation of energy-saving services, customers can improve cash flow and invest limited funds in other higher-priority investment areas.

Enhance competitiveness

Customers implement energy-saving improvements, save energy, reduce energy costs, improve environmental quality, establish a green corporate image, and enhance market competitive advantage.

With EMC's implementation of energy-saving services, customers can gain professional energy-saving information and energy management experience, improve the quality of management personnel, and promote the scientific management of internal management.

Second, the scope of contract energy management services:

EMC energy service industry, in a broad sense, business scope includes the sale, supply and management of energy; the implementation of energy-saving improvement projects; the contracting of energy-saving performance guarantee contracts; the operation, maintenance and management of energy-consuming facilities; energy-saving diagnosis and consultants Consultation and so on.

EMC provides comprehensive services such as energy user energy audit diagnostic assessment, improvement plan planning, improvement engineering design, engineering construction, supervision, financial plan for fund raising and investment recovery guarantee; use appropriate methods or procedures to verify and evaluate energy efficiency. Provide energy users with energy-saving performance guarantees, and then repay the investment costs required for energy-saving improvement projects from the saved energy costs in the form of project self-compensation.

EMC Corporation is a format that realizes energy conservation and provides "all-round improvement of energy utilization efficiency". It implements energy-saving diagnosis for lighting, air-conditioning, and energy-consuming equipment of commercial buildings and energy-consuming enterprises, and provides new energy-saving and high-efficiency equipment. The specific energy-saving system solution, whose service cost is shared by the saved energy costs, is the biggest feature of the “energy-saving performance guarantee contract” business. In addition, the savings saved by energy efficiency are also used as investment recovery for energy efficiency projects.

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