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Energy Management Contract (EMC)

Shenzhen CESP Co., Ltd is an Energy ServiceCompanies, and we are able to provide the EMC contract to our value customer onLighting Project.  Please contact us formore info.  

Introduction of EMC.

1.     What is energy management contract

Energy Management Contract (or EPC – EnergyPerformance Contracting) is a new market-oriented energy saving mechanism. Its essenceis to reduce energy costs to pay the full cost of the energy saving projectoperational modalities. This allows customers to use energy-saving investmentearnings for future energy-saving plant and equipment upgrades to reducecurrent operating costs; or energy service company committed to saving energyefficiency projects, or contract the overall energy cost way to provide energyservices. Energy management contract to implement energy saving projects in theenterprise (user) and entered into between the energy service company, it helpsto promote energy conservation projects. In accordance with the specific modeof operation can be divided into share-based energy management servicescontract, commitment-based contract energy management business, energy costs,energy management services contract managed type.

2. What is the energy service company  

Energy service companies (Energy ManagementCompany; abroad also known as ESCO Energy Service Company), also known as energymanagement company, is a mechanism based on the operation of energy managementcontract to for-profit professional company. EM Co. and willing to carry outenergy-saving energy services to customers signing contracts to provide energyaudits, feasibility studies, project design, project financing, equipment andmaterials procurement, construction, personnel training, saving energymonitoring, transformation of the system's operation, maintenance and managementservices to customers through the sharing of project implementation with theresulting energy efficiency, or commitment to energy efficiency energy-savingprojects, or contract the overall energy cost way to provide energy services,and profit, and rolling development.

3.What are the characteristics of business  

Under the market economy the commercializationof energy services entity, to survive in market competition and development,and China Energy Conservation Service Center affiliated with the localgovernment has a fundamental difference. EPC business carried out by thefollowing features:

Commercial: is the commercial operation of thecompany to contract energy management mechanism to implement energy efficiency projectsto achieve the purpose of profit.

Integrity: business is not a general sense,marketing products, equipment or technology, but by contract energy management systemto provide customers with integrated energy-saving energy services and completesolutions for customers to implement turnkey; not financial institutions, but forcustomers to finance energy efficiency projects; energy-saving technology isnot necessarily the owner or the energy equipment manufacturers, but customerscan choose to provide advanced, sophisticated energy-saving technologies andequipment; not necessarily have to implement their own energy projectengineering capabilities, but can assure our customers that the quality ofproject works. For customers, maximum value is: can the implementation of energy-savingprojects for clients through the optimal integration of various resources,projects and facilities and good operational services agreement with clients toachieve energy or energy efficiency section.

Win-win nature: EPC business is a major feature:a kind of project will make it to the parties involved in the project include:,customers, energy-saving equipment manufacturers and banks can learn to sharethe corresponding benefits, to form win-win situation. To share the type ofcontract energy management business, can share in the project contract period,the majority of energy efficiency in order to recover its investment and areasonable profit; customers to share part of the project contract period energyefficiency, after the close of the contract get all the energy efficiency ofthe project and investment in energy-saving equipment ownership, in addition toaccess to energy-saving technologies and equipment construction and operationexperience; energy saving equipment manufacturers sold their products to recoverthe money; banks with interest in this band to recover the loans for theproject, and so on. Because win-win nature, making sustainable development hasthe potential EPC.

Risk: often clients to invest in energy savingprojects, commitment to customer energy efficiency energy-saving projects,therefore, EM Co. bear most of the risk of energy-saving projects. It can besaid, EPC business is a high risk business. EPC business, the key to successlies in energy-saving project analysis and management of various risks.

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