What is Energy Management Contracting?

To put it simply: Party B, as an energy-saving company, provides funds, equipment and technology to do energy-saving transformation for Party A (a productive enterprise), and then shares the energy-saving benefits within the time period specified in the contract.

For example: Party B (an energy-saving company B) replaces energy-saving lamps for Party A (a shopping mall A), replaces all the lamps and lanterns of A with energy-saving lamps, and Party B provides the lamps and renovation funds, and then calculates how much electricity has been saved in the next few years, and the saved electricity bills are paid to Party B in proportion.

It refers to a professional energy-saving service company, which signs energy-saving service contracts with customers for energy-saving transformation, and provides customers with management mechanisms for energy-saving projects such as energy efficiency audits, energy-saving transformation programs, equipment procurement, construction, operation and maintenance. It can help energy-consuming enterprises to achieve "zero investment" in energy-saving projects, and invest in the benefits of energy-saving and obtain profits, so as to achieve a win-win situation between energy-saving service companies and energy-consuming enterprises, and even environmental effects.

Energy Performance Contracting (EPC) is a new type of market-based energy-saving mechanism. The essence of the shield is to reduce energy costs to pay the entire cost of energy-saving projects. Nayun.

Energy contract (EMC) is a new energy-saving mechanism based on market-based operation that began to develop in western developed countries in the 70s, and its essence is to pay the full cost of energy-saving projects with reduced energy costs. This energy-saving investment allows customers to upgrade plants and equipment with future energy savings to reduce current operating costs; The energy-saving service company and the energy-using unit agree on the energy-saving target of the energy-saving project in the form of a contract, and the energy-saving service company provides the necessary services to the energy-using unit in order to achieve the energy-saving goal, and the energy-saving service unit pays the energy-saving service company's investment and its reasonable profit with energy-saving benefits.

Tell you the official definition.

Energy Management Contracts (EPC, EMC): Fulfills the role of an energy and energy conservation services company (ESCO).

The essence of the contract energy management mechanism is an energy-saving investment method to pay the full cost of energy-saving projects with reduced energy costs, which allows users to use future energy-saving benefits to upgrade factories and equipment, reduce current operating costs, and reduce utilization efficiency.

Energy Performance Contracting (EPC) is a new type of market-based energy-saving mechanism. In essence, it is an energy-saving business method that pays the entire cost of energy-saving projects with reduced energy costs.

Introduction to Registered Companies.

The registration of a company basically involves five departments: industrial and commercial administrative organs, banks, accounting firms, quality and technical supervision departments, and tax authorities.

The basic general process of registering a company: name search (industrial and commercial administrative authority) account opening and capital injection (bank) capital verification (accounting firm) application for business license (industrial and commercial administrative authority) application for organization ** certificate (quality and technical supervision department) application for tax registration certificate (tax authority).

The statutory time limit required for each link of the registered company: the result of the name search will be notified within 5 working days under normal circumstances;

The banking procedures for opening an account and adding funds are generally within 3 working days according to the regulations of each bank;

Capital verification within 7 working days under normal circumstances;

The statutory time limit for the business license is 15 working days for approval, and the certificate will be issued within 10 working days after the approval is passed;

The statutory time limit for the organization ** certificate is to be completed within 30 working days;

The statutory time limit for the tax registration certificate is 30 working days;

Statutory fees for registration: The registration fee is, and the fees for companies with more than 10 million yuan are additional;

The cost of the capital verification report is 1,000 yuan (with a registered capital of less than 500,000 yuan).

**The certificate fee is 58 (production cost) + 90 (technical service fee) = 148 yuan;

The fee for the tax registration certificate is 20 yuan;

The fee for the registered address is calculated on the basis of the actual rent (the lease date shall not be less than 1 year, and the address must be a commercial premises);

The cost of hiring accountants is calculated on the basis of actual wages.

First, the win-win format. In fact, from a broader perspective, EMC can save more resources for the society, and has a significant role in promoting energy conservation and emission reduction, so it can be said that it is a win-win situation in three aspects. Energy-using units can save energy operating costs, energy-saving companies can obtain reasonable profits, and energy-saving and energy-reducing energy can be developed.

2. Energy-using units do not need to invest funds or equipment in the early stage. According to the essence of contract energy management, the energy-using unit does not need to come up with funds to implement the energy-saving project in the early stage of the project implementation, all of which are provided by the energy-saving service company, so it will not bear the corresponding financial and technical risks, and during the energy-saving contract, on the one hand, it can reduce the cost of energy consumption, and secondly, it can obtain the equipment provided by EMCO after the end of the contract.

3. Enhance the image of energy-using units and increase competitiveness. The state is vigorously promoting low-carbon environmental protection, and if energy-using units can implement contract energy management, they can bring low-carbon and green hats to enterprises. On the other hand, after the implementation of EMC, enterprises reduce energy costs, thereby improving their market competitiveness.

Fourth, high energy efficiency. The energy efficiency of EPM projects is generally 5%-40%, and can even reach 50%. It can be seen that EMC's energy saving rate is still not low.

5. Improve the cash flow of energy-using units. In fact, many companies want to regulate energy consumption well, but they are limited to the shortage of funds. The rise of EMC has made it possible for companies to enjoy the benefits of energy savings without investing money.

Allowing the company to use the funds for other purposes, thereby improving the cash flow of the business.

Sixth, the degree of professionalism. The energy saving service company is not simply providing equipment, EMC is a complete set of processes, in the implementation process, the energy saving service company will carry out professional management of the project. Therefore, it is more professional than the general company that simply provides equipment.

7. Energy saving. In the process of formulating the EPC, because it has passed the energy audit in the early stage, the energy saving service company can promise energy savings to the user. As soon as the project is implemented, the energy consumption costs of the energy users can be reduced.

8. Investment ** paragraph. Judging from the cases that have implemented EMC in recent years, for energy-saving service companies, the investment period is short, generally 1-3 years, so as to ensure EMCO's capital flow and profit standards. For energy-using units, the short time allows enterprises to receive energy-saving equipment faster.

As for the types and types of contract energy management, Duncan also mentioned it in the previous article, you can refer to it. The above are the eight advantages of contract energy management summarized by Duncan, of course, there are many specific advantages, such as the use of energy units more scientific management, etc., not listed here.

EMC typically provides comprehensive energy saving services to customers through the following steps. 1. Energy auditEMC evaluates various energy-saving measures according to the specific situation of customers. Measure the current energy consumption of the enterprise, propose the potential for energy saving, and carry out energy saving for various alternative energy-saving measures.

2. Design of energy-saving renovation scheme.

Based on the results of the energy audit, EMC provides the customer's energy system with an overall plan and recommendations to improve energy efficiency and reduce energy costs, and if the customer is willing to accept, EMC will design the project for the customer. 3. Negotiation and signing of energy management contracts.

Based on the energy audit and retrofit program design, EMC negotiates the energy saving service contract with the customer. Under normal circumstances, because EMC takes on most of the risk for the project, EMC shares most of the project benefits during the contract period (usually about three years), and a small part of the benefits are left to the customer; At the end of the contract period, all benefits belong to the customer. 4. Procurement of raw materials and equipmentEMC is responsible for the procurement of raw materials and equipment according to the project design, and the cost is paid by EMC.

5. Construction. The construction of the project is carried out by EMC, usually by EMC or other construction agencies commissioned by EMC. 6. Operation, care and maintenance.

After the installation and commissioning of the equipment, EMC trains the equipment operation personnel for the customer, is responsible for the maintenance and maintenance during the trial operation period, and bears the related costs. 7. Energy Saving and Benefit GuaranteeEMC and the customer jointly monitor and confirm the energy saving effect during the contract period to confirm that the energy saving guarantee of the project is provided by EMC in the contract. 8. EMC shares energy-saving benefits with customers.

Because all input to the project, including energy audits, design, procurement of raw materials and equipment, civil works, installation and commissioning of equipment, training, and system maintenance and operation, etc., is provided by EMC, EMC has ownership of the entire project for the duration of the project. The customer pays EMC the cost of the project on a quarterly or year-by-year basis in an energy-efficient manner, and the customer retains ownership of the project once the cost is fully paid.

EMC's approach to doing business is known as "Energy Contracting."

Energy Management Contract (EMC) fact sheet:

Since the mid-70s, a market-based, new energy-saving mechanism - "contract energy management" has gradually developed in market economy countries, and based on this new energy-saving mechanism to operate the professional "energy-saving service company" (referred to as ESCO in foreign countries, referred to as EMC in China) has developed very rapidly, especially in the United States, Canada and Europe, ESCO has developed into an emerging energy-saving industry.