[Original] Contract Energy Series Interview - Li Guoqiang: "Contract Energy Management"

The national energy conservation and emission reduction policies are being promoted in full swing, and energy-saving enterprises are expected to enter a golden age of grand exhibitions. However, looking at the domestic market, the EMC business is still developing below expectations, and the concept of energy conservation has not yet been recognized by the general public. What is the reason for the contractual energy management model that has a lot of room for development to fall into a bottleneck? Why did EMC, which is booming abroad, come to China and become faltering? With these questions, China Lighting Network specially interviewed General Manager Li Guoqiang of Sanji Ou Neng, and asked him to analyze the tortuous development of contract energy management in China from the perspective of a senior industry insider.

China Lighting Network: Please tell Mr. Li about the history and characteristics of EMC, and the EMC model that Sankeou can now implement.

Mr. Li: “Contract Energy Management” (EMC), a new mechanism and new model for energy-saving investment, was born in North America in the “World Energy Crisis” in the 1970s, and prevailed in Europe in the 1980s. . The original intention of the EMC model was to allow users to circumvent the risks of technology selection and cost investment in energy-saving retrofits. In the energy-saving transformation, the situation is often the willingness of users to save energy and reduce consumption, but subject to the cognitive limitations of cross-industry, without understanding the applicability of a large number of energy-saving technologies or products, it is difficult to select the energy-saving technology that suits the characteristics of their own needs. Or product, which creates a risk of technology selection.

If the user invests in energy-saving renovation according to his limited knowledge of energy-saving technologies or products, whether he can get the expected energy-saving benefits as expected, there are too many variables, which is the risk of cost investment. After many attempts by the user, the result is still awkward and unpredictable. Therefore, in accordance with the market economy law of “demand-driven supply”, the energy management company (Energy Management Company referred to as EMCo) and the EMC model, which are specialized in energy-saving renovation, came into being.

EMCo relies on its own comprehensive understanding of energy-saving technologies and products, and refers to the BOT model. The two parties sign contracts in accordance with the process of “energy-saving equipment investment—project management and maintenance – energy-saving equipment and energy-saving benefits transfer freely”, and assume the risk of early investment of energy-saving renovation for users. Sharing the energy efficiency to achieve return on investment, this is the EMC model. According to the EMC model, the user realizes zero input and zero risk. All that is required is the sharing of energy-saving benefits that have been realized after the energy-saving transformation. It is a partial transfer that must be paid for.

Now Sanjiou can have the following business models for contract energy management:
1. Energy-saving benefit payment type: The user entrusts EMC to implement the energy-saving renovation project, paying a certain proportion of advance payment in advance, and the balance is fully paid by energy-saving benefits.
2. Energy-saving guarantee type: The energy-saving amount generated by the energy-saving renovation project is included in the energy management contract as EMCo's commitment. The project investment is jointly undertaken by EMC and the user. After the project is completed, the relevant departments will test and reach the energy-saving amount agreed in the contract. The user immediately pays the balance of the energy-saving renovation project.
3. Energy-saving benefit sharing type: The initial investment of energy-saving transformation is paid by EMC. During the contract period, EMC obtains the energy-saving and consumption-reducing income brought by energy-saving renovation. After the contract expires, the energy-saving and energy-saving and consumption-reducing benefits are all owned by the user. .
4. Long-term custody of energy costs: All the energy costs of users are managed by EMC. The long-term management, maintenance, renewal, and re-investment of energy-saving equipment are undertaken by EMC, and the users have zero investment. EMC has long-term cooperation with users, and the benefits brought by the energy-saving renovation project are enjoyed by EMC and users in proportion to the long-term.

The above-mentioned operating mode of EMC is “contract energy management”, and the above contractual relationship with users is called energy management contract. Other characteristics can be seen from EMC's operating methods: EMC is not a general promotion of products, equipment or technology, but sales of energy-saving projects. Because EMC promises and guarantees energy savings to users, EMC is actually risking energy-saving projects for users. The key to the success or failure of EMC's implementation of energy-saving projects lies in energy-saving analysis and management of project risks.

China Lighting Network: What do you think of China's current energy-saving market?

Mr. Li: The EMC model has largely solved the non-market factors in energy conservation promotion and achieved a win-win situation for all parties involved. It is indeed an effective new mechanism and new model for energy-saving investment. Europe and the United States have been rapidly promoted and become the mainstream mode of energy-saving investment. However, in the country still in the economic transformation, the promotion of the EMC model has encountered unpredictable reefs, and it has been difficult to make progress in the past ten years. The reason is not only the lag of the system, but also the difference in understanding. The situation is as stated in the comprehensive report of the reporter of the 21st Century Financial Report, Huang Wei: Contract Energy Management - looks beautiful.

China Lighting Network: What are the current obstacles to the promotion of EMC model in China? Please talk about the engineering examples of Sanji Oueng.

Mr. Li: For example, Shanghai Sanji Oueneng Lighting Technology Co., Ltd., with its independent innovation spirit, independently developed the Shanghai energy-saving product, T6 energy-saving and environmental protection fluorescent lamp, with its excellent energy-saving effect and excellent light source quality, focusing on intensive cultivation. It has been in the field of lighting energy-saving renovation for many years. The product technology of T6 fluorescent lamp has been inspected by the Science and Technology Consultation of the Shanghai Science and Technology New Consulting Center of the Chinese Academy of Sciences. The conclusion is that “the project is innovative and reaches the domestic leading and international advanced level.”

In the promotion process of T6 fluorescent lamps, users also encountered the situation of technical risks and investment risks. The original intention of the EMC model is to eliminate such concerns of users of energy-saving products. When Sanjiou can propose business cooperation in accordance with the EMC model, it can largely eliminate the concerns of users, and thus promote the cooperation of energy-saving renovation projects. For example, the energy-saving benefit sharing type: Pudong New Area Yuanpei School Project, Shanghai Huari Garment Co., Ltd., etc., more projects are based on EMC's simple model - energy saving guarantee, such as Hongqiao International Airport Project, Shanghai Dragon Dream Shopping Center Project, Shanghai 80,000 Stadium Project, Fudan University Affiliated Pediatric Hospital Project, Regal Global East Asia Hotel Project.

However, the above-mentioned successful cooperation projects only accounted for 10% of the T6 fluorescent lamp promotion projects. More EMC projects have been stranded, or they have switched to direct purchase of products, or they have not been delayed, and some projects have succeeded in initial cooperation. It’s halfway through. The reasons are as follows:

1. Reasons for the financial system. The station illumination of the above-mentioned sea rail transit basically adopts the traditional inductive T8 fluorescent lamp. This kind of light source is the energy-saving transformation object of the T6 fluorescent lamp, and the project evaluation also shows that it has excellent technical and economic evaluation. However, the financial system using the two lines of revenue and expenditure cannot apply the EMC model, and the energy-saving benefit is used as compensation for the investment in energy-saving renovation. Looking at such a huge amount of high-energy light source can not be modified, only to sigh. Similar projects include commercial buildings with resident user-segment systems, and the number of such projects is huge. The ownership and use rights of the lighting fixtures of such commercial buildings are separated. The users who are responsible for the lighting expenses according to the separate electricity meters have no right to change, and the tenants also have no intention to change the lighting devices, and the owners who own the ownership of the lighting devices have energy saving benefits. Irrelevant and lack of motivation to transform, the EMC model's win-win mechanism has failed. How to rationalize the system and make the EMC model useful, it is also necessary for the government to coordinate the relevant departments to adjust this.

2. Reasons for financing costs. The EMC model is a low-input or zero-input for the energy-saving users at the beginning of the project, which requires the energy management company (EMCo) to pay for the input cost of the lighting device. After all, EMCo is not a financial enterprise. Its own funding capacity is limited, so project loans or project financing are inevitable. However, lighting energy-saving retrofits usually involve many projects, and the amount of financing is significantly smaller than other large-scale energy-saving projects, while the operating costs of loans or financing are equivalent to other projects. Therefore, the borrowers in both the borrowers and the borrowers are dismissive, but the lenders are unbearable. For the financing of lighting energy-saving renovation projects, how to establish a convenient channel for micro-financing is a subject that needs to be seriously explored.

3, the reasons for compliance integrity. According to the EMC model, the hoist is floated, and the concerns of energy-saving users are dispelled. However, the concerns of EMCo or the financing party have arisen. It is true that energy-saving users can pay the energy-saving benefits on time and in good faith after obtaining energy-saving benefits. problem. Therefore, the financing side's credit investigation and evaluation of energy-saving users becomes an indispensable procedure. In fact, it takes a lot of labor cost and time cost to conduct credit investigation and evaluation, and it may not be able to effectively prevent breach of contract or breach of contract. For this problem, establishing a bank supervision account may be a solution, but the current regulatory account establishment and operation costs are too high. Whether or not a bank supervisory account specifically for EMC can be set up requires management's attention and support.

4. Understanding of the time value of capital. Energy-saving transformation through EMC mode avoids risks, slows down the pressure of cash flow, and transforms one-time risk investment into a soothing and stable benefit sharing, but the total amount of sharing will be higher than the one-time investment. Long-term sharing, the total amount is higher than the one-time investment is commercial common sense, just like the mortgage of the house purchase, it is due to the reasonable requirements of the risk-taking and the time value of capital, and also in line with the market economy principle that “return is proportional to the risk”. However, the managers of many enterprises have not realized the essence of energy-saving benefits, but are the recovery of the sunk costs caused by the unreasonable selection of energy equipment. The sharing of energy-saving benefits is part of the transfer payment for the sunk cost of recovery. To put it bluntly, what you paid is not your money. These managers are also insufficiently aware of the time value of capital. They do not even recognize the time value of capital. The total amount of sharing of the EMC model is always higher than the one-time investment amount. It is only willing to accept the total amount of sharing equal or slightly higher. . This kind of requirement that does not conform to the principles of the market economy is not acceptable to any investor, so the result is not a good thing, it becomes a shot. Sanjiouengeng made a lot of preliminary investment in the Jilin chemical fiber project. In the end, it was impossible to reach a consensus due to the above reasons and could only give up.

Due to the above reasons, it will be reduced to some alternative cases, such as Huari Garment Project, which implements energy-saving renovation according to the benefit sharing model of EMC model. Sanjiouengeng is the input and energy management party, and Huari Garment is zero input. After the transformation, the energy-saving benefits were obvious. At the beginning, Huari was also willing to share the benefits on schedule. However, one year later, Huari proposed to change the contract and demanded a one-time buyout at the purchase price. San Keou can retreat. However, the EMC model has been halfway through and stopped. In summary, the EMC model is difficult to adapt to many reasons in China. The above reasons are only a part of it, and the overcoming of these constraints is a necessary condition for the EMC model to be promoted in China.

China Lighting Network: From the promulgation of the "Energy Conservation Law of the People's Republic of China" in April 2008, to the current energy-saving and emission reduction plan, the government's support for energy-saving business is obvious. What do you think of this?

Mr. Li: Sanjiou can think that under the impact of the current global crisis, corporate users have more urgent needs for energy conservation and consumption reduction. Because only by controlling operating costs, companies are more competitive. Of course, the cash flow of many companies in the current crisis will have a certain impact on capital investment. This will require more EMC to reduce input pressure. Sanjiouengeng will also optimize the cost structure of the three-base Euroneng products, and under the premise of ensuring product performance and quality, it will provide users with more favorable product prices and service quality, and shorten the investment return period of users' energy-saving renovation, making EMC more Useful place. Sanjiouou can believe that with the support of the government's energy conservation and emission reduction and corresponding policies, through the joint efforts of management and enterprises, in-depth reform, improve the supporting measures necessary for EMC operation, and open up the above operational bottlenecks, EMC model will eventually become popular. Open a new situation of energy saving and emission reduction.


Mr. Li Guoqiang's resume


Mr. Li Guoqiang, Founder, Executive Director, R&D and Technical Leader and Chief Engineer of Shanghai Sanji Oueneng Lighting Technology Co., Ltd.

Member of the Shanghai Standardization Association Lighting and Electronic Technology Professional Committee; director of Shanghai Contract Energy Management Committee, deputy head of Shanghai Green Lighting Professional Group, and energy conservation consultant of Shanghai Science and Technology Achievement Transformation Promotion Association. "Pipe tube diameter energy-saving straight tube fluorescent tube" invention patent designer; "fluorescent tube with amalgam fixture", "T6 thin tube diameter fluorescent tube with aluminum base", "with high power factor ballast" Fluorescent lamps" three utility model patent designers.

Comrade Li Guoqiang’s main experience:
In 1983, he graduated from the Department of Automation Control and Electronic Engineering of East China Institute of Chemical Technology, majoring in chemical automation and instrumentation.
In 1984, he joined the technician of Shanghai Hydraulic Pump Factory;
In 1991, the manager of the development department of Changshu Hongda Electric Light Source Factory was in charge of the development of integrated electronic energy-saving lamps;
In 1995, the legal representative of Shanghai Liwanjia Lighting Appliance Factory was in charge of product development.
1999 General Manager and Chief Engineer of Shanghai Hongsheng Lighting Co., Ltd.
In 2000, as an external electrical equipment expert of Shanghai Light Industry Import and Export Co., Ltd., he went to Germany to participate in the selection and technical support of bulk electrical equipment.
In 2001, as a professional senior consultant, he went to Spain to participate in the lighting and lighting academic exchange meeting.
In 2005, he founded Shanghai Sanji Oueng Lighting Technology Co., Ltd. as an executive director and chief engineer, in charge of product, technology and R&D.

Main results:
On December 22, 2004, the company won the silver medal award from the Shanghai Energy Conservation Product Review Committee for its outstanding achievements in the development, production, evaluation and promotion of energy-saving products.
In 2006, he presided over and drafted the "T6 double-ended three-primary fluorescent tube" enterprise standard Q/SNMW1-2006
On May 26, 2006, the invention patent for the "fine tube diameter energy-saving straight tube fluorescent tube" was designed.
On October 17, 2007, the utility model patent of “Fluorescent tube with amalgam fixture” was designed and certified.
On October 10, 2007, the utility model patent of “T6 thin-tube fluorescent tube with aluminum lamp holder” was designed and certified.
In February 2007, the T6 manual and automatic dimming fluorescent lamps were successfully developed, which enabled the company's products to be upgraded from traditional energy-saving lighting equipment to new heights of intelligent lighting. Shanghai Oriental Satellite TV reported this.


Editor: China Lighting Network - Wheat

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