Energy Management Contract (EMC) is a new type market operation-based energy saving system developed in western developed countries in the70s of last century. EMC does not aim to promote products and technologies but to save energy cost.
EMC specializes in comprehensive energy saving services provided which means energy 鈥搒aving projects designed to different customers.
EMC operates in the following process to provide overall energy-saving services to customers:
1 Energy source audition Company assesses various energy-saving methods with customers鈥 requirements to test present energy consumption and foresee the energy saving with different available methods.
2 Energy saving system reconstruction design Our company provides customers with system proposals and suggestions on how to increase energy source utilization rate and cut energy cost with application of developed technology .( The proposals are different from substitution of single equipment or promotion of energy-saving technology and products). We also provide project designs if customers are willing to accept these proposals.
3 Negotiation and signing of energy management contract Our company negotiates with customers on energy-saving contract based on energy audition and reconstruction design. Generally, we take most risks of the projects. Therefore, parts of benefit will be given to customers while other parts provided to our company in contract term and all profit belongs to customers after the term. In this way, energy contract management is win-win system to both company and customers. The customers will be charged for energy source audition and project design if they do not agree to sign energy management contract with us.
4 Purchase of raw material and equipments Our company purchases and makes payment to raw material and equipments with project designs.
5 Constructions According to the contract, our company takes responsibilities for the construction operation by the agreement with customers or other construction companies and customers are required to provide necessary conditions to the project construction.
6 Operation and maintenance The trial operation period starts after installation and test of the equipments. Our company trains system operators for clients, provides maintenance services and takes the relevant fees.
7 Guarantee of energy saving and benefits Our company and customers monitor the energy saving in the contract term together to guarantee the energy saving quality provided by us.
8 Energy- saving benefit shared with customers Our company is responsible for all project input including energy audition, raw material and equipment purchase, constructions, installation and test of equipments, training and system maintenance). Therefore, company owns property rights of the whole project. Customers are required to pay for the projects in the ways of energy-saving benefit sharing by quarter or year. After all payments in the contracts made, customers will own the property rights of projects.
9 Project capital source In overseas, EMC financial sources may include entity capital, commercial loans from bank (because ESCO owns good reputation in foreign banks), specialized energy-saving loans with interests offered by government, installment payment allowed by equipment suppliers, DSM funds of power company and international capital ( such as international development banks) etc. In China, the capital source might also be included in China.
This management system is called Energy Contract Management and contractual relation with customers is called 鈥淓nergy Management Contract鈥?
Contract Energy Management features in
High energy-saving efficiency
Generally, energy 鈥搒aving efficiency ranges from 10% to 40%, the highest being 50%. Zero customer investment
Our company takes full responsibilities of design, audition, capital collection and construction monitor without customers鈥 investment.
Guarantee energy-saving Our company guarantees energy saving and promises to cut energy source cost as soon as possible.
Short capital pay-off term
With huge investment, capital pay-off term of the constructed projects is as short as one to three years.
Professional energy-saving services
Our company provides overall energy management services of analysis, proposal assessment, project design, construction, financial and capital plan.
More advanced technology
EMC is supported by latest and most advanced energy-saving technologies and products in home and abroad which are mainly used in energy-saving projects.
Low risks taken by customers
Improve the cash flow
Promote the competence
With reconstruction and improvement, projects will save energy, cut energy source cost, improve the environment quality and enhance the competitive advantages. Customers also gains professional energy-saving information and energy management experience and promotes internal scientific management more scientific.
