EPC helps lift energy market out of trouble

When energy conservation and emission reduction become a consensus, and when energy-using enterprises lack energy-saving transformation technology and funds, EPC once again meets the market demand. In the global energy conservation and emission reduction market, EPC has been widely recognized.

The Canadian government supports the establishment of many specialized energy-saving service companies, and gives priority financial support to EPC; Among EU countries, the Spanish government has issued a series of preferential policies to encourage private investors to develop cogeneration and wind power projects. The German government adopts tax reduction and exemption policies for enterprises that use EPC to produce energy-saving products and equipment, and gives financial subsidies to enterprises that use energy-saving equipment, which increases the enthusiasm of enterprises to adopt energy-saving measures and equipment. Many banks in India have initiated small energy efficiency projects in some industries and are planning to expand them. In Brazil, a development guarantee Fund derived from utility company revenues provides a financial platform to promote EPC and reduce production energy consumption.

The EPC model has the advantages of a new business model, and promotes the development of energy conservation and emission reduction in industry, construction, transportation and other fields. In this mode, it can not only solve the technical problems in energy conservation and emission reduction, but also solve the financial problem of energy use units. For example, the energy-using unit does not need to bear the capital and technical risks of the implementation of energy-saving projects, and while the implementation of the project reduces the cost of energy use, it can obtain the benefits brought by the implementation of energy-saving and obtain the equipment provided by EPC; High energy efficiency, EPC project energy saving rate is generally 5%-40%, up to 50%; Improve customer cash flow. Customers can improve cash flow by implementing energy-saving transformation through EPC, and invest limited funds in other priority investment areas; Make customer management more scientific, customers use EPC to implement energy saving services, can obtain professional energy saving information and energy management experience, improve the quality of management personnel, and promote scientific internal management; Enhance the competitiveness of customers, customers implement energy-saving improvements, reduce energy consumption costs, improve product competitiveness. At the same time, it also saves energy, improves environmental quality, and establishes a green corporate image, thus enhancing market competitive advantages. Such technical and financial advantages, whether in the global economic plateau or in the economic crisis, can be for customers to bear the risk of energy-saving projects, to achieve a win-win effect.

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In China, EPC has been fully implemented throughout the country. It brings hope for our country to achieve the “Twelfth Five-Year Plan” energy saving and emission reduction target.

In Shanxi Province, in order to further standardize the work of contract energy management, relevant departments have compiled the “Shanxi Province Contract Energy Management Operation Guide (2012 edition)”. The guide selected 166 contract energy management projects, involving coal-fired industrial boiler (kiln) transformation projects, waste heat and pressure utilization projects, conservation and alternative petroleum engineering, electrical system energy conservation projects, building energy conservation projects, green lighting projects, etc. In Zhejiang, according to the “Ningbo Public institutions Contract Energy Management Measures” notice, Ningbo City more than 3,000 public institutions fully introduce contract energy management, “the right medicine”, focus on the public institutions of central air conditioning, lighting, boilers and other related systems of energy saving “diagnosis”, one-time investment in technical transformation. It will strive to complete the real-time monitoring system of energy consumption of 90 public institutions in the city by the end of the year; In Hunan, Xiangdian International Hotel Zhangjiajie held the launch ceremony of the contract energy management project. It is reported that the energy efficiency of the project can reach 70%.

In Jiangsu, Jingjiang City’s first contract energy management project – Jingjiang Zhongda Carbon Material Co., LTD. Desulphurization liquid pump energy-saving renovation project successfully passed acceptance. The project saved nearly 50 percent of its electricity, much higher than expected. In Guangdong, Zhoushan Fortune Junting Hotel and Zhejiang Zhoushan Huacan Intelligent System Engineering Co., Ltd. cooperation contract energy management project officially launched, this involved energy saving transformation is mainly for the hotel heating water system; In Liaoning province, Fuxin Jinshan Coal Gangue Thermal Power Co., Ltd. adopted the contract energy management mode to carry out energy-saving transformation. After running VUES(Steam turbine condenser vacuum preservation energy saving system) technology in the cold end system of a 150MW thermal power unit, the annual standard coal saving will be more than 3,000 tons, and the carbon dioxide emissions will be reduced by about 8,000 tons. Direct economic benefits exceeded 2.5 million yuan.

Contract energy management around the country is in full swing, I believe this will be a new beginning of energy conservation and emission reduction.