The Plan of Jiangsu and the UK Cooperation
The Economic and Trade Commission of Jiangsu Province is holding “The International Forum on New Energy Conservation Mechanism in Jiangsu” to further cooperation with the UK. Jiangsu and the UK take the forum as a starting point and a platform to exchange ideas and discuss to promote the new energy saving mechanism which is called energy management contract to give an impulse on the cooperation of energy saving and efficiency.
1. Date: September 2008
2. Location: Nanjing
3. Content of the forum:
Invite well-known Chinese and UK companies which have rich practical experiences of energy management contract. Experts will give key-note speeches. Organize key energy consuming enterprises of Jiangsu province to communicate with UK companies.
4. Attendees:
The Economic and Trade Commission of Jiangsu Province will organize government authorities, key energy consuming enterprises and energy conservation service agencies to participate the forum. The attendees will be about 150-200 people.
5. Responsibilities:
(1) The Economic and Trade Commission of Jiangsu Province is responsible for drafting the proposal of “The International Forum on New Energy Conservation Mechanism in Jiangsu”, organizing the forum and inviting Chinese experts.
(2) BCG-SH invites UK companies which have rich practical experiences of energy management contract to give key-note speeches and be responsible for the fund of the forum.
6. Contact:
For more information or to register please contact
Li Dan
Trade and Investement Officer
British Consulate General Shanghai
Suite 301 Shanghai Centre, 1376 Nanjing (W) Road
Shanghai 200040, China PRC
Tel: (+86-21) 6279-7130
Fax: (+86-21) 6279-7388
Email: li.dan@fco.gov.uk
The Introduction of Energy Management Contract
The Energy Management Contract is an energy saving mechanism which is based on the market. The Energy Management Contract is signed between the enterprise (customer) and the EMCO (Energy Management Company) which is efficient to carry out the energy conservation project. EMCO provides entire process services to the customer such as energy saving potential analysis, energy saving project feasibility analysis, project designing, project financing, equipment purchasing, constructing, energy conservation amounts detecting and personnel training, therefore gain profit and achieve rolling development by sharing benefits with consumers. During the contract period, the profit of EMCO is closely related to the energy conservation amounts. The project income is mainly (50%) from the energy conservation benefit. When the contract finishes, the customer can get all the equipments and energy conservation benefit.
Currently, there are three basic formats of the energy management contract projects in China:
1. Energy conservation benefits participation:
EMCO provides fund and entire process services to carry out energy conservation projects with the support of the customer. During the contract period, EMCO and the customer share the agreed energy conservation benefit. After the contract expires, the energy conservation benefit and energy conservation project property belong to the customer.
2. Energy conservation guarantee:
The customer provides the fund and assists to carry out the energy conservation projects. EMCO offers entire process services to guarantee the energy conservation effect of the projects. According to the contract, the customer pays service charge to EMCO, and if the project could not be achieved to reach the informatory energy conservation amount and benefits, EMCO takes the financial responsibility according to the agreements in the contract.
3. Energy management trusteeship:
The customer entrusts EMCO to manage the energy system function and energy conservation reform, also to pay the energy management charge according to the contract. EMCO decreases the energy cost by improving energy efficiency and owns all or part of the energy cost according to the contract.
