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Energy performance contracting model to promotion LED Pan-breaking Business Council

A home LED lamp 9 Watt, price 200 Yuan, a LED light, prices as high as tens of thousands of dollars. Early in the emerging market for LED lighting of high costs, EMC (energy performance contracting) were once considered to open up the market for a "weapon". However, this reporter recently found that this "weapon" in the popularization of LED failure, industries cannot break.

Industry optimistic about international models

2011 is "Twelve-Five" the first year of, energy-saving emission reduction throughout the play, which LED the promotion of great significance. "In the low-watt lighting, the same brightness than conventional lamps and energy-saving LED lights up to 90%. "Industry insiders said.

High price, however become a stumbling block to marketing, in this case, EMC, prevailing mode is the industry's good led lights abroad. "Simply put, LED transformation object does not need the money, we help you change, from savings in electricity charges paid in stages in the future we can have. "Shenzhen LED Industry Federation, Feng Jun, Chairman of ETE.CN lighting introduced, now more than domestic 70% LED retrofit project is the urban engineering, large scale, at a cost of more than, the most suitable EMC pattern.

"Theoretically, EMC model solved the buyer's funding, more easily accepted by the buyer. "CLP Lights Executive Director Feng Zhenxiang said, in terms of market expansion, EMC model at one point hope was high.

Usually EMC cooperation model is divided into two: one is to an annual saving of electricity, proportionally by both energy-saving transformation of into, returning year after year, up until the completion of the contract amount, contract performance period longer; the second is the annual savings in electricity, in full and returned to the LED business, up to the contract amount point. This model back to the faster, more LED enterprises of all ages.

"Free energy" encounter bottlenecks

In theory, however good, is not the same as the reality of private not preclude.

"Initial funding for the reconstruction of where it came from? want to eat cake LED companies often headache. "Feng Jun said, according to EMC rules agreed upon, the money for the LED business, but tens of millions of short-term inputs without anything in return, a sum of two said that if you start at a couple of projects, volume flow of the day, which also will be too much.

Themselves have no money, looking for bank loans it work? has LED companies are still table but "many LED enterprises are creating near high-tech enterprises, mostly in early-stage, transfer is not acceptable to the market a wide range of new technologies, with future subscription rights and cash flow, which counts is the land, factories and other assets. As a result LED energy-saving enterprises loan difficulty. �

In the developed world, EMC energy efficiency investments are mostly derived from loans, specialized insurance and insurance companies to help businesses resolve risks, prevent customer defaults into fees are in arrears.

"Client's actual condition, would restrict EMC's promotion. "Has years EMC promotion experience of LED Enterprise persons said, often has three species situation: a is user too savings, like domestic some second-line city, street lamps is interval way lighting of, this on means with EMC mode of investment returns period long; II is tariff originally on low, by saves of tariff to returns, promotional gifts cycle course long; three is some financial ample of area on mass LED lighting reconstruction interest is unlikely to. All these result in "no cost energy-saving" can only be "shaved basket one ' s own wishful thinking."

Municipal engineering more difficult

EMC obstacles at the beginning of cooperation with all cooperation after real, a rare success.

Currently in the country field of LED lighting, more than 70% market is the urban lighting project. Despite repeated under the State Council to vigorously promote the development of LED and other energy-saving emission reduction industry, but at the grass-roots Government-LED lighting retrofit market, EMC implementation is still struggling.

Government departments deal with EMC model, can be described as delicate. A practical problem, the current Government departments "separation between revenue and expenditure" of the financial system, specific to any one Department, the electricity charges of "export" in the financial sector.

People in the industry, for example, Local municipality Streetlight electricity 1 million yuan per year, the introduction of LED street lights retrofit later reduced to $ 200,000, according to finance department "accountable" financial systems, $ 800,000 in the municipal sector is unable to save energy-saving benefit of sharing out and LED street lamps. In this way, LED street lamps not only corporate investment cannot be reclaimed, and these services units have no enthusiasm. It is understood that the company planned to develop municipal engineering market with EMC mode but foregone due to the payment of counterpart units could not be found.

In addition, because the EMC project implementation cycle is longer, government agencies and personnel changes over the period, also bring uncertainty to the contract execution. In this context, the Bank was not easily lend.

Even if EMC cooperation with financial flexibility for enterprise customers, is not easy. Some customers after the transformation is complete, random lighting line in privacy on other electrical projects, resulting in energy-saving effect is not obvious or even no, return on investment is in sight.

Is the key to breaking the Government coordination

"EMC introduced in LED lighting market, samples of domestic success also is limited. "A number of LED executives, how can the Government coordinate EMC project implementation, is the key to successful implementation of EMC. "If the Government is playing a leading role, the formation of a credible platform, further in such areas as finance, taxation imposed on EMC project LED Street lamp corresponding preferential policies, multi-pronged support road of energy management contract will go smoother. �

What is gratifying is that currently consists of green industry Investment Fund launched in Guangdong Province of China's first large EMC Alliance has settled in Shenzhen. The Alliance brings together LED industry chain downstream companies, financial institutions, testing, design and construction of Enterprise contract management, tendering companies, law firms, energy service companies. "Shenzhen LED the promotion can be greater. "Feng Jun, now more mature than outdoor lighting LED interior lighting technology, Shenzhen citizen Center in public buildings, such as promotion of LED retrofit, to tour up and down for nearly 3,000 local enterprises to create more market opportunities.

author:Christian Gory,’s commentator

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Category: electronic
Tagged: promotional gifts