EMC can not solve the fundamental problem of LED lighting industry

China LED lighting industry although the strong momentum of development, but the lack of core technology, innovation ability, market competition disorder and other problems still exist in the industry. Thermal industry suffered the biggest reason for the cold market is not enough to save energy LED lighting, high cost so many LED lighting companies and individuals have the need to stop. Is there a model that can save energy and save money? Contract energy management model (EMC) can play a role in the promotion of LED lighting industry? In this regard, the reporter found in the interview, the promotion process, financing difficulties, vicious competition and other issues gradually emerged. How to solve these problems?

Energy management contract (Energy Management Contracting, referred to as EMC) is a new energy conservation mechanism of last century 70s the rise in the developed countries, its essence is to reduce energy costs to pay for such investment cost of energy saving projects. This model allows users to use future energy savings for plant and equipment upgrades, reduce current operating costs, improve energy efficiency.

The need for tens of millions of dollars to replace the street, the government is powerless

EMC LED mixed mode

LED lighting and contract energy management is the initial combination of the national "ten cities" pilot project started. At that time, only a part of the city to replace the street lights need to spend tens of millions of dollars of funds, no government or municipal departments are willing and able to come up with so much money to do the test. In this case, the advantages of the EMC model is reflected. In this mode, the professional energy-saving technology services company to accept the customer (such business owners) Commission, signed by the energy service contracts with customers, with funds to implement energy-saving projects, to provide customers with the necessary equipment, energy-saving technology and capital all in one service, and obtain the benefits to customers through the savings in energy costs. This approach solves the problem of high investment, high risk LED street lamp demonstration project, but also to protect the production, consumption and the financial interests of the three parties to maximize and minimize the risk, to achieve the "three party government, enterprises and the public" win-win.

Since then, in the process of LED lighting project using EMC model, the state and local governments at all levels have taken active support and encouragement policies.

However, with the "ten city lights" in the development of the project, many problems are highlighted: some LED manufacturers in order to get the project, the implementation period of malicious compression of the EMC project, resulting in its ends, had to take measures to make up for the shoddy; due to the lack of an independent third party to evaluate the energy saving project, user and energy service companies on the energy saving effect is not a breach of the contract; the user or not according to the contract to the energy service companies pay money difficulties caused by energy service companies; energy service companies to provide services for the lack of fixed assets and other reasons it is difficult to apply for loans to banks and other financial institutions financing...... The emergence of these problems, resulting in a lot of energy service companies in a difficult situation.

Market, industry, service three aspects

Some companies in order to get the project, lower prices, compression EMC execution cycle

Since 2009, the Global Environmental Research Institute began to focus on the application of energy efficiency projects, and the LED lighting industry conducted in-depth research. According to the survey and study of the project by the Global Environmental Research Institute, the main factors affecting the development of LED lighting EMC projects in the market, industry, service 3 aspects.

From the market point of view, LED lighting project profit is not particularly high, which is not the key to timely financing. In the EMC model is more successful in the LED lighting project, the project internal rate of return and some even less than 17%, and this yield is also in the EMC contract cycle for 5 years or even longer to reach. Now, some companies will be able to get the project, will promote the contract cycle can be signed for 3 years or even shorter.

Lower the price, the compressed EMC execution cycle way of malicious competition, caused the project to the user that the LED lighting project is a high return and profits, which will further depress the energy service company profits or even living space. Such an industrial environment is bound to cause unreasonable EMC project failure, but also seriously affect the formal service companies and even the survival of energy-saving services.

From the industry point of view, the current domestic LED lighting projects to carry out energy-saving services companies are mostly small and medium enterprises, mostly in the weak position in the market. In the early communication with the owners, the quality of these enterprises are suspected, the owners of their energy commitments can not be fully believed. At the same time, during the implementation of the LED project, energy companies to face new challenges of new technology and products, energy efficiency decreased, the owners default, government tariff adjustments and a series of problems.