Contract energy management model is difficult to promote LED companies are looking forward to breaking

A household 9-watt LED lamp, the price is 200 yuan; a LED street light, the price is up to tens of thousands. In the early days of high cost of emerging LED lighting market, EMC (contracted energy management) was once considered a "tool" to open up the market. However, the reporter recently found that this "tool" has repeatedly lost in the promotion of LED, and the development of the industry has not broken.

The industry is optimistic about the international model

In 2011, the year of the “Twelfth Five-Year Plan” began, and energy conservation and emission reduction became the highlight of the region. Among them, LED promotion is of great significance. “In low-watt lighting, LED lamps of the same brightness can save up to 90% compared to conventional lamps,” said industry insiders.

However, the high price has become a stumbling block to market promotion. Under this circumstance, the EMC model prevalent in foreign countries is favored by the industry. “Simply, the object of LED transformation does not need to pay for it. We will help you to change it. In the future, we will pay it in installments from the saved electricity bills.” Feng Jun, chairman of Shenzhen LED Industry Association and Yi Te Lighting, introduced At present, more than 70% of LED retrofit projects in China are municipal projects, which are large in scale and costly, and are most suitable for EMC mode.

"In theory, the EMC model can solve the buyer's funding problem well and is more easily accepted by the buyer." Feng Xiaoxiang, executive director of CLP Lighting, said that the EMC model was once expected to be quite high in market expansion.

Generally, there are two types of EMC cooperation modes: First, the annual electricity savings will be divided into two parts by energy-saving transformation, and will be returned year by year until the contract is completed. The contract execution period is longer; the second is the annual electricity savings. The amount is returned to the LED company until the contracted amount. This mode has a fast return rate and is favored by LED companies.

"Free energy saving" encounter bottleneck

However, the beauty in theory is not equal to the smooth movement in reality.

“Where does the initial capital of the transformation come from? LED companies that want to eat big cakes often have headaches.” Feng Jun said that according to the EMC rules, the money will be paid out by LED companies, but millions of dollars will be invested in the short-term without any return. Fortunately, two strokes said that if several projects are started at the same time, the amount of money will be spent, and which company can't afford it.

I don’t have money, I can’t find a bank loan. There are still LED companies that are helpless: “Many LED companies belong to the high-tech enterprises that are founded soon. Most of them are in the initial stage, and the new technology that is not widely accepted by the market is only available. Future charging rights and cash flow, while banks value assets such as land and factory buildings. This makes it difficult for LED energy-saving enterprises to make loans."

In developed countries, most of EMC's energy-saving investment comes from loans, and insurance companies have special types of insurance to help companies resolve risks and prevent customers from defaulting on arrears.

"The actual situation of the client is different, it will also restrict the promotion of EMC." LED business people with many years of experience in EMC promotion said that there are often three situations: First, the user is too economical, like some second-tier cities in China, the street lights are separated by illumination. This means that the EMC model has a long payback period. Second, the electricity bill is low, and the electricity bill is paid back. The cycle is of course long. Third, some areas with sufficient financial resources have little interest in large-scale LED lighting renovation. All these kinds of things, causing "energy saving without spending money" can only be "shaving the head and picking up a hot one."

Municipal engineering implementation is more difficult

At the beginning of EMC cooperation, there was a lot of obstacles, and after the cooperation really started, there was also a lack of smooth sailing.

At present, in the field of domestic LED lighting, more than 70% of the market is municipal lighting engineering. Although the State Council has repeatedly proposed to promote the development of LED and other energy-saving and emission-reduction industries, EMC implementation is still struggling in the LED lighting transformation market led by the grassroots government.

The government's various departments treat the EMC model, which is a subtle attitude. A realistic problem is that the current financial system of the government department's “two lines of revenue and expenditure” is specific to any department, and the “export” of its electricity expenses is in the financial department.

For example, industry insiders say that a local municipal agency's street lamp has an annual electricity bill of 1 million yuan. After the introduction of LED street lighting, it will be reduced to 200,000 yuan. However, according to the financial system of the “reporting and sales” of the financial department, the municipal department cannot save 800,000 yuan of energy-saving benefits. Take it out and share it with LED street light companies. In this way, not only the investment of LED street lamp enterprises can not be recycled, but also these municipal units have no enthusiasm. It is understood that the company intends to use the EMC model to open up the municipal engineering market, but eventually abandoned because it could not find the counterparty fee payment unit.

In addition, due to the long implementation cycle of the EMC project, changes in government agencies and personnel during the period also bring uncertainties to contract execution. In this context, banks do not dare to lend easily.

Even EMC collaboration with financially flexible corporate customers is not easy. After the completion of the transformation, some customers randomly arbitrarily connected other power projects on the lighting line, resulting in no obvious or no power saving effect, and the return on investment is far away.

The key to breaking the bureau is government coordination

"EMC's implementation in the LED lighting market, there are not many successful domestic samples." Many LED executives said that how the government unified and coordinated the implementation of EMC projects is the key to the successful implementation of EMC. "As long as the government plays a leading role, it will set up some credible platforms, and further implement preferential policies for EMC projects of LED street lamps in terms of financing and taxation, and support them in a multi-pronged manner. The road of contract energy management will continue to move. flat."

It is gratifying to note that China's first large-scale EMC alliance, initiated by the Guangdong Green Industry Investment Fund, has settled in Shenzhen. The alliance brings together a number of upstream and downstream enterprises in the LED industry chain, a number of financial institutions, testing institutions, engineering design and construction companies, tendering companies, law firms, energy contract management services companies. “Shenzhen can have a bigger role in LED promotion.” Feng Jun said that LED indoor lighting technology is more mature than outdoor lighting. If Shenzhen can promote LED transformation in public buildings such as civic centers, it can serve nearly 3,000 local upstream and downstream. Enterprises create more market opportunities.

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