Workshop on "Energy Service Contracting in China and its opportunities for German Technology Providers" proves full success

2014-03-14

Every seat was taken in the German Industry and Commerce's (GIC) conference room as Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and econet china | German Industry & Commerce Shanghai opened their ESCO-Workshop on March 14, 2014. 15 representatives of German companies providing energy services and around 30 representatives of State Grid Energy Saving Companies (ESCOs) from several different provinces in China attended the event.


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"The fact that so many guests have gathered here shows that ESCOs have become a very important feature on China's energy market", commented Christoph Angerbauer, general manager of the GIC in his introductory speech. Matthias Heger Project Director of the Sino-German Energy Dialogue of GIZ followed, stating: "Our goal was to create a market place for energy services with this workshop - the high attendance is the best proof that we have managed." He furthermore called the ESCO-Workshop a great chance for German energy efficiency solution providersto cooperate with Chinese ESCOs.

 

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Christoph Angerbauer, general manager GIC

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Matthias Heger, project director of Sino-German energy dialogue, GIZ

Yan Huaguang, Chief Engineer of the Energy Efficiency Center of China Electric Power Research Institute (CEPRI), gave a brief introduction about Service Systems of the State Grid Corporation of China. Following him, the Director of Marketing of State Grid ESCO (SGESCO), Xu Jieyan, emphasized the importance of ESCOs as energy saving has become more important for the Chinese government. According to SGESCO-figures, 5000 ESCOs were established in China in 2013, generating 500 000 jobs. In total, ESCO industrial output reached CNY 200 billion in the same year. This is a drastic increase: According to official statistics, there were only 160 000 employees working for 537 ESCOs in 2005 (Source: EMCA). Experts estimate that the number of ESCOs in China will grow even further.

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Yan Huaguang, Chief Engineer of the Energy Efficiency Center of China Electric Power Research Institute (CEPRI)

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Xu Jieyan, Director of Marketing of State Grid ESCO (SGESCO)

In total 15 German companies were represented at the ESCO-workshop, all of them leading energy efficient solution providers. Representatives from 20 State Grid Corporation ESCOs came to Shanghai from all over the country especially for the workshop. State Grid Corporation is the world’s largest grid company, supplying 1.2 billion customers with electricity and owning 28 ESCOs. In the first three quarters of 2013 SGCC ESCOs implemented more than 430 projects, generating CNY 1.5 billion of revenue in every province of China.

ESCOs install energy efficient infrastructure for a host company and arrange the financing themselves. ESCOs usually operate via Energy Performance Contracting. In the most common form of contract - the Shared Savings Contract -the host company returns a share of the cost savings from the project to the ESCO. After the contract has ended, the assets are transferred to the host company, usually free of charge. ESCOs carry out most of their projects in the industrial sector (70 %), yet they also provide technology for energy efficient building and transportation. The Chinese government has recently supported the creation of ESCOs in order to achieve the energy saving goals set in the 12th Five Year Plan (2010-2015). Due to the relatively young Chinese ESCO-market, some ESCOs still lack know-how about the latest technologies and services in the field of energy saving.

The attending German companies therefore presented the technologies they offer, reaching from hybrid boilers over waste heat recovery to water saving techniques. The speakers included representatives from Alcion (smart energy systems), Arqum (environment management),Bosch (heating technologies, innovative software), Dürr (paintshop systems engineering), energydesign (energy design services), Entech (energy and environment data management), Idinvest (independent private equity manager), Lios (temperature sensing systems), Sto (EIFs systems), Steinel (intelligent lighting), Tüv Süd (eertification & testing)), Urimat (waterless urinal), Warema (sun shading system) and Voith (energy optimization). The event ended with an open discussion.

 

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