Focus Greentech Workshop on ESCOs brought together professionals from China and Germany

2014-09-25


On 24 September, econet china brought together Energy Service Contracting companies (ESCOs) and energy-efficient technology and products suppliers from China and Germany to share experience and insights in the ESCO practice in China. The event is organized under the Focus Greentech Workshop Series presented by econet china in an attempt to provide a learning and communication platform for professionals of the green industries by offering workshops of hot “green” topics on the market.

An ESCO is a business that develops, installs, and arranges financing for projects designed to improve the energy efficiency of facilities, and accepts some degree of technical and financial risk in doing so. In China, ESCOs are also referred to as Energy Management Companies (EMCs). As a bridge connecting energy-efficient products and service providers with large energy users in industries, ESCOs can potentially open a big market for a product provider as a virtual extension of its own sales department.

Mr. Wu Jun, Marketing director of Shanghai Energy Service Company of State Grid shared with the participants the mainstream ways of looking for suppliers for ESCO projects and the cooperation models between suppliers, ESCOs and energy users. It also pointed out the main strengths of international suppliers and also their challenges.

While ESCOs are constantly looking for state-of-the-art mature technologies which bring about energy-saving results at low risks, a large number of technology and products providers are still unfamiliar with the ESCO model and many others, particular overseas companies active in China, are often confronted with the dilemma that: even with the right expertise and know-how, they find it hard to get involved in this business model.  

The workshop was thus also joined by a German energy service company Minol which has already successfully conducted ESCO projects in China. Mr. Wu Yanwei, technical manager of Minol introduced how Minol initiated and succeeded in ESCO model while selling energy metering devices in Northern China. “ESCO is the first step for cooperation with our clients. What we eye for is the long term professional energy billing service we continue to provide after the ESCO project is done”.

 

With energy-efficiency become one of the top targets for Chinese government and industries, ESCOs in China have been blooming over the past decade as a bridge connecting energy-efficient products and service providers with large energy users in industries, potentially opening up a big market for product and technology suppliers.

 



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