Energy Management Contract is a contract signed between ESCO and the enterprise. The aim of EMC is to provide comprehensive energy saving services, help enterprise save energy & reduce consumptions, and share the benefits between each other.
Advantages of EMC Project:
1) Less risk and more benefits. On one side the customer no need to provide the project implementation capital and take the technical risk, on the other side it will enjoy the benefits from energy cost reduction and the equipment provided by ESCO.
2) High energy saving efficiency. The efficiency of EMC project normally is among the range from 5% to 40%, under certain circumstances it may be over 50%.
3) Improvement on customer’s cash flow. Since the energy saving service provided by ESCO is capital-and-risk free for customer, thus it will not affect customer’s cash flow status and customer could put the capital into other high payback fields.
4) Improvement on scientific management. Based on the EMC service, customer could obtain the professional knowledge and energy management experience, which could enhance the staff quality and promote the internal management level.
5) Improvement on customer’s competition force. After EMC project establishment, the customer’s expenditure on energy will be less than before, the entire cost of product getting lowered, improving the environment quality, building a green image for the enterprise at the same time, finally the competition force getting promoted.
6) More professional on energy saving. The EMC service will be provided by a professional ESCO, which is more experienced to offer the system solutions.
7) More secured. ESCO will guarantee the total energy saving value, which will ensure the energy cost reduction after the EMC project implementation.
8) Short payback period. The investment is large, but the payback period is short. Viewed from the implemented projects, the average payback years is less than 3 years.
