ESCO Committee of China Energy Conservation Association (EMCA) Using ESCO to drive private sector investment in efficient cooling ---EPC & ESCO development in China ESCO Committee of China Energy Conservation Association (EMCA) www.emca.cn

Contents ESCO basic business models ESCO practice and growth in China Successful case of ESCO for air conditioner

Energy Service Company (ESCO) ESCO makes profits by providing series of professional services on energy efficiency Energy audit Project design recruitment engineering trainings Project financing M&V operation

Energy Service Company （ESCO） Financial institutions Design company Guarantee company ESCO Equipment supplier customer ECP Contract Engineer company Insurance company

3 basic types of EPC investment model Shared saving Financing ESCO Financing Guaranteed saving Financing Co-financing Customer EM trusteeship

Energy Performance Contracting Market-based instruments New way of project financing Sales of service in addition to products/technology

ESCO practice & growth in China Number of ESCOs: 6137 in 2017, 5.5% growth of 2016 图 2 2011-2017年节能服务公司数量

ESCO practice & growth in China Revenue of ESCOs is 62.8 billion USD in 2017, 16.3% growth of 2016 本模板由微信公众号欢乐PPT发布，请勿私自传播；更多模板和教程，请关注微信公众号：欢乐PP 2011-2017年节能服务产业产值

ESCO practice & growth in China Energy saving by ESCOs is 381.2billion tce /1033.1 tons of CO2 emission reduction

ESCO practice & growth in China EPC investment is 16.62 billion USD, 3.7% growth of 2016

Types of EPC——Number of projects

Types of ESCO financing （四）产业融资环境持续向好 产融合作形成共赢局面 项目融资规模有所突破 银行信贷仍是首选

Most common technical solutions Top 10 Energy Management System Waste heat recovery Air-conditioner Motor system Lighting system New/renewable energy boiler./furnace Energy system improvement Energy supply station construction Heating system AC: 50% of electricity consumption in some large buildings in summer

Why ESCO: solution provider Technical solution ESCO ESCO Energy User Financial proposal

Why Air conditioner: the biggest energy consumer

Cases (1) Building info: Zhichun Plaza, total 30373M2,baseline:981.72tce After: energy consumption: 522.04tct Energy saved: 459tce, 1147.5tons of CO2 emission reduction Annual benefit: 1.45M CNY Contract: EM trusteeship contract, 25 years, 1st 5 years-ESCO only, shared saving afterwards Project investment: 6.45M CNY with ESCO investment only

Cases (2) Building info: Yuanyang International Center, 230KM2, baseline, 2179.7tce After: energy consumption: 1706.1tct Energy saved: 473.6tce, 1184 tons of CO2 emission reduction Annual benefit: 1.21M CNY Contract: shared saving + guarantee saving contract Project investment: 2.9M CNY with ESCO investment only

Cases (3) Building info: Ningde New energy Park (new), total 397138M2, estimated energy consumption is 6803KW.h, After: energy consumption: 5091.1kW.h Energy saved: 1711.9kW.h, Annual benefit: 10.27M CNY Contract: EM trusteeship + guarantee saving contract, 10 years Project investment: 23.96M CNY with ESCO investment only

Cases (4) Building info: Xingtai Tianyi Plaza, 183000M2, baseline: 1452978kW.h+ 1030772m3 gas After: energy consumption: 1131374kW.h + 814309.9m3 gas Energy saved: 394tce, 985 tons of CO2 emission reduction Annual benefit: 930k CNY Contract: shared saving contract for 8 years Project investment: 1.65M CNY with ESCO investment only

Cases (5) Building info: Tianjin Liyun Hotel, 30771m2, baseline 2160 tce After: energy consumption: 1651 tce Energy saved: 509 tce, 1272.5 tons of CO2 emission reduction Annual benefit: 1.78M CNY Contract: shared saving + guarantee saving contract for 6 years Project investment: 7.29M CNY with ESCO investment only

About EMCA-mission Promotion of EPC Support ESCO SD of EE Industry

About EMCA EMCA Consulting & reporting Capacity building activities Policy study EMCA marketing Information dissemination Technical assistance

“Global Energy Efficiency Smart Tour ” Programe Provide China ESCOs a great access to global leading energy efficiency technologies, solutions and insights. Meantime, foreign enterprises and relating organizations has took advantage of this plan to get better understand of China ESCO industry to foster cooperation opportunity

As far as now , the program has covered the U. S As far as now , the program has covered the U.S., Japan, Germany, France, Denmark, Finland……

Thank You ! Zhao Ming ESCO Committee of China Energy Conservation Association (EMCA) Tel：010-63600181 Fax：010-63600459 E-mail：zm@emca.cn