China ESCO Market(中国合同能源管理节能市场概览).ppt

,CEO 360 Degree Perspective,on Hot Topics,ESCO Business in China,We Accelerate Growth.,2,Definition:ESCO Business,ESCO Business,ESCO(Energy Service Company)is a service company engage in a performancebased contract with a client firm to implement measures which reduce energyconsumption and costs.,In China,this business is also named EMC(Energy Management Contract).,Client,CMA,Equipment,Manufacturer,Engineering3,Energy Saving Services,Construction,DesigningPurchasing,GuaranteeFinancing,InsuranceCompanyFinancingInstitution,ESCO,ESCO Business StructureESCO Business Structure,2008,4,ESCO Business Model,1.2.3.4.5.,Road MapMajor Business ModelMajor SectorsMajor PlayersMajor Technologies,3 ESCOs,45 ESCOs,543 ESCOs,1.32,1.22,Unit:ton of SCE/10000 yuan,2005,20100.98,11th Five Year Energy SavingTarget:Reduce 20%of GDPenergy consumption per unit.,1998,2004,2008,2020,China promises 40%-45%emission intensity cut inCopenhagen Climate,Conference,ESCO Business Roadmap in ChinaSupported by the Chinas energy saving objectives specified and strict supervision onimplementation,ESCO business in China is booming,ESCO Number,GDP EnergyConsumption,(Per Unit),Source:Frost&Sullivan5,6,The Client pays for equipment and services ESCO provided.ESCO guarantees energy saving effect during the contract ESCO invests in equipment,shares energy savings with client in contractedperiod,and hands over the equipment to the client after the contract.ESCO contracts energy costs with customer,invests on project and managesdaily energy consumption.The client pays for the contracted costs and service ESCO provided.Financing company purchases equipment and service from ESCO andgenerates revenue by leasing it to the client.ESCO guarantees the energy saving targets within contracted period.ESCO purchases equipment and then lease them to the client and turn over allequipment to the client when the contract endsThe client pays ESCO according to energy saving benefits.Provide energy saving design,energy consumption analysis for client,andcharge by project.The ESCO builds,operates,and transfers energy saving project to the client.The ESCO does not guarantee the energy saving effect.,Guaranteed SavingsShared SavingsContracted Energy SavingsService LeaseFinancial LeaseCMA(Consulting,Monitoring,and Auditing)BOT,Major ESCO Business ModelsSeven models are widely applied,in which shared savings,and guaranteed savingsenjoy the most awareness and recognitionMajor ESCO Business Models and Operation Rules,0.5,0.8,2.0,3.4,5.0,7.5,12.3,21.0,37.0,63.6,2005,2006,2007,2008,2009E,2010E,2011E,2012E,2013E,2014E,ESCO Business GrowthIn the next five years,brought by pressure from carbon emissions targets,soaringdemand in the utility,industry,and building fields,is projected to boost the ESCOmarket to witness a sustained upsurge.China ESCO Market Growth By Revenue,2005-2014,CAGR(2009-2014):,Over 50%,RMB Billion,Source:Frost&Sullivan Analysis7,8,Steel,25%Chemical,14%,onMaterial,11%,Electricity,10%,FerralMetal,5%,Mining,4%Constructi,Textile,3%,Papermaking,2%O&G,2%,Others,24%,Share,Others,11%,10%8%71%,Life RelatedConsumptionTransportationIndustry,Major Sectors Energy Consumption Share(China,2006),China ESCO Business IndustryBreakdown by Revenue,2008,Total=RMB3.0 Billion,Major Industries in ESCO BusinessOver 90.0 percent revenue of ESCO business is generated by Industry,utility andbuilding sectors,which accounted for over 80.0 percent of energy consumption.,Others,Industry,Utility,TransportationBuilding,Source:Frost&Sullivan,Major Participants in ESCO Business(1/3)ESCOs,Sectors,Major ESCOs,IndustryUtilitiesBuildings9,Major Participants in ESCO Business(2/3)CMA Service Providers,Sectors,IndustryEnergy Conservation Technology and Service Center of ShanghaiUtilitiesBuildings10,Major ESCOs,11,Major Participants in ESCO Business(3/3)Financing Institutions,China Utility-Based EnergyEfficiency FinanceProgram(CHUEE),WB/GEF China EnergySaving Project,世界银行/全球环境基金中国节能促进项目,12,Thank You!,Shania Wang(王静晓)Research Manager,+86 21 5407 5780 ext.8615+86 138 1833 6622,S,