The EMC model that has been successfully operated in foreign countries for decades has encountered unacceptable conditions in China.
Recently, in a tunnel lighting project in Chongqing, the bidding party's EMC model requiring LED lighting was collectively opposed by six winning companies including Zhonglong, Shanghai Sansi and Philips.
EMC mode, that is, LED lighting purchaser "zero cost" to replace LED lighting equipment, and use the energy saving after saving energy to save the investment and profit business mode of LED production enterprises in the later batches.
Yang Bo, sales manager of Guangdong Zhonglong Transportation Technology Co., Ltd., one of the winning bidders, said in an interview with China Economics and Informatization: "We did participate in the negotiations at the time, but the negotiation process was very difficult, if it was submitted according to the bidding party. Condition we have no profit to earn."
With the advancement of the "Ten Cities and Ten Thousand Miles" project and the rapid development of the LED lighting industry, in order to ensure the safety of project projects, the contract energy management mechanism (EMC) is increasingly required to be used in LED lighting projects.
What problems have occurred in the EMC model of LED lighting that has been successfully operated abroad for decades? Have you encountered any acclimatization?
EMC mode "looks beautiful"
With the promotion of LED lighting and the introduction of the state's support for EMC development, EMC is feasible and has become the focus of discussion in the industry.
The EMC model is highly regarded by the Chinese government for its win-win advantage. In April this year, the General Office of the State Council officially forwarded the Opinions of the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China, and the State Administration of Taxation on Accelerating the Implementation of Contract Energy Management to Promote the Development of Energy-Saving Service Industries.
What is the EMC mode? EMC is the English abbreviation of EnergyManagementContract, namely contract energy management, which is a new energy-saving mechanism generally implemented in developed countries.
"The essence of this model is to save energy costs by reducing the total cost of energy-saving projects. To put it bluntly, lighting purchasers can change LED lights at 'zero cost'." Chen Wei, deputy director of the EMC Alliance Management Office of Guangdong Province According to a reporter from China's economy and information technology, this is a win-win model. The threshold for high cost of LED lighting market has been greatly reduced, which has created conditions for the promotion of new energy-saving technologies such as LED lighting.
Referring to the advantages of the EMC model, Chen Haoru has a few treasures - through the EMC model, the government can complete the transformation of the urban public lighting system without input or investment; after the completion of the public lighting system transformation, the local government's emission reduction targets will contribute 3 per year. %~5%; the saved electricity bill is used as the return on investment, the electricity fee is converted into local GDP, and the local tax is brought; the advanced energy-saving products are adopted to reduce the normal maintenance cost of the public lighting system allocated by the government budget.
Chen Wei also said that the biggest problem in implementing the EMC model is that it faces three barriers: the first is technical barriers, which include not only the design and application of lamps, but also some technical aspects of future product insurance, financial support, etc. Because, in the EMC model, LED manufacturers are only one of all the links, it is very difficult to bear the pressure in all links; the second is the credit barrier, the return on investment through EMC model is a long process It usually takes 8 to 10 years. This is different from direct government procurement. How to solve the credit problem in long-term investment is an important condition for implementing the EMC model. The third is the barrier of funds. The EMC model is a kind of A one-time investment model with large investment and long payback period, then whoever pays the bill and who solves the capital investment problem becomes the most critical factor in the EMC model.
The reporter learned that most of the traditional LED sales models are LED lighting purchasers paying part of the project first. After the LED company receives the payment, the LED lighting purchaser will pay the remaining amount after all the projects are completed and passed the acceptance. Under the constraints of many factors, such a beautiful EMC model does not seem to be favored by LED manufacturers.
A number of LED lighting agents have expressed reluctance to participate in the EMC model. An LED street light dealer who asked not to be named told the reporter of China Economics and Informatization: "EMC mode makes LED manufacturers' profit margins not only take up a lot of money, but also the recovery cost is slow, and a series of operation and maintenance is needed later. Complex services such as monitoring, which is much more troublesome than the previous traditional model. So we are not willing to participate."
"The emergence of the EMC model has lowered the threshold of LEDs, making the LED market better." Xiong Haiyan, chief engineer of Fengguang Power Technology Co., Ltd. said.
But at the same time, he also raised the question: After changing the LED street light for the lighting users, the way to withdraw the funds is to enter the company's account in batches through the monthly electricity savings for the customers. In the long payback period, LED street light manufacturers are also responsible for product maintenance.
"As a provider of LED lighting equipment, we also need to pay attention to services, which adds a lot of cost to us and complicates the process. If we have projects all over the country, do we have to establish service teams everywhere?" "" Xiong Haiyan said.
New model suffers from old business
In the reporter's investigation, almost all LED manufacturers mentioned the EMC model has inexhaustible difficulties.
Li Jianqing, sales manager of Guangzhou Zhengben Semiconductor Lighting Products Co., Ltd. told reporters: "We are also applying the EMC model in the sales process. There are several talks at present, but we haven't talked about it. There are differences in the distribution of energy-saving benefits. It is more difficult to talk about."
Li Jianqing also added: "Compared with the dealer channel, the proportion of customers in the EMC mode channel is very small. Many people are still unable to accept the EMC model. We have two companies in Hong Kong that are relatively mature in this respect, but Since the climate of the domestic EMC market has not yet formed, we have very little business in this area in the Mainland. However, our partners are still very optimistic about the Chinese market and are willing to invest in this area."
"But now the EMC model has not yet invested by the national government. We have to bear all the funds, which puts us in a lot of risks: First, the return cycle is too long, generally takes 7-8 years, the daily routine of this LED device Maintenance will consume a large part of our funds. Second, the initial investment is too large. We are private enterprises. The funds invested will become dead money, which will greatly reduce our liquidity. Third, there is little financial support in the country. In addition, the national standards for LED lighting have not been set, which makes the LED lighting equipment on the market mixed and mixed. This leads us to be more cautious when participating in the EMC model." Li Jianqing explained.
"The current EMC model has many shortcomings. We are not willing to do this model. Because of the EMC model, our company has no profit. At the same time, the interest relationship in the EMC model is more complicated. At present, we have not clarified it." If so.
In the face of many risks, Li Jianqing said frankly: "At present, the operation of the domestic EMC model is still in its infancy, and it is still difficult to implement. The LED manufacturers I know are not willing to adopt this model. At the same time, a contradiction is formed. Some local governments are keen on the EMC model, and the EMC model is used as a hard indicator in the bidding process, which has discouraged many companies."
For the cost of post-maintenance, Li Jianqing also has his own opinion: "We are currently using foreign chips, so the damage suffered during the implementation of the EMC model is relatively small, but some companies use domestically produced, and the losses are unknown. In the long contract period, LED will produce light decay, if it is changed, it will increase the cost. The foreign chips we use will relatively extend the light decay period to achieve cost saving."
Chen Wei said that in order to solve these three barriers in the development of the EMC model, Guangdong Province set up a green industry investment fund, the fund invested 25 billion yuan to solve the most critical financial barriers; through the government guidance plus insurance, the introduction of guarantee institutions, to solve the credit Barriers; Guangdong Green Industry Investment Fund established the EMC Alliance under the guidance of the relevant departments of Guangdong Province. It includes raw material suppliers, equipment manufacturers, financial institutions, testing institutions, insurance companies and other related units to form a complete closed loop. It provides a strong guarantee for the realization of the contract energy management model, thus solving technical barriers. It is believed that the contract energy management model will soon be implemented in Guangdong Province and even across the country.
The investment of the fund and the establishment of the EMC Alliance will be able to adapt the EMC model of the unacceptable situation to the domestic environment. We will wait and see.
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