Research On The Risk Management Of Energy Performance Contracting Project Of China’s Petrochemical Industry

Energy Performance Contracting(EPC)has been developed rapidly after 20 years since it was introduced into China in 1997.Although there is no lack of experts and scholars to carry out research on Energy Performance Contracting,but the lack of literatures on the development prospects of China’s Energy Performance Contracting.There are few researches on Energy Performance Contracting in China’s petrochemical industry,especially the lack of research on risk management and profit sharing of China’s Energy Performance Contracting project,because it is later that the popularization and application of Energy Performance Contracting in China.The purpose of this paper is to boost China’s petrochemical enterprises to make good use of Energy Performance Contracting,an advanced energy management model,to implement corporate social responsibility for energy conservation and emission reduction.This paper mainly does the following research work: First of all,this paper studies the basis of the theory and the development present situation on domestic and foreign Energy Performance Contracting.According to the actual data about 2004-2015 energy saving revenues and Energy Performance Contracting investments,constructing the prediction model based on Compertz curve,predicts "the 13 th Five-year" Energy Performance Contracting development prospect.Secondly,starting from the implementation stage of Energy Performance Contracting,using the project life cycle as the main line,this paper identifies the risk of China’s petrochemical Energy Performance Contracting project,and establishes the risk evaluation index system;Adopting G1 weighting method and fuzzy comprehensive evaluation method,this paper constructs risk assessment model.Taking Ningxia Petrochemical Company as an example makes an empirical evaluation.Third,on the basis of the research on the risk management of China’s petrochemical Energy Performance Contracting project,taking the same project as an example,the Nash equilibrium equation is constructed and solved,and the proportion of energy saving benefits of both parties is obtained.Finally,according to the risk benefit method and net present value method,this paper calculates the revenue sharing and the time limit sharing of the project,and makes the corresponding evaluation.On the basis of the above research,the main conclusions of this paper are as follows: First,acroding to the prediction based on Compertz curve,"13th Five-Year" period,although the average annual growth rate of the energy saving revenues and Energy Performance Contracting investments in China are slowed,but they are still maintained a growth trend.Secondly,through constructing risk assessment model,taking Ningxia Petrochemical Company as an example makes an empirical evaluation.It is concluded that the overall goal of the project risk is slightly higher in the medium,and need energy service companies to give a little attention to preventing and controlling project risk.In addition,on the basis of the research on the risk management of China’s petrochemical Energy Performance Contracting project,taking the same project as an example,the proportion of energy saving benefits of both parties,the revenue sharing and the time limit sharing of the project are obtained.It is vivificated that the two sides and the whole society can get good returns under the premise of project risk managed and controlled by energy Service Company.In short,Energy Performance Contracting has a good prospect in China.Despite the high risk of China’s petrochemical industry,but through effective management and control,both sides and the whole society can get a good return.