Study On Legal System Of Energy Performance Contract In China

Energy Performance Contracting (EPC) is a new type of energy-saving mechanism in market operation, which mainly includes three types: efficiency benefit sharing, energy-saving assurance and energy expenses entrusting. To energy consumers, this mechanism holds the dominant position in financing, risk control and technical services. The EPC is a mutually beneficial, comprehensive and long-term civil contract, which belongs to nameless contract as specified by Contract Law. Energy management companies, as the subject of EPC, are those business entities that satisfy necessary qualifications for EPC and of which the business scopes are to provide professional energy-saving services.The EPC has achieved considerable development since it was introduced to China in the 90's of last century. But it is currently facing problems such as shortage of regulations in energy management industry, difficulties in energy service financing, reputational risks in EPC projects, failure in promoting existing fiscal and tax system, as well as insufficient consensus on energy management contract etc.The current legal system of EPC in china ,making up with the legal system of surport to EPC and the legal system of EPC trades,is designed to promote the development of EPC,to promote energy conservation with market mechanisms.The established principles of the system areinsisting on market mechanism and surport to the development of EPC.The system has defects such as lower level and insufficient norms,lock of norms of EPC trades,singleness norm object,and lack of fiscal reform.Typical laws and policies of EPC have been established on many countres,including United States, Canada, Japan, Korea, some concrete aspects of witch have the model value to the legal system of EPC in china.In order to improve the legal system of EPC in china, this system should be written into Energy Law in the future. legal system of surport to EPC and the legal system of EPC trades should be improved,and the legal system to protect the interests of energy consumers should be established. Local legal of EPC should be increased,and the role of guild on EPC trades should be treasured.