The Study Of Energy Management Contracting Financing In China

With the rapid development of Chinese economy, theimprovement of living standards, people are increasingly awareof the importance of energy saving. Especially since the first halfof2013, serious haze swept across most of Chinese, people beganto feel the urgency of energy-saving. The state has declaredmany policies, closed many high pollution and energy consumingcompany, increase the energy saving policy support on the otherhand. China’s pollution problems are gradually easing.EMC is a kind of energy saving service business model, widelyaccepted in developed countries. It has made great contributionto the energy saving. Although China started EMC late, butrapid development of EMCo and practitioners are growth. Moreand more energy companies accept the EMC mode. EMC leadsenergy saving increased in China year by year.EMCo’s financing channels mainly international financialinstitutions to grant or loans, bank loans, lease financing, equityfinancing and PE fund. But the financing way in the dominantposition, is still the traditional bank credit. The characteristics ofbank is the tough conditions, strict review, approval cycle is long,efficiency is low, the small project is difficult to obtain funds.The finite size of lease financing, equity financing do, EMCofinancing road is difficult.EMCo through PE financing is the first in China. PE fundsthrough equity and debt ratio, can effectively control the risks.PE fund give money to EMCo, contribute Chinese energy savingindirectly. This paper analyzed by A EMC fund, combing thevarious financial and management factors of EMC fund,demonstrated by the form of PE funds, can be effective for EMCo and risk control. PE fund may become one of the mainways of financing EMCo, the satisfaction of all parties in thetransaction structure of EMC demand.