The Study Of Energy Management Contracting Model Of GL Company

Recent years have witnessed China’s increasing demand for energy consumption, with respect to the acceleration of industrialization and urbanization, as well as the reformation of general consumption structure. In the meantime, however, the price of conventional energy sources continue to rise, which lead to the overall increase of energy cost in various industries. Unfortunately, this phenomenon has post tremendous pressure on firms’ production costs so far.Energy conservation has become the main trend in today’s global industrial development, hence the Chinese government has put emphasis on the promotion of the energy conservation policy. Yet comparatively, the current situation of China’s energy-saving technology is not quite favorable, which results in the high energy consumption per unit of GDP. Thus, to follow the trend of global and domestic energy-saving campaign seems to be inevitable, with respect to the fact that energy supply shortage and the increasing cost, though. The article mainly discussed the unsatisfactory situations mentioned above, as well as GL’s business practices in details, accordingly. The first part of the management practice basically covered GL’s theory of ’ Energy Management Contract’ and the related researches. The follow-up studies on the theory were properly combined to GL’s current situation, in the hope of analyzing the firm’s operating status, profiting structure and ability, as well as the future prospect. The last part pointed out and analyzed various issues occurred in the operation, the according recommendations were offered in order to improve the firm’s operational outlook.The article proposed that the continuous improvement is able to push GL’s energy management contracting business operations, mainly from the following suggestions. Firstly, GL’s financing capability and financing channels have to be strengthened and expanded. Secondly, thorough researches on different projects are necessary, along with the coordination of the third parties, since they are able to diversify the contract risks. Thirdly, the governmental support should be utilized in order to avoid the policy risks. In addition, it is also critical to develop and implement efficient and effective risk control methods. Besides, the wise management is capable cultivating and exploring talent employees; Last but not the least, the prevalent promotion of firm’s energy-saving services can be regarded as a comparative advantage.