Research On Financing Of The Application Of Energy Performance Contracting In Energy Efficiency In Buildings

Since twenty-first Century, China’s real estate market has entered a stage of rapid development, and the resulting environmental pollution especially the increase of carbon emissions has become a major problem, at the same time, because of the single energy structure, low efficiency of energy use, caused by coal, oil and other non-renewable energy shortage. In addition, although China does not bear the "Kyoto Protocol" emission reduction obligations, but to become the largest emitter of carbon dioxide, China will face enormous international pressure. In the face of international emission reduction pressure and energy situation at home, take relevant measures have become a pressing matter of the moment. China’s building energy consumption accounts for 1/3 of the total energy consumption in the whole society, the Energy Efficiency in Buildings is imperative. However, the money of the Energy Efficiency in Buildings cannot rely on government funding alone, since the Energy Performance Contracting(EPC)—a market energy-saving mechanism was introduced to China in 1996, it did not get a wide application in the field of the Energy Efficiency in Buildings, the reason is the great financing obstacles.First of all, based on the study of the nature and characteristics of the Energy Efficiency in Buildings, and the features, operation mode and operation process of Energy Performance Contracting, the paper analyzed the necessity and feasibility of the application of EPC in the Energy Efficiency in Buildings and the reasons for financing difficulty of Energy Performance Contracting. Secondly, aiming at the involved financing participants of the application of EPC in Energy Efficiency in Buildings, the paper analyzed the relations of interests, and the decision-making behavior by adopting two simple game model, accounting that the government should take financial subsidies, tax incentives and other economic incentive policies, in order to improve the cooperation positive of Energy Service Company(ESCO); and the Energy Service Company need to strengthen their capacity, reform technology and improve the management and operation ability, at the same time, through the signing of a cooperate agreement with other participants, the total investment funds and the total income of EPC energy efficiency mechanism will increase. Then, based on the investment and financing platform of EPC and carbon quota trading, the paper constructed two kinds of new financing model, analyzed the problems of guarantee mechanism, the rating mechanism and exit mechanism of the model, and put forward the premise, the applicable conditions and guarantee conditions. Finally, the paper put forward proposals for the development of EPC mechanism in the field of the Energy Efficiency in Buildings from the government, the Energy Service Company and the third party evaluation mechanism.