Research On Multi-level Financing Model Of EPC Projects Based On Investment And Finance Trading Platform

With the change of global climate, people become more aware of the importance of energy conservation and emission reduction. In order to achieve the goal of saving energy and reducing emission, the policies of conservation and transformation should be adopted to make effective use of energy and to solve the urgent energy problem. As a new mechanism of energy conservation and emission reduction operated by market, EPC, or Energy Performance Contracting is widely applied both domestically and internationally. At present, its feature of making investment first and gaining profit later makes financing become its innate problem. EPC has a series of problems, such as inadequate financial innovation, single financing channel, ineffective collateral in loans, high financing risk, etc. Those problems have severely restricted the development of EPC.According to the research findings in relevant documents, the innovation of financing model is the key in the solving of EPC financing problem. However, in the present financing models, most of them are improved on the basis of traditional financing channels and external implementation environment, lacking its innovation of financing model’s combination with the present investment and financing transaction platform. From the perspective of EPC financing channel innovation, this thesis tries to construct a multi-level financing model of EPC project on the basis of investment and financing transaction platform, with an aim to realizing capital raising for EPC project in a better way.Firstly, this thesis gives an overall description of domestic and foreign EPC research projects and reveals the causes of EPC financing difficulty. At the same time, it deeply analyzes the operating features and process of EPC, emphatically introduces the establishment background, objective, transaction process and rules of financing transaction platform. Besides, it elaborates the theoretical basis of the financing transaction platform establishment, namely asset securitization and future usufruct securitization and proposes a multi-level financing model of EPC project on the basis of the securitizations, with an aim of providing a new idea for solving EPC financing difficulty. Then, this thesis analyzes the feasibility of EPC multi-level financing model and three innovative financing models including foreign super ESCO, SPE and project management companies as well as learns from them. Next, this thesis formulates transaction principles for the design of multi-level financing model and constructs the framework of EPC multi-level financing model, which can be divided into three categories: first-level market, second-level market and third-level market. It then proposes two core problems of EPC multi-level financing model: financial instrument innovation and asymmetry information. And the thesis proposes three financial instruments of EPC multi-level financing model, namely future usufruct for energy conservation, revenue bond for energy conservation and carbon trading. Then, it roughly introduces the applicability of three financial instruments. At last, it conducts research on the asymmetry information of multi-level financing model of EPC project under the investment and financing transaction platform and elaborates the pattern and causes of asymmetry information under the multi-level financing model of EPC project. Besides, it analyzes the subject, object and their environment of asymmetry information and proposes the strategy of lowering asymmetry information —— relationship financing.