The Research Of Z Company Leaseback Of Energy Management Contract

In the past few decades, Chinese economy has been growing rapidly; but, at the same time,the environment has also been disrupted dramatically without proper protection. The environmental issues have drawn great attention of the government and the public. In China’s 13 th Five-Year Plan, protecting and improving the environment is one of the most important topics. Energy Management Contracting(EMC) is one type of service mechanism using marketing approaches to help organizations, involving using energy, to redesign their operations and save energy. However, currently existing energy service companies are relatively small especially in terms of capital size. As a result, how to finance becomes their major barrier. The combination of financial leasing and Energy Management Contracting will some how address this problem. In this article, some ideas that might help firms within this industry will be introduced by analyzing multiple models of Corporation Z using literature research, comparative analysis, case analysis.First, we will provide some basic information of Corporation Z and define some terms such as EPC and leaseback. Second, we briefly describe and analyze some existing model of Leaseback Of Energy Management Contract. Then, some reasons why it is good or bad for Corp. Z to operating Leaseback Of Energy Management Contract will be listed, which shows various potential risks. And this part is far beyond Corp. Z itself, and it can be significant for other firms within the same sector. In a successful case of Corp. Z, some practical methods of Corp. Z controlling the risks can be concluded under some analysis of its financial feasibility and leasing strategies’ design. Last, I make the conclusion including some shortcomings or limitations of these ideas and some practical predictions.In this article, by analyzing Corp. Z, it indicates some potential risks that firms will face when operating Leaseback Of Energy Management Contract and provides some suggestions about management. The author hope this article will help firms in this industry, accelerate the development of country’s energy management and, if possible, contribute to making our lovely country energy-efficient and environmental-friendly.