《Energy Management Contracts in》.pdfVIP

Energy Management Contracts in China: The Legal Aspects Dr Carl Hinze, Senior Attorney Dorsey Whitney LLP, Shanghai Office ESCO Business 2 U.S. ESCO Market • U.S. ESCO market over 30 years’ old • Approx. US$6bn industry • U.S. legislation injected roughly US$11bn in incentives into ESCO market • Market to reach US$40bn by 2013 3 China ESCO Market • Chinese ESCO market started in 1997 but still getting moving • Chinese EPC project investment: – 2005: RMB 1.3bn (approx. US$200mn) – 2010: RMB 2.9bn (approx. US$450mn) 4 ESCO Business Models 1. Build-Operate-Transfer 2. Design/build Construction Contracting 3. Energy Performance-based Contracting • Shared Savings Contract • Guaranteed Savings Contract • Energy-cost Trust Contract • Financing Lease Contract 5 Build-Operate-Transfer Contract Equipment Supplier Purchase Energy Outsourcing ESCO Host Savings Return 6 Shared Savings Contract Loans Financial Institution Equipment Supplier Host ESCO Purchase/Lease Savings Return Saving Return 7 Guaranteed Savings Contract Loans Financial Institution Consulting Fee Ho