LED lighting difficult to open up the market EMC weapon is not profit"

Early in the LED lighting market of high cost, EMC was once considered a weapon to open up the market.

EMC, energy management contract (ENERGY MANAGEMENT CONTRACT, referred to as EMC), is a new market-oriented energy-saving mechanism, its essence is a kind of to reduce energy costs to pay for such business mode of the full cost of energy saving projects. In short, the EMC model, the buyer does not have to pay any additional costs, you can 'zero cost' to replace the new energy-saving equipment.

'EMC model has the advantage of being able to reduce the maximum customer acceptance threshold. 'Shenzhen LED Industry Association executive vice president Gui Shirong told reporters that this is significant in the market development period of the LED industry. In this context, in the face of domestic LED lighting market more than 70% of municipal engineering, EMC model was once high hopes.

But according to this reporter, in the domestic many restricting factors, EMC mode LED lighting market is more 'looks very beautiful. Because of the' two lines of revenue and expenditure of the government 'financial system, so that the EMC in the course of the implementation of the lack of maneuverability. In addition, some areas of the electricity tariff has also led to EMC investment cycle is too long, LED lighting companies lack of enthusiasm.

EMC looks beautiful

In theory, the EMC model can be a good solution to the buyer's financial problems, which are more likely to be accepted by the buyer. Zhang Yusheng, vice president of'LED Lighting Company Hua Ye group, told reporters that due to the LED lighting is the face of the replacement market, in the market development, EMC model was high attention.

According to Zhang Yusheng introduction, usually EMC cooperation mode is divided into two kinds: first, the annual savings in electricity in proportion by the government and enterprises into the yearly return, until the completion of the contract amount, usually in this mode, the execution of the contract period is long; two, the annual savings in electricity, full back to the LED enterprise until now, the contract amount, the payment mode of 'faster, more LED enterprises of all ages.

This is only the basic framework of the EMC model. In the reality of the implementation, there will often be banks and other financial intermediaries involved. 'EMC for the greater pressure on corporate funds, usually difficult to support their own funds. Zhang Yusheng introduction, EMC model in the bank will provide loans for LED companies, 'a mature EMC model, at least by the enterprise, customers and banks to complete three parties'

The involvement of financial leverage, so that a EMC project to start low-cost - which will undoubtedly become a good medicine LED market expansion. Previously, the price of LED lighting products high cost, become a direct obstacle to its marketing. For a time, the EMC model of 'energy' in the ascendant in the Chinese LED market has been constantly enlarged. The reporter learned that the domestic LED lighting industry well-known enterprises, such as KingSun, Huaye group, have launched EMC project.

In April this year, China's first large-scale EMC Alliance launched by the Guangdong green industry investment fund in Shenzhen. The alliance brings together the LED industry chain enterprises, in addition, a number of financial institutions, inspection institutions, construction engineering company, engineering company, bidding companies, law firms, contract energy management services company also joined them.

Green industry investment fund of Guangdong Province chairman Li Xuefeng introduced, 'green industry investment fund' will provide support to the EMC alliance, 'to invest through a fund, not to increase government financial pressure, will be able to get the contract, share contract through the alliance, in order to find the market. '

Electricity and scale game

'look beautiful' EMC model, in reality, but it is a lot of resistance.

'not all projects are suitable for EMC mode. Zhang Yusheng told reporters that the characteristics of the EMC model is to save more electricity, the shorter the payback period of investment projects.

It depends on two factors. The first is the scale of the project, that is, the number of lamps to replace the project, the greater the number, the more electricity saved. But this to some extent, but with the idea of government energy. 'from the point of view of saving, some of the city's street lighting often take the' Lantern 'energy conservation. 'investigation of too many street lamps market, Li Zhijiang, chairman of Shenzhen science and technology to explain, especially in the two cities, every night after zero, street lamps are often separated by a light.

'from a savings point of view, the electricity bill will therefore be reduced by half. However, from the implementation of the EMC model point of view, means that the payback period will be doubled. 'Li Zhijiang embarrassed to think:' for LED companies, the more the place to save, but not suitable for EMC mode. '

Secondly, the electricity tariff is another key variable of the EMC model, that is, the more expensive electricity, the more electricity saved, the more conducive to the implementation of the EMC contract. But in reality, the uneven electricity standards around the EMC model to promote another layer of resistance.

If an area is low, the EMC model is difficult to implement. Zhang Yusheng to reporters' for example, Huaye has investigated a number of cities in Jiangsu Province, the local average tariff of only about 0.5 yuan / kWh, 'compared to Shenzhen about 0.9 yuan / degree high price area, if Jiangsu is to take EMC mode, the investment cycle will be extended twice. In the study of multiple Street project in Jiangsu later, Huaye chose to give up.

In fact, from the point of view of electricity tariffs, because the industrial electricity tariff is much higher than civilian electricity, industrial lighting LED replacement market potential. 'I