Introduction of Energy Management Contract (EMC) for LED Lighting 1.2 | Page 3

Operating Procedures of EMC

EMC provides customers with energy conservation service in the following procedures

1.Energy sources audit

EMC will evaluate various energy conservation measures according to the situation of the customers and mensurate the company’s present energy consumption, then it will point out where the potential of energy conservation lies and will forecast the amount of energy saving of various of energy conservation measures available.

2.Energy conservation project designing

According the result of the Energy Sources Audit, EMC will put forwards the schemes and suggestions on how to improve energy efficiency and cut energy cost with mature technology, which is different from the replacement of individual equipment or the selling of energy conservation products and technology. If the customers accept these schemes and suggestions, EMC will do the project designing work for them

3.Negotiation and subscription of energy management contract

On the basics of the energy sources audit and schemes of transformation, EMC will negotiate with customers about energy conservation service contract. Usually, since EMC bears the most part of the risk, it will enjoy the major part of the profits made by the projects within the contract period (usually three years), leaving the small part to the customers. The customers will gain the whole after the expiration of contract period. Therefore, EMC is a mechanism that benefits both sides, a win-win mechanism.

Operating Procedures

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