Practice And Discussion On EPC Transformation Mode Of FRDZ Company

FOR the past few years,the rapid development of China's urban construction,much attention has been paid to the excessive energy consumed on urban road lighting,However,the advantages of LED street light products have made this kind of products the best choice for reconstruction of city road lighting system.Along with the progress of the "ten city ten thousand lights" project,which is launched by ministry of science and technology,some cities have already used EPC mode(which is also called Energy Performance Contracting)to implemented LED street lighting.In this paper,the author,who is from FRDZ company and is the leader for the EPC project,relied on the advantage of listed state-owned enterprises,looks into the very details of the questions from launching an EPC project,and provide some insightful and meaningful suggestions on how to operate an energy saving enterprises.The paper is innovative in the sense that the idea comes from a real project,since the author is now taking charge of a LED energy-saving reform project,which takes place in Mingxi,Fujian.In this paper,the author provides a detailed introduction of how this EPC project carried out,how the contract has been signed,the problems,the experiences,the economy and social benefits,and the potential welfare gain from the spill over of the project.Meanwhile,the author contrasts between the advantage and disadvantage parts of using EPC mode to reform LED lighting in city lighting system,and provide his own points.Together with the author's experiences and his thoughts from the projects,he believes that the obstacle when launching an EPC project will always encounter is,the project will hurt the benefits of officers in the administrative of local lighting system,which will lead to low government participation rate.However,the PPP mode(which is also called Public-Private-Partnership mode)can made the government to fully engaged into the project,and form the company together with private firms,to share the risks and the revenue.By using this PPP mode,the government will no longer play a negative role in the reform of the road lighting system,and made it possible that the reform can transfer from the EPC mode to PPP mode.The author hopes this paper can make some contribution to the energy-saving reform within the province,and,across the whole country.