Preprint Article Version 2 This version is not peer-reviewed

Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China

Version 1 : Received: 20 April 2018 / Approved: 23 April 2018 / Online: 23 April 2018 (08:08:42 CEST)
Version 2 : Received: 16 May 2018 / Approved: 16 May 2018 / Online: 16 May 2018 (11:14:51 CEST)

A peer-reviewed article of this Preprint also exists.

Ruan, H.; Gao, X.; Mao, C. Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China. Sustainability 2018, 10, 1666. Ruan, H.; Gao, X.; Mao, C. Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China. Sustainability 2018, 10, 1666.

Journal reference: Sustainability 2018, 10, 1666
DOI: 10.3390/su10051666

Abstract

A lack of trust in Energy Service Company (ESCo) is the most critical factor affecting the development of Energy Performance Contracting (EPC) in China compared with other constraints. One cannot easily estimate the energy-saving performance of an EPC project. Under that condition, lack of trust may cause the Energy-Consuming Unit (ECU) to suspect the energy-saving performance promised by the ESCo, thus leaving potentially profitable projects without necessary funding. Currently, specific studies taking an across-projects viewpoint on annual energy-saving performance of EPC projects in multiple subsectors objectively and quantitatively are lacking. This paper studies the regression relationships of annual energy-saving quantity in terms of revamping cost and the regression relationships of annual cost saving in terms of revamping cost. The regression results show that there are statistically significant correlations in the above relationships in the nine subsectors investigated. This is significant for ESCos and ECUs because knowledge on energy-saving performance could contribute to EPC investment decisions and trust relationships between ESCos and ECUs. Then a multiple linear regression model of revamping cost is set up to analyze its influencing factors. The model indicates that the subsector the sample belongs to, financing, registered capital of the ESCo, and contract period have significant effects on revamping cost. Thus, policy implications regarding innovation of EE promotion technology, clarifying ESCos’ exit mechanism, innovation of financing mechanism, and improving the market credit environment for promoting investment in EPC projects are provided.

Subject Areas

energy performance contracting; trust; annual energy saving quantity; annual cost saving; investment

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