Lin Zhaojing: Using EMC mode to brighten cities in Guangdong
——Interview with Mr. Lin Zhaojing, Guangdong Green Industry Investment Fund
With the rise of the LED industry, a brand new term “contract energy management (EMC)†has gradually entered the field of vision of the Chinese people. The names of some energy-saving service companies have also frequently appeared in the media. At the end of last year, the Guangdong Provincial Green Industry Investment Fund (hereinafter referred to as the “Fundâ€), which was funded by the Guangdong Provincial Government with a capital of 50 million yuan and a social fund of 4.95 billion yuan, was formally established. This is a major measure for energy conservation and emission reduction in Guangdong Province. The fund also established the EMC Alliance, with the goal of coordinating with the provincial science and technology department to carry out energy-saving renovation of the public lighting system in the cities of Guangdong Province within 3-5 years. This measure will have a major impact on the domestic industrial structure. "High-tech LED" reporter interviewed Mr. Lin Zhaojing, executive deputy secretary-general of the fund EMC Alliance.
Mr. Lin Zhaojing, Deputy Secretary General of EMC Alliance of Guangdong Green Industry Investment Fund
Established EMC Alliance to promote energy-saving lighting renovation
High-tech LED: Your fund has set up an EMC alliance. What is the starting point and how will the alliance operate?
Lin Zhaojing: The purpose of our alliance is to find better products to ensure the quality of the fund's investment in public lighting projects. Our fund is 5 billion, the bank supporting 20 billion, Guangdong will have 5 million LED street lights in the next 3-5 years, this is a huge cake. Companies within the alliance will share our contract. So many companies want to join our alliance, including some foreign giants.
The EMC Alliance will include energy-saving materials suppliers, energy-saving equipment manufacturers, financial and insurance institutions, engineering installation companies, testing organizations, engineering design companies, tendering companies, law firms and other enterprises and institutions. This is not a productive alliance. The fund can provide market and financial support to companies within the alliance, including obtaining liquidity loans and credit loans from banks through funds.
High-tech LED: Joining the EMC Alliance can get orders through you, there must be many companies wanting to enter, what are your main joining conditions, will you exclude enterprises outside the province?
Lin Zhaojing: It is true that many companies want to join us. Now there are more than 100 registrations, and we are also strictly screening. We will give priority to enterprises in Guangdong, but we will not rule out companies from other provinces. We believe that companies joining the alliance are far-sighted companies. The alliance will select some of the best companies, focus on supporting them, and even push them to market.
The excellent companies we need must have two conditions, one is scale and the other is technical quality. If there is only technology, but it can be used to produce only one hundred baht a month, the minimum number of street lamps that a city needs to replace is 100,000-200,000 baht, and some large cities even have 400,000-500,000 baht. If you have a factory with only annual output, Ten thousand miles can't support our project.
We have very high requirements for product quality. Because our products are invested in government projects, the government does not give us a penny, we need to rely on the savings of electricity to pay back, if the product quality is not good, then vote.
In addition, even if the company guarantees that the lamp will be replaced free of charge, the lamp will be replaced by the government's trust. The people will also say that this is the bean curd project. Our high quality requirements are not only based on the recovery of funds, but also on the image of the government.
High-tech LED: Can foreign companies join the EMC Alliance?
Lin Zhaojing: Now many international giants want to join. They know that they have the strength to share this cake, but we don't want the national industry to lag behind abroad. We still encourage leading enterprises inside and outside the province to actively participate in ensuring quality.
For example, if a foreign listed company wants to share the contracts of our fund, we require them to set up factories in Guangdong. Because our EMC contract is 10-15 years, you have not set up a factory here, it is difficult to provide good after-sales service.
To this end, we are ready to invest 1 billion yuan, plus 4 billion bank supporting facilities, with a total scale of 5 billion yuan to build a large-scale photovoltaic industry demonstration base in Guangdong. Through well-established infrastructure construction and financial support, we will attract well-known domestic and foreign optoelectronic enterprises and EMC alliance members to settle in the base. . Many cities are now fighting for this base to settle down.
High-tech LED: Will you adopt products from companies outside the alliance?
Lin Zhaojing: We don't need any products from non-alliance companies. Why? Because the company does not have a sense of identity with you, I believe that the right company can also be found in the alliance. Cooperative R&D will be carried out within the alliance. The R&D capability of a single company must be lagging behind a group because you have insufficient capital. We are the group army to fight and unite all the forces that can be united.
High-tech LED: In addition to energy-saving investment, will the fund invest in some LED companies?
Lin Zhaojing: We will not participate in any enterprise, because if you invest in a company, there will be deviations in the choice. There will be a shareholding enterprise as the core and other companies will be excluded. Once the quality of the product of the shareholding company is unfortunate, it will break our model.
Many people don't really understand the EMC model. There are nine links in EMC. Banks and factories are just one of them. It is almost impossible for a single company to do all the links. Our EMC alliance is the node that connects these nine links. If we are unfair, we can't do it.
Gaogong LED: As an energy-saving investment institution with a private fund as the main body but at the same time, it has a government background. Are you profit-oriented or a public welfare organization?
Lin Zhaojing: The fund is not entirely for profit, because the recovery period of our investment projects is 10-15 years. We hope to support and support the development of the industry for a long time. At the same time, we are different from ordinary energy-saving investment companies because we have strong funds to back them up.
Promoting the construction of multiple green lighting demonstration cities in Guangdong based on urban public lighting
High-tech LED: So far, have you encountered any difficulties in running this fund?
Lin Zhaojing: We have not encountered any major difficulties. We are cooperating with the “Green Photo Demonstration City†special activity carried out by the Science and Technology Department of Guangdong Province. We have only invested in the “Green Lighting Demonstration City†approved by Guangdong Province. At present, there are 13 cities to declare. In the first phase, we may choose five or six standards in 13 to do. Some cities have a poor economy, and we will not be able to deal with electricity and electricity.
High-tech LED: It is up to you to carry out public lighting renovation and the government to carry out the transformation itself. What is the difference between the two effects?
Lin Zhaojing: Energy conservation and emission reduction is something the government has to take the lead in. Premier Wen Jiabao has promised in Copenhagen that the carbon emissions per unit of GDP in 2020 will be 40%-45% lower than in 2005. You can think about the concept of 40%, and the 11th Five-Year Plan. Our 20% target was not completed during the period. Now energy conservation and emission reduction work is also included in one of the important contents of the assessment of local party and government leadership. If a city transforms the entire public lighting in five years, the annual contribution to energy conservation and emission reduction is 3%-5%, and five years can reach 15%-25%. This is not a small number.
As far as I know, there is a city that has closed nine cement plants in order to complete the emission reduction task. How much profit and tax has been lost? The GDP has disappeared and the number of unemployed people has increased. However, if all the street lamps are transformed through capital investment, the government does not need to spend a penny, but also how many enterprises are not closed! GDP will still grow, employment will not decrease, and taxes will still exist. This is a comprehensive project to develop the economy, not Simply replace the street light itself. And because the government does not need to spend money in the process of transformation, it reduces the negative impact of many government procurement.
High-tech LED: Are you paying the company at a time when installing?
Lin Zhaojing: We will pay the cost to the enterprise after the product is installed. We hope that the company can have sufficient funds for production and R&D, which is a very good news for the company. The profit of the energy service industry is very meager, and our main purpose is to save energy and reduce emissions. Recently, the State Council has issued a policy to support the energy service industry. If there is no tax exemption policy, it is difficult to survive.
High-tech LED: Is there any fund model in your other provinces?
Lin Zhaojing: We are planning to set up green industry investment funds in other provinces. Guangdong is one step ahead, and about 3-5 provinces will start at the same time during the year. Recently, the relevant leaders of Jiangxi came to us to discuss matters related to cooperation. We will use the province to carry out the docking, not the city docking. There are five million lamps in Jiangxi that need to be replaced, and Hubei is almost the same. If each province is docked, the order will be huge. So joining our alliance is a visionary company.
High-tech LED: According to the current state of the art, what is the risk of recycling costs?
Lin Zhaojing: At present, LED is the main choice for energy-saving products. China’s current big funds are very impetuous, and I can’t wait to go in today and earn 100% tomorrow. Our fund is very pragmatic. The first is to ensure that there is no loss. A slight surplus will enable the funds to circulate continuously and continue to do energy conservation and emission reduction. Why the country wants to give tax exemption policy to EMC is mainly because it is difficult for energy-saving service companies to make money, and the government wants to attract large funds to invest in this field.
High-tech LED: In addition to government projects, will you invest in some civil projects?
Lin Zhaojing: You can also participate, but we will give priority to public companies like Xinyijia and Renren. Wal-Mart also has contact. If they want to renovate the lighting of more than 4,000 supermarkets around the world, the premise is that they must have a good return mechanism. Don't say how much money you earn, at least you can pay me back. Enterprises must have credibility and strength, and we will cooperate.
If you choose some companies with bad reputation, it will be troublesome if you don't give it to you after saving money. China's current legal environment is not yet sound, and foreign countries will not be able to implement the law after the judgment. Now we and the Provincial Science and Technology Department promoted the "green lighting demonstration city" without 30,000 yuan, we do not do, and must have independent financial cities (counties), we only do. We will not do it alone, because the energy savings are not good.
EMC engineering is also a clean government project
Gaogong LED: Just now you mentioned the unspoken rules in the government bidding process. According to our research, many companies complain that too many unspoken rules make the market complicated and the cost increases.
Lin Zhaojing: Government procurement can't avoid some dark things or nepotism, and it may reduce the quality requirements. Now that we have invested in the contract energy model, the government does not have to pay for it, and of course avoids corruption. Governments at all levels joked that our EMC project is a clean government project.
Now many cities in Guangdong are applying for a green lighting demonstration city. This is the project led by the mayor. The street lamp management department is the unit, and things become simpler. This kind of high-level thing is difficult for a single company to do. It can only be done by our fund.
Our fund to do this is beneficial to all aspects. The government has political achievements and reputation. Enterprises can get markets and contracts, banks get opportunities to help corporate loans, and guarantee companies and insurance companies have the opportunity to participate. For example, a single company goes to an insurance company, and people ignore you because LEDs are developing too fast, and they are afraid to protect them. If the bank comes in, we require companies in the alliance to open settlement accounts in the banks within the alliance. This is a win-win situation. At present, Everbright Bank and Industrial Bank have come in, and Everbright Bank has given us 20 billion credits.
Prepare to establish the league's own standards
High-tech LED: At present, the national standard for LED street lights has not come out. What standards will you refer to when bidding?
Lin Zhaojing: LED development is too fast, we will cooperate with the Science and Technology Department to make an LED benchmark index, which will be updated once every six months, and the first one may come out in June. The Alliance will use benchmarking to assess companies. We will also find some excellent companies and experts to take the lead in making a league standard, which is different from local standards. Our standards are only for companies within the alliance. Our standards may be higher than national standards and will be higher than existing lighting standards. Our standards will also be applied directly to the National Standards Committee, and if we do more, we will become a national standard. This is normal, and many new standards are ultimately made by large companies.
Our reporter Zeng Cong Zeng Hongping
The material of this product is PC+ABS. All condition of our product is 100% brand new. OEM and ODM are avaliable of our products for your need. We also can produce the goods according to your specific requirement.
Our products built with input/output overvoltage protection, input/output overcurrent protection, over temperature protection, over power protection and short circuit protection. You can send more details of this product, so that we can offer best service to you!
Led Adapter,Mini Led Adapter,Security Led Adapter,Waterproof Led Adapter
Shenzhen Waweis Technology Co., Ltd. , https://www.huaweishiadapter.com