Opportunities and risks of LED street lamp contract energy management model

Under the impetus of “Ten Cities and Ten Thousand Cities”, LED street lights have developed rapidly. According to the statistics of high-tech LEDs, in 2009, a total of 222,000 LED street lights were installed nationwide. In 2010, the work of “Ten Cities and Ten Thousand Miles” entered an important implementation stage. Local governments outside the 21 pilot cities were still actively applying to join, and the first pilot became a flowering place. In 2009, LED street lights were over-hyped and over-invested, and they have become high-risk industries. It is understood that most of the LED street light companies in 2009 were losing money. This was caused by blindly following the trend, and secondly because the cost of street lamps was too high. The quality of the products is mixed, the light-off rate after installation is too high, and the subsequent maintenance costs make the company profitable or even lose money.

 

    Opportunities and risks of LED street lamp contract energy management mode The most popular mode of LED street lamp enterprises is contract energy management. In the transformation of LED street lights, several cities have begun to adopt. Among them, the first phase of the 5000-inch LED street lamp renovation will be introduced for the first time. In the EMC model, by the end of 2009, Chancheng installed a total of 11,000 LED street lights using the “user + enterprise + bank” contract energy management model. Deqing County introduced a new contract energy management model in the LED street lamp energy-saving renovation. Guangzhou City also decided to adopt In the "EMC" mode, energy-saving renovation of about 180,000 LED street lights in the city will be carried out in 2-3 years. It is foreseeable that it will generate huge economic and social benefits. However, EMC requires streetlight companies to pay for the entire project cost, and to pay for the construction cost with the later savings of electricity, the length of the cycle varies, the short-term is 3 years, and some can be more than 10 years. This directly tests the company's funds and brings a lot of risks.

    Opportunities often coexist with risks. On March 19th, at the "Fifth LED Industry Theme Summit Forum" jointly hosted by Gaogong LED and Tianjin Dongli District Government, Sun Jianhua, General Manager of Destada Optoelectronics, made "EMC Opportunities and Risks" Wonderful speech.

    Sun Jianhua pointed out that EMC has a huge opportunity to promote in China: LED is a strategic emerging industry with huge potential. The government will mainly explore EMC and make private capital have the opportunity to make profits. Secondly, the EMC model can break through the LED street lamp demonstration project. The risk bottleneck of high risk guarantees the maximization of benefits, risk and minimization of production, consumption and finance; EMC customers do not need to bear the funds, technology and risks of energy conservation implementation, and the new model of domestic and foreign fund EMC profit; China The LED market is getting hotter and hotter, and energy-saving products are being marketed.

    At the same time, Deshida Sun Jianhua also stressed that EMC risk can not be ignored: the imperfections and lack of LED street lamp standards and application standards, as well as the problems in the current application, can not ignore the avoidance; at the same time, EMC is not a perfect model, and needs further exploration. Perfect; the most important thing is that the quality and reliability of LED street light products directly determine success or failure.

    LED street light companies believe that their products are “can”, traditional lighting believes that there is a certain gap, the complaints of ordinary people, the dilemma of government departments and the bottleneck of local protection, and the introduction of the “contract energy management” model has brought some LED street lighting companies Worry and confusion. Recently, a new version of contract energy management has emerged - "user + bank + enterprise". Although the new version reduces the risk of the enterprise, it is not a relatively complete model, and the relationship between the company and the parties needs to be further explored.

    LED road lighting has been hailed by the industry as "a lonely long-distance running", and some people have dubbed it as "a delicious chicken rib." Faced with the opportunities and risks in front of you, Gaogong LED recommends that LED streetlight companies should pay attention to assist in researching the operation mode. I want to clearly understand how to sell LED street lights to the government in large quantities. Is it realistic? How much do companies know about EMC's operating model, funding sources, and so on? Who will act as an EMC organization? Is the EMC organization a willingness to act? What is the relationship between EMC organizations and enterprises? How many years is it suitable to operate? Don't blindly follow the wind before seeing the interests in front of you, and finally lose money.

    China's EMC is currently facing a good development opportunity, but due to the technology of LED street lamps, product reliability, localized business models, especially financing models, and the corresponding policies of the government from the introduction to the improvement, there is still a process of gradual development. Gaogong LED believes that we can temporarily hope that the “energy-saving service company affiliated with the utility company” will appear and develop as soon as possible. (Text / Zeng Hongping)

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