Schneider Electric: "Both Dumplings And Dumplings Are Sold."

In addition to environmental assessment, new energy efficiency assessments should be carried out for new projects under construction.

In May 11th, Schneider Electric's first Chinese native president, Schneider global senior vice president of electrical and Zhu Hai, China's president, appealed to this exclusive interview.

Zhu Hai suggested that the energy efficiency assessment and environmental assessment should be placed in the same position. Under the background of low carbon economy, the Chinese government is paying more and more attention to energy saving and efficiency enhancement.

In April 6th, the State Council pmitted the opinions of the NDRC, the Ministry of finance, the people's Bank of China and the State Administration of Taxation on accelerating the implementation of contract energy management to promote the development of energy saving service industry (hereinafter referred to as "opinions"), so as to speed up the implementation of ENERGY MANAGEMENT CONTRACT (EMC) and promote the development of energy saving service industry.

The industry estimates that the global industry and construction cost more than 70% energy and resources, and more than 50% of CO2 emission reduction needs to be achieved through energy saving and efficiency enhancement.

Obviously, as a global energy efficiency management expert, Schneider electric can not ignore China's energy saving market.

In order to close close contact with China's huge carbon market, Schneider electric also moved its Asia Pacific headquarters from Hongkong to Beijing at the beginning of this year.

At the same time, Schneider Electric is in the process of strategic pformation - "towards the solution".

Schneider electric strategy:

Twenty-first Century: regarding the strategic layout of the Asia Pacific region, is Schneider electric positioned as an electrical equipment manufacturer or an energy saving service company?

Zhu Hai: we are not defined as an electrical appliance manufacturer or an energy saving service company. We call it energy efficiency management expert who can sell equipment as well as energy saving programs.

We now have hundreds of people, there may be thousands of energy efficiency management engineers in the future, but the market may need ten thousand or one hundred thousand, which is not the strength of our company.

So we have to walk on two legs. On the one hand, based on the technical superiority of our traditional equipment manufacturing, we provide equipment for other companies that provide overall solutions, and on the other hand, we will go all out to provide a complete solution.

In fact, in the strategic positioning of development, Schneider Electric has begun to change at the end of last year.

As a company selling products, we have gained much recognition.

If we want to satisfy our customers by providing solutions to our customers, we must become a supplier of solutions.

By the end of 2011, we will pform from a product company to a product and solution company.

In fact, Schneider electric itself is implementing an "energy action plan" worldwide, reducing energy consumption per capita by 10% in the global production area of Schneider electric.

Schneider Electric's R&D headquarters in France uses TAC Vista (R) to continuously monitor the main functions of water treatment, HVAC, elevators and buildings, and save energy and efficiency by 30%.

Meanwhile, Schneider Electric's 21 factories in China are already in action.

The march towards solutions is a very important strategic change.

In fact, this is not just a change, but a pformation.

Twenty-first Century: why do we need to walk on two legs?

Zhu Hai: if we compare the energy-saving market to a dumpling feast, then we can provide various kinds of dumpling stuffing, and we can also make some special dumplings for ourselves.

As the market is huge, we sell dumplings and face dumplings.

Contract energy management: "China is not bad money".

"Twenty-first Century": "opinion" points out that the development goal of EMC is to support and train a group of specialized energy saving service companies by 2012, and develop a number of comprehensive energy-saving service companies to establish a vibrant, distinctive, standardized and orderly energy-saving service market.

How to view China's EMC market?

Zhu Hai: EMC will definitely be the main body in China in the future, but according to the effect of EMC progress, the EMC project has become an energy efficiency solution project.

Because in the early stage of investment, energy utilization units say they have the money to buy equipment to save energy and increase efficiency.

Twenty-first Century: do you think China's EMC is not a difficult problem in terms of capital?

Zhu Hai: money is not important.

When a EMC project can really produce better benefits, many energy consuming units do not necessarily choose EMC, because China has a special case. China is not bad money.

Moreover, the investment return rate of China's energy saving pformation is very high at present, and the cost recovery of energy saving service companies is also very fast.

Based on this, most of us provide energy efficiency solutions, but will appear in the Chinese market with the EMC method.

For example, we recently had a 70 million contract project which did not adopt EMC; but on the contrary, there was a 6 million of the hotel energy saving reconstruction project using EMC.

In this 6 million project, Party A is a leaseholder and operator. He does not own the hotel building itself, so he will not spend his money on energy saving renovation. He chooses EMC.

The 6 million investment is invested by Schneider electric, and we can recover the cost of electricity charges saved by 4 to 5 years and achieve profits.

Twenty-first Century: what industries do EMC do more in China?

Zhu Hai: some traditional heavy industries, such as building materials industry, such as cement, steel and steel, are actually some large energy consumers in China.

For these large energy consumers, what they did before was mainly to "shut down", but the more important thing in the future is to carry out energy saving pformation and manage energy saving and energy saving.

In this way, it is not difficult to achieve the goal of saving energy by 30% in large and medium-sized enterprises in China.

For EMC, it is still a high investment return period. With these easy picking fruits, the requirements for EMC management and other aspects will be improved.

Twenty-first Century: is EMC fierce competition in China?

What is the status of local energy conservation service companies?

Zhu Hai: in the aspect of energy saving service, China is in a state of confusion at present. But with the development of EMC, I think this situation will soon be solved, because EMC has relatively high demand for energy consuming units, such as at least in the period of return.

As far as competition is concerned, the cake of this market is still very large at present, so the competition is not very keen.

The biggest challenge we have now is how much cake we can cut off.

Domestic energy-saving service companies do more special EMC.

For example, specialized in energy conservation of pumps, because 90% of the pumps did not use energy saving plan, I installed motor for you, and the electricity saved in five years will give you a return on investment.

In twenty-first Century, opinions put forward that under the premise of strengthening tax collection and administration, appropriate tax support policies should be adopted for energy conservation service industries.

How to look at this policy?

Zhu Hai: in fact, this preferential policy has only solved the current EMC company's additional burden, rather than giving these EMC companies extra benefits.

We analyze the cost of capital of EMC company: a 2 million contract, if he is divided into 4 years as a payback period, the contract may become 8 million, so his revenue is 8 million on the books.

But the cost actually increased by 6 million.

According to the current tax law of China, the 6 million is value-added tax.

At present, the "opinion" only solves this problem.

But at the same time, I think many policies of the Chinese government actually want to guide investment.

When this industry can bring excess returns, a large number of talents, capital and technology will pour into the market. This is what the Chinese government wants to see in the energy saving industry.

Government response

Twenty-first Century: what are the problems faced by EMC in its practical use?

Zhu Hai: EMC is a qualification in many ways.

But which departments are the qualifications issued?

Some are the Ministry of construction, some are environmental protection, some may be local governments, and there are problems of multi management.

Besides, what qualifications are necessary?

How do we regulate it?

Many of the incentive schemes for EMC may be local. I can pay taxes here and refund here, but what about some multinational companies?

We have discussed this question. Is it necessary to set up a EMC company in all cities?

"Twenty-first Century": the State Council said that it must strictly control the excessive growth of high energy consumption and high emission industries, and no longer approve, approve and record the expansion of production capacity projects. Projects that fail to pass environmental impact assessment, energy conservation review and land pre-trial will not be allowed to start construction.

But now some projects have just been built to achieve energy-saving pformation.

How do you think you can solve this problem?

What is the role of the government and the market in terms of energy conservation and emission reduction?

Zhu Hai: why is China's energy saving and pformation market big?

Because there are too many, fast, good and provincial projects.

Take "province" as an example, the province we talk about is the relationship between one-time investment and operation, which may have been saved at the early stage of construction, but brought great problems to operation.

So in the past few years, the state began to carry out environmental assessment for all projects, which is the first step.

In fact, I think what should be most appealed now is that in addition to environmental assessment, energy efficiency assessment should be carried out before all major projects.

There are two kinds of solutions that we provide to customers now: scheme A may be 15% more expensive than program B, but A can save 20% of energy.

Based on the consideration of "disposable" investment, in reality, A is hard to choose in China or few people use it.

But in the long run, it is a waste of resources for the country.

We can not afford to save energy on the one hand, but at the same time turn a blind eye to the energy standard of new projects.

If China can really grasp the energy efficiency assessment of new projects, just as we now attach great importance to environmental assessment, this is a great step forward, which is also something that the government should strengthen.