Managing energy efficiency of buildings in China: A survey of energy performance contracting (EPC) in building sector

This paper reports on a nationwide field survey of managing energy efficiency of buildings under energy performance contracting (EPC) in Chinese building sector. The survey aims at getting insight of Chinese experiences of EPC and survey yielded information on profile, specificity and risk specifications of EPC in Chinese building sector. The key findings are that the existing EPC projects are mainly driven by policies and majority of first parties in EPC are owners of public buildings. The contract specificity is worryingly low, with underspecification prominent in the contract sections of renewal and change of the planned solutions, dispute resolution and compensation for personal and property damage. Insufficient risk specification was a major cause of contract failure and disputing. High risks are observed in not enough feasibility study, delay in completion, operational risks, delay in payment and uninsured loss. Most post EPC projects would be worryingly unsuccessful, given to the facts that many of them have not established their energy team, have no further investment and have no effective maintenance. The Chinese existing emission trading scheme (ETS) offers a vital opportunity for up scaling EPC in building sector and policy framing is needed for linking EPC projects and ETS.