Hualian Lawyer Invited to Speak on EPC

Mr. Shawn He, head of the International Transactions of Hualian, was invited to speak on a workshop recently in Beijing regarding the law and practice in connection with the energy performance contracting (EPC), a new form of energy saving mechanism that has seen rapidly growing application in China recently.

EPC is a contractual arrangement by which an energy service company (ESCO) is engaged by an energy user to improve the energy efficiency of a facility with guaranteed energy savings. The ESCO examines the facility, originates and implements a project to reduce the energy use by the facility and gets paid from the energy savings. EPC was introduced to China in the mid of 1990’s from the US and has grown rapidly, especially since early this year when a series of incentive polices have been released by a variety of relevant ministries of the central government.

The workshop was held by the Energy Conservation Service Industry Committee of China Energy Conservation Association (EMCA), the only national association for EPC, and was attended by 100-plus representatives of ESCOs and other organizations coming from across the country.

Mr. He speaks on the General Technical Rules of Energy Performance Contracting (“General Rules”), which was made public in August this year as official industry standards by the National Commission of Standardization of China, with a focus on the background and the application of the model contract as part of the General Rules. He also took questions from the attendees as to the practical issues and problems encountered throughout an EPC project.

Mr. He is a member of the expert panel charged with the drafting task of the General Rules and the lead reviewer of the model contract, which has become part of the requisite documentation for the application for financial aid or tax incentives by ESCOs from the relevant national government authorities. “We are very delighted to be able to share with the ESCOs and all other EPC participants in China our expertise and experience in this booming industry, ’’ said Mr. He, “We believe that the General Rules, including the model contract, will give a strong impetus to the EPC industry in China by saving transactional costs and promoting the best industry practice.”

Mr He is a leading PRC lawyer in the areas of renewable energy, climate change and carbon-related transactions. He’s advised on a wide range of projects or deals relating to CDM (Clean Development Mechanism), EPC and wind farms, etc.. He noted that EPC-related legal practice has become an important part of Hualian’s services to its clients. “We’ll continue to provide our clients with high-quality service in these areas, which we believe have great potential and very bright future in China, especially in the light of the shifting of the national strategy towards a low carbon, energy-efficient economy,” he said.

Mr. He has been invited by a variety of organizations and companies to speak on EPC and CDM and will continue the EPC speaking engagements with EMCA in future workshops.