On February 17, 2012, Shanghai Electric (601727) and Schneider Electric China held a signing ceremony for the joint venture contract to establish Shanghai Electric Building Energy Conservation Co., Ltd., marking a solid step forward in their cooperation in the field of green energy-saving for building structures. Previously, on August 24, 2011, Shanghai Electric and Schneider Electric China had signed a strategic joint venture cooperation memorandum.
The investment entities for Shanghai Electric Building Energy Conservation Co., Ltd. are Shanghai Electric Group Co., Ltd. and Schneider Electric China Co., Ltd. The registered capital is split with Shanghai Electric holding 55% and Schneider Electric 45%. Both parties jointly formed the management and technical teams for the joint venture, focusing on industrial automation.
The business strategy development goal of the joint venture focuses on energy conservation renovations for buildings in the Shanghai area, enhancing cooperation between the two parties in market, technology, and management, providing customers with building energy conservation service solutions and related services. With energy conservation renovation of buildings as its main business, using energy performance contracting and engineering contracting as means, the joint venture will focus on general contracting for large-scale building energy conservation projects or related renovations in the Shanghai area. It provides customers with a comprehensive set of energy-saving services including: energy audits, project design, project financing, equipment procurement, project implementation, equipment installation and commissioning, personnel training, confirmation and guarantee of energy savings, operation and maintenance management of energy-consuming facilities, energy-saving diagnosis, and advisory consulting.
The primary customer base of the joint venture focuses on retrofitting existing government office buildings, large supermarkets, hospitals, schools, hotels, and large commercial office buildings for energy efficiency, as well as designing energy-saving solutions for new constructions and contracting related engineering businesses.
In terms of operation and management, the joint venture combines the strengths of both parties, leveraging Shanghai Electric's marketing expansion capabilities and engineering project management experience, along with Schneider's leading technological advantages in overall building solutions and system integration capabilities for building automation products. This forms the core competitiveness and characteristics of the joint venture in the market for energy conservation renovations of existing buildings, exploring new models, methods, and experiences in energy performance contracting, becoming a promoter and leader in achieving building energy conservation and emissions reduction during the "12th Five-Year Plan" period, effectively promoting and driving the process of energy performance contracting in the energy conservation renovation of existing buildings in Shanghai.
With the strong support of the Shanghai Municipal Committee, the municipal government, various district governments, and large enterprise groups, some administrative office buildings and large commercial building renovation projects have completed on-site assessment surveys and designs for energy-saving and efficiency-enhancing solutions. Meanwhile, Shanghai Electric Building Energy Conservation Co., Ltd. has signed a strategic cooperation agreement intention with Pudong Development Bank (600000), ensuring future funding needs for energy performance contracting in the energy conservation renovation of existing buildings. Both parties aim to achieve complementary advantages and win-win cooperation, establishing the "Electrical Building Energy Conservation - Pudong Development Bank" strategic alliance.
The joint venture between Shanghai Electric and Schneider Electric in the field of building energy efficiency enhancement will effectively promote the pace of energy conservation renovations for buildings in Shanghai, aligning with global "energy conservation and emissions reduction" strategic demands, and helping to achieve China's goal of reducing carbon dioxide emissions per unit of GDP by 40-45% by 2020 compared to 2005 levels.