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 collaboration in the field of green energy-saving buildings with Schneider touchscreens. Previously, on August 24, 2011, Shanghai Electric and Schneider Electric China had signed a memorandum of strategic joint venture cooperation, Fengshang.
Shanghai Electric Building Energy Conservation Co., Ltd. is jointly invested by Shanghai Electric Group Co., Ltd. and Schneider Electric China Co., Ltd., with Schneider distribution. In the registered capital, Shanghai Electric holds 55% and Schneider Electric holds 45%. Both parties have jointly formed the management team and technical team for the joint venture.
The business strategy and development goals of the joint venture focus on energy-saving renovations of buildings in Shanghai, strengthening cooperation between both parties in markets, technology, and management. It aims to provide customers with building energy-saving service solutions and related services, taking building energy-saving renovations as the main business. By means of project energy contract management and engineering contracting, it emphasizes the general contracting of large-scale building energy-saving projects or related renovations in Shanghai, including Schneider thermal relays. Services provided to customers include: 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 services, all from Schneider Electric China.
The primary customer base of the joint venture focuses on energy-saving renovations of existing government office buildings, large supermarkets, hospitals, schools, hotels, and large commercial office buildings, as well as the design of energy-saving solutions for new buildings and related engineering business contracting.
In terms of management and operation, the joint venture combines the advantages of both parties, leveraging Shanghai Electric's marketing expansion capabilities and project management experience, along with Schneider's leading technological advantages in comprehensive building solutions and system integration capabilities of building automation products. This forms the core competitiveness and characteristics of the joint venture in the energy-saving renovation market for existing buildings, exploring new models, methods, and experiences in energy performance contracting, becoming a promoter and leader in implementing building energy conservation and emission reduction during the "12th Five-Year Plan" period in China, effectively advancing and driving the process of energy performance contracting in energy-saving renovations of existing buildings in Shanghai.
The joint venture work has received strong support from the Shanghai Municipal Party 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 efficiency solutions. Meanwhile, Shanghai Electric Building Energy Conservation Co., Ltd. has signed an intention agreement for bank-enterprise strategic cooperation with Pudong Development Bank (600000). In the future, this will effectively ensure the funding needs for energy-saving renovations of existing buildings through energy performance contracting. Both parties are striving for complementary advantages and mutual benefits, establishing a "Building Energy Conservation - Pudong Development Bank" strategic alliance.
The strong alliance between Shanghai Electric and Schneider Electric in the field of building energy efficiency will significantly promote the pace of building energy-saving renovations in Shanghai, aligning with the global "energy conservation and emissions reduction" strategic demand, contributing to achieving China’s goal of reducing carbon dioxide emissions per unit of GDP by 40-45% by 2020 compared to 2005 levels, with production execution systems.