Philips (China) Investment Co.,Ltd yesterday announced the establishment of Philips Energy Service Company (ESCO) in Wuhan. The company hopes to advance the promotion in broadening the usage of high efficiency lighting solution through the co-operative resource business model. Vice Mayor of Wuhan Municipal People's government Xing Zaozhong, Director of East Lake High-tech Zone Administrative Committee Zhang Wentong, and Philips Greater China President Liang Hanfeng were all in attendance at the founding ceremony. During the ceremony, the East Lake High-tech Zone Administrative Committee and Philips signed a strategic cooperation agreement which will promote energy saving and emission reduction and sustainable development for Wuhan and surrounding areas.

Philips and East Lake High-tech Zone Administrative Committee signing the strategic cooperation agreement

Philips ESCO (Wuhan) will be set up in the Wuhan East Lake High-tech Zone and will become a wholly owned subsidy of Philips. The Energy Performance Contracting (EPC) will cover different clientele fields such as landscape lighting, road lighting, commercial lighting, industrial lighting, and office lighting. It will provide services in areas such as energy saving diagnostics, energy saving design plans, reconstruction reduced energy consumption, financial plan design, and operation management.  

“East Lake High-tech Zone acts as a bridge to new energy saving technology developments. It is also the frontline to transformation and development for the Wuhan city circle,” expressed deputy mayor Xing Zaozhong. Philips ESCO (Wuhan) has now officially opened its doors to becoming a driving force for Wuhan City's East Lake High-tech Zone's environmental protection industry development. The Wuhan city government and East Lake High-tech Zone Administrative Committee plans to contribute ample supporting services towards the company so as to construct an even more superior environment for development.

Vice Mayor of Wuhan Municipal People's government Xing Zaozhong delivering a speech during the ceremony.

“Wuhan government actively encourages the use of innovative concepts and technology in order to create a “resource saving, environmentally friendly “oriented society. Therefore Philips’ sustainable development strategic contract is a welcomed addition.” President Liang Hanfeng said, “Important parts of Philips "grass root market strategy" is basing operations in China and delving deep into mid and western parts of the country. The establishment of the company in Wuhan symbolizes that we are making solid progress in implementing strategy in mid and western regions. At the same time, Philips and Wuhan East Lake High-tech Zone together have formed a strategic partnership leading to the creation an EPC business model that helps to promote the expansion in usage of high energy efficient lighting in Wuhan and surrounding area, advancing towards the promotion of sustainable development in mid and western parts of the country.”

Philips ESCO (Wuhan) Opening Ceremony

EPC is a type of energy-saving mechanism in which a company invests in an ESCO who then assists the company in reconstructing and upgrading equipment in order to become more energy efficient and lower energy costs.

Philips and High-tech Zone Administrative Committee sign strategic cooperation agreement

After the commencement of the founding ceremony for Philips ESCO (Wuhan), four leading businesses from the Wuhan local area also signed an Energy Performance Contract with Philips. On the same day, the 2013 Green Lighting Energy Performance Contracting Conference also convened. Over 70 member of the China Energy Conservation Association were in attendance along with energy-consuming enterprises from Wuhan and surrounding areas, ESCOs and lighting manufacturers. Discussions during the conference included topics such as the current status and development of Green lighting EPC industries in China.