Energy Performance Contracting (EPC for short), a market-based energy conservation mechanism, appeared first in developed countries of North America and Europe over 30 years ago. In December 1998, China Energy Conservation Promotion Project of World Bank/Global Environment Facility was established, introducing “energy performance contracting” mechanism to China and well demonstrating its great potential and bright prospect. The importance of “energy performance contracting” mechanism in eliminating impediments and promoting energy conservation has been well recognized by Chinese government and people. As introduced by Director Chen, energy management companies (EMCo) are characterized with market orientation, “energy performance contracting” mechanism, and comprehensive services in energy auditing, project planning, financing, equipment integration, engineering construction, inspection of energy conservation capacity, staff training, etc. They create values for energy conservation projects while undertaking technology and market risks. EMCo take market as orientation, service as means, risk as leverage and benefit as target.

In recent years, energy performance contracting has got rapid development in China with growing importance. As Director Chen introduced, by the end of December 2006, there had been 212 members of MECA, 55 of which joined EMCA in 2006 and 47 are newly energy management companies with professional recognition. According to statistics, in 2006, EMCA members invested about RMB 1.5 billion Yuan in “energy performance contracting” projects and over RMB 5 billion Yuan in comprehensive energy conservation projects with annual saving capacity reaching 6.2 million tons of coal equivalent and CO₂ emission reducing capacity reaching 4 million tons， thus meeting the requirements of the Phase II China Energy Conservation Promotion Project of World Bank/Global Environment Facility with better indices.