United NationsDepartment of Economic and Social Affairs Sustainable Development

State Grid Integrated Energy facilitates the green recovery of MSEs by five comprehensive services

    Description
    Intro

    Wenzhou City, Zhejiang Province is the home to China’s first micro and small enterprises (MSEs) park. It started to the construction of 23 new parks, completed 25 parks, attracting 1,812 new enterprises settled in 2020, thus driving the local sustainable development. Considering the financial difficulties and stagnant development facing MSEs due to COVID-19, the State Grid Wenzhou Electric Power Company (the Company) has provided five comprehensive services (“full lease” of equipment, “full process” of service, “full collection” of data, “full coverage” of business and “full utilization” of values) for MSEs to realize energy conservation, emission reduction and gain economic benefits.

    Description

    The “five-comprehensive” power supply model aims to improve the economic, social and environmental benefits of all enterprises in the park in terms of electricity consumption, contributing to the SDGs. The services are provided to meet MSEs’ needs in energy use, cost reduction, economic efficiency, energy utilization efficiency, and overall clean energy use, especially addressing the high electricity cost. Also, the path to common services for local government, MSE parks, MSEs and power supply enterprises is explored to increase the energy use efficiency, the proportion of clean energy, and the use of sustainable electricity in the park, and achieve the synergistic development among park economy, society and environment.

    Contribution to SDG Implementation

    The Company mainly contributes to the following SDGs. SDG9: The services improve the park’s electricity use for sustainability, increase resource use efficiency, and adopt more clean and eco-friendly technologies and industrial processes. SDG11: The service model reduces carbon emissions, lowers the impact on the environment, and balances social, economic and environmental benefits. SDG12: Under the service mode, the park adopts a sustainable approach to electricity consumption, improving the overall energy use efficiency and responsible consumption.

    Implementation methodologies

    The service mode addresses the high energy costs troubling MSEs, improves the energy utilization efficiency and enhances the sustainability capability. 1. “Full lease” of equipment. To provide one-stop electricity service integrating electricity facilities investment, construction, operation and maintenance for high-quality park users. Users only need to pay the contract rent in installments. 2. “Full process” of service. As users have unbalanced development and different demands for power supply capacity and voltage, we provide “active” preliminary services, “on-demand” customized services, “one-stop” full agency, “intelligent” comprehensive energy service and others. 3. “Full collection” of data. Based on the “Smart Electricity” business, we can monitor and collect electricity consumption data of enterprises, including the real-time data of 5,967 enterprises in Wenzhou, including 4,492 enterprises at national scale and covering 44 MSE parks. 4. “Full coverage” of business. We focus on distributed photovoltaic, building energy efficiency, industrial energy efficiency, green lighting and energy efficiency assessment in MSE parks. 5. “Full utilization” of values. We provide refined online energy efficiency monitoring and data mining services for park users to promote them to improve energy efficiency and lower consumption; provide data reference for the government to implement industrial policies on new energy development, energy saving and environmental protection, etc.; improve energy utilization efficiency, reduce carbon emission, and enhance sustainability to realize all-win results among the government, enterprises and power supply.

    Results

    1. Boosted the transformation of comprehensive energy utilization in the park. For low-carbon development, the services promote Yongjia County Industrial Park Construction Management Center and other parks to establish a clean, low-carbon, safe and efficient modern energy system, boosting the comprehensive energy efficiency. 2.Improved quality and efficiency, and achieved win-win results in energy saving, emission reduction and economic benefits. We cumulatively help MSEs reduce about RMB 14 million in the initial investment of constructing electric power facilities, and the State Grid (Wenzhou) Integrated Energy Service Co. Ltd.( Wenzhou Energy) earned RMB 1.45 million. With 15.8 MW of distributed PV connected to the grid in various parks, nearly 16,000 tons of CO2 emissions are reduced annually, which can reduce electricity expenses for MSEs by about RMB 2.2 million annually, and the total revenue of Wenzhou Energy is expected to reach about RMB 6.4 million.

    Factors and Constraints

    Enabling factors: 1. Zhejiang Province issues opinions on promoting the transformation and upgrading of MSEs. 2. The Company commits to sustainable development and has excellent working teams and mechanisms, thus having rich experiences in helping companies improve energy use efficiency. 3. MSE parks promote low-carbon and clean power consumption. Constraints: At first, not all local government, park managers, and enterprises accepted this service, resulting in repeated communication and discussion. Unexpected difficulties appeared, requiring higher level of technology to meet the actual needs of the stakeholders.

    Sustainability and replicability

    1. Replicability: The Company has summarized the innovative experience and compiled a set of mature and highly replicable power supply service model for MSE parks, thereby providing effective reference and help for other regions in park construction. 2. Sustainability: The five comprehensive service mode for integrated energy supply in MSE parks is continuously applied and optimized in Wenzhou, and is applying in all resident enterprises. Besides, the service mode will be vigorously promoted in the parks in the province and even the whole country.

    COVID-19 Impact

    Due to COVID-19, unprecedented operational difficulties have emerged for MSEs in Wenzhou, Zhejiang Province. The Company provides diversified, high-quality and efficient power supply services to address problems faced by MSEs in Wenzhou, in response to the national industrial policy call for green recovery. By carefully analyzing the different needs of resident enterprises, and in the spirit of reducing costs and improving efficiency of electricity consumption, the Company has explored and implemented the five comprehensive services.

    Contact Name
    Huhe
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    Organization/entity
    Wenzhou Electric Power Company of State Grid Corporation of China
    SDGs
    Geographical coverage

    China

    Timeline
    15 December 2019 (start date)
    31 December 2020 (date of completion)
    Countries
    China
    China
    Partnership
    N/A
    Contact Information

    Huhe, Marketing Director