Study on the Governance of Energy Performance Contracting Projects in Building

With the booming of economy, resource shortage has been the most urgent problem in China and will be a big setback for sustainable development. There is a paradox between the supply and demand of energy in current construction industry where the energy consumption is large while the demand for new building is continuously increasing. It has revealed that construction field consumes almost 1/3 of energy, so the potential of energy saving is quite considerable in Chinese construction industry. EPC (Energy Performance Contracting) is an efficient method to save energy in building. With the advocacy of the government, it has made great progress through the practice of EPC, but various internal and external factors would be barriers to the diffusion of EPC. This paper aims to build a structure of project governance and give some suggestions for solving such problems. This paper first introduces the basic theory of Energy Performance Contracting, then, describes the application of EPC to implement energy-saving issues encountered in practice. By analyzing the problems of energy performance contracting, the paper attempts to solve them from the perspective of project governance by developing a structure of project governance. At last, this paper interprets the structure to find out the governance activities that can promote the mode of EPC.