On the Operation of Customer Risk Control in the EMC Project

In the energy management contract mechanism, the vast majority of energy-saving project risks are borne by the EMCo, and there is almost zero risk for customers. In the operations of projects, EMCo is facing not only the policy risks, technology risks, market risks and often the enormous lack of customer credit risks. In general, policy, technology, market development and improvement of such factors is a gradual process. A single EMCo's influence on the external environment is minimal. However, for the operation of the project customer risk, EMCo can avoid and prevent the above risk through risk management to a large extent. Based on the analysis of risk classification of customers, choosing customers carefully is presented in this paper as a crucial measure to avoid the risk. Selecting customers should start from the assessment of clients to analyze and evaluate customer risk and credit risk, and then carefully designed project contract proposed to avoid project risks.