Conserving energy in China

JULY 2010

With the Chinese Government aiming to reduce carbon emissions by 40-45 per cent by 2020, a Chermside-based energy consultant has signed a preferred supplier agreement with a Shanghai department.

Since Total Energy Solutions (TES) opened its Shanghai office in 2008 it has secured hospital energy conservation deals worth $1 million, but a recent deal with the Xuhui District Government puts the company in the driving seat to secure future contracts.

TES managing director Wynne Henderson says the momentum is in his favour, with potential to grow Chinese operations to a similar size as Queensland operations within the next three to five years.

“Xuhui is one of 18 districts in Shanghai, and it’s also one of the wealthiest and oldest suburbs, and it’s a fairly impressive result, because to my knowledge no other western energy services company has won a similar position in China,” he says.

“We’re in a position to give strategy and can look at the entire portfolio of buildings and the rolling out of projects, so that’s 500 to 1000-bed hospitals, hotels, shopping centres, 30 storey commercial buildings.

“Our intention is to grow our office as those projects continue and we envisage the size of our Chinese operations will be larger than our Australian operations. The population of Shanghai itself is equal to Australia.”

Henderson says the company is now benefiting from relationships it has built in China over the last two years.

“It’s typically a very slow process in China to get the level of trust needed and you need to develop that with the Chinese people before you can do business. We’ve been doing that for the last two to three years and we’re seeing the fruits of that activity,” he says.

“It’s all about doing those first jobs because it shows we can achieve savings, and because it’s local proof. We can show them what we’ve done in Australia, but in the end they want us to show them what we can do in China.”

TES also provides water consultancy services and has offices in Sydney and Melbourne.