All relevant departments,

The Measures for Energy-Saving Retrofits on the User-Side of Centralized Cooling Projects in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin have been approved upon deliberation by the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and are hereby issued for your diligent implementation. Should any issues arise during implementation, please promptly report them to the Commercial Services Bureau of the Cooperation Zone.

Commercial Services Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

December 24, 2024

Measures for Energy-Saving Retrofits on the User-Side of Centralized Cooling Projects in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

Article 1.

Purpose

These Measures are formulated based on the actual conditions of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”) to further regulate the user-side construction and operation of centralized cooling and heating projects in the Cooperation Zone, strengthen oversight, enhance energy-saving awareness and motivation among cooling project users, and achieve lower cooling costs, improved energy efficiency, and a more optimized business environment.

Article 2.

Definitions

1. “Cooling project user” refers to a project entity that has entered into a cooling supply agreement with the operator of a centralized cooling system and receives cooling services from such operator.

2. “Actual cooling consumer” refers to an entity or individual within a cooling project that actually receives cooling services and pays cooling fees, either directly or indirectly.

3. “Metering and control system” refers to the centralized cooling energy metering and control system comprising relevant energy metering equipment, motorized control valves, and data transmission devices, structured across four levels: the primary side of the plate heat exchanger room, the secondary side of the plate heat exchanger room, the floor level, and the room level.

4. “Energy-saving retrofit project” refers to a retrofit project for user-side operational systems, as specified in the Technical Guidelines for User-Side Energy-Saving Management of Regional Centralized Cooling Systems in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (For Trial Implementation) issued by the Commercial Services Bureau of the Cooperation Zone (hereinafter referred to as the “Technical Guidelines”), which consists of chilled water systems in plate heat exchanger rooms, air systems in air conditioning equipment rooms, terminal air conditioning systems in rooms, and energy management platforms.

5. “Daily average peak load” refers to the average hourly cooling capacity during the three hours of highest cooling consumption by a cooling project within a 24-hour period.

6. “Annual average peak load” refers to the average of the 30 calendar days with the highest daily average peak loads recorded within a consecutive 12-month period.

7. “Special incentive funds” refers to funds appropriated in the Cooperation Zone’s fiscal budget for initiatives related to precision metering and energy-saving incentives for centralized cooling projects in the Cooperation Zone.

Article 3.

Departmental Responsibilities

The Commercial Services Bureau of the Cooperation Zone will be responsible for coordinating and overseeing the implementation of these Measures for user-side energy-saving retrofits of centralized cooling projects in the Cooperation Zone. The Finance Bureau of the Cooperation Zone will be responsible for guaranteeing and disbursing the incentive funds.

Article 4.

Eligible Applicants

These Measures apply to the user-side of centralized cooling supply projects and comprise three types of incentives: incentives for energy-saving retrofits, incentives for energy-saving star ratings, and incentives for end-user cooling consumption. The scope of eligible recipients for incentives includes property owners, operation and maintenance managers, and actual cooling consumers of non-fiscally funded cooling projects. Projects excluded from the incentive scope may apply separately if demonstrably necessary.

Cooling projects funded by fiscal finance may undertake energy-saving renovations in accordance with these Measures, with associated expenses covered under departmental budgets.

Article 5.

Application Conditions

1. Projects applying for incentives for centralized cooling energy-saving retrofits shall meet all of the following conditions:

(1) Complying with Part II “Energy-Saving Design” requirements of the Technical Guidelines as follows:

a. Specifications for metering equipment: User-side primary, secondary, and tertiary metering systems shall use electromagnetic-type cooling meters with an accuracy of Class 3 or higher; quaternary metering systems may use electromagnetic-type or time-based cooling meters;

b. Specifications for control valves: User-side metering systems must include motorized control valves (ball, globe, or butterfly valves) paired on a 1:1 basis with each metering device;

c. Requirements for metering data integration: User-side metering systems must connect to the Cooperation Zone’s energy data management platform for real-time data transmission and continuous monitoring;

d. Additional assessment and review requirements specified in the Technical Guidelines.

(2) Achieving measurable cooling areas and calculable losses at all levels. All projects shall meet tertiary metering standards minimum, and apartment and hotel-style office projects shall meet quaternary metering standards with meter-based billing.

2. Projects applying for incentives for energy-saving star ratings shall meet all of the following conditions:

(1) Completing metering and control system construction and passing the review;

(2) Integrating metering system with the Cooperation Zone’s energy data management platform with continuous monitoring exceeding 12 months;

(3) Annual average peak load reaching at least 30% of registered capacity;

(4) Meeting other assessment and review requirements specified in the Technical Guidelines.

3. Projects applying for incentives for end-user cooling consumption shall meet all of the following conditions:

(1) Completing metering and control system construction and passing the acceptance;

(2) Collecting meter-based cooling fee billing from end users.

4. When cooling project operators collect bill from actual consumers based on meter readings, fee structures shall align with those of the centralized cooling system operator. Costs for common areas and system losses may be fairly and reasonably apportioned.

Article 6.

Incentive Standards

1. Incentives for centralized cooling energy-saving retrofits comprise incentives for metering devices, motorized valves, and installation works. The incentive amount for metering devices and motorized valves shall be calculated as follows: Actual Equipment Procurement Unit Price × Incentive Coefficient × Actual Number of Installed Units, where the product of “Actual Equipment Procurement Unit Price × Incentive Coefficient” shall not exceed the Maximum Incentive Unit Price, and the Incentive Coefficient is the ratio of Actual Equipment Procurement Unit Price to the Maximum Incentive Unit Price. Installation work incentives shall be calculated as follows: Fixed Incentive Rate multiplied by the Actual Number of Meters Installed. Detailed incentive standards are set forth in Table 1.

Table 1. Incentive Unit Price Standards for Centralized Cooling Energy-Saving Retrofits

Other centralized cooling-related improvements involving variable frequency water pumps, cooling pipelines, and terminal air conditioning equipment may be included within the scope of energy-saving retrofit incentives if they demonstrably enhance centralized cooling energy efficiency.

2. The Commercial Services Bureau of the Cooperation Zone will conduct annual energy-saving star ratings for cooling projects under application. Star ratings are evaluated across multiple dimensions including metering systems, operational management, automatic control of chilled water systems in plate heat exchanger rooms, automatic control of air systems in air conditioning equipment rooms, intelligent control of terminal air conditioning systems in rooms, and cooling consumption per unit area. Specific standards are detailed in Table 2.

Table 2. Energy-Saving Star Rating Standards

3. Energy-saving star rating incentives are structured across five tiers based on rating results. Projects rated one star shall receive no incentive; projects rated two stars or above may receive certificates, plaques, and financial incentives. Cooling projects participating in evaluation for the first time and achieving two stars or above (hereinafter referred to as “initial rating”) may receive renewal evaluation incentives upon subsequent participation in annual evaluations (hereinafter referred to as “renewal evaluation”). Non-participation in renewal evaluation shall forfeit any renewal incentives.

Incentive amounts for initial ratings shall be: Initial Rating Incentive Standard × Annual Average Peak Load. When renewal rating equals the highest previous rating, the incentive amount shall be calculated as follows: Renewal Rating Incentive Standard × latest Annual Average Peak Load. Where renewal rating exceeds the highest previous rating, the incentive amount shall be calculated as follows: Difference in Initial Rating Incentive Standards between star ratings × latest Annual Average Peak Load. No incentive for subsequent evaluation shall be granted if the star rating is lower than the highest previously awarded star rating. Energy-saving star rating incentive standards are detailed in Table 3.

Table 3. Energy-saving Star Rating Incentive Standards

4. Projects meeting end-user cooling consumption incentive conditions may receive basic incentives at a preferential rate of RMB 0.045/kWh, with basic incentive implementation periods not exceeding 18 months. Upon completion of the energy-saving star rating, projects may continue to receive end-user cooling consumption incentives. Starting from the month following the completion of the star rating, the incentive rate will increase based on the star rating achieved, with an additional RMB 0.02/kWh granted for each one-star improvement. Starting from the month following any change in the star rating during a renewal rating, the incentive standard for end-user cooling consumption will be adjusted according to the newly awarded star rating. Projects that fail to achieve a one-star rating in the renewal evaluations or non-participation in renewal evaluation shall forfeit eligibility for such end-user cooling consumption incentives. All incentives for end-user cooling consumption shall be fully passed on to the actual cooling consumers. Specific standards are detailed in Table 4.

Table 4. Incentive Standards for End-User Cooling Consumption

The standards and duration for end-user cooling consumption incentives may be dynamically adjusted based on the implementation status of these Measures.

(5) Cooling projects are encouraged to undertake centralized cooling energy-saving retrofits according to high star rating requirements and to simultaneously pursue applications for centralized cooling energy-saving retrofit incentives, energy-saving star rating incentives, and end-user cooling consumption incentives.

Article 7.

Application Procedures

The Commercial Services Bureau of the Cooperation Zone (hereinafter referred to as the “Commercial Services Bureau”) will organize application procedures under the principle of “capped total funding with priority given to early evaluation and early supplementation”. For centralized cooling energy-saving retrofit incentives, the applicant shall be the project property owner or an authorized third party; for energy-saving star rating incentives and end-user cooling consumption incentives, the applicant shall be the operation and maintenance manager or an authorized third party. The application process is as follows:

1. Pre-application: The Commercial Services Bureau will issue an annual notice for incentive pre-applications. Applicants shall submit relevant materials of their proposed projects, including design proposals, as required by the pre-application notice.

2. Proposal Review: The Commercial Services Bureau will organize reviews of pre-application materials. Upon approval, projects shall be included in the pre-application directory and publicly announced. Subsequent incentive applications shall be selected from this directory.

3. Formal Application: Applicants shall complete project construction and acceptance within one year following the completion of their pre-application in order to formally apply for special incentives. Applicants shall submit special incentive application materials to the Commercial Services Bureau within the prescribed timeframe, as required by the application notice.

4. Project Review: The Commercial Services Bureau will organize expert review panels to assess incentive applications through document examination, on-site inspections, and other methods, and shall issue review conclusions.

5. Public Announcement: The Commercial Services Bureau will publish the list of projects receiving incentives and the corresponding amounts on the Cooperation Zone’s official website.

6. Fund Disbursement: If no objections are raised during the public announcement period, or if any raised objections are investigated and found to be invalid, the Commercial Services Bureau will arrange for fund disbursement according to the relevant incentive standards.

Projects applying for centralized cooling energy-saving retrofit incentives shall adhere to the principle of “quality assurance and cost control” to ensure objective and fair actual equipment procurement prices. Actual equipment procurement prices and actual meter installation quantities must be assessed and reviewed by expert review panels.

Projects applying for end-user cooling consumption incentives may apply directly upon meeting application conditions. All actual cooling consumers shall enjoy the same end-user cooling consumption incentive standard during the same period. A single application remains continuously effective. Repeat applications are not required if project star ratings change; however, reapplication is necessary to restore incentives if end-user cooling consumption incentives are interrupted.

Article 8.

Supervision and Management

Incentive funds disbursed under these Measures shall only be used for expenditures related to user-side centralized cooling retrofits, operation and maintenance, and related aspects. After receiving incentive funds, applicants shall accept supervision and management by the Commercial Services Bureau regarding subsidy funds and project implementation, and shall cooperate with relevant functional departments in inspections, supervision, and acceptance of their projects.

Applicants shall guarantee the authenticity and completeness of application materials. If an applicant obtains funds fraudulently or through other improper practices, the applicant’s eligibility for incentives shall be revoked upon verification, with all funds recovered, penalties imposed under relevant regulations, and criminal liability pursued where the actions constitute a crime.

Under any of the following circumstances, no incentives shall be granted, subsequent incentive fund disbursements shall be suspended, and all incentive funds shall be recovered:

1. Fraudulent acquisition of special funds or other serious regulatory violations;

2. Submission of duplicate applications without voluntarily withdrawn;

3. Diversion, misappropriation, or embezzlement of incentive funds;

4. Work safety incidents occurring during project implementation;

5. Failure to implement in accordance with prescribed procedures and requirements;

6. Non-compliance with other relevant national and Cooperation Zone regulations.

The Commercial Services Bureau may conduct performance evaluations of special incentive fund usage as needed and refine these Measures and related documents based on the findings.

Article 9.

Applicable Rules

Except where otherwise provided in these Measures and relevant laws and regulations, receiving support under these Measures does not affect an applicant’s eligibility for other national, provincial, or municipal policy support. If these Measures overlap or conflict with other similar policies issued by the Cooperation Zone, the higher or more favorable standard shall apply.

Article 10.

Source of Funds

Funds required under these Measures shall be disbursed from the Cooperation Zone’s fiscal special incentive funds.

All monetary amounts herein are pre-tax and denominated in Renminbi (RMB).

Article 11.

Effective Date and Validity Period

These Measures shall take effect on January 1, 2025, and remain valid for 3 years. Adjustments or extensions may be made before expiry based on practical circumstances.

The commencement date for retrofit projects under application may be traced back to January 1, 2024, provided the projects comply with these Measures and other relevant regulations.

Article 12.

Power of Interpretation

The Commercial Services Bureau will be responsible for interpreting these Measures.

This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.