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There is Much More to Protocols than Good M&V

There is Much More to Protocols than Good M&V. Steve Kromer Chair, IPMVP Inc. Paolo Bertoldi European Commission DG JRC. M&V Purposes. Verify performance of energy efficiency projects and programme Assists in budgeting

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There is Much More to Protocols than Good M&V

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  1. There is Much More to Protocols than Good M&V Steve Kromer Chair, IPMVP Inc. Paolo Bertoldi European Commission DG JRC

  2. M&V Purposes • Verify performance of energy efficiency projects and programme • Assists in budgeting • Use of standardized M&V methods reassures project financiers that projects are “bankable.” • Facilitates emissions trading

  3. What is M&V? • Measurement of Energy Savings • Savings = Reductions resulting from equipment and operational changes to a facility to improve its energy use. • Verification of successful achievement of: • Savings anticipated in the energy audit, and/or • Savings as claimed So M&V is: Determining and evaluating actual savings achieved by a project or programme

  4. Quantifying What’s Not There • “Savings” are the product of energy efficiency projects. • “Savings” may occur, but can never be measured directly. • “Savings” may vary, depending on how changes are addressed

  5. 1,000,000 750,000 kWh 500,000 Baseline Period Performance Period 250,000 Watt-hour (Wh) meters and What Would Have Happened (WWHH) Meters WWHH meter Wh Meter

  6. Watt Meters and What Meters • Watt Meter – Measures Energy • Can be calibrated • Reflects accuracy of the hardware • Accuracy can be specified and tested • What Meter – • Is calculated • Is as accurate as the model • Accuracy cannot be tested directly

  7. M&V Theory • Savings cannot be measured directly • Each project needs a different M&V Plan defining how to determine savings. For each project, decide: • the boundary of measurement – just the retrofitted system or the whole facility? • the method of adjustment for routinely changing variables • where and how to measure the baseline energy use and conditions • who, what, where, and when to measures changes from baseline conditions

  8. Installation Period 1,000,000 750,000 kWh 500,000 Baseline Period Performance Period 250,000 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Three Typical Time Periods

  9. M&V Theory (cont) M&V Planning must consider: • Facility Characteristics • “Fixed” parameters and use/operating data from the investment grade audit • Contractual Environment • ESCO contract allocates risks arising from changes occurring within the boundary of measurement • Value of expected savings • M&V costs must be REASONABLE relative to savings • Uncertainty of metering and analysis • Cost of M&V should reflect acceptable level of uncertainty for the parties

  10. M&V in Practise • Find the right amount of M&V for each project: • How much can you assume parameters vs measure them? • Number of meters and their accuracy • Length of the measurement period, before and after retrofit • Who collects what information about changes since the baseline. • Baseline data is needed anyway - to design retrofits. • Ongoing operations always change, and are always monitored some way. The changes may not be recorded without proper M&V.

  11. M&V In Practise (cont) • The presence of widely recognized M&V standards gives potential clients and bankers comfort = • MORE ESCO PROJECTS. • Widely recognized standards define “good practise,” minimizing arguments about actual savings = • FEWER DELAYS IN ESCO’S CASH FLOW • FEWER BROKEN RELATIONSHIPS

  12. M&V Protocol Development Activities (U.S.) • IPMVP – Independent, volunteer organization • ASHRAE 14 – Engineering Standards • FEMP – Federal contracting

  13. What is IPMVP • Savings verification framework for commercial and industrial energy conservation measures (ECMs) • Standardizes M&V terminology and defines various M&V options • Risk management tool that allocates risks between buyer and seller of energy services

  14. Vision and Mission • IPMVP’s vision is a global marketplace that properly values energy and water efficiency. • IPMVP’s mission is to promote worldwide investment in energy/water efficiency projects by helping to quantify and manage the associated performance risks.

  15. IPMVP Inc. IPMVP Inc. is a non-profit organization, dedicated to serving the energy and water efficiency marketplace through: • the development of M&V protocols; • relevant M&V training and education materials; • building and maintaining a community of IPMVP users focused on advancing the state of M&V around the world.

  16. IPMVP – Three Volumes • IPMVP Vol I: Concepts and Options for Determining Savings (2002 Edition) - Currently available in English, French, and Portuguese. Will soon be available in Italian • IPMVP Vol II: Concepts and Practices for Improving Indoor Environmental Quality (2001 Edition) • IPMVP Vol III: Applications • Concepts and Options for Determining Energy Savings in New Construction • M&V for Renewable Energy Technologies

  17. Conclusion • Quantifying Project Results is tricky • Valuing Quantified Results Compounds Trickyness • Protocols Provide Broad Instructions and Options • Programs Dictate Cost and Accuracy • Each Project Needs an M&V Plan

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