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Energy Savings Performance Contracts

Energy Savings Performance Contracts. Measurement & Verification. What Is Measurement And Verification (M&V)?. M&V is a process of tracking and verifying project energy savings as specified in the contractually agreed M&V plan. Benefits o f M&V. Objectively tracks project performance

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Energy Savings Performance Contracts

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  1. Energy Savings Performance Contracts Measurement & Verification

  2. What Is Measurement And Verification (M&V)? M&V is a process of tracking and verifying project energy savings as specified in the contractually agreed M&V plan

  3. Benefits ofM&V • Objectively tracks project performance • Building owner • ESCO • Maximizes project savings • Monitors equipment performance • Provides accounting and budget data • Benchmark savings for potential projects in similar buildings

  4. Project M&V Process • Develop M&V Plan • Target key project risks • Establish Project Baseline • Implement monitoring • Periodic reporting

  5. M&V Plan Elements • Key performance goals for this project • Which M&V protocol(s) will be used to achieve these goals? • What data will be measured, calculated, simulated, or estimated in the selected M&V methodology? • Estimated annual costs for M&V program. • Sample savings report showing all data, calculations and summary results

  6. Project Performance Factors • Project audit and design • Equipment selection • Project construction and commissioning • Long-term operations and maintenance • Equipment performance M&V does not substitute for other project performance tasks

  7. Project Performance FactorsAudit and Design • Does the ESCO understand your facility? • Do you accept the ESCO’s whole facility energy model? • Are the ESCO’s savings estimates reasonable? Catch and correct errors before they get built into the project

  8. Project Performance FactorsEquipment Selection • Is the proposed equipment described in adequate detail? • Will the equipment produce the savings? • Are you technically comfortable with using this equipment? • Track record, mfrs. warranties, etc. • Can you maintain this equipment? Don’t overestimate your appetite for technical innovation or your maintenance capabilities.

  9. Project Performance FactorsConstruction/Commissioning • Construction management process • Who represents the owner in the field? • Commissioning process • Project acceptance process Once you accept the project, it’s yours.

  10. Project Performance FactorsLong Term O&M • Who will maintain the new equipment? • Does the ESCO or manufacturer offer adequate training and ongoing support? • Can you adjust equipment operation for changes in facility use? Good maintenance = savings achieved.

  11. Project Equipment Performance • Does equipment work as specified? • Is equipment achieving estimated savings? • Has the performance of non-project related equipment changed energy use significantly? This is the target of an M&V plan.

  12. Standard M&V Protocols • International Performance Measurement and Verification Protocol (IPMVP), www.nrel.gov/docs/fy02osti/31505.pdf or www.evo-world.org/index.php • American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) guideline 14 (covers IPMVP options B, C, and D in more technical detail), go to: http://www.ashrae.org

  13. IPMVP M&V Protocols • Option A – One time savings measurement as the basis for future stipulated savings • Option B - Measured consumption by end use over time • Option C - Whole facility analysis with utility meter measurements • Option D - Calibrated simulation calculations

  14. M&V ProtocolsMatch To Technology • Option A – Lighting • Option B – Chiller Plant, VAV • Option C –Demand Response, Water • Option D – Building Envelope

  15. M&V ProtocolsSelection Factors • Number and complexity of ECMS • Value of projected ECM savings • Uncertainty of savings • Savings risk allocation • Other value produced by M&V data • Availability and capability of an EMS

  16. Project M&VData Logging Equipment • Isolates affected end-use from total building meter • Quantifies parameters for engineering calculations and simulation models (e.g., temperatures, run times, control settings) • Corrects catalog data estimates which can vary by application, design, quality of installation, and control

  17. Project M&VData Issues • Match data collection to M&V protocol • Understand available sources of data • Maintain and/or upgrade data sources • Establish good monitoring practices Garbage in = garbage out

  18. Project M&V Data Sources • Utility bills • Facility sub-meter readings • Weather data • Outputs from building EMS • Logs of building operation &maintenance data • Reports on building changes from maintenance staff • Specialmetering & benchmark measurements

  19. Project M&VGood Monitoring Practices • Collecting relevant data from building operators and occupants is essential to effective monitoring • Building operators need timely, focused performance data to rapidly identify and correct system performance problems • Monitoring provides incentives for optimizing operations & maintenance, and documenting savings performance. Everyone is more careful when they know results are monitored

  20. Project M&VGood Monitoring Practices • Monitoring personnel should be trained to interpret the data collected • Collect baseline data before the audit • Electronic monitoring for loads with large demand • Monitoring data should be provided in easy to understand graphic formats

  21. Project M&VCalculating Savings • Turn data into useful information • Specify how measurements or calculated data will be used to verify savings • Provide sample calculations • Specify time intervals for measurements and calculations • Specify standard format for written monitoring reports

  22. Project M&VPeriodic Reports • Document the periodic savings report schedule, review and approval process • Report consumption and cost savings in units/dollars and percentage of target savings in both graphic and numeric format • Clearly identify data sources, time periods, utility cost data, report author and contact data • Explain variances from predicted savings performance • Require documentation of calculations to support material change adjustments to savings and/or baselines

  23. Project M&VCost Considerations • Cost effective M&V produces data with a value greater than the cost of measurement • M&V methodology must produce consistent results no matter who uses the procedure • M&V must produce timely, reasonably accurate results • Value of M&V is a function of dollars at risk

  24. Project M&VDefining The Base Year • Base year is the mutually agreed upon pre-retrofit annual utility consumption and cost for your building or a specific energy using system • Base year provides the basis for the technical and economic analysis of potential energy conservation measures • Base year provides the basis for measuring and/or calculating the value of future energy savings

  25. Project M&VBase Year Problems • Selected year ≠ current building use, because of: • Changes in building equipment, structures, schedule, occupancy, or control set-points • Equipment not functioning during base year • Extraordinary operations and maintenance work • Consumption data are inaccurate or missing due to utility metering, billing, or data entry errors • Changes in utility rates

  26. Project M&VBase Year Problems • Quantifying the correlation between current building conditions and current energy use is inaccurate because of changes in: • Equipment operating conditions, sizes, loads, and schedules • Existing lighting levels, ventilation rates, temperature, and humidity • Run hours of equipment  operating hours of building • Run hours of equipment  facility staff estimates • Actual annual equipment loads  full load rating nameplate (e.g., average motor operates at 60% of full load rating)

  27. Project M&VRecap Of Success Factors • Good project M&V provides: • Timely method of measuring savings • Methodologies acceptable to client and ESCO • Clearly defined measurement and calculation methods • Cost-effective measurement and calculation methods • Value of measurements are a function of the dollars at risk

  28. Project M&VTypical Challenges • Poorly defined M&V plan • M&V report lacks supporting calculations • Missing equipment/operations data • No standardized schedules/formats for data, calculations and reporting • Difficulty of monitoring the impacts of facility changes on ECM performance

  29. Project M&V Lighting Example –Why Details Matter • Lighting system kW varies with fixture and ballast type • Even with good documentation, getting fixture counts more accurate than  3% may be impractical in very large facilities • Pre-retrofit condition is often more efficient than engineering estimates • Post-retrofit condition is often less efficient than engineering estimates (e.g., inaccurate demand diversity)

  30. Performance Guarantees Verifiable or Not? • Types of Savings • Energy • Rate Savings • Efficient Equipment • Efficient Operating Methods • Operational and Maintenance • Labor • Material • External Service Contracts • Capital Avoidance Which are guaranteed by the ESCO?

  31. Documenting High Performance • What do you need to document and maintain higher performance? • Reliable monitored data • Understanding of the data • Active cooperation of site operators • Easy to understand graphic formats • Continuous commissioning CLOSE THE FEEDBACK LOOP TO CHASE PERFORMANCE

  32. Operation And Monitoring • Well-run, inefficient systems often work better than efficient systems poorly run • Equipment access • Proper budget • Adequate training • Incentives for good O&M • Good GUI for building control systems • Immediate access to critical efficient components

  33. M&V Plan Requirements for Adherence To IPMVP Description of baseline conditions and energy data: • Energy and demand profiles • Occupancy type, density and period • Space conditions for each operating period • Equipment inventory • Equipment operating practices • Significant equipment problems

  34. M&V Plan Requirements For Adherence To IPMVP • Description of planned changes to base year conditions • Identification of reporting period • Establishment of conditions to which all energy measurements will be adjusted • Documentation of the procedures used to verify proper installation of the ECM

  35. M&V Plan Requirements for Adherence To IPMVP • Specification of IPMVP Option • Specification of data analysis procedures • Specification of metering points and meter characteristics • Option specific information (e.g., simulation software used under Option D)

  36. M&V Plan Requirements For Adherence To IPMVP • Specification of quality assurance procedures • Quantification of expected accuracy associated with measurement and analysis • Specification of how results will be reported and documented

  37. M&V Plan Requirements For Adherence To IPMVP • Specification of data available for savings verification by a third party • Descriptions of how non-routine baseline adjustments will be made • Definition of budget and resource requirements for the M&V effort

  38. Key Findings In Savings Uncertainty Analysis • Uncertainty in baselines is a key contributor to savings estimates • Document and collect the best possible data on equipment performance: • Quantity • Capacity (size) • Operating Efficiency Curve • Operating hours

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