the abcs of m&v (measurement & verification of energy savings)

The ABCs of M&V

©2013 EnergyCAP, Inc. ▪ @energycap ▪ #energyleader ▪ www.EnergyCAP.com

Steve Heinz, PE, CEMFounder & CEO

EnergyCAP, Inc.


What is M&V and why is it important?

M&V is “Measurement & Verification” of energy and cost savings resulting from an energy efficiency initiative.


It’s important! M&V is one of the six foundational pillars of energy efficiency:

Manufacturer (HVAC, windows, lighting, etc)

Contractor (Builder/Installer)

Designer (Engineer/Specifier)

Building owner (Savings beneficiary)

Financer (Owner or third party)

M&V (Performance assurance)


M&V ties it all together!

Contractor(Installer)

Manufacturer

Financer(Owner or third party)

Building Owner(Savings beneficiary)

Designer(Engineer/specifier)


Quiz

In 2012 we spent $3M on electric bills. We hired an Energy Manager on 1/1/2013 who implemented a comprehensive energy management program. In 2013 we spent $4M.

We should:

A. Fire our Energy Manager

B. Praise our Energy Manager

C. We need more information before making a decision


In 2012 we spent $3M on electric bills. We hired an Energy Manager on 1/1/2013 who implemented a comprehensive energy management program. In 2013 we spent $4M.

But we also added 75,000 sq ft, increased enrollment by 7%, increased community rentals by 9% and absorbed a 5% electric price increase. Oh, and we had a record-setting hot summer.

We should:

A. Fire our Energy ManagerB. Praise our Energy ManagerC. We need more information before making a decision


In 2012 we spent $3M on electric bills. We hired an Energy Manager on 1/1/2013 who implemented a comprehensive energy management program.

In 2013 we spent $4M. But we also added 75,000 sq ft, increased enrollment by 7%, increased community rentals by 9% and absorbed a 5% electric price increase. Oh, and we had a record-setting hot summer.

Based on the 2012 baseline, our M&V software calculated that without our energy management program we would have spent $4.8M in 2013. It looks like we avoided a cost of $800,000 in 2013.

We should:A. Praise our Energy Manager


This illustrates a key concept:

“Measurement and verification” of energy savings is necessary because you can’t simply compare year-to-year out of pocket expenditures. You have to compare what you did spend with how much you would have spent in the absence of energy efficiency, in other words how much you avoided spending.


This was followed 10 years later with the first version of Metrix (developed for Johnson Controls by SRC Systems, now owned by Itron and serviced by Abraxas Energy Consulting).

We recognized the need and released an M&V module in FASER Energy Accounting in 1985.


IPMVP

The U.S. Department of Energy and other impartial agencies funded the development of the IPMVP (The International Performance Measurement and Verification Protocol) beginning in the mid-1990’s.


IPMVP (cont’d)

Today it is managed by an international nonprofit agency called The Efficiency Valuation Organization.www.EVO-World.org

The Federal Government uses a version of it to value the savings for all Federal energy projects.


IPMVP Options for M&V

A. Retrofit isolation. Measure and estimate parameters. (“Key Parameter Measurement”)Example: Lighting retrofit

B. Retrofit isolation. Submeter actual energy use. (“All Parameter Measurement”)Example: Chiller replacement


IPMVP Options for M&V (cont’d)

C. Compare before/after utility bills. (“Whole Facility”)Example: Behavior-based program

D. Comprehensive computer modeling. (“Calibrated Simulation”)Example: HVAC controls retrofit


IPMVP Option C

1. Establish a baseline year

2. Adjust the baseline year to current conditions. This is an estimate of what you would have used without an energy management program in place.BATCC–Baseline Adjusted to Current Conditions

3. Compare today’s actual bills with the BATCC adjusted baseline


IPMVP Option C

Cost Avoidance=BATCC Cost–Current Cost

Baseline cost: $1,000 KWH: 10,000 @$0.10

Current cost: $1,200 KWH: 8,000 @$0.15

BATCC cost: $1,500 (10,000 x $0.15)

Cost avoidance: $300


Adjust the baseline to current conditions

Degree days imported from AccuWeather®

(see www.WeatherDataDepot.com)

Energy unit price

Floor area

Changes in length of billing period

Enrollment, occupancy

New equipment


Savings: Adjusted baseline minus today’s actual bill


Limitations of Option C M&VWhen you have implemented several projects, it’s difficult to discern the results of each individually.

The further back the base year, the less reliable the calculations due to many changes in occupancy, equipment, etc.

When peak demand charges are a major cost driver, there are valuation complexities.


Savings Reports can be:

1. Ongoing. Calculate and report savings periodically throughout the life of the contract or program. EnergyCAP approach.

2. One-Time Stipulated. All parties agree to a one-time calculation; no further reporting is needed. This approach is favored by most ESCOs for most retrofit projects.


Resources:

Become a member of EVO (www.EVO-World.org)

Download IPMVP from EVO

CMVP–Certified Measurement & Verification Professional (www.AEECenter.org)

M&V Software: EnergyCAP, Metrix, Noesis


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Presented by EnergyCAP, Inc.EnergyCAP is used by organizations that receive many utility bills for bill processing, energy reporting and analytics

Over 30 years as industry leader; first release in 1982. (The predecessor software was FASER Energy Accounting).

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Financially secure. No debt. No VC funds.

EnergyCAP software is all we do—we don’t sell hardware, retrofits, consulting, bill payment outsourcing, procurement.

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the abcs of m&v (measurement & verification of energy savings)

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