1. M&V Part 3: FEMP M&V Methods

2. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

3. 3-3 FEMP M&V Guidelines For federal energy projects Ø Step-by-step procedural guide Ø Defines M&V methods by project type Ø Current version is 2.2 (2000) Available at http://www.eren.doe.gov/femp/, http://ateam.lbl.gov/mv/ or 1-800-DOE-EREC.

4. 3-4 What the Guidelines Cover Ø Agreement language. Ø Overview of procedures. Ø Different M&V approaches. Ø Selecting the right approach for a project.

5. 3-5 What the Guidelines Dont Cover Ø Specifying an approach for a project. Ø Specific M&V plan for each project. Ø Required uncertainty levels. Ø Specifying how to allocate risk between ESCO and agency. Ø Project-specific O&M savings.

6. 3-6 FEMP M&V Compliance Complying with the FEMP guidelines requires: F Developing an M&V plan using the defined methods. F Following the M&V plan. The important consideration is what is in the plan.

7. 3-7 FEMP M&V Options M&V OptionHow savings are calculated Option A: Based on measured equipment performance, measured or stipulated operational factors, and annual verification ofpotential to perform. Engineering calculations. Option B: Based on periodic or continuous measurements taken throughout the term of the contract at the device or system level. Engineering calculations using measured data. Option C: Based on whole-building or facility level utility meter or sub-metered data adjusted for weather and/or other factors. Analysis of utility meter data. Option D: Based on computer simulation of building or process; simulation is calibrated with measured data. Comparing different models.

8. 3-8 Options A&B vs. Options C&D Options A&B are retrofit isolation methods. Options C&D are whole-facility methods. The difference is where the boundary lines are drawn.

9. 3-9 Option A Ø Simple approach (& low cost). Ø Performance parameters are measured (before & after), usage parameters may be stipulated. Ø Used where the potential to perform needs to be verified but accurate savings estimation is not necessary. Ø Option A is NOT stipulated savings! Option AOption BOption COption D

10. 3-10 Stipulate Ø To stipulate is to agree to a term or condition. Ø Under FEMP, to stipulate means to estimate without measurement. Ø A parameter is either measured or stipulated, but not both. Ø A measured parameter can be fixed for the contract term. Option AOption BOption COption D

11. 3-11 Option A Applications Projects where performance remains constant,usage can be readily characterized, and uncertainty is not a major issue. Ø Lighting efficiency. Ø Timeclock controls. Ø Efficient motors. Ø Operations & Maintenance. Option AOption BOption COption D

12. 3-12 Option B Ø Under Option B, some or all parameters are measured periodically or continuously. Ø Applicable where accurate savings estimation is necessary and where long- term performance needs to be tracked. Ø Reduced uncertainty, but requires more effort. Option AOption BOption COption D

13. 3-13 Option B Applications Projects with large elements of uncertainty and/or risk ($$$). Ø Variable speed drives. Ø Chillers and chiller plants. Ø Energy management & control systems. Ø Projects where equipment needs constant attention. Option AOption BOption COption D

14. 3-14 Option B Benefits Reasons to use Option B instead of A: Ø Real M&V. Ø Better equipment performance. Ø Improved O&M. Ø Continuous Commissioning SM Ø Remote monitoring. Continuous Commissioning is a service mark of Texas A&M University. Option AOption BOption COption D

15. 3-15 Option C Ø Option C looks at energy use and cost of entire facility, not at specific equipment. Ø Usually simple. Ø Considers weather, occupancy, etc. Ø Applicable where total savings need to be quantified but component-level savings do not. Ø Commercial software available. Option AOption BOption COption D

16. 3-16 Option C Limitations Ø Does not verify at component level. Ø Requires savings to be significant (> 15% of baseline consumption). Ø Requires historical data (> 1 year). Ø May take time to evaluate savings. Ø May require baseline adjustment to account for non-project related factors. Option AOption BOption COption D

17. 3-17 Option C Applications Projects where facility usage remains constant and historical data is present. Ø Weather-dependent projects. Ø Heating projects. Ø Energy management & control systems. Ø Multiple interacting measures in a single building. Option AOption BOption COption D

18. 3-18 Option D Ø Option D treats building as computer model. Ø Flexible, but requires significant effort. Applications: F New construction. F Energy management & control systems. F Building use changes. F Building modifications. Option AOption BOption COption D

19. 3-19 Option D Limitations Ø Uses very specialized software that requires significant experience to use. Ø Results vary with effort (and $$$) expended. Ø Requires measurements for calibration. Ø Weather-related usage often stipulated. Ø Still need to verify potential to perform. F Annual inspections recommended. Option AOption BOption COption D

20. 3-20 Examples Ø Option A: Lighting Ø Option B: Variable-Speed Drive Ø Option C: Heating Plant Ø Option D: New Construction Option AOption BOption COption D

21. 3-21 Example Lighting Project Consider the following lighting project: Ø Upgrade 5,000 fixtures Ø Existing performance: 86 Watts Ø New performance: 56 Watts Ø Operating hours: 3,000/year Ø Electricity: $0.10/kWh Option AOption BOption COption D

22. 3-22 Method LE-A-01 / 02 Performance Ø Baseline power consumption is 86 Watts. Ø Proposed power consumption is 56 Watts. Ø Difference is 30 Watts. Usage Ø Baseline & New: 3,000 hours / year Financial Ø Energy = $0.10/kWh Option AOption BOption COption D

23. 3-23 Lighting Savings E Savings = QTY * (Before - After) * Hours ES = (5,000) * (86 W - 56 W) * (3,000 hours) * (1 kW / 1000 W) ES = 450,000 kWh / year Cost Savings = (Unit Cost) (Energy Savings) Cost Savings = (450,000 kWh) * ($0.10/kWh) Cost Savings = $45,000 / year Option AOption BOption COption D

24. 3-24 Example VSD Project Variable Speed Drive on HVAC Fan. Ø Baseline Fan: Operates continuously at a single speed and power no matter what the cooling load is. Ø VSD Fan: Speed and power change with cooling load (outside temperature). Option AOption BOption COption D

25. 3-25 VSD-B-01 Fan Performance Ø Baseline fan: Constant power (140 kW). Ø VSD Fan: Power changes w/ weather. Fan Usage Ø Fan power changes hourly with cooling load (outside temperature and sunshine). Financial Ø Energy = $0.10 / kWh Option AOption BOption COption D

26. 3-26 Monitor Fan Performance Option AOption BOption COption D

27. 3-27 Calculate Monthly Savings MonthkWh SavedCost Savings July27,592$2,759 August24,316$2,432 September26,870$2,687 October34,724$3,472 November40,858$4,086 E Savings = (kW Before - kW After ) * (1 Hour) Cost Savings = (Unit Cost) (Energy Savings) Option AOption BOption COption D

28. 3-28 Example Heating Project Heating system upgrade at eastern US military base. Ø Baseline: Gas-fired boilers with central steam plant provide heat to buildings. Ø New System: Shut down steam plant. Install gas furnaces in all buildings. Option AOption BOption COption D

29. 3-29 Heating System Characteristics Base Performance Ø Baseline: low-efficiency and steam loss. Ø New: High efficiency, no steam loss. Energy Usage Ø Driven by weather. Financial Ø Gas is $0.50/therm. Option AOption BOption COption D

30. 3-30 Compare Gas Use to Temperature Option AOption BOption COption D

31. 3-31 Develop Baseline Model Option AOption BOption COption D

32. 3-32 Calculate Monthly Savings MonthWeather, HDD Baseline, Therms New Use, Therms Energy Savings Cost Savings January91522,04615,4326,614$3,307 February74217,61712,3325,285$2,643 March52011,9348,3543,580$1,790 April3487,5315,2722,259$1,130 May91952666285$143 June9000$0 July0000$0 August1000$0 September1121,4891,042447$223 October3647,9405,5582,382$1,191 November4429,9376,9562,981$1,491 December82319,69113,7845,907$2,954 Total4,36799,13769,39629,741$14,871 Option AOption BOption COption D Baseline, therms = 25.6 * HDD - 1,378

33. 3-33 Example New Construction Ø Proposed building incorporates energy- efficient design features selected by ESCO. Ø Baseline building is existing design before ESCO modifications. Option AOption BOption COption D

34. 3-34 Develop Computer Model... Option AOption BOption COption D

35. 3-35...And Evaluate Results Option AOption BOption COption D

36. 3-36 Calculate Savings Energy Use, kWh AlternativeLightsCoolingOtherTotalSavings Base Case1,500,298955,2632,447,9794,903,540- Efficient Lighting1,125,240860,0622,365,6384,350,940552,600 Efficient Chiller1,500,298788,6812,426,8124,715,791187,749 Chiller & Lighting1,125,240708,9332,346,4274,180,600722,940 Ø Evaluate energy use for each scenario. Ø Calculate savings for each scenario relative to base case. Option AOption BOption COption D

37. 3-37 Review and Discussion Ø Total energy use and savings are a function of both usage and savings. Ø Options A & B are retrofit-isolation methods. Ø Options C & D are whole-facility methods. Ø Can mix & match methods.

38. 3-38 Review Questions Ø What two factors determine energy savings? Ø How does one comply with the FEMP Guidelines?