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. Watt-hour (Wh) meters and What Would Have Happened (WWHH) Meters 250,000 500,000 750,000 1,000,000 kWh Baseline PeriodPerformance Period 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. 250,000 500,000 750,000 1,000,000 Jan-93Jul-93Jan-94Jul-94Jan-95Jul-95Jan-96 kWh Baseline PeriodPerformance Period Installation Period 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