The ABCs of M&V (measurement & verification of energy savings)

The ABCs of M&V

Steve Heinz, PE, CEM
Founder & CEO
EnergyCAP, Inc.

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

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)


Manufacturer

Financer
(Owner or third party)

M&V ties it
all together!

Contractor
(Installer)

Building Owner

Designer

(Savings beneficiary)

(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


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 Manager
B. Praise our Energy Manager
C. We need more information before making a decision

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.


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

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&V
When 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


Want more content like this?
See all webinars at:
www.EnergyCAP.com/webinar
Visit our blog at:
http://Blog.EnergyCAP.com

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).
Web-based and on-premise versions.
Financially secure. No debt. No VC funds.
EnergyCAP software is all we do—we don’t sell
hardware, retrofits, consulting, bill payment
outsourcing, procurement.


2,200 organizations use EnergyCAP.
City Government (San
Francisco, Baltimore, Sacramento, Virginia
Beach, Tampa, Denver, Jacksonville, Oklahoma City, Cleveland)

County Government (Orange, Riverside, Santa Barbara CA;
Loudoun, Fairfax, Chesterfield VA; Miami Dade, Charlotte FL)

Federal (USMC, Smithsonian, U.S. Dept of Energy Labs)
Commercial (Ryder, Equity Residential, Forest City, BJs
Wholesale Clubs, CBRE, Northrop Grumman)

Education (800+ school districts, SUNY system, Univ of CA
system, UCF, Univ of Kansas)


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