Measurement and Verification, Commissioning Applications

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1 Measurement and Verification, Commissioning Applications Advisory Group Donald J. Frey, P.E. April 23, 2003

2 Potential Applications of M&V Methods Calculate Cx benefits. New Construction Design phase Construction phase Post-occupancy Existing construction Investigate persistence of savings.

3 Overview of performance-based energy services. Energy services companies (ESCOs) develop, install, and finance energy efficiency improvements for a customer. Energy services are performance-based when the seller s (ESCO s) compensation is tied to the buyer s (customer s) savings.

4 Overview (continued) The roles and responsibilities of the ESCO and the customer are spelled out in a contract. The ESCO s compensation can be based on: Shared savings. Guaranteed savings. Equipment leasing. Other arrangements.

5 Why M&V is needed. Savings have to be determined for the ESCO to be compensated. The M&V process has to be fair to the ESCO and to the customer so they both benefit. The M&V process is defined during contract negotiations. Risks have to be shared proportional to potential rewards.

6 Typical M&V activities. Both parties agree on the M&V protocol to use. It is written into the contract. A detailed M&V plan is developed for the project. Performance is determined before improvements are made. Baseline is determined or defined.

7 Typical M&V activities. (continued) Verify quantity and quality of ECMs. Performance is determined after improvements are made. Energy savings for the first year are calculated. First year payments are calculated.

8 Typical M&V activities (continued) Quantity of ECMs is verified in subsequent years. Energy savings for subsequent years are determined. Payments for subsequent years are calculated.

9 Standard protocols for M&V. The ESCO industry has developed protocols for M&V. The benefits of standard methods include: ESCOs can use standard methods in their marketing. Buyers and sellers know what to expect. Overall project costs are reduced. Less risk for the financing industry.

10 Standard protocols (continued) The most common protocols are: International Performance Measurement and Verification Protocol (IPMVP) successor to the North American Measurement and Verification Protocol (NEMVP) Measurement and Verification (M&V) Guideline for Federal Energy Projects (FEMP) ASHRAE Guideline on Measuring Energy and Demand Savings

11 IPMVP Options Option A: Partially Measured Retrofit Isolation Option B: Retrofit Isolation Option C: Whole Facility Approach Option D: Calibrated Simulation Approach

12 IPMVP Savings Equation Energy Savings* = Baseyear Energy Use - Post-Retrofit Energy Use +/ Adjustments *Equation 1 from the IPMVP.

13 Option A - Partially Measured Retrofit Isolation Some parameters are measured and others are stipulated. Measured parameters are isolated from the rest of the building. The impact of stipulating some parameters should be evaluated before committing to use this option.

14 Option A - Typical Application Constant loads, such as lighting retrofits Power draw is measured. Hours or operation may be completely or partially stipulated. Adjustments may be completely or partially stipulated.

15 Option B - Retrofit Isolation Measured parameters are isolated from the rest of the building. All parameters (energy consumption and hours of operation) are measured.

16 Option B - Typical Applications Equipment that is weather dependent. Variable speed drives.

17 Option C - Whole Facility Approach Involves utility meters or whole-building sub-meters to assess the energy performance of an entire building. Determines the collective savings of all ECMs. Includes impact of all changes made to a building (positive of negative).

18 Option C - Typical Application Used where there is a high degree of integration between ECMs. Used when it is difficult or costly to isolate ECMs. Savings must be large compared to random variations in energy use. Savings should be 10% of the baseyear use or greater.

19 Option C - Discussion Energy Savings = Baseyear Energy Use - Post-Retrofit Energy Use +/ Adjustments Collecting the data needed to accurately make adjustments is critical to the success of Option C. Mathematical models are typically created to do this. Most significant drivers are usually weather and occupancy.

20 Option D - Calibrated Simulation Approach Involves creating a computer simulation and calibrating it with either baseyear or postretrofit data. Useful when baseyear data do not exist, such as new construction.

21 Option D - Typical Application Use when no base case exists. Use when a simulation model was created to calculate ECM benefits. Use when interactive effects are significant.

22 Ideas for CCC Advisory Board to Discuss How do the IPMVP Options apply to studying the persistence of commissioning? How is the draft Scope of Work impacted by this discussion? How is the case study database impacted by this discussion?

23 Thank You