ESPC M&V Experiences

Transcription

1 Track 12, Session 3: Savings Validation in Performance Contracts ESPC M&V Experiences Kevin Warner EMP2, Inc. August 15, 2017 Tampa Convention Center Tampa, Florida

2 M&V Experience Topics Risk Management Managing Expectations Baseline planning Communication 2

3 Risk Management M&V doesn t determine savings precisely Goal is to reduce risk for the agency There are energy cost risks and audit risks Example plans in 4.0 may help as a starting point 3

4 Risk Management Types of risk to agency Maintenance and Operations issues Robust plan Project audit findings 4

5 Risk Management Maintenance and Operations Agencies often take on O&M for ECMs Site needs to have abilities to perform well Site needs to follow intent of system design Budget resources are needed to perform well Regular checks of maintenance issues Use CMMS wisely Staff turnover 5

6 Risk Management Robust Plan Many plans use minimum (or less than) required measurements Need to balance cost vs. savings Government witnessing by qualified staff Expected values in plan/data sheets Identification of measurement 6

7 Risk Management Audit Risk Many ESPC projects are Audited Need to assign responsible party to review Provide for government witnessing Consider third party M&V report review Make documentation match the plan 7

8 Managing Expectations M&V processes result in uncertainty Agency teams need to clearly understand balance of risk early in process Avoid surprises in both baseline development and performance period verification 8

9 Managing Expectations - Uncertainty There are a wide range of ways to apply M&V and meet guidelines Determine agency team expectations Work with ESCO to match plan to expectations M&V in practice is rarely as easy as expected by those new to process Not just looking at utility bills Not prescriptive 9

10 Managing Expectations - Risk Team needs to understand savings risk Based on many factors ECM technology experience at site Site maintenance quality Scale of savings Scale of implementation cost Don t depend on Option Type to make decisions Explanation of work to be performed in the plan often doesn t match the Option and/or expectations of the agency team 10

11 Baseline Planning M&V is often addressed too late in audit process (and keeps changing) Need to define requirements as early as possible Match effort with risk Dig into the details early Create simple ways to track baseline development Use witnessing and other resources based on risk of ECM 11

12 Communication Obvious issue, not always thorough enough Many members of the team may be new to the ESPC and M&V process Need to make sure everyone understands lingo Need to explain how decisions will affect agency in short term and long term 12

13 Communication Each team has different communication style Try different tools Written M&V strategy docs M&V workshops M&V training Transition between project phases needs to ensure same plan is followed throughout Development to Construction to Performance Third party to stay with project for consistency 13

14 Conclusion M&V guidelines are a good start, but most team members aren t experts on guidelines Work continually on communicating to get to a plan that meets agency team expectations 14

15 Contact Information Kevin Warner Principal Engineer PE, CEM, CMVP, CEA EMP2, Inc. - emp2.com kwarner@emp2.com Certified SDVOSB 15