7106_T5 VTM Training Day 1

Monitoring Performance We can also compare our consumption with the target. For example, from January to May the target savings were 227890 kWh and we have saved 198320 kWh, so it is less than the target. Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 151 UNIDO EnMS training 151

Monitoring Performance Actual Savings 50000 Target 0 Savings -50000 -100000 -150000 -200000 -250000 12/11 02/12 04/12 06/12 08/12 10/12 12/12Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 152 UNIDO EnMS training 152

Leveraging M&T for business opportunities• Sub contracted M&T• M&T analysis to identify anomalies - bad performance to be corrected, good performance to be repeated? 153

Exercise: Baseline development for factory 154

Module 8Measurement & Verification 155

What is M&V?• A process of planning, measuring, analysing, verifying, and reporting energy performance (3.8) or energy performance improvement for defined system boundaries (3.19) in order to establish confidence in the results (ISO) 156

Purposes of M&V• Increase Energy Savings• Document financial transactions• Ultimately enhance financing for efficiency projects• Improve design, operations and maintenance• Account for variances from the utility budget• Support evaluation of efficiency programs• Educate facility users about their energy impacts• Improve score in Green Building Certifications or Sustainability rating systems such as LEED (Leadership in Energy & Environmental Design). 157

M&V Standards• IPMVP• Ashrae Guide 14• US DOE FEMP M&V Guide for government buildings• ISO 50015 158

IPMVP Basic Equation for M&VSavings = (Baseline energy - Reporting-Period energy) +/- Routine adjustments +/- Non-Routine adjustmentsBaseline energy + Routine adjustments may be derived from baseline data using various modeling techniques. Routine Adjustments involve: independent variables, baseline models and routine calculations established in the M&V Plan. Non-Routine Adjustments are also needed if Static Factors are not static. Non- Routine Adjustments are normally called simply “Baseline Adjustments” (BLA).Baseline energy data may be sampled in order to minimize costs. Savings are calculated from measured data. By nature this data cannot be absolutely accurate, there always is a measurement uncertaintyIPMVP Core Concepts 2014, Chapter 5, 5.3.3 159

Adjustments (continued) Performance measurement requires an “apples to apples” comparison.Baseline Period Reporting PeriodWe adjust baseline and reporting period energy useto the same set of conditions for valid comparisons. 160

Two Basic Methods Whole Facility Method: Measures all effects in the facility: • Retrofits AND other changes (intended and unintended) • Often uses the utility meter • Adjustments can be complex Retrofit Isolation Method: Measures the effect of the retrofit, only • Savings are unaffected by changes beyond the measurement boundary • Usually requires a dedicated meter • Adjustments can be simple 161

Interactive effects and M&V • Where are you going to put the boundary for a simple Option A M&V of a lighting system upgrade?Lighting VentilationSystem Unit Chilled/Hot Chiller Water Boiler Pumping SystemSource: HVAC Design Service 162

M&V CostKey factors affecting M&V Cost: • Meter quality • Number of independent variables to be monitored • Frequency of measurement and reporting • Length of the baseline and reporting periods • Sample size, if all equipment is not measured • Other uses for meter information, to share costs • Skill levels required 163

M&V Cost vs. Uncertainty • There is no absolutely correct savings number. There is always some uncertainty. • Decide how much uncertainty can you accept or afford. • Each owner finds its own balance between reporting uncertainty and cost for each project. • Ref: IPMVP Core Concepts 2014, Chapter 7.11 164

How Much M&V Is Enough?• Total annual cost to determine savings should normally be less than 10% of the annual savings. This may be exceeded for special situations.• 3-5% is a more common expenditure (for ESCO projects)• 0% is often chosen (= “deemed savings”). No measurement means uncertain savings. This is NOT an IPMVP method• The cost/accuracy tradeoff is made for each projectBalancing act between:• Lower uncertainty (= higher M&V cost). More complex M&V. Givesoperating staff better feedback and tighter control = more savings.• Higher uncertainty (= lower M&V cost). Simple M&V approach. Leavesmore money for retrofits = more savings. 165

Principles of M&V In alphabetic order: • Accurate – as limited by the budget • Complete – consider all effects, measure significant ones • Conservative – err on the low side • Consistent – amongst reports and energy types • Relevant – focus on measuring the selected key performance parameter(s) • Transparent – full disclosure as defined in IPMVP Vol. I 2012, Chapters 5 and 6 See IPMVP Core Concepts 2014, Chapters 7 and 8 166

Boundaries of Measurement• Are we assessing the energy use of: • the entire facility? • a system or group of systems (lighting, HVAC, compressed air, steel mill reheat furnace ……)? • a component or group of components (boiler, chiller, motor, light fixture, pump, fan …….)?• To set the boundary, you need to consider: • the responsibilities of possibly different parties for energy use and for the retrofit; • your ability to track changes to the facility and its use - within the chosen boundary; • the significance of effects beyond the chosen boundary, known as “Interactive Effects”. 167

What Baseline Data? Baseline data must include for the baseline period: • all energy use (and demand) data; • all independent variable data (for routine adjustments); • all other factors significantly affecting energy to recognize when a change from baseline conditions has taken place (needing a non-routine adjustment). These factors are called Static Factors, to distinguish them from variables which are routinely changing. 168

Independent Variables Independent Variables are the energy driving factors that routinely vary and significantly affect energy. • What variables routinely affect energy use in your facility? • How significant is each effect? • How costly is it to get data for each? Choose Wisely! 169

Definition of Static Factors Those characteristics of a facility which affect energy use within the chosen measurement boundary, but which are not used as the basis for any routine adjustments. These characteristics include fixed, environmental, operational and maintenance characteristics. They may be constant or varying. Ref. IPMVP Core Concepts 2014, Chapter 5.3.3.b 170

Examples of Static Factors• Product mix• Number of production shifts• Facility size and envelope features• Number of occupants & occupancy periods• Operating practices: production, lighting, ventilation, temperature control• Office and lab equipment load and operating periods• Equipment nameplates & operating practices• Breakdown periodsNote – you only need Static Factors that affect energy use within themeasurement boundary 171

M&V Quality Control• Some techniques: • Restrict data access to trained individuals. • Use ‘check’ data to test input, e.g. meter readings on utility bills can be used to catch consumption data entry errors. • Check data intervals, relationships ….. • Separate review of reports by a qualified person who is not routinely involved. • Archive all data, including M&V Plan.• Develop a procedures manual (ISO 9001). 172

Basic Price Issues • Energy prices are complex and change often. • Use the proper full utility price schedule or carefully chosen appropriate marginal price. • An ESCO Contract defines the prices, minimums and maybe inflation factors to be used. • The M&V plan should specify the energy prices that will be used to value the savings and whether and how savings will be adjusted if prices change in future. 173

Price Extras Also ensure that pricing includes all energy supplier charges for commodity items such as: • demand (electric or gas) • peak/off peak rates • minimum demands (“ratchets”) • electrical power factor • transformer losses • overages and underages • fuel adjustments • tax 174

Sampling µ ,σ x, sIt is more important to get a representative sample rather than a large sample! 175

M&V as the ‘Cash Register’• M&V can be considered as a cash register – it is the method of payment for the service provided – the service is provided, the measurement is carried out verify that is has been successfully provided, and the cash is deposited in the cash register 176

Advanced M&V• Verification and evaluation of efficiency savings is expensive & time consuming – hence it is often avoided• Growth in interval data and analytics tools that automate meter- based measurement and verification will reduce cost and time requirements• The ‘internet of things’, improved sensors, meters and M&T systems offers great opportunities for cheaper, faster and more granular information• Advanced M&V aims to harness the power of information for improvement, standardization, automation of M&V 177

Advanced M&V concepts• New information and communications technologies (ICTs) providing ¼ hourly energy usage data are enabling the reporting of energy use in buildings in near-real time.• The increasing prevalence of high-resolution smart meters, communicating smart thermostats, data loggers, non intrusive load- submetering devices—combined with rapidly falling metering prices are changing the way energy efficiency projects and programs are measured. Availability of hourly data allows more granular analytic approaches that can estimate impacts by time of day• Quicker and more granular feedback from the M&V system will enable faster reaction time to resolve issues and explain anomalies that arise 178

Benefits of Advanced M&V• Facility owners & operators can identify how specific interventions can affect energy consumption in a near real-time basis, and can identify installation problems so that anticipated savings can be more reliably achieved.• ESCOs receive early feedback on savings performance which may help them identify and correct problems to gain higher performance payments. 179

Customer education approaches for M&V• M&V – if handled correctly – is a big bonus to the customer• Only pays for what is delivered• Shows verifiable savings – in appropriate timeframe• Highlights when something is going wrong• Highlights when something is going right• Delivers results early – if designed correctly – so action can be taken 180

Exercise: Calculate Energy Savings 181