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Best Practice Guide |
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Commercial Office Buildings |
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Planning an Energy ProgramMeasurement and VerificationA measurement and verification (M&V) plan is a set of agreed-upon metrics for an energy project that are used to establish baseline performance as well as to verify actual energy savings. In other words, the M&V plan defines precisely what "energy savings" means for energy efficiency or energy conservation projects. In contractual performance guarantees, M&V plans are particularly useful because they set clear, well-defined expectations between the building owners and the energy service company (ESCO). M&V plans also help to increase the level of confidence of financiers that an energy project will result in energy cost savings sufficient to fulfill debt obligations, which can make it easier to secure outside financing. The U.S. Department of Energy, recognizing significant potential for energy efficiency investment, began in 1994 to work with industry to develop a set of best practices for M&V. This work led to the establishment of the International Performance Measurement & Verification Protocol (IPMVP). The latest version of the IPMVP, revised in 2002, includes input from a global network of professionals, including national organizations from 16 countries and hundreds of individual experts from more than 25 nations. The IPMVP is used throughout the United States and the world to help standardize concepts and options for M&V of energy and water savings. The State of California has incorporated the IPMVP into State energy performance contracting and energy efficiency programs. The IPMVP is also consistent with the American Society of Heating, Refrigerating, and Air-Conditioning Engineers' (ASHRAE) draft Guideline 14P Measurement of Energy and Demand Savings and the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) certification program. Almost all performance-contracting firms adhere to the IPMVP. The IPMVP describes four broad M&V options:
Calculating Energy Savings
Business ExamplesAdobe Systems Incorporated measures the performance of Cushman & Wakefield's facilities management using a set of eleven key performance indicators (KPIs) that were jointly developed. These indicators target: 1) energy conservation, 2) cost controls, 3) preventative maintenance, and 4) customer satisfaction. One of the KPIs, for example, requires that all three office towers qualify for the ENERGY STAR label each year - a challenge since Adobe continues to increase the number of employees and HVAC-intensive data centers and labs on campus, all of which increase total energy demand.
Resources International Performance Measurement & Verification Protocol: Concepts and Options for Determining Energy and Water Savings, Vol. 1. Revised March 2002. California Energy Commission, Guide to Preparing Feasibility Studies for Energy Efficiency Projects, February 2000. |