MODULE: 6

MEASUREMENT AND VERIFICATION OF

ENERGY PERFORMANCE OF
ORGANIZATION

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 1 INTRODUCTION

2 FACTORS DRIVING ENERGY SAVIINGS

CONTENTS 3 MEASUREMENT AND VERIFICATION

4 WHAT IS NOT MEASUREMENT & VERIFICATION?

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 1. INTRODUCTION

1.1 Introduction

• M&V adds value by increasing the acceptability of energy performance and energy performance improvement
results.
• M&V techniques can be used by facility owners or energy efficiency project investors for the following purposes
o Increase Energy Savings
o Document Financial Transactions
o Enhance Financing for Efficiency Projects
o Improve Engineering Design and Facility Operations and Maintenance
o Manage Energy Budgets

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1.2 M&V Applications

• Energy Performance Contracts

• Use of M&V in PAT Scheme
• M&V for Effective ISO 50001 Implementation

1.3 Fundamental Principles of M&V

The fundamental principles of good M&V practice are described as follows:

• Accurate
• Complete
• Confidential
• Conservative
• Consistent
• Impartial
• Relevant
• Transparent & Reproducible
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 1.4 The M&V Process

The complete M&V process involves the following six steps:

• Develop an M&V plan

•Verify EEM installation
•Data Gathering
•Compute Savings
•Report Savings
•Review the need to repeat process

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M&V Plan Components- Project Specific

Category Content Components Example

Project goals and objectives
Site characteristics
Project Description
ECM descriptions that include how
savings will be achieved
Estimated savings by ECM
Project Savings and costs
Estimated M&V cost by ECM
Scheduling Equipment installations
Raw data format Electronic, 15 minute kW
Reporting Compiled data format Monthly kWh
Reporting interval Annually
Accuracy requirements 10% savings uncertainty in savings estimates
M&V Approach Options used Option A, B, C and/ or D
ESCo conducts metering, analysis, and
M&V activity responsibility reporting

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 M&V Plan Components- Measure Specific
Category Content Components Example
Data requirements kW, on-hours, temperature
Stipulated values supporting data Lighting operating hours equal 4000/year based on metered XYZ building
Analysis method Savings calculation equations
Regression expressions
Computer simulations models
Metering protocols ASHRAE GPC 14P pump multiple point test throughout short-term monitoring
Equipment
Metering and Equipment calibration protocols
Monitoring Metering points Flow rate, RMS power
Sampling
Metering duration and interval 2 weeks/ 15-minute data
Performance factors kW/ton
Baseline Operating factors Load, on-hours
determination Existing service quality Zone temps, lumen level
Minimum performance standards ASHRAE 90.1 1989
Party responsible for which changes
Savings adjustments
Normalized energy-use equations

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Risk & Responsibility Matrix (R&R)
An important section of M&V and EPC

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 Risk & Responsibility Matrix

The Risk & Responsibility Matrix describes how the contractor will address risk factors that affect savings and
project economics. These are broadly characterized as:

• Financial and Economic

• Facility Usage and Operations
• Equipment Performance

• R&R Matrix drives the M&V Plan

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 Risk & Responsibility Matrix

Risk Assessment
• Types of Risk
• Allocating Risk

Responsibility Allocation
• Financial
• Operational (Usage)
• Performance

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 Risk & Responsibility Matrix

Key items that may influence project savings are:

1. Financial
• Energy Prices
• M&V Cost
• Interest Rate
• Construction Cost
2. Operational
• Operating Hours
• Loads
• Weather
• User Participation
3. Performance
• Equipment Performance
• Operations
• Preventive Maintenance
• Equipment Repair & Replacement
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Risk & Responsibility Matrix - Overview

Responsibility /Description Contractor Proposed Approach Agency Assessment

Financial:
Interest rates:
Energy prices:
Construction cost:
M & V cost:
Delays:
Major changes in facility:
Operational:
Operating hours:
Load:
Weather:
User participation:

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Risk & Responsibility Matrix - Overview

Responsibility /Description Contractor Proposed Approach Agency Assessment

Performance:
Equipment performance:
Operations:
Maintenance & Repair:
Equipment Replacement

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 2. FACTORS DRIVING ENERGY SAVIINGS

• There are two fundamental factors that drive energy savings:

o Performance
o Usage

• Performance describes how much energy is used for a specific task; while usage describes how much time is
required for task.

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 Measure Savings?

• Savings are the absence of energy use.

• We can not measure what we do not have.
• We do not ‘measure’ savings!

 We do measure energy use.

 We analyze measured energy use to
determine savings.

Energy Use of Industrial Boiler before and after ECM

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 ‘Savings’ or ‘Avoidance’?

• Energy users usually want to know how much their bills would have been if they had not taken
energy efficiency action. They want to know how much energy or cost they avoided.

• To report avoided cost, M&V engineers adjust baseline period energy use to the conditions of the
reporting period.

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Engineering Principle

kWh = kW × hrs

where,
kWh = electrical energy consumption
kW = electrical lighting demand
hrs = hours of operation

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Efficiency Improvement Only

kWh(savings) = (kW pre – kW post ) × hrs

In this case, the energy savings are achieved by reducing the installed lighting demand.

Example measures:
• Installing more efficient lamps and ballasts
• Reducing the lighting level by reducing the quantity of existing
• Lighting lamps or fixtures

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Control Improvement Only

kWh(savings) = (kW ) × ( hrs pre – hrs post )

Here the operating hours are reduced by using a control device on the lighting circuit.

Examples:
• Time-clocks
• Occupancy sensors
• Photocell sensors
• Dimmers

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Both Efficiency and Control Improvements

kWh(savings) = (kW pre × hrs pre ) × (kW post × hrs post )

This case combines efficiency and control improvements.

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Project Basic M&V Equation

Savings reported for any period

= Baseline Period energy (pre) - Reporting Period energy (post)
+/- Adjustments

OR

= Pre – Post +/- Adjustments

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Adjustments

• An example of why we need Adjustments:

 An energy efficiency retrofit was performed but the total operational hr/or total
connected load was also lower this year than last.

 How much of the resultant cost reduction was due to the retrofit, and how much was due
to operational hrs change to reduction on connected load?

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Adjustments

• Performance measurement requires an “apples to apples” comparison.

Baseline Period Reporting Period

• We adjust baseline and reporting period energy use to the same set of conditions, for valid
comparisons.

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Accounting Savings

• Accountants often use the word ‘savings’ to describe ‘cost reductions.’ They make NO
adjustments.

• When talking about ‘savings’ we have to be very careful to explain our meaning.

• We must report the common set of conditions we are using for stating “savings.”

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3. MEASUREMENT AND VERIFICATION

3.1 Options or Methods for conducting

Option Important Features EEM Examples

Possible reduction in measurement cost,  Simple Lighting retrofits

Retrofit Isolation: Key
A but introduces some uncertainty in the  Motor replacement
Parameter Measurement
estimated saving.  Steam trap replacement

 Complex lighting retrofits

Retrofit Isolation: All More accurate results due to  Motor Replacement
B
Parameter Measurement measurements of all parameters  Variable Speed Drive
 Renewable energy generation

Need baseline as well as reporting  Whole facility/building retrofits (involving

C Whole Facility Analysis
period data lighting, HVAC and other EEMs)

When there is no meter in the baseline,  New Building

Whole Facility: Calibrated baseline data can be ‘manufactured’  Building Envelope improvement
D
Simulation under controlled circumstances  Energy management control system
(simulation)  Variable air volume conversion

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 Basic Options or Methods for conducting M&V

Selecting a Method

Decide what you are concerned about!

• If you want to manage your total energy use:

 select the Whole Facility Method.

• If you want to assess a particular retrofit:

 select the Retrofit Isolation Method.

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 Basic Options or Methods for conducting M&V

Selecting a Method

• Options A and B are retrofit-isolation methods

• Options C and D are whole-facility methods
• The difference is where the boundary lines are drawn

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 Uncertainty and M&V Cost

• Measurement is one of the basic elements of M&V,

however it may includes errors.

• Errors are the differences between observed and true

energy use.

• Any statement of measured energy savings includes

some degree of uncertainty.

• Reductions in uncertainty are obtained by limiting

errors in the measurements and analyses conducted.

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M&V Cost

Key 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

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 4. What is not Measurement & Verification?

4.1 Difference between “Measurement & Verification” and “Monitoring & Verification”

• Measurement and Verification (M&V) is the process of using measurement to reliably determine actual savings created
within an individual facility by implementing an energy management program.

• Monitoring is the process of observing energy use for prediction, cost control, diagnostic purposes and even legal
compliance and may or may not involve measurement.

4.2 Difference between M&V and Monitoring & Verification

• Monitoring and targeting includes the traditional energy monitoring, accounting, analysis and reporting functions.

• M&T ignores non-routine adjustments and interactive effects, whereas M&V considers such effects fully.

• M&V is concerned with measurement of actual energy performance while Monitoring & Targeting is concerned
with the gap between actual energy performance.

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CONTRIBUTION BY:

Bureau of Energy Efficiency GreenTree Global Team

• Shri Abhay Bakre, Director General, Bureau of Energy • Mr. Anurag Bajpai, Director GreenTree Global
Efficiency • Mr. Dhruv Jain, Director GreenTree Global
• Dr. Ashok Kumar, Deputy Director General, Bureau of • Mr. Pradeep Kumar, Senior Advisor
Energy Efficiency • Dr. C.S. Azad, Lead- Energy Efficiency
• Shri Milind Bhikanrao Deore, Secretary, Bureau of Energy • Ms. Samvedana Bajpai, Technology Enabler
Efficiency • Ms. Swati Bajpai, Energy Analyst
• Shri S. K. Khandare, Director, Bureau of Energy Efficiency
• Shri Saurabh Diddi, Director, Bureau of Energy Efficiency
• Shri Arijit Sengupta, Director, Bureau of Energy Efficiency
• Shri Sameer Pandita, Director, Bureau of Energy Efficiency
• Smt. Pravatanalini Samal, Director, Bureau of Energy
Efficiency
• Shri Sunil Kumar Verma, Director, Bureau of Energy
Efficiency
• Shri Kamran Shaikh, Director, Bureau of Energy Efficiency
• Shri Abhishek Sharma, Director, Bureau of Energy
Efficiency
• Shri P Shyam Sunder, Joint Director, Bureau of Energy
Efficiency
• Shri Vivek Negi, Joint Director, Bureau of Energy Efficiency
• Shri Ravi Shankar Prajapati, Joint Director, Bureau of
Energy Efficiency 31
 Thank You
Presentation Prepared by:
M/s GreenTree Building Energy Private Limited

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