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M&V Part 3: M&V Part 3: FEMP M&V FEMP M&V Methods Methods

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Page 1: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

M&V Part 3: M&V Part 3: FEMP M&V FEMP M&V

MethodsMethods

Page 2: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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FEMP M&V MethodsFEMP M&V Methods

Definition of Savings FEMP M&V Guidelines Examples & Applications

Page 3: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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FEMP M&V GuidelinesFEMP M&V Guidelines

For federal energy projects Step-by-step procedural guide Defines M&V methods by project type Current version is 2.2 (2000)

Available at http://www.eren.doe.gov/femp/, http://ateam.lbl.gov/mv/ or 1-800-DOE-EREC.

FEMP M&VGuidelines

Page 4: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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What the Guidelines CoverWhat the Guidelines Cover

Agreement language. Overview of procedures. Different M&V approaches. Selecting the right approach for a

project.

Page 5: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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What the Guidelines What the Guidelines Don’tDon’t Cover Cover

Specifying an approach for a project. Specific M&V plan for each project. Required uncertainty levels. Specifying how to allocate risk between

ESCO and agency. Project-specific O&M savings.

Page 6: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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FEMP M&V ComplianceFEMP M&V Compliance

Complying with the FEMP guidelines requires:Developing an M&V plan using the defined

methods.Following the M&V plan.

The important consideration is what is in the plan.

Page 7: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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FEMP M&V OptionsFEMP M&V Options

M&V Option How savings are calculated

Option A: Based on measured equipment performance, measured or stipulated operational factors, and annual verification of ‘potential to perform.’

Engineering calculations.

Option B: Based on periodic or continuous measurements taken throughout the term of the contract at the device or system level.

Engineering calculations using measured data.

Option C: Based on whole-building or facility level utility meter or sub-metered data adjusted for weather and/or other factors.

Analysis of utility meter data.

Option D: Based on computer simulation of building or process; simulation is calibrated with measured data.

Comparing different models.

Page 8: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Options A&B vs. Options C&DOptions A&B vs. Options C&D

Options A&B are retrofit isolation methods.

Options C&D are whole-facility methods.

The difference is where the boundary lines are drawn.

Page 9: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option AOption A

Simple approach (& low cost). Performance parameters are measured

(before & after), usage parameters may be stipulated.

Used where the ‘potential to perform’ needs to be verified but accurate savings estimation is not necessary.

Option A is NOT ‘stipulated savings’!

Option A Option B Option C Option D

Page 10: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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StipulateStipulate

To stipulate is to agree to a term or condition.

Under FEMP, to stipulate means to estimate without measurement.

A parameter is either measured or stipulated, but not both.

A measured parameter can be fixed for the contract term.

Option A Option B Option C Option D

Page 11: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option A ApplicationsOption A Applications

Projects where performance remains constant,usage can be readily characterized, and uncertainty is not a major issue.

Lighting efficiency. Timeclock controls. Efficient motors. Operations & Maintenance.

Option A Option B Option C Option D

Page 12: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option BOption B

Under Option B, some or all parameters are measured periodically or continuously.

Applicable where accurate savings estimation is necessary and where long-term performance needs to be tracked.

Reduced uncertainty, but requires more effort.

Option A Option B Option C Option D

Page 13: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option B ApplicationsOption B Applications

Projects with large elements of uncertainty and/or risk ($$$).

Variable speed drives. Chillers and chiller plants. Energy management & control systems. Projects where equipment needs

constant attention.

Option A Option B Option C Option D

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Option B BenefitsOption B Benefits

Reasons to use Option B instead of A: “Real” M&V. Better equipment performance. Improved O&M. Continuous CommissioningSM

Remote monitoring.

‘Continuous Commissioning’ is a service mark of Texas A&M University.

Option A Option B Option C Option D

Page 15: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option COption C

Option C looks at energy use and cost of entire facility, not at specific equipment.

Usually simple. Considers weather, occupancy, etc. Applicable where total savings need to be

quantified but component-level savings do not.

Commercial software available.

Option A Option B Option C Option D

Page 16: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option C LimitationsOption C Limitations

Does not verify at component level. Requires savings to be significant

(> 15% of baseline consumption). Requires historical data (> 1 year). May take time to evaluate savings. May require baseline adjustment to

account for non-project related factors.

Option A Option B Option C Option D

Page 17: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Option C ApplicationsOption C Applications

Projects where facility usage remains constant and historical data is present.

Weather-dependent projects. Heating projects. Energy management & control systems. Multiple interacting measures in a single

building.

Option A Option B Option C Option D

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Option DOption D

Option D treats building as computer model.

Flexible, but requires significant effort.

Applications:New construction.Energy management & control systems.Building use changes.Building modifications.

Option A Option B Option C Option D

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Option D LimitationsOption D Limitations

Uses very specialized software that requires significant experience to use.

Results vary with effort (and $$$) expended.

Requires measurements for calibration. Weather-related usage often stipulated. Still need to verify ‘potential to perform.’

Annual inspections recommended.

Option A Option B Option C Option D

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ExamplesExamples

Option A: Lighting Option B: Variable-Speed Drive Option C: Heating Plant Option D: New Construction

Option A Option B Option C Option D

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Example Lighting ProjectExample Lighting Project

Consider the following lighting project: Upgrade 5,000 fixtures Existing performance: 86 Watts New performance: 56 Watts Operating hours: 3,000/year Electricity: $0.10/kWh

Option A Option B Option C Option D

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Method LE-A-01 / 02Method LE-A-01 / 02

Performance Baseline power consumption is 86 Watts. Proposed power consumption is 56 Watts. Difference is 30 Watts.

Usage Baseline & New: 3,000 hours / year

Financial Energy = $0.10/kWh

Option A Option B Option C Option D

Page 23: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Lighting SavingsLighting Savings

E Savings = QTY * (Before - After) * Hours

ES = (5,000) * (86 W - 56 W) * (3,000 hours) * (1 kW / 1000 W)

ES = 450,000 kWh / year

Cost Savings = (Unit Cost) (Energy Savings)

Cost Savings = (450,000 kWh) * ($0.10/kWh)

Cost Savings = $45,000 / year

Option A Option B Option C Option D

Page 24: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Example VSD ProjectExample VSD Project

Variable Speed Drive on HVAC Fan. Baseline Fan: Operates continuously at

a single speed and power no matter what the cooling load is.

VSD Fan: Speed andpower change with coolingload (outside temperature).

Option A Option B Option C Option D

Page 25: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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VSD-B-01VSD-B-01

Fan Performance Baseline fan: Constant power (140 kW). VSD Fan: Power changes w/ weather.

Fan Usage Fan power changes hourly with cooling load

(outside temperature and sunshine).

Financial Energy = $0.10 / kWh

Option A Option B Option C Option D

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Monitor Fan PerformanceMonitor Fan Performance

Variable Speed Drive Fan Power

0

50

100

150

1-Jul-97 6-Jul-97 11-Jul-97 16-Jul-97 21-Jul-97 26-Jul-97 31-Jul-97

VS

D F

an k

W

0

30

60

90

120

Tem

pera

ture

, F

Baseline

Post-retrofit

Air Temperature

baseline fan power

savings

gap in data collection

Option A Option B Option C Option D

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Calculate Monthly SavingsCalculate Monthly Savings

Month kWh Saved Cost Savings

July 27,592 $2,759

August 24,316 $2,432

September 26,870 $2,687

October 34,724 $3,472

November 40,858 $4,086

E Savings = (kWBefore - kWAfter) * (1 Hour)

Cost Savings = (Unit Cost) (Energy Savings)

Option A Option B Option C Option D

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Example Heating ProjectExample Heating Project

Heating system upgrade at eastern US military base.

Baseline: Gas-fired boilers with central steam plant provide heat to buildings.

New System: Shut down steam plant. Install gas furnaces in all buildings.

Option A Option B Option C Option D

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Heating System CharacteristicsHeating System Characteristics

Base Performance Baseline: low-efficiency and steam loss. New: High efficiency, no steam loss.

Energy Usage Driven by weather.

Financial Gas is $0.50/therm.

Option A Option B Option C Option D

Page 30: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Compare Gas Use to TemperatureCompare Gas Use to Temperature

Baseline Gas Use for Heating

0

10,000

20,000

30,000

40,000

Oct-99 Jan-00 Apr-00 Jul-00 Nov-00 Feb-01

The

rms

0

200

400

600

800

1,000

1,200

HD

D b

ase

65

Total Therms

HDD

Option A Option B Option C Option D

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Develop Baseline ModelDevelop Baseline Model

Baseline Gas Use Model

Therms = 25.6* HDD - 1,378R2 = 0.742

0

10,000

20,000

30,000

40,000

0 200 400 600 800 1,000 1,200Monthly HDD

Mon

thly

The

rms

Option A Option B Option C Option D

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Calculate Monthly SavingsCalculate Monthly Savings

Month Weather, HDD

Baseline,Therms

New Use,Therms

Energy Savings

CostSavings

January 915 22,046 15,432 6,614 $3,307

February 742 17,617 12,332 5,285 $2,643

March 520 11,934 8,354 3,580 $1,790

April 348 7,531 5,272 2,259 $1,130

May 91 952 666 285 $143

June 9 0 0 0 $0July 0 0 0 0 $0

August 1 0 0 0 $0

September 112 1,489 1,042 447 $223

October 364 7,940 5,558 2,382 $1,191

November 442 9,937 6,956 2,981 $1,491

December 823 19,691 13,784 5,907 $2,954

Total 4,367 99,137 69,396 29,741 $14,871

Option A Option B Option C Option D

Baseline, therms = 25.6 * HDD - 1,378

Page 33: M&V Part 3: FEMP M&V Methods. 3-2 FEMP M&V Methods Ø Definition of Savings Ø FEMP M&V Guidelines Ø Examples & Applications

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Example New ConstructionExample New Construction

Proposed building incorporates energy-efficient design features selected by ESCO.

Baseline building is existing design before ESCO modifications.

Option A Option B Option C Option D

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Develop Computer Model...Develop Computer Model...Option A Option B Option C Option D

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...And Evaluate Results...And Evaluate ResultsOption A Option B Option C Option D

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Calculate SavingsCalculate Savings

Energy Use, kWh

Alternative Lights Cooling Other Total Savings

Base Case 1,500,298 955,263 2,447,979 4,903,540 -

Efficient Lighting 1,125,240 860,062 2,365,638 4,350,940 552,600

Efficient Chiller 1,500,298 788,681 2,426,812 4,715,791 187,749

Chiller & Lighting 1,125,240 708,933 2,346,427 4,180,600 722,940

Evaluate energy use for each scenario. Calculate savings for each scenario relative to base case.

Option A Option B Option C Option D

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Review and DiscussionReview and Discussion

Total energy use and savings are a function of both usage and savings.

Options A & B are retrofit-isolation methods.

Options C & D are whole-facility methods.

Can mix & match methods.

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Review QuestionsReview Questions

What two factors determine energy savings?

How does one ‘comply’ with the FEMP Guidelines?