Transcript Current Status and Work Plan for PACE

Capacity Building of Banks and Financial Institutions
for Energy Efficiency Project Financing
Module 5
Measurement and Verification
Partnership to Advance Clean Energy-Deployment (PACE-D)
Technical Assistance Program
September 2014
Capacity Building of Banks/FIs
For EE Project Financing
Page 1
July 2014
Presentation Outline
•
•
•
•
•
•
•
•
Why Measurement and Verification (M&V)?
Key Considerations in M&V
Basic Concept of M&V
M&V Methodologies
M&V Protocols
Common Issues
The M&V Document
Case Studies
Capacity Building of Banks/FIs
For EE Project Financing
Page 2
July 2014
Why M&V
Measurement and verification:
• Is needed to confirm project energy savings and validate that
anticipated or guaranteed performance has been achieved
• Presents common definitions, terminology and procedures for energyefficiency projects
• Improves communication and understanding among project
implementing partners
• Provides a risk management tool to financing entities
• Minimizes disagreements and disputes
• Facilitates persistence of energy savings
Capacity Building of Banks/FIs
For EE Project Financing
Page 3
July 2014
Key Considerations in M&V
Capacity Building of Banks/FIs
For EE Project Financing
Page 4
July 2014
Who Should Conduct M&V?
Capacity Building of Banks/FIs
For EE Project Financing
Page 5
July 2014
How much does M&V cost?
•
The costs of M&V depend on the energy efficiency technologies
and measures to be implemented and the approach and
methodology to be utilized
• M&V costs
• Trade off between
5 to 10% of project investments
 accuracy of the M&V
 cost of M&V
•
Simple approaches are preferred to reduce costs and minimize
potential for disputes
Capacity Building of Banks/FIs
For EE Project Financing
Page 6
July 2014
Who Pays for M&V Costs?
•
If the project host conducts or engages a third party to conduct
M&V, the host directly pays the M&V costs
•
If the ESCO conducts or engages a third party to conduct M&V,
the M&V costs are part of ESCO’s costs
•
In either case, the M&V costs are an integral element of project
cost and an allowance needs to be made in the project budget
and financing plan for these costs
•
While the M&V is specified in the Energy Services Agreement
between the ESCO and host, the lender needs to understand
and approve the M&V approach and costs
Capacity Building of Banks/FIs
For EE Project Financing
Page 7
July 2014
Key Elements of an M&V Plan
Capacity Building of Banks/FIs
For EE Project Financing
Page 8
July 2014
Basic M&V Concept
Capacity Building of Banks/FIs
For EE Project Financing
Page 9
July 2014
Assessing Energy Savings
Capacity Building of Banks/FIs
For EE Project Financing
Page 10
July 2014
M&V Methodologies
Capacity Building of Banks/FIs
For EE Project Financing
Page 11
July 2014
M&V methodologies
Capacity Building of Banks/FIs
For EE Project Financing
Page 12
July 2014
M&V Protocols
Capacity Building of Banks/FIs
For EE Project Financing
Page 13
July 2014
IPMVP
International Performance Measurement and
Verification Protocol
• Developed by a coalition of researchers and practitioners
• Managed by independent organization (EVO) dedicated to
•
•
•
•
provision of tools to quantify the results of EE projects and
programs.
Provides flexible framework of M&V options that allows
practitioners to craft the right M&V Plan for their project
Internationally recognized and accepted
Certification program for M&V professionals
Implemented in India by Alliance for Energy-Efficient Economy
(AEEE)
Capacity Building of Banks/FIs
For EE Project Financing
Page 14
July 2014
M&V Training and Certification in India
•
•
•
First M&V Seminar Delhi April 2005, PCRA hosted for EVO
•
CMVP Certification Training & Exams in Delhi – Nine rounds
completed more than 100 professionals certified
•
•
•
EVO has Certified 5 Indian Trainers as CMVP Trainers
M&V Fundamentals trainings in various cities of India
Application of M&V to Government Schemes – Building Codes,
PAT, DSM
AEEE has conducted M&V Training in Manila and Bangkok
Opportunity to widen M&V capacity building to South & West
Asia
Capacity Building of Banks/FIs
For EE Project Financing
Page 15
July 2014
India has over 100 CMVPs
Capacity Building of Banks/FIs
For EE Project Financing
Page 16
July 2014
M&V Approaches in IPMVP
•
Retrofit Isolation Methods
 Option A – Partially measured or one time measurement
 Option B – Longer or continuous measurements
•
Whole Facility Methods
 Option C – Whole facility energy analysis
 Option D – Computer simulation
Capacity Building of Banks/FIs
For EE Project Financing
Page 17
July 2014
Illustration of IPMVP Options
Capacity Building of Banks/FIs
For EE Project Financing
Page 18
July 2014
Adjusting for Changes in Baseline
Capacity Building of Banks/FIs
For EE Project Financing
Page 19
July 2014
Adjusting for Changes in Baseline
Facility Use or Operating Conditions
Occupancy
Possible
Changes
in Baseline
Equipment Operating Schedules
Environmental Conditions
Additions to Energy-Using Equipment
Facility Refurbishment or Rehabilitation
Capacity Building of Banks/FIs
For EE Project Financing
Page 20
July 2014
IPMVP M&V Options
Capacity Building of Banks/FIs
For EE Project Financing
Page 21
July 2014
Option A
• Simple approach (and low cost)
• Performance parameters are measured (before and after), usage
parameters may be estimated
• Used where the “potential to perform” needs to be verified but accurate
savings estimation is not necessary
• Key features
 Low cost
 Simple procedure
 Requires agreement among parties
Capacity Building
22 of Banks/FIs
For EE Project Financing
Page 22
July 2014
Option B
• Under Option B, some or all parameters are measured periodically or
continuously
• Applicable where accurate savings estimation is necessary and longterm performance needs tracking
• Reduced uncertainty, but requires more effort
• Key features
 “Real” M&V
 Improved O&M
 Ongoing Commissioning
 Remote monitoring
Capacity Building
23 of Banks/FIs
For EE Project Financing
Page 23
July 2014
Option C
• Option C looks at energy use and cost of entire facility, not at specific
equipment
• Conceptually simple, may be difficult in practice
• Key features:
 Can consider weather, occupancy, etc.
 Useful where total savings need to be valued but component savings do
not
 Commercial software is available that simplifies implementation
 May require baseline adjustments
Capacity Building
24 of Banks/FIs
For EE Project Financing
Page 24
July 2014
Option D
• Option D treats building as computer model
• Flexible, but requires significant effort
• Applications:
 New construction
 Energy management & control systems
 Building use changes
 Building envelope modifications & additions
• Uses specialized software that requires substantial experience
• Requires measurements for calibration
Capacity Building
25 of Banks/FIs
For EE Project Financing
Page 25
July 2014
Example of Lighting Project M&V - Option A
•
Baseline is 100 W light bulb and new lamp is
25 Watt compact fluorescent
•
•
Wattage verified by measurements/specifications
•
Assume 3,000 operating hours per year:

Previous experience

Estimate by owner
Calculated Savings are:
3,000 hr/yr * (0.1 - 0.025 kW) = 225 kWh/year
Capacity Building of Banks/FIs
For EE Project Financing
Page 26
July 2014
Lighting Project M&V - Option B
•
Install meters on lighting circuits (before lighting retrofit is
implemented)
•
Measure consumption before and after retrofit for a specified time
period
•
Calculate savings
Capacity Building of Banks/FIs
For EE Project Financing
Page 27
July 2014
Lighting Project M&V - Option C
•
Used when lighting is the dominant load
•
Document baseline utility bill
•
Obtain post-installation utility Bills
•
Calculate savings
Capacity Building of Banks/FIs
For EE Project Financing
Page 28
July 2014
Lighting Project -Option D
•
Used when interactive effects need to be estimated
•
Input lighting and HVAC system into simulation program.
•
Calibrate model and calculate pre- and post-installation lighting and
interactive HVAC energy use for determining savings.
Capacity Building of Banks/FIs
For EE Project Financing
Page 29
July 2014
M&V Options with Multiple End-Uses
Option A: One-time metering
Option B: Continuous metering
Option C: Utility Bill Analysis
Option D: Computer Simulation
1. Lighting Efficiency and Controls
2. Motor and Drive Efficiency Improvements
3. Variable-Speed Drives
4. Boiler Improvements
5. Chiller Improvements
6. Air, Water, and Steam Distribution
Systems
7. Thermal Energy Recovery
8. Controls
  ○ ○ ○  ○
       
   

1
Capacity Building of Banks/FIs
For EE Project Financing
2
3
4 5 6 7
Page 30
8
July 2014
Common M&V Issues
•
•
•
•
Factors affecting saving performance
 Predictability, measurability, factors such as weather, occupancy,
equipment intensity, ability of EEMs to deliver savings,
implementation effectiveness, occupant – operator cooperation,
equipment deterioration and life
Evaluating saving uncertainty
 Instrumentation error, modeling error, sampling error, planned and
unplanned changes
Minimum energy Standards
Minimum operating conditions
Capacity Building of Banks/FIs
For EE Project Financing
Page 31
July 2014
Common M&V Issues (continued)
• Energy Prices
 For simplification, price is specified
• Verification by a third party
 Third party can resolve issues
• Baseline adjustments
 Routine and non-routine
• Cost
 Cost to owner against benefits
Capacity Building of Banks/FIs
For EE Project Financing
Page 32
July 2014
M&V Information Document
1. Project site and measures
2. M&V option selected - Options B or C
3. Details for calculations

Data collection plans

Assumptions

Energy rates
4. Baseline equipment and conditions

Equipment, space conditions, assumptions, energy use relative to
production, adjustments – how and when
Capacity Building of Banks/FIs
For EE Project Financing
Page 33
July 2014
M&V Information Document (continued)
5.
Post-installation equipment and conditions

6.
Metering

7.
Schedule of metering (duration/when), who will
validation, sampling
provide, data
Measurement and verification activities

8.
Plan for defining new equipment and space conditions, assumptions
and stipulations
Who conducts M&V, analysis and prepare report, quality assurance,
reports defined and post installation energy use relative to
production
Initial and annual cost
Capacity Building of Banks/FIs
For EE Project Financing
Page 34
July 2014
Thank you
Dilip R. Limaye
Mahesh Patankar
Finance Team
USAID PACE-D Technical Assistance Program
[email protected]
[email protected]
www.pace-d.com