1. BPA Guidelines for Measurement & Verification of Energy Efficiency Measures Presented at Brown Bag Session November 29, 2006

2. Reasons for M&V BPA provides payments or credits to project sponsor for completion of projects that produce energy savings. Measurement & Verification methods are used to determine BPA’s payments or credits to a project sponsor. M&V activities often lead to higher energy savings and greater persistence of savings.

3. The M&V Plan The M&V Plan is a key element in any Project Proposal. During review, we focus on the M&V Plan much more than the estimated energy savings.

4. Key Concepts – Energy Savings Energy Savings are a reduction in electric energy consumption as a result of increased efficiency, beyond what would have occurred without the project. Energy Savings can only be determined by comparing Baseline Energy Use to Post-Project Energy Use Energy Savings = Baseline kWh/year – Post-Project kWh/year

5. Metered Power Sales vs. Calculated Energy Savings (Or, why you need M&V.)

6. M&V Uncertainty Measurement Error Sampling Error Weather Changing Operating Schedules Varying Loads Changes in Setpoints Changes in Use Manual Overrides Occupancy Changes Production Levels Changes

7. Key Concepts – Baseline Baseline energy use must be established and agreed to prior to project approval. Baselines may also be needed for weather, operating schedules etc. Typical baseline period is one year.

8. Key Concepts – Measured Baseline Retrofits usually use existing conditions for the baseline. Existing Conditions can be measured, …….but only before the project begins! The period of the measurement is usually set long enough to capture operational cycles, but not seasonal weather cycles; typically 1 to 2 weeks.

9. Key Concepts – Hypothetical Baseline New construction, planned replacements, and major remodels require a hypothetical baseline. This baseline cannot be measured! The inherent uncertainty is a key issue. Must also include cost baseline. In general, this baseline must exceed standard practice, energy codes, and related requirements and standards.

10. Favorite References 1. International Performance Measurement & Verification Protocols http://www.ipmvp.org/ 2. Site Specific Verification Guidelines, BPA 1992 http://www.bpa.gov/Energy/N/Projects/cr_discou nt/pdf/site_specific_verification.pdf

11. M&V Methods IPMVP Options A. Partially Measured Retrofit Isolation B. Retrofit Isolation C. Whole Facility D. Calibrated Simulation

12. Problematic Methods Vague Descriptions Estimates Stipulated Values Complex calculations with unstated assumption.

13. Sample Spreadsheet Calculation

14. Favorite Techniques Retrofit Isolation with Pre and Post Metering Extrapolation to Annual Simple multiplication if metered period is representative of entire year Outside Air Temperature Regression BIN analysis

15. Outside Temperature vs. kW

16. Programs and Procedures BPA has a variety of programs, e.g. CAA & CRC Programs and contracts have specific requirements, but there are common steps for review and acceptance of projects. Our focus today is on some common elements in review and approval of site specific proposals in the commercial sector.

17. Basic Steps for Project Review 1. Sponsor submits a project proposal to BPA. 2. BPA and works with the sponsor to develop a mutually acceptable proposal. 3. Approved project is implemented. 4. Sponsor submits a Completion Report with Verified savings to BPA. 5. BPA reviews and approves the Completion Report

18. Key Elements of Proposal Eligibility Measure Description Baseline Estimated Cost Estimated Energy Savings M&V Plan

19. Specific Requirements Info at http://www.bpa.gov/Energy/N/projects/post2 006conservation/ http://www.bpa.gov/Energy/N/projects/post2 006conservation/ Note Lite M&V Plan Requirements, pages 16 & 17 of Implementation Manual (see next slide) Also, http://www.ptr.nwcouncil.org/http://www.ptr.nwcouncil.org/

20. Lite M&V Plan Examples Steady Loads Equipment, such as Exhaust Fans & Water Pumps Dairy Vacuum Pump Others?