Lessons Learned: Measurement and verification 101 webinar

As part of our client-exclusive Learning Series, CLEAResult Energy Engineer Tim Kennedy hosted a webinar to explain measurement and verification (M&V) and how it allows us to quantify the energy savings on a given project. This presentation explored the available M&V options, and how to determine which approach you need. Here are some of our key takeaways from our webinar:

Why perform M&V and why is it important? 

Measurements and verification (M&V) are a way to check and confirm if energy-saving or efficiency projects are working as expected. M&V involves different levels, from basic calculations to using detailed data analysis, to measure and validate how well these energy efficiency projects are working. It's important because it ensures credibility, helps improve performance, and lets everyone involved know that the promised benefits of an energy project have been achieved.

We want to capture projects that don’t have a calculable standard. M&V is crucial when we’re dealing with new or innovative technologies or certain projects where there's no calculation standard for it. When there is doubt surrounding the outcome of a project, M&V can be used to bolster and improve energy savings or prove the results to another invested party. If done properly, it can enhance and improve facility operations.

If you’re a utility operator using an implementer like us, here at CLEAResult, we would cover all facets of M&V if it’s designed within the program, while individual companies and those running an in-house utility program may work with performance contractors to complete M&V.

As the implementer, we either review a whole facility’s energy as changes are being implemented or measure the energy use just of the individual systems and equipment affected by a retrofit.

The different M&V options and how to choose the best one for your project

There are 4 different options to choose from when selecting your project’s M&V approach.

A: Retrofit Isolation/Key Parameter Measurement - only one parameter of one project is measured for a brief period of time. Then with the data gathered, make estimates on other parameters – the time commitment and cost are low.  

B: Whole Parameter Measurement - monitors all parameters affected by the energy conservation measures implemented over a period, and the time commitment is also low – only a single full cycle of operation is needed.

C: Utility Bill Analysis - Monthly analysis of utility data gathered from the client or the utility itself from a 12-month period prior to implementation and then 12 months after the project is fully commissioned to capture the exact realized savings.  

D: Calibrated Simulation of the entire facility - Best suited for buildings to be constructed where the savings are going to be determined through the simulation of energy use through modeling software. The simulations are then calibrated with data after the project is completed, extending the time commitment necessary and the cost. 

Determining the best fit for your project based on project demand:

Now that we have the 4 M&V options to choose from, selecting the best one for your project’s needs can be based on the project’s demand, as visualized in the graphic below.  

If your project is a new construction, option D, calibrated simulation, will be the only option for you but for all other projects, selecting an option will be based on your specific needs.

Determining the best fit for your project based on time and cost commitments:

All 4 options come with varying time and cost commitments, for example, if you’re under a time constraint, options A and B will be ideal. The graphic below lists a breakdown of associated costs and time requirements for each option. 

The options with the lowest cost will be options A and C, while the options with the highest cost will be options B and D. If there are time constraints, options A and B will have the lowest time commitments whereas options C and C will require more time to ensure all savings are accurately verified and measured.  

CLEAResult M&V plans

The exact M&V plan we design will vary on the region we’re working in and with whom we’re working with, but our plans strive to include:  

• All project details, descriptions of energy conservation measures used, and a summary of expected savings.
• Baseline conditions we calculated by taking actual baseline usage and modeling it to the activity data in the baseline to develop a baseline model. This model is then applied to the activity data in the post-performance period to build the adjusted baseline. The gap between the two models is the energy savings achieved by completing that scope of work.  
• Outlining of our M&V methods, the schedule of when we will perform M&V activities and how we’ll go about doing them.
• Risks and responsibilities matrix delineating what the risk is, who is responsible, and how we mitigate risk, as well as setting out clear timelines and how delays or missed deadlines will be handled.

In our territory, we have a dedicated M&V review group made up of several senior-level engineers, including Tim Kennedy, who will review all M&V projects and provide feedback either in writing or by double-checking the project’s calculations. In some cases, we will have a biweekly implementer + client call to discuss any major upcoming projects as a check-in and touchpoint for everyone involved.

Once the M&V plan has been implemented, time to evaluate the results

Evaluation of the accomplishments of given projects and programs is often mandatory when there are public funds being spent but even in private projects, it’s a good idea to hold all stakeholders accountable at the end of a project.  

The purpose of having an evaluator come and look is to ensure accountability and continued improvements toward generating load reduction. Evaluations are often required by regulatory commissions that govern electric and gas utilities. These evaluations can be done by regulatory staff, utility employees that weren’t involved in implementing programs, or independent third-party consultants.  

The evaluators really want to answer one question: How accurate were our realized savings versus our projected savings? Evaluators calculate the realization rate by dividing adjusted gross savings by gross savings and the goal is to get as close to 100% as possible.  

The key to success using M&V

The overall success of a program hinges on having that early engagement with all participants, clients, and third-party entities who will all help guide these energy efficiency decisions.  

If your utility is leading the program, your utility’s evaluator and your implementor will need to review the M&V plans and engage in a united approach. As implementors, if we have this buy-in at the front end of a project, there will be less risk once the project is completed.  

A structured quality assurance or quality control process in place by engineering to review planned M&V projects is critical as you get an outside view of what you’re working on from the safety of an internal review from a peer.

In summary, M&V serves to ensure that the project is going to capture the energy savings that were projected on paper by doing a post-performance evaluation to quantify and evaluate the realized energy savings on a project. Our job as the implementer is to determine what the actual cause of the energy consumption is and work to find the right independent variable for analysis, that is what Tim and his team of energy engineers do every day here at CLEAResult.

We thank him for contributing his knowledge and expertise to our Measurements and Verification 101 webinar.