# Presentation: 233796

## Miami, FloridaJanuary 13-14, 2004

- Introduction to Energy Savings Performance Contracting (ESPC) and DOE Super ESPCs

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

## FEMP M&V Methods

- Definition of Savings
- FEMP M&V Guidelines
- Examples & Applications

## FEMP 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.

## What the Guidelines Cover

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

## What the Guidelines Don’t 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.

## FEMP 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.

## FEMP 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.
 |

## Options 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.**

## Option 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’!***

## Stipulate

- 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 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 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 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 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 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 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 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 C Programs

- EnergyCAP, FASER (discontinued)
- Good Steward Software http://www.goodstewardsoftware.com/
- EEM Suite
- Silicon Energy http://www.siliconenergy.com
- EZ Sim
- Stellar Process http://ezsim.com
- Metrix, Utility Manager Pro 4.0
- Abraxas Energy Consulting http://www.abraxasenergy.com/products.php
- Optimum Energy Products Ltd
- 	http://www.optimumenergy.com/software/

- This list is not complete. Listing here does not imply endorsement.

## 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 modifications.

## Option 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.

## Examples

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

## Example 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

**Notes:**
Image taken from Jones, Carol (PNL) “Benefits of Energy Effective Lighting”, Proceedings of Energy 2001, Kansas City, MO, 2001. 

## Method 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

## Lighting 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

## Example 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).

**Notes:**
Image of variable speed drives taken from ABB web page.

## VSD-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

**Notes:**
Image of variable speed drives taken from ABB web page.

## Monitor Fan Performance

## Calculate 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)

## Example 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.

## Heating System Characteristics

- _Baseline Performance:_
- Low-efficiency and steam loss.
- _New Performance:_
- High efficiency, no steam loss.
- _Usage:_
- Driven by weather.
- _Financial_
- Gas is (was) $0.50 / therm.

## Compare Gas Use to Temperature

## Develop Baseline Model

## Calculate Monthly Savings

| Month | Weather, HDD | Baseline,
Therms | New Use,
Therms | Energy Savings | Cost
Savings |
| --- | --- | --- | --- | --- | --- |
| 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 | $0 |
| July | 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 |

**Baseline, therms = 25.6 * HDD - 1,378**

## Example New Construction

- Proposed building incorporates energy-efficient design features selected and implemented by ESCO.
- Baseline building is existing design before ESCO modifications.

## Develop Computer Model...

## ...And Evaluate Results

## Calculate 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.

**Notes:**
Sum of lighting and chiller upgrades is not equal to the chiller & lighting case. Savings of chiller & lighting case are less than the sum due to a heating penalty. 

## Review and Discussion

- Total energy use and savings are a function of both usage and performance.
- Options A & B are retrofit-isolation methods.
- Options C & D are whole-facility methods.
- Can mix & match methods.

## Review Questions

- What two factors determine energy savings?
- How does one ‘comply’ with the FEMP Guidelines?

**Notes:**
Answers

1) Usage and performance. Energy cost relates to cost savings.

2) Trick question. Savings aren’t measured directly.

3) Write an M&V plan; implement the plan.