APPENDIX H. USER INSTRUCTIONS FOR NES AND NPV SPREADSHEET

TABLE OF CONTENTS

H.1 INTRODUCTION...........................................................................................................1

H.2 USER INSTRUCTIONS FOR NES AND NPV SPREADSHEET................................ 1

LIST OF TABLES

Table H.2.1 Description of Tabs in NES and NPV Spreadsheet ...................................................1

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APPENDIX H USER INSTRUCTIONS FOR NES AND

NPV SPREADSHEET

H.1 INTRODUCTION

The results obtained in this analysis can be examined and reproduced using the Microsoft

Excel® spreadsheet available on the U.S. Department of Energy Building Technologies website

at: http://www.eere.energy.gov/buildings/appliance_standards/commercial_products.html.

The spreadsheet is called “CRE_NES_Version_2007_07_03.xls” and it enables the user

to perform NES analyses of up to 15 equipment classes of commercial refrigeration equipment.

To execute the spreadsheet requires Microsoft Excel® 2003 or a later version.

H.2 USER INSTRUCTIONS FOR NES AND NPV SPREADSHEET

The NES spreadsheet performs calculations to forecast the change in national energy use

and net present value due to an energy efficiency standard for Commercial Refrigeration

Equipment. The energy use and associated costs for a given standard are determined first by

calculating the shipments and then calculating the energy use and costs for commercial

refrigeration equipment shipped under that standard. The differences between the standards and

base cases can then be compared and the overall energy savings and present values determined.

The NES spreadsheet or workbook consists of the following worksheets:

Table H.2.1 Description of Tabs in NES and NPV Spreadsheet

Shipments­Weighted Data The Shipments­Weighted Data sheet contains

calculated tables of both input data and results from the

spreadsheet.

Summary of Results The summary of results contains user input selections

and for the selected equipment class a Summary table,

Shipments graph, Cumulative Energy Savings and

NPV graph, and an Annual Non­Discounted Savings

Trend plot, which also contains a plot of discounted net

savings by year.

Savings Summary A bookkeeping table used to store the results of the

shipments and energy savings calculations for an

individual equipment class and up to seven candidate

standard levels (e.g., Levels 2­8).

Details_Save An accounting worksheet used to tally the energy and

cost savings year by year for an individual equipment

class and standard level. The energy and cost savings in

a single year are the difference between the base case

energy use and costs for that year and the standard case

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energy use and costs in the same year.

Details_Stock A worksheet that keeps track of all surviving stock of

commercial refrigeration equipment in an equipment

class from the start year forward. Stock is updated for

each year.

Initial Stock Details A worksheet that keeps track of all surviving stock of

commercial refrigeration equipment in an equipment

class from 2006 to the start year of the forecast. Stock

is updated for each year.

Shares Output 1, Shares Output 2,

Shares Output 3, Shares Output 4

Four worksheets that estimate percentage distribution

shipments by efficiency level and year of all equipment

classes of commercial refrigeration equipment from the

start year of the forecast forward. Each worksheet

applies to a different type of business (supermarkets,

convenience and specialty stores, convenience stores

with gas pumps, and large multi­line retailers).

Shares Processing Worksheet that performs the detailed calculations

based on annualized cost to estimate market shares of

an equipment class of commercial refrigeration

equipment by efficiency level in a business type based

on risk preferences of purchasers for a baseline market

condition and up to seven candidate standard levels.

Input Worksheet that performs detailed calculations by risk

preference class to estimate annualized cost for a newly

purchased unit of an equipment class of commercial

refrigeration equipment by efficiency level in a

business type.

CRE Cost List Contains input data on installed cost (total price), repair

and maintenance cost, and annual electricity cost for

units of commercial refrigeration equipment, calculated

by the LCC model by equipment class, business type,

and efficiency level at U.S. average prices and market

conditions.

Details_ Ship Calculates total shipments by efficiency level for an

equipment class by year, given a candidate standard.

Also contains market weighted­average percentages of

shipments by efficiency level of each equipment class

of new commercial refrigeration equipment for

baseline market conditions and up to 7 candidate

standard levels. Percentages are reported for each year

from the start year forward.

Initial Shipments Detail Calculates total shipments by efficiency level and

market weighted­average percentages of shipments by

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efficiency level of each equipment class of new

commercial refrigeration equipment for baseline

market conditions and up to 7 candidate standard

levels. Values are reported for each year from 2006 to

the start year of the forecast.

Shipments_Summary Contains estimates of shipments of an equipment class

of commercial refrigeration equipment by efficiency

level and year, given a candidate standard level. Also

contains estimates of total shipments of each

equipment class by year for each candidate standard

level.

Base Product Market Share Calcd Worksheet performs calculations to estimate total

market shipments by equipment class and year in the

base case.

Product Shares Contains percentages of overall commercial

refrigeration equipment shipments (linear feet) by

equipment class.

Economic Trends A worksheet that contains historical and projected

economic values as well as shipments data.

ARI Contains data and calculations to estimate historical

market shares of commercial refrigeration equipment

by equipment class.

Com Estimates of commercial building stock increases,

decreases, and surviving stock by year and building

type from AEO 2006.

Com BEAMS Extra background calculations on building stock.

Equipment Parameters A worksheet that contains the economic, energy, and

size parameters for commercial refrigeration equipment

and other equipment parameters used to project

survival and calibrate the model.

Labels This is used as an interface between user inputs and the

rest of the worksheets ­­ do not modify this sheet

Basic instructions for operating the NES spreadsheet are as follows:

1. Once the NES spreadsheet file has been downloaded from the Web open the file using

Excel. You will be confronted with a dialog box as the file opens. You DO want to Enable

Macros (Select “Yes” when this option is presented.) At the bottom, click on the tab for the

worksheet Summary of Results.

2. Use Excel’s View/Zoom commands at the top menu bar to change the size of the display

to make it fit your monitor.

3. The user can change the model parameters listed in the gray box labeled “User defined

inputs”. The parameters are:

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a. Equipment class: To change the value, select the menu box. A drop­down list

appears. Select the desired equipment class. Many of the potential classes have no

shipments; i.e. they are not “real.” If the user selects one these classes, the first row

in the summary of results will show up as zeroes and the cells will turn red and will

be cross­hatched out.

b. Std Level: Selects the standard level used in the non­discounted annual net impacts

figure. Must be less than or equal to the Max Tech level. If a higher standard level

than Max Tech is selected, no results will be available for the levels above Max Tech.

c. Max Tech: To change the value, select the Max Tech box. A drop­down menu pops

up. Select the desired type of maximum technologically feasible efficiency level

(Usually Level 8). The Max Tech should be selected for the equipment class that was

analyzed in the LCC analysis. If a Max Tech level is selected that is beyond the Max

Tech level identified in the LCC analysis, the model will produce impacts for the

(extra) incorrect efficiency levels, but they will not be valid.

d. Rate of Growth of the CRE Market: To change the value, select the Rate of Growth

of the CRE Market box. A drop­down menu specifies multipliers on the default rates

of growth in grocery store floor space, which is used to forecast the sales of new units

of display space. The rate can be 0.5, 1.0, or 1.5 times the forecasted rate

e. Growth in Energy Prices: To the change value, select the Growth in Energy Prices

box. A drop­down menu pops up. Select the desired Growth level (Constant,

Reference, Low, or High). The scenarios refer to EIA projected rates from AEO

2006.

f. Standard First Year: This is the first year in which the standard will take effect. This

should be set to 2012 for the ANOPR.

g Discount Rate: To the change value, select the Discount Rate box. A drop­down

menu pops up. Select the desired Discount Rate.

4. Once the user parameters have been reset the model must be re­run. To re­run the

model press the “Update Values” button. Note: The output values are not correctly

updated until the “Update Values” button is pressed.

5. If a new set of LCC results has been loaded into the CRE Cost List and Equipment

Parameters sheets, it will be necessary to recalculate the baseline equipment shipment

shares by efficiency level in sheets Output1­Output4. To do this, press the ”Shares

Processing” button. The shares automatically update, and it will not be necessary to

update again unless LCC input data change.

6. Tabular results are presented to the right of the “User defined inputs” box for the base

case (Level 1) and the Level 2 through Level 8 standards cases. Tabular results are

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summarized as: 1) cumulative shipments, 2) percentage change in total shipments as

efficiency level increases (currently, this does not change), 3) present value of

national equipment cost savings in billions of dollars, 4) present value of national

operating cost savings in billions of dollars, 5) national net present value in billions of

dollars, and 6) cumulative national energy savings in quadrillion Btus. Energy

savings results for all standards cases energy savings are tabulated for two periods:

2012 to 2042, and 2010 to 2052. Net present value results are tabulated for 2012­

2052.

Graphical results are presented for the main tabular results. Two charts are provided for

the given model parameters: 1) shipments forecasts for the base case and all standards cases and

2) national energy savings and net present values for all the standards cases.

For a given set of user defined parameters, the user can also view the annual trend in the

non­discounted net impacts for an individual standard level. To view an efficiency level select

Std Level, and then select a standard level from the drop­down list. The annual purchase savings

and operating cost savings are not discounted values. However, the net savings values in each

year are shown as discounted values.

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