APPENDIX H. USER INSTRUCTIONS FOR NES AND NPV SPREADSHEET

TABLE OF CONTENTS

**H.1 INTRODUCTION** 

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

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LIST OF TABLES

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

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**H­i H­ii** 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**

**H­1 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** 

**H­2 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:** 

**H­3 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**

**H­4 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.** 

**H­5**