It is always wise to verify that our efforts are having the intended outcomes. Should our efforts be devoted to the fine-tuning of start-up sequences in primary ventilation systems, it makes sense to also devote some time analyzing the new system performance to validate the latest tuning parameters. Likewise, if we have estimated a certain level of savings resulting from an improvement project, it makes sense to confirm that those savings are indeed being realized.

 

If your organization is exploring software tools to help track, validate, and eventually achieve the sustainability and energy efficiency goals set forth, likely, a methodology has already been chosen. This is the recommended approach as we never want to put the cart before the horse – a well-known phrase attributed to the Roman Cicero that reminds us to do things in a proper sequence.

 

In this blog, our goal is to provide concise information and practical application on how an analytics platform can help implement M&V programs as guided by the chosen framework.

 

What is M&V?

  • Measurement and Verification (M&V) is the process of quantifying, verifying and reporting the energy savings realized as a direct result of implementing Energy Conservation Measures (ECMs) in a given project or building.

According to the Efficiency Valuation Organization (EVO), themselves on a mission to “ensure that the savings and impact of energy efficiency and sustainability projects are accurately measured and verified”[1], the most common M&V activities include the ones shown in Figure 1 below.

Figure 1. Activities commonly associated with M&V frameworks. Source: EVO. What is M&V.[2]

 

Several guidelines have been developed to guide M&V practices with detailed methodologies and procedures. Three of the most recognizable are the International Performance Measurement and Verification Protocol (IPMVP), ASHRAE Guideline 14, and the Federal Energy Management Program (FEMP) M&V Guide. The IPMVP – developed, maintained, and published by the EVO – is a framework that establishes the methodology to accurately quantify savings from ECMs as well as WCMs – the acronym for Water Conservation Measures. “Simply put, the purpose of the IPMVP is to increase investment in energy efficiency and renewable energy”[3], doing so by:

 

  • Increasing energy savings,
  • Documenting financial transactions,
  • Enhancing financing for efficiency projects,
  • Improving engineering design and facility operations and maintenance,
  • Managing energy budgets,
  • Enhancing the value of emission-reduction credits,
  • Supporting evaluation of regional efficiency programs, and
  • Increasing public understanding of energy management as a public policy tool.

 

ASHRAE Guideline 14 – Measurement of Energy, Demand and Water Savings – developed by the American Society of Heating, Refrigerating, and Air Conditioning Engineers is a reference that guides the calculation of energy and demand savings associated with performance contracts. The three engineering approaches to M&V can be correlated to the options presented in the IPMVP framework.

 

The FEMP M&V Guide – developed by the U.S. Department of Energy (DOE) – draws from IPMVP concepts to outline procedures that determine M&V approaches, evaluate M&V plans, and establish the financial aspect of energy performance contracts. As such, this guide fully adheres to the IPMVP.[4][5]

 

The three protocols listed above present the same approaches, specifically, calibrated simulation, the entire site, and retrofit isolation. The FEMP M&V Guide applies IPMVP principles geared towards federal buildings in the US, and ASHRAE Guideline 14 complements the IPMVP on a more technical level. Given these, and the fact that it is generally acknowledged that the IPMVP is now an international reference specifying a more general approach and structure, the remainder of this blog will focus exclusively on the IPMVP.

 

Why Use Analytics Software to Help Apply M&V methods?

  • Because M&V is fundamentally reliant on data which is also at the core of analytics software and services. This data helps identify ECMs and establish baselines, and later, track performance after ECM’s are implemented to verify savings and maintain improved performance.
  • Because a suitable analytics software provides the features to support M&V methodologies once there is consistent flow of data. These include flexible energy metering, powerful baseling functionality, and various reporting options to comply with M&V requirements.

Beyond the reason given above, analytics software help ensure M&V projects adhere to the six fundamental principles driving M&V’s best practices, namely, accuracy, completeness, conservative, consistency, relevancy, and transparency.[6] For instance, having building data flow automatically and continuously onto a robust infrastructure contributes to the accuracy and completeness of M&V deliverables. Likewise, a platform that provides functionality to establish baselines and present summarized and detailed reports as per M&V guidelines contribute to increased consistency and transparency.

 

IPMVP-adherent M&V includes both operational verification – which means validating the potential to achieve savings – and the accounting of savings based on energy measurements before and after the implementation of a project. The IPMVP framework is essentially anchored on two measurements, consumption or demand before a measure is implemented, and the same metric after a measure is implemented. “The comparison of before and after energy consumption or demand should be made consistently, using the following general M&V equation”[7] as shown in Figure 2 below.

 

Figure 2. M&V determination of Savings or Avoided Energy Consumption or Demand. Source: EVO. IPMVP[7]

 

The IPMVP guideline defines four options for determining savings – Options A and B are specific to retrofit isolation, Option C, whole facility, and Option D, calibrated simulation. The Core Concepts[8] document, available through the EVO website, has a concise overview of these options as well as separate sections describing each in detail. This document also provides guidance to develop or review an M&V plan to make sure it is IPMVP-compliant.

 

How to Leverage Analytics Software to Measure & Verify Savings? 

  • Understand the capabilities of data integration when developing an M&V plan – periodic and continuous metering options are available, and while the former typically relies on portable meters, the latter can be achieved through the integration of metering equipment and sensors from disparate systems.
  • Take advantage of data analytics functionality when implementing an M&V plan – having data on hand is a major step to calculate and verify savings. However, this computational analysis could be a tedious and repetitive chore, one that can be tasked to analytic engines to streamline the process.
  • Fulfill M&V reporting requirements to assess savings and meet quality assurance procedures – progress reports for up-to-date information and savings reports at defined reporting periods are deliverables that analytic platforms have built into a collection of reports for compliance and verification.

Understand the capabilities of data integration when developing an M&V plan

Regardless of the IPMVP option chosen, each requires energy consumption, demand, and data such as weather and building occupancy, first to calculate the baseline, and second, to validate that ECMs have indeed achieved savings when compared to that baseline.

 

The Core Concepts guideline referenced earlier lists several measurement techniques to perform savings calculations, including the use of utility invoices and meters, special meters isolating an ECM, and calibrated computer simulations. Even virtual metering using, for instance, amperage, temperature, and flow readings are proven proxies used to derive energy and demand values. In M&V projects where data comes from Building Automation Systems, energy metering infrastructure, IoT devices, and cloud-based data providers, integrating these disparate systems is a real challenge. In these cases, leveraging the supervisory nature of analytic platforms set the stage for not only consolidating these data sources – as can be appreciated in Figure 3 below – but also establishing the foundation on which to achieve outcomes that go beyond meeting M&V requirements.

 

Figure 3. Supervisory platform’s data acquisition and analytics infrastructure

 

Take advantage of data analytics functionality when implementing an M&V plan

Studies generally suggest that data scientists spend 50% of their time preparing data for analysis. Given the fact that verifying savings is dependent on the creation of baselines using modelling techniques, it makes sense to leverage the very thing that an analytics platform does best: crunch numbers. Figure 4 is a window into Kaizen FDD’s data pipeline using various logic blocks setup to perform data transformation and regression analysis. Likewise, Kaizen Energy’s baseline functionality can do the number-crunching and generate the statistical models and parameters such as the Coefficient of Determination to assess the goodness of fit. A previous blog on the Implementation of Energy Management Systems (EnMS) describes the implementation of baselines in more detail, including a visualization showing R-squared and Adjusted R-squared – statistical evaluation indices required in adherence to IPMVP principles.

 

Figure 4. Kaizen FDD’s graphical logic builder

 

Fulfill M&V reporting requirements to assess savings and meet quality assurance procedures

Further to the collection of reports for compliance and verification, dynamic visualization tools and the ability to export and integrate data onto other applications provide additional flexibility to meet M&V guidelines. Figure 4 is an example of a Cumulative SUM of savings chart for a selected date range comparing the energy consumption of specific HVAC equipment with the calculated baseline. Not only can this be exported as a report file, but users can also interact with it to change the date range or drill down to individual energy meters.

 

Figure 5. Energy savings reporting using a Cumulative Sum chart of energy savings

 

M&V initiatives with either IPMVP Option B – Retrofit-Isolation with All Parameter Measurement or Option C – Whole Facility are likely to benefit from analytics software the most because they typically require permanent and continuous building data to determine savings. This continuous flow of data is the foundation for continuous improvement processes to make sure ECM savings continue well beyond project completion. Want to know more? Book a Demo of Kaizen!

 

 

References

[1] Efficiency Valuation Organization. 2021. Mandate and Mission.

[2] Efficiency Valuation Organization. 2021. What is M&V?

[3] Efficiency Valuation Organization. 2021. Purpose of M&V.

[4] U.S. Department of Energy. November 2015. M&V Guidelines: Measurement and Verification for Performance-Based Contracts Version 4.0. DOE Energy Efficiency & Renewable Energy

[5] Natural Resources Canada. March 2008. Overview of Different M&V Protocols. CanmetENERGY.

[6] Efficiency Valuation Organization. 2021. Principles of M&V.

[7] Efficiency Valuation Organization. 2021. IPMVP.

[8] Core Concepts – IPMVP. Efficiency Valuation Organization. EVO 10000-1:2016; October 2016.

Written By:

CopperTree Analytics

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