Energy Project Financing : Resources and Strategies for Success

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Appendix B 285


or ensure compliance with provisions negotiated and included in contractual
arrangements between third persons or third parties. It is the responsibility of
the parties to a particular contract to reach agreement as to what, if any, of
this protocol is included in the contract and to ensure compliance.


Preface


PURPOSE AND SCOPE
The International Performance Measurement and Verification Pro-
tocol (MVP) provides an overview of current best practice techniques
available for verifying results of energy efficiency, water efficiency, and
renewable energy projects. It may also be used by facility operators to
assess and improve facility performance. Energy conservation measures^1
(ECMS^2 ) covered herein include fuel saving measures, water efficiency
measures, load shifting and energy reductions through installation or
retrofit of equipment, and/or modification of operating procedures.
The IPMVP is not intended to prescribe contractual terms between
buyers and sellers of efficiency services, although it provides guidance
on some of these issues. Once other contractual issues are decided,
this document can help in the selection of the measurement & verifica-
tion (M&V) approach that best matches: i) project costs and savings
magnitude, ii) technology-specific requirements, and iii) risk allocation
between buyer and seller, i.e., which party is responsible for installed
equipment performance and which party is responsible for achieving
long term energy savings.
Two dimensions of ECM performance verification are addressed
in this document:



  • Savings determination technique using available data of suitable
    quality.

  • Disclosure of data and analysis enabling one party to perform
    saving determinations while another verifies it.


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  1. Although there is some debate over the differences between the two terms
    energy conservation measure (ECM) and energy efficiency measure (EEM) they
    have been used interchangeably in this document.

  2. The terms in italics are defined in Chapter 6.1

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