336 Energy Project Financing: Resources and Strategies for Success
4.6 VERIFICATION BY A THIRD PARTY
Where the firm performing the energy savings determinations
has more experience than the owner, the owner may seek assistance in
reviewing savings reports. Such assistance should begin at the time of
first review of the M&V Plan, to ensure that the design for the savings
determination process will meet the owner’s objectives. The review
should continue with the routine savings reports and baseline adjust-
ments. Full review of baseline adjustments requires good understanding
of the facility and it operations. For this latter purpose, owner summa-
ries of operating conditions will reduce the scope, work and cost of the
third party verifier.
An energy performance contract requires that both parties believe
the information on which the payments are based is valid and accurate.
An experienced third party may be helpful to ensure agreement of mea-
surement validity. Should conflicts arise over the course of the project
payback period, this third party can help to resolve differences.
Third party savings verifiers are typically engineering consultants
with experience and knowledge in verifying ECM savings, ECM tech-
nologies and, where relevant, energy performance contracting. Many
are members of industry professional societies, though there is not yet
any accreditation program for M&V professionals.
4.7 DATA FOR EMISSION TRADING
The IPMVP has already been recognized as valuable in some
regions for verifying savings and securing financial benefits allowed
under emissions trading programs, and is expected to be a part of an
international trading regime. Application of this Protocol can provide
increased confidence in the measurement of actual energy savings, and
therefore provide greater confidence in determining associated reduc-
tions in emissions. It is becoming an important element in international
greenhouse gas emission mitigation and trading programs because of
the broad international participation in its development, and its growing
adoption internationally.
Combined with the specific M&V Plan of each project, this Protocol
enhances consistency of reporting and enables verification of energy
savings. However to verify an emission credit this Protocol and the
project’s M&V Plan must be used in conjunction with the credit trading
program’s specific guidance on converting energy savings into equiva-
lent emissions reductions.