294 Energy Project Financing: Resources and Strategies for Success
investment strategy around the world. Determining the level of reduc-
tion of pollutants requires the ability to estimate with confidence actual
energy savings.
The IPMVP provides a framework for calculating energy reduc-
tions before (baseline) and after the implementation of projects. The IP-
MVP can help achieve and document emissions reductions from projects
that reduce energy consumption and help energy efficiency investments
be recognized as an emission management strategy. Such profile will
also help attract funding for energy efficiency projects through the sale
of documented emission credits.
e) Increase public understanding of energy management as a public
policy tool
By improving the credibility of energy management projects, M&V
increases public acceptance of the related activities. Such public accep-
tance encourages investors to consider investing in energy efficiency
projects or the emission credits they may create. By enhancing savings,
good M&V practice also brings more attention to the public benefits
provided by good energy management, such as improved community
health, reduced environmental degradation, and increased employment.
f) Help national and industry organizations promote and achieve
resource efficiency and environmental objectives
The IPMVP is being widely adopted by national and regional
government agencies and by industry and trade organizations to help
increase investment in energy efficiency and achieve environmental and
health benefits. Chapter 1.4 provides examples of how the IPMVP is be-
ing used by a range of institutions in one country—the United States.
1.2.1 Role of Protocol
This Protocol:
- Provides energy efficiency project buyers, sellers and financiers a
common set of terms to discuss key M&V project-related issues
and establishes methods which can be used in energy performance
contracts. - Defines broad techniques for determining savings from both a
“whole facility” and an individual technology. - Applies to a variety of facilities including residential, commercial,