Energy Project Financing : Resources and Strategies for Success

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Appendix B 311



  • ECM reduces both equipment load and operating hours. Ex-
    ample: Resetting of temperature on hot water radiation system
    reduces overheating, thereby reducing boiler load and operating
    periods.


Generally, conditions of variable load or variable operating hours
require more rigorous measurement and computation procedures.
It is important to realistically anticipate costs and effort associated
with completing metering and data analysis activities. Time and bud-
get requirements are often underestimated leading to incomplete data
collection. It is better to complete a less accurate and less expensive
savings determination than to have an incomplete or poorly done, yet
theoretically more accurate determination that requires substantially
more resources, experience and/or budget than available. Chapter 4.11
addresses cost/benefit tradeoffs.
Typical contents of four M&V Plans are outlined in the four ex-
amples shown in Appendix A.


3.4 METHODS
The Energy Use quantities in Equation 1 can be “measured” by
one or more of the following techniques:



  • Utility or fuel supplier invoices or meter readings.

  • Special meters isolating a retrofit or portion of a facility from the
    rest of the facility. Measurements may be periodic for short inter-
    vals, or continuous throughout the post-retrofit period.

  • Separate measurements of parameters used in computing energy
    use. For example, equipment operating parameters of electrical
    load and operating hours can be measured separately and factored
    together to compute the equipment’s energy use.

  • Computer simulation which is calibrated to some actual perfor-
    mance data for the system or facility being modeled, e.g., DOE-2
    analysis for buildings.

  • Agreed assumptions or stipulations of ECM parameters that are
    well known. The boundaries of the savings determination, the
    responsibilities of the parties involved in project implementation,
    and the significance of possible assumption error will determine

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