Measuring Energy Efficiency Results: International Best Practices and Examples
The implementation of energy efficiency (EE) is very difficult to scale up due to it being comprised of very small investments that apply many different technologies at many different types and sizes of facilities. This is compounded by a huge gap in the global EE market’s inability to verify its savings in a simple and reliable manner at both the Program and Project levels. This inability to verify savings is a key barrier for facility owners, utilities, governments, investors and bankers to have sufficient confidence in the future achievement of estimated EE savings, and it limits the funding and implementation EE on a scaled-up basis. The barrier is exacerbated for EE Projects due to their small transaction size and low priority by many facility owners in relation to their relatively high complexity in calculating, measuring and verifying savings in relation.
Measurement and Verification (M&V) is the meter of an EE Project and is required to calculate the achieved energy savings with any degree of accuracy or reliability. No responsible investor or lender would fund a renewable or any other type supply-side project without installing a meter to measure the kWh’s generated as the basis for determining how much revenues are generated. Consequently, it is unreasonable to believe or expect that large EE investments will be made on a sustainable basis without a M&V meter, or to expect EE, even though the cleanest and most cost-effective energy resource, to be recognized as a sustainable financing market if its returns cannot be reliably verified.
The speakers and titles of their respective presentations are as follows:
Alfredo Baño Leal, Energy Evaluation Specialist, ADB
“Challenges of implementing EE programs in Asia, M&V Standardization, Benefits and Potential”
Thomas K. Dreessen, CEO, EPS Capital
“EE Project Best Practice Street Lighting Project M&V Example”
Mark Lister, Chair, EVO
Certified Energy Savings Verifier (CESV) Solution to Scaling up EE Project Finance
Objectives of the Session
DDW Objective: To create awareness on the importance of developing sound M&V procedures, systems and certifications of EE programs or projects, how to introduce reliable M&V protocols at project design, and illustrate proven M&V solutions that can be replicated on a global scale by:
- Explaining a simple international best-practice method to measure and verify savings on a streetlighting EE Project that complies with the generally accepted M&V principles of the International Performance Measurement and Verification Protocol (IPMVP).
- Exemplifying how robust certification systems help provide scalable solutions to facility owners, utilities, governments, investors and bankers not having sufficient confidence in the future achievement of estimated EE savings to fund and implement EE Projects.
- Explaining details of the new Certified Energy Savings Verifier (CESV) being provided by the Efficiency Valuation Organization (EVO) to professional individuals who can demonstrate their competency to certify estimated savings and M&V plans on achieved savings of EE Projects.
About the Organization
Asian Development Bank (ADB) is a regional development bank working in Asia and the Pacific. ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development with the objective of supporting a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region.
EPS Capital Corp. emanates from a group of international Energy Services Companies (ESCOs) starting in 1982, owned and operated by its seasoned management team, Thomas Dreessen and Dr. Bruce Colburn. EPS Capital now operates as a global energy efficiency and ESCO consulting, development and financing company focused on providing energy efficiency project finance and technical development services in countries primarily where the government embraces/promotes the savings-based ESCO business model, and the ESCO industry is constrained by limited project finance, technical and commercial capacity.
Efficiency Valuation Organization (EVO) is a 20-yr. non-profit organization that owns and manages the globally-recognized International Performance Measurement & Verification Protocol (IPMVP). EVO’s vision is to create a world that has confidence in energy efficiency as a reliable and sustainable energy resource that will ensure the savings and impact of energy efficiency and sustainability projects are accurately measured and verified.
Point of Contact:
Thomas Dreessen, EPS Capital Corp.