Miami, Florida January 1314, 2004

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Miami, FloridaJanuary 13-14, 2004
Introduction to Energy Savings Performance
Contracting (ESPC) and DOE Super ESPCs
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MV Part 3 FEMP MV Methods
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FEMP MV Methods

• Definition of Savings
• FEMP MV Guidelines
• Examples Applications

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FEMP MV Guidelines

• For federal energy projects
• Step-by-step procedural guide
• Defines MV methods by project type
• Current version is 2.2 (2000)
• Available at http//www.eren.doe.gov/femp/,
  http//ateam.lbl.gov/mv/ or 1-800-DOE-EREC.

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What the Guidelines Cover

• Agreement language.
• Overview of procedures.
• Different MV approaches.
• Selecting the right approach for a project.

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What the Guidelines Dont Cover

• Specifying an approach for a project.
• Specific MV plan for each project.
• Required uncertainty levels.
• Specifying how to allocate risk between ESCO and
  agency.
• Project-specific OM savings.

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FEMP MV Compliance

• Complying with the FEMP guidelines requires
• Developing an MV plan using the defined methods.
• Following the MV plan.
• The important consideration is what is in the
  plan.

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FEMP MV Options
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Options AB vs. Options CD
Options AB are retrofit isolation
methods. Options CD are whole-facility
methods. The difference is where the boundary
lines are drawn.
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Option A

• Simple approach ( low cost).
• Performance parameters are measured (before
  after), usage parameters may be stipulated.
• Used where the potential to perform needs to be
  verified but accurate savings estimation is not
  necessary.
• Option A is NOT stipulated savings!

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Stipulate

• To stipulate is to agree to a term or condition.
• Under FEMP, to stipulate means to estimate
  without measurement.
• A parameter is either measured or stipulated, but
  not both.
• A measured parameter can be fixed for the
  contract term.

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Option A Applications

• Projects where performance remains constant,usage
  can be readily characterized, and uncertainty is
  not a major issue.
• Lighting efficiency.
• Timeclock controls.
• Efficient motors.
• Operations Maintenance.

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Option B

• Under Option B, some or all parameters are
  measured periodically or continuously.
• Applicable where accurate savings estimation is
  necessary and where long-term performance needs
  to be tracked.
• Reduced uncertainty, but requires more effort.

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Option B Applications

• Projects with large elements of uncertainty
  and/or risk ().
• Variable speed drives.
• Chillers and chiller plants.
• Energy management control systems.
• Projects where equipment needs constant
  attention.

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Option B Benefits

• Reasons to use Option B instead of A
• Real MV.
• Better equipment performance.
• Improved OM.
• Continuous CommissioningSM
• Remote monitoring.
• Continuous Commissioning is a service mark of
  Texas AM University.

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Option C

• Option C looks at energy use and cost of entire
  facility, not at specific equipment.
• Usually simple.
• Considers weather, occupancy, etc.
• Applicable where total savings need to be
  quantified but component-level savings do not.
• Commercial software available.

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Option C Limitations

• Does not verify at component level.
• Requires savings to be significant (gt 15 of
  baseline consumption).
• Requires historical data (gt 1 year).
• May take time to evaluate savings.
• May require baseline adjustment to account for
  non-project related factors.

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Option C Applications

• Projects where facility usage remains constant
  and historical data is present.
• Weather-dependent projects.
• Heating projects.
• Energy management control systems.
• Multiple interacting measures in a single
  building.

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Option C Programs

• EnergyCAP, FASER (discontinued)
• Good Steward Software http//www.goodstewardsoftwa
  re.com/
• EEM Suite
• Silicon Energy http//www.siliconenergy.com
• EZ Sim
• Stellar Process http//ezsim.com
• Metrix, Utility Manager Pro 4.0
• Abraxas Energy Consulting http//www.abraxasenergy
  .com/products.php
• Optimum Energy Products Ltd
• http//www.optimumenergy.com/software/

This list is not complete. Listing here does not
imply endorsement.
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Option D

• Option D treats building as computer model.
• Flexible, but requires significant effort.
• Applications
• New construction.
• Energy management control systems.
• Building use changes.
• Building modifications.

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Option D Limitations

• Uses very specialized software that requires
  significant experience to use.
• Results vary with effort (and ) expended.
• Requires measurements for calibration.
• Weather-related usage often stipulated.
• Still need to verify potential to perform.
• Annual inspections recommended.

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Examples

• Option A Lighting
• Option B Variable-Speed Drive
• Option C Heating Plant
• Option D New Construction

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Example Lighting Project

• Consider the following lighting project
• Upgrade 5,000 fixtures
• Existing performance 86 Watts
• New performance 56 Watts
• Operating hours 3,000/year
• Electricity 0.10 / kWh

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Method LE-A-01 / 02

• Performance
• Baseline power consumption is 86 Watts.
• Proposed power consumption is 56 Watts.
• Difference is 30 Watts.
• Usage
• Baseline New 3,000 hours / year
• Financial
• Energy 0.10/kWh

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Lighting Savings

• E Savings QTY (Before - After) Hours
• ES (5,000) (86 W - 56 W) (3,000 hours)
  (1 kW / 1000 W)
• ES 450,000 kWh / year
• Cost Savings (Unit Cost) (Energy Savings)
• Cost Savings (450,000 kWh) (0.10/kWh)
• Cost Savings 45,000 / year

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Example VSD Project

• Variable Speed Drive on HVAC Fan.
• Baseline Fan Operates continuously at a single
  speed and power no matter what the cooling load
  is.
• VSD Fan Speed andpower change with coolingload
  (outside temperature).

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VSD-B-01

• Fan Performance
• Baseline fan Constant power (140 kW).
• VSD Fan Power changes w/ weather.
• Fan Usage
• Fan power changes hourly with cooling load
  (outside temperature and sunshine).
• Financial
• Energy 0.10 / kWh

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Monitor Fan Performance
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Calculate Monthly Savings
E Savings S (kWBefore - kWAfter) (1
Hour) Cost Savings (Unit Cost) (Energy Savings)
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Example Heating Project

• Heating system upgrade at eastern US military
  base.
• Baseline Gas-fired boilers with central steam
  plant provide heat to buildings.
• New System Shut down steam plant. Install gas
  furnaces in all buildings.

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Heating System Characteristics

• Baseline Performance
• Low-efficiency and steam loss.
• New Performance
• High efficiency, no steam loss.
• Usage
• Driven by weather.
• Financial
• Gas is (was) 0.50 / therm.

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Compare Gas Use to Temperature
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Develop Baseline Model
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Calculate Monthly Savings
Baseline, therms 25.6 HDD - 1,378
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Example New Construction

• Proposed building incorporates energy-efficient
  design features selected and implemented by ESCO.
  
• Baseline building is existing design before ESCO
  modifications.

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Develop Computer Model...
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...And Evaluate Results
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Calculate Savings

• Evaluate energy use for each scenario.
• Calculate savings for each scenario relative to
  base case.

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Review and Discussion

• Total energy use and savings are a function of
  both usage and performance.
• Options A B are retrofit-isolation methods.
• Options C D are whole-facility methods.
• Can mix match methods.

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Review Questions

• What two factors determine energy savings?
• How does one comply with the FEMP Guidelines?