Measurement and Verification Guidelines for DemandSide Management Projects

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Measurement and Verification Guidelines for
Demand-Side Management Projects
Presenter Prof. LJ Grobler (CEM) Co-Author W
den Heijer (CEM)
Measurement and Verification Capacity Building
Workshop 30,31 August, 2005.
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Challenge During Peak
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Matching Supply and Demand
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DSM Options
Consumption
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Opportunities for DSM

• Residential
• Efficient lighting initiative
• Residential hot water load control
• Insulation of houses
• Commercial
• Energy efficiency and load management
• Efficient lighting, air conditioning and water
  heating
• Mining / Industrial
• Process improvements
• Efficient equipment (e.g.. Motors, Pumps)
• Load control systems in conjunction with dynamic
  pricing signals

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MV Requirements

• MV must be able to quantify impacts on a
• Project level
• Regional level
• National level
• Technology level
• The following stakeholders need to know what are
  being achieved
• Eskom (Project, Regional, National, Technology)
• NER (Project, Regional, National, Technology)
• Government (Regional, National, Technology)
• ESCo (Project)
• Client (Project)

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Background on MV

• Based on available International MV protocols
• 2000 International Performance Measurement and
  Verification Protocol (IPMVP)
• Measurement and Verification for Federal Energy
  Project Guideline (FEMP)
• A MV methodology was developed for the South
  African situation
• MV processes streamlined and focused on project
  specific situations
• MV implementation on various levels of
  complexity and effort
• Basis of successful energy efficiency and
  demand-side management projects rest on the fact
  electricity reductions can be determined to a
  degree of accuracy and trust that is acceptable
  to all stakeholders.
• Objectives of MV
• Impartial
• Credible
• Transparent
• Quantify and assess project impacts
• Assess sustainability

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MV Interaction

• MV Stakeholders
• Eskom
• ESCo
• Client
• Task of saving assessment and quantification need
  to be performed by a party outside the group of
  principal project stakeholders.
• MV team is active on all the levels between the
  various project stakeholders.

How much have been saved and are the savings
being sustained?
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The Benefits of Effective MV

• Quantify assess savings and various impacts
• Impartial of stakeholders
• Enable Tracking and Evaluation (TE) of DSM
  project performance and progress
• Help to identify focus areas for DSM activities
• Identify potential problems in DSM implementation
• Evaluate DSM impacts against targets
• Help with proper implementation of DSM
• Encourage investment in projects
• Help to manage risk for stakeholders

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MV Rationale
Energy savings (Baseline energy use)
(Post-implementation energy use)
Adjustments
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MV Rationale

• Must represent energy demand and consumption for
  system as it was operational and sustained prior
  to the DSM intervention.
• Must be accurate, dynamic, transparent,
  acceptable to stakeholders.

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Project Type Commercial Lighting
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Project Type Industrial / Warehouse Lighting
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Project Type Street Lighting
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Project Type Load Shifting
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Project Type Residential Load Management
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Determine Combined Impact
Overall Picture Pre-Implementation
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Determine Combined Impact
Overall Picture Post-Implementation
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Combined Impact
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Combined Results
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DSM Project Stages
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MV Project Stages
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DSM and MV Project Interaction
PROJECT IDENTIFICATION
MV Project
ENERGY AUDIT ASSUMPTIONS
SCOPING REPORT
DEVELOP MV PLAN
RECOMMENDATIONS FOR IMPLEMENTATION
Framework, Protocols, Guidelines
Refine MV Plan
No
Did you get BUY-IN?
APPROVAL FOR FUNDING
Yes
MV BASELINE REPORT
DSM Project Stages
DETAIL DESIGN
Refine MV Baseline report
No
Measurement equipment
Did you get BUY-IN?
POST-IMPLEMENTATION REPORT
Yes
IMPLEMENTATION
PERFORMANCE ASSESSMENT
COMISSIONING
MV PERFORMANCE TRACKING MONTHLY- AND ANNUAL
SAVINGS REPORTS
OPERATION MAINTENENCE
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Impact of DSM
Pre DSM Baseline
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Daily Electricity Consumption vs. Daily Water
Sales
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What about Load Growth?
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Baseline Correlation
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Banking and Penalties

• After ESCo implemented DSM measures
• Eskom DSM issue Certificate of Completion
• Project enters Performance Assessment phase
• MV quantifies whether DSM project is delivering
  intended MWs
• ESCo is at risk
• Once project has demonstrated that it can deliver
  risk is transferred to Client
• Client is responsible for maintaining and
  sustaining DSM performance
• Client carries now the risk for non-performance
• Note by CTADBanking section of the MV
  Guideline is under developmentand offers a
  proposed methodology to address the issues of DSM
  over-performance banking and underperformance
  penalties by the ESCoand the client. It is not
  an approved process.

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Banking and penalties
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Banking by ESCo

• Only applicable during performance assessment
  phase
• ESCo is responsible for payment of penalties in
  case of under-performance
• Client is not held responsible for penalties
• Penalties payable when achieved impact is less
  than 90 of intended DSM target
• Under-performance of 10 allowed without penalty
  clause activation
• Penalties are payable in R/MW
• Under-performance - the ESCo will pay or offset
  the penalties and the intended DSM target will be
  adjusted for the Client before the project enters
  into its MV performance tracking phase

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Banking by ESCo

• ESCo may bank over-performance achieved in excess
  of 110 of intended DSM target
• Bankable over-performance is calculated as the
  average MW reduction achieved during contracted
  performance period in the 3-month performance
  assessment period, exceeding 110 of the
  projects intended DSM target
• A bank balance will be kept of all over- and
  under-performance of each project implemented by
  each specific ESCo
• The ESCo retain ownership of its bank balance
  since the ESCo carries the risk of penalties
  during the performance assessment period
• The ESCo may offset the under-performance of any
  of its DSM projects at the end of their
  respective performance assessment periods from
  the bank balance at its own discretion
• Should the bank balance not be able to offset all
  under-performance of a project, the ESCo would be
  penalised in R/MW for each remaining MW that the
  bank balance could not offset
• The bank balance does not have overdraft
  facilities
• The bank balance of the ESCo is not redeemable
  for additional DSM investment into a project

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Banking by Clients

• Only applicable to the Client during the MV
  performance tracking phase
• ESCo is held responsible for penalties during the
  performance assessment period
• The responsibility is transferred to the Client
  after the performance assessment phase at which
  time the Client is held responsible for the
  payment of penalties in case of under-performance
• Penalties are payable when the achieved impacts
  are less than 90 of intended DSM target
• Under-performance of 10 allowed without penalty
  clause activation
• Penalties is payable in R/MWh by the Client
• Client may claim the penalties from the ESCo in
  cases where a back-to-back agreement is in place
  between the Client and the ESCo
• Should a project under-perform during the MV
  performance tracking period, the Client will pay
  or offset the penalties
• The intended DSM target will not be adjusted

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Banking by Clients

• The Client may bank over-performance impacts
  achieved in excess of 110 of the intended DSM
  target
• Bankable over-performance is calculated as the
  cumulative MWh difference between intended and
  achieved reduction achieved during the contracted
  performance period for the duration of the MV
  performance tracking phase
• A bank balance will be kept of all over- and
  under-performance of each project implemented on
  a project site(s) of the Client
• The Client retain ownership of its bank balance
  since the Client carries the risk of penalties
  during the MV performance tracking phase
• The Client may offset the under-performance of
  any of its DSM projects implemented on their
  sites at an annual or bi-annual interval from the
  bank balance at its own discretion
• Should the bank balance not be able to offset all
  under-performance of a project, the Client would
  be penalised in R/MWh for each remaining MWh that
  the bank balance could not offset
• The bank balance does not have any overdraft
  facilities
• The bank balance of the Client is not redeemable
  for additional DSM investment into a project

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Summary

• MV Results reported to Eskom, NER, Government,
  ESCo and Clients
• MV must provide results on Project-, Regional-,
  National- and Technology levels
• Baselines must be developed to provide reference
  points in 30-min intervals for various TOU
  periods
• Impacts must be determined in 30-min intervals
  for each of the various TOU periods
• Above must be done for both load management and
  energy efficiency projects
• Banking of the ESCo applicable to Performance
  Assessment Phase
• Penalties payable on MW under performance
• Banking based on average MW reduction during
  contracted performance period
• Banking of Clients applicable to Performance
  Tracking Phase
• Penalties payable on MWh under performance
• Banking based on accumulated MWh deviation
  between intended and achieved impact.

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Questions ?
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For More Information