A new MVP perspective - Striking a balance between energy and cost savings and improving the indoor environmental quality in energy efficiency projects

Panel: Panel 5: Energy Efficiency Markets & Financing Mechanisms

Author:
Satish KUMAR, Lawrence Berkeley National Laboratory

Abstract

The International Performance Measurement & Verification Protocol (MVP) has been widely used for determining savings in energy savings performance contracts (ESPCs) in the United States and efforts are underway for its international adoption as well. The latest edition of the MVP, which came out in January 2001 is a product based on extensive feedback from the users of the document. It provides a range of techniques starting from simple engineering calculations based on stipulations and measured data to sophisticated calibrated simulations and addresses the crucial issue of cost-effective M&V based on the requirements of individual projects.

The larger objective of the protocol is to promote investments in the field of energy services by providing a framework that can be used for credible and cost-effective energy savings estimates, which can then be verified by measured data. The latest update also addresses the issue of performance of the building energy system and its impact on the indoor environmental quality (IEQ) of buildings. A retrofit project offers tremendous opportunities for improving IEQ and the total building performance. While it is easy to get caught up in proposing innovative ways of third party financing, it is also important to keep in mind the importance of good indoor environment. Sometimes, focussing exclusively on energy savings and return on investments while ignoring the building performance issues may in the end prove counter productive and fuel continued scepticism towards the energy services industry. This paper will discuss the close linkages between the end use energy consumption and IEQ, the barriers currently facing the industry to bundle energy savings with improved building performance, and some new practical approaches that can help to address this problem.