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• Analysis of monthly electricity bills, comparing before and after periods, normalized for outside temperature effects, to estimate savings • Short-term metering, as recommended by the International Performance Measurement & Verification Protocol (IPMVP) in increase transparency and reduce risk (EVO 2007). Stipulation of savings is particularly applicable for process loads such as motors, where use schedules are well understood, and similarly for lighting systems and electronics (if heating and cooling impacts can be ignored). The PRISM-type methods discussed in Section 3.1.3 were developed specifically for the purpose of energy efficiency program evaluations, particularly those involving heating and cooling efficiency. For this application, they are typically employed to fit two- or three-part linear models to monthly billing data from a period prior to an efficiency retrofit, and again for a period after a retrofit. The consumption for both pre- and post-retrofit periods can be adjusted using the models to reflect a normal weather year. The difference between the normalized consumption for the two time periods is the savings attributed to the retrofit. These methods are desirable for programs that involve large numbers of buildings because, even for program targets other than heating and cooling, changes in other end uses, such as lighting, reduce internal heat gains and reduce cooling but increase heating. This interaction is taken into account by the methodology. Aside from the methodological difficulties, the principal limitation of this approach is estimating small levels of savings with confidence, amidst large overall consumption totals. More detailed short-term monitoring is recognized by the IPMVP as a superior approach that overcomes this shortcoming by eliminating the need to make assumptions about use schedules and avoiding issues surrounding the difference between bench-scale tests and actual energy use in the field. If the short-term monitoring includes heating and cooling end uses, then the effects of changed internal heat gains on net savings can be properly accounted for as long as the data collected captures a full seasonal swing of weather. This approach does require significant labor to install metering equipment and collect the data, thus it is typically applied to a relatively small, random sample of participants over a short time period. An approach that leverages smart grid communications and controls, as described in Section 3.1.3, can provide many of the benefits of short-term monitoring, but without the costs for field labor to install monitoring equipment and collect data. If it can be standardized and automated, it can be integrated into utility billing systems as a routine procedure. Once the procedures are developed and programmed, the cost to deploy it should be relatively independent of the number of customers involved, or the duration over which it is used. Employing it for all program participants eliminates the labor costs for developing samples and for recruiting participants for field measurement. A review of the literature on efficiency program M&V is described in Attachment 1, Mechanism C, and briefly summarized here. Currently, 3% of total program costs are typically allocated for traditional M&V (DOE/FEMP 2009). The cost of conducting M&V by leveraging smart grid assets is unknown. Certainly, all labor involved will not be eliminated, but if high-quality M&V approaches are desired, it could displace a significant fraction of the cost of approaches, such as short-term metering. If these costs are assumed to represent a third of the overall costs of M&V, then a savings of 1% of program operational costs could be realized. 3.20PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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