How can you know for sure the energy you’ve saved through your building renovation? The answer is that you can’t! But, by measuring energy consumption and taking account of other factors, such as the weather and building occupancy, you can make a much better estimate than by simply relying on installers’ claims of effectiveness. This is well understood in industry, where contracts for energy efficiency projects are routinely set up to reward energy service companies for the savings made, based on measurement and verification protocols such as IPMVP. This shifts much of the technical risk of underperformance onto the energy service contractor, aligning incentives and driving better performance. Policy makers in the US have begun to apply these principles to utility-delivered energy efficiency programmes in the buildings sector as part of efforts to drive up performance and provide better value for money for bill payers. The EU now has the opportunity to follow suit.
- Sam Thomas, Regulatory Assistance Project
- Mark Lister, Energy Valuation Organisation
- Claudia Canevari, European Commission
- SENSEI report on “Experience and Lessons Learned from Pay-for-Performance (P4P) pilots for Energy Efficiency”: https://zenodo.org/record/3887823#.X9iruthKhPa via the project website https://senseih2020.eu/
- EVO position paper on deemed savings: http://evo-world.org/images/corporate_documents/EVO_Deemed_Savings_Position_OCTOBER_2019.pdf