SUSTAINING SUSTAINABILITY
Monitoring and Verification as the
Basis
for Sustained Municipal Investment in
Renewable Energy
Joseph LaRusso
Energy Efficiency & Renewable
Energy Finance Manager
City of Boston
CITY OF BOSTON ENERGY
PLANNING
Integrated Energy Management Plan
April 13, 2007 “Executive Order Relative to
Climate Action in Boston”
Integrated Energy Management Plan
 Procurement of energy from third party suppliers
 Measurement and monitoring of energy
consumption at all City facilities
 Assessment of the suitability of all City facilities for
distributed generation
April 13, 2007 “Executive Order Relative to
Climate Action in Boston”
 Reduce greenhouse gas emissions from
government operations 7% below 1990 levels by
2012, 25% by 2020, 80% by 2050
 Adopt robust standards for new construction – all
new City buildings must meet Silver LEED
standard
 Incorporate climate change into all formal
planning and project review processes
Municipal Energy
Management Program
PURPOSE: To implement the strategies and
deliver progress on the goals stated in the
Integrated Energy Management Plan and
the Mayor’s Executive Order.
Electricity Savings 2006 -2010
Fiscal 2006-10
27,309,536 kWh
Savings Achieved
Fiscal 2005
201,542,922 kWh
Consumed
RESULT: An estimated annual operating budget savings of $3.5
million.
Avoided Costs Attributable to 2011
Electricity Efficiency Projects
Year
2012
2013
2014
2015
2015
2017
2018
2019
2020
2021
Avoided
Cost
$2,500,000
$2,250,000
$ 1,407,601
$ 1,491,212
$ 1,579,791
$ 1,673,630
$ 1,773,044
$ 1,878,363
$ 1,989,937
$ 2,108,140
$ 2,233,363
$ 2,366,025
$18,501,105
$2,000,000
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$0
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
1
2
3
4
5
6
7
8
9
10
Based on U.S. Energy Information Administration data for Household Energy Consumption and Expenditures by End Use and Energy
Source (Electricity), Selected Years, 1978-2005, 5.94% average annual rate of increase. Amounts stated are not adjusted for inflation.
2011-12 Renewable Energy Projects
Annual
kWh
Project
Archival Center PV
400 Frontage Road PV
Moon Island
Wind Turbine
148,356
56,624
Value of
kWh Credits*
RECs
$ 19,286
$
78,628**
$
$
30,011**
7,361
4,097,000
$ 532,610
$ 163,880***
TOTAL: 4,301,980
$ 559,257
$ 270,159
RESULT: $559,257 in estimated annual operating budget savings, plus
revenue in the form of Renewable Energy Credits (RECs).
*
Based on current estimated metered day-ahead rate of $0.13/kWh
** Based on December 2011 SREC price of $530/MW.
*** Based on 1/4/12 Chicago Climate Futures Exchange Massachusetts Futures End of Day Summary of $40/MW for January 2012
contracts.
Making the Case for Renewable Energy
− Monitoring and Verification −
 The case for renewable energy must, in effect,
continually be made— financial benefits as well
as environmental benefits must be proved with
data
 The case must be made to constituencies both
inside and outside municipal government
 The promise of financial and economic benefits
must be kept—the operational and financial
performance of installed systems must remain
optimal throughout their useful lives
Considerations that Drive the Need for
Uniform Specifications
 Legal
Contract terms are limited to three years.
 Practical
It is difficult to swap out equipment every three
years.
Given time and human resource constraints,
multiple monitoring systems will almost certainly
result in inattention, extended component/system
down times, and lost revenue.
Service
Hardware
Monitoring and Reporting Obligation
Service
Hardware
Monitoring and Reporting Obligation
Procurement Obligation:
Services Disaggregated from Hardware
Service
Hardware
Years 1 - 3
Years 4 – 6
Years 7 - 9
Uniform Specifications
 Allow Disaggregation of Equipment and Service
Simplifies periodic procurement of monitoring
services.
Encourages “grouped” municipal procurements.
 Allow Frequent and Consistent Monitoring
Facilitates uptake of data into reporting systems.
Allows rapid assessment of equipment failures,
minimizes downtime, maximizes financial return.
The Measure of Success
 Confidence in the Financial and Operational
Performance of Photovoltaic Systems Results in
Sustained Municipal Investment
 Acceptance of Renewable Energy Systems as
the “Other Side of the Coin,” the Corollary and
Companion to Municipal Energy Efficiency Efforts
 Proves Financial Case of Renewable Energy to
Taxpayers—the Public at Large—Accelerating
Private Deployment of Renewable Energy
Technologies.
Uniform specifications are not only the means to
overcome technical communications and
protocol issues, they are a means to foster the
implementation of public environmental and
energy policy.
City of Boston
Municipal Energy Management Program
Joseph LaRusso
Todd Isherwood
Energy Efficiency & Renewable
Energy Finance Manager
City Hall Room 805
One City Hall Square
Boston, MA, 02201
(o) 617-635-3853
(c) 617-913-2528
[email protected]
Energy Efficiency & Renewable
Energy Project Manager
City Hall Room 805
One City Hall Square
Boston, MA, 02201
(o) 617-635-2518
(c) 617-821-8388
[email protected]