NHS SDU Route Map Event - Grantham
Sustaining Success, Managing Risk
The crucial role of independent assurance &
verification in proving the performance of
sustainability projects
Ian Jeffries
Head of Performance Management
Nick Keegan
Measurement & Verification Consultant
About us
We independently evaluate energy saving projects, and use the
results to provide information services for the energy efficiency
industry.
Independent Measurement
& Verification (M&V)
Industry information
services
• Measure the savings achieved
by demand reduction projects
• Market data on the energy
efficiency sector
• Certainty in returns
• In partnership with
Bloomberg New Energy
Finance
• Enabler of third party finance
EEVS Insight Ltd 2015
Equipment or Savings?
Sustainability Policy Delivery has three levels:
Strategic
Tactical
Operational
Long-term policy
• Energy/carbon goals
• Release operating
capital
• Maintain/upgrade estate
How policy will be achieved
• Buy EE equipment
• Energy Services Contract
with Guarantee
Tools that are used to run
the Service Contract
• M&V Plan
• Savings Reporting
EEVS Insight Ltd 2015
M&V
 ‘Measurement and Verification’ (M&V):
 The engineering discipline around isolating a
saving from other factors that affect energy use
 Savings: defined as ‘avoided energy use’
 Standard: IPMVP (International Performance
Measurement & Verification Protocol
 Pedigree: US ESCO industry, now widely used internationally
www.evo-world.org
 IPMVP: A framework for a standardised investment-grade
evaluation of energy savings
 IPMVP Adherent evaluation carried out by a qualified CMVP

Independent M&V:

Remove the effect of vested interests,
over-estimated savings claims, calculation errors
EEVS Insight Ltd 2015
Electricity Market Reform
A “negawatt revolution”
“A core element of Electricity Market Reform, the Capacity
Market will incentivise sufficient reliable capacity (both supply
and demand side) to ensure a secure electricity supply even at
Source: DECC Electricity Market Reform Capacity Market proposals
times of peak demand.”
Capacity required: X TW
Supply
Conventional sources
Energy generation
Renewables
Demand
Distributed generation
Load shifting
Demand response
Permanent reductions
Energy efficiency
EEVS Insight Ltd 2014
Electricity Demand Reduction
• Need to know ‘what we would have used’
• Bring in some of the standards used in the ESCO industry: IPMVP
• Incentivise energy savings – ‘technology agnostic’, emphasis on performance
Electricity Demand Reduction
is at a pilot phase
• Must be open to all
• Prove savings
against counterfactual
baseline
• Submit an M&V Plan before
bidding in your savings
Source: EVO
See: DECC Electricity Demand Reduction Pilot web pages
EEVS Insight Ltd 2014
Electricity Demand Reduction
• Need to know ‘what we would have used’
• Bring in some of the standards used in the ESCO industry: IPMVP
• Incentivise energy savings – ‘technology agnostic’, emphasis on performance
Electricity Demand Reduction
is at a pilot phase
• Must be open to all
• Prove savings
against counterfactual
baseline
• Submit an M&V Plan before
bidding in your savings
Source: EVO
See: DECC Electricity Demand Reduction Pilot web pages
EEVS Insight Ltd 2014
Managing Energy Services Contracts
Visibility
I don’t know whether my savings have been achieved,
so I don’t know whether to use the guarantee
Recourse
I have identified an underperformance but there is
nothing I can do about it
… Woolliness
EEVS Insight Ltd 2015
Solutions
Visibility
Strong M&V
Recourse
Strong contract
Pre-contract stage is critically important
EEVS Insight Ltd 2015
Energy Services Contracts
EEVS Insight Ltd 2015
Independent Assurance Roles
Verification
or
Evaluation
EEVS Insight Ltd 2015
Our work in the NHS
…Verification of investment grade proposals &
M&V Plans for Energy Performance Contract
High level Contractual Review – for Carbon and
Energy Fund (CEF) Project
…EEVS Sit on Essentia’s Strategic Energy
Advisory Framework with the Carbon Trust
Verification and Contractual Review – for
Energy Performance Contract
…Verification of investment grade proposals &
M&V Plans for Energy Performance Contract
Verification – Gas Boiler Project
Evaluation – Behavioural Change Project
EEVS Insight Ltd 2015
Strategic
Long-term policy
• 20% ↓ CO2 by 2020
• £9.2 Million Cost Savings
• Address £42 million
Backlog Maintenance
Tactical
How policy will be achieved
• HFO → Gas Boilers
• Behavioural Change
• Guaranteed & Shared
Operational
Tools that are used to run
the EnPC
• M&V Plan
• Savings Reporting
• Independent Verification
EEVS Insight Ltd 2015
Behaviour Change impacts upon…
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Electricity
Gas
Steam
Low Temperature Hot Water
Water
Waste
Travel
Paper Towels!!?
EEVS Insight Ltd 2015
EEVS Insight Ltd 2015
EEVS Insight Ltd 2015
Independent Verification - Benefits
EEVS Insight Ltd 2015
Thank you
@EEVSInsight
www.eevs.co.uk
Next M&V training: July 2015
Ian Jeffries
ian@eevs.co.uk
Nick Keegan
nick.keegan@eevs.co.uk