File - Investor Confidence Project

EDF’s Investor Confidence Project (ICP):
Building Confidence in
Energy Savings
The Investor Confidence Project
• Efficiency Lifecycle Framework
1. Baselining
Core Requirements
Rate Analysis, Demand, Load Profile, Interval Data
Savings Projections
Design, Construction, Commissioning
Ongoing Commissioning
Measurement and Verification (M&V)
Enables a clear definition of the complete process necessary to ensure performance
Can house multiple standards for different building types and business models
• Energy Efficiency Performance Protocol - Large Commercial (EEPP-LC)
Create an accepted best practice approach to Large Commercial building retrofitting
Uses existing and accepted industry practices and standards
Define “appraisal pack” of documentation for EE Performance
A standardized approach to delivering investment ready project to market
Managing Project Risk Factors
Market Actors
• Building Owners
Achieve acceptable ROI on their specific project
Access financing
• Origination Partners
Be able to close business leveraging ESAs and other products
Allow for distributed models
• Energy Service Companies
Deal flow with reasonable transaction costs through channels
Manageable performance risk
Market Actors
• Financial Markets
Ensure performance risk is managed correctly (by someone)
Correlate project performance with asset risk
Create large pools of consistent projects
• Insurance Industry
Underwrite performance risk with a narrower band
• Utilities / Capacity Markets
Bet on demand reductions to meet capacity needs, and achieve regulatory mandates
Manage EM&V risk
Treat Energy Efficiency as resource procurement
Access forward capacity markets
• Carbon Markets?
AB32 in California
Performance Risk Barriers
Project Demand
– Lack of standards puts engineering overhead on each firm
– Channels are rendered ineffective
– Lack of transparency has created market inefficiencies
Savings Uncertainty
– Lots of winners and losers (variance), creating uncertainty
– Many approaches to savings estimation, installation, commissioning, etc.
– Averages penalize performing projects, and incentivize low quality
Actuarial Data
– Lack of quality and quantity of data results in a high degree of uncertainty
– Getting data from industry, finance, and the energy sector is challenging
– Data does not describe all factors that impact performance
Energy Efficiency Performance Protocol
First Energy Efficiency Performance Protocol designed for
Large Commercial projects (EEPP-LC):
Large Buildings, where the cost of improvements and size of savings justifies greater time
and effort in pre- and post- development energy analysis
Whole Building Retrofits, projects that involve multiple measures with interactive effects
rather than a single piece of equipment
High Performing Projects, projects with sufficient depth necessary for pre- and post-retrofit
meter data yields (i.e., savings can be anticipated to be of greater magnitude than noise)
Energy Efficiency Performance Protocol
• Required Elements
• Required Procedures
• Required Documentation
Energy Efficiency Performance Protocol
• Required Elements
• Required Procedures
• Required Documentation
Project Performance Package
EEPP standard documentation similar to an appraisal package:
• Prescribed methods
• Consistent taxonomy
• Accepted measurement
• Auditable results
• Standardized documentation
Adoption Strategy
• STEP 1: Engagement of market players
– Finance Companies
– Utilities
– Energy Services Companies
– Insurers
– Asset Owners
• STEP 2: Outreach to project origination channels
– Engineering Firms
– Facility Management
– Portfolio Managers,
– Contractors,
– Others?
Next Steps
• Become an ICP Partner
– Specify EEPP-LC as your company’s standard for large commercial EE projects
• Participate in the Process
– Refining the EEPP-LC
– Developing new sector and business model specific protocols
• Hospitality, Multifamily, Residential , Health Care, Schools, etc.
• Help the ICP Reach Critical Mass
– A rising tide floats all boats
– Help identify and engage additional channel and market partners
Investor Confidence Project
For More Information:
Mary Barber
[email protected]
Matt Golden
[email protected]