CERTIFICATE PROGRAM

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WEEK 2

MANAGING TO PERFORMANCE TARGETS:

PART 2

WEEK 2: LEARNING OBJECTIVES

Comprehend the major goals and methods of performance assurance in the

energy field, and appreciate the relationship between performance
assurance and effective energy management.

Develop a comprehensive Energy Management Program based on familiarity

with the range of approaches and technologies

Demonstrate an understanding of metering, measurement and performance

data

Maximize the opportunities made possible by modern control systems, data

harvesting and monitoring

Understand how to implement Active Energy Management strategies,

remedial actions for buildings that do not meet performance targets

WEEK 2: READINGS
Required Readings:
1.
2.
3.

The Energy Management Handbook, Chapter 2: Effective Energy

Management
CUNY BPL Building Performance Toolkit (website)
Monitoring, Targeting and Reporting: A Pathway to Continuous
Improvement in Energy Management. Wallace/Greenwald

PERFORMANCE ASSURANCE

DEVELOPING AN ENERGY BUDGET

Statistical manipulation of historical data

How much energy has been used over an observed period?

How does a given years usage compare to a typical period?
Caveat: Without additional context, historical data cannot provide
much insight into the meaning of past usage.

Engineering models

Models can be used to develop thorough energy balance

calculations that overcome the lack of detail from historical data.
The combination of historical data and present use models can help
to determine the amount of energy that will be required, and
where savings may be achieved.

Source: Patrick Crittenden, University of Technology, Sydney.

MEASURING ENERGY SAVINGS

The key metric of energy efficiency programs is energy savings.
Savings cant be directly measured; they represent the absence of energy use.
Instead, we estimate the impact of energy efficiency measures by comparing
energy use and demand before and after implementation of an energy
efficiency program, making adjustments for changes in conditions.
If other factors cannot explain any energy savings, then the lowered demand
is after implementation is presumably due to success of the energy efficiency
measures.

Source: Model Energy Efficiency Program Impact Evaluation Guide, US Environmental Protection Agency.

SOURCES OF ENERGY-USE INFORMATION

Energy bills

Basic meter readings

Special meters that isolate an ECM,

a particular piece of equipment, or
a portion of a facility

Measurement of proven proxies

(e.g., ratio of fuel used to work
done, etc.)

Computer simulations

Can you think of any others?

Analog Home Electricity Meter.
(Source: Wikimedia Commons)

Source: Patrick Crittenden, University of Technology, Sydney.

ENERGY ACCOUNTING
Equation
Energy Savings = (Baseline Energy Reporting-Period Energy)
Routine Adjustments Non-Routine Adjustments

Factors
a)

Reporting Period Energy Use Actual energy consumption

after program is implemented.

b) Baseline Energy Use Consumption estimated to have

occurred before program was implemented; chosen to represent
normal operations; BAU energy use.
c)

Adjustments Account for external factors, such as weather,

occupancy and operating hours

Source: Patrick Crittenden, University of Technology, Sydney.

ENERGY ACCOUNTING FACTORS:

BASELINE PERIOD
Baseline: Consumption to have occurred before energy efficiency
measure was implemented.
The data used should:
Represent all operating modes of facility
Span a full operating cycle, from maximum to minimum energy use
(e.g., a full year, one month, one week)
Include only time periods for which all fixed and variable energygoverning facts are known about the facility
Coincide with period immediately before commitment to undertake
retrofit, to provide a proper baseline for measuring effects

Source: Patrick Crittenden, University of Technology, Sydney.

ENERGY ACCOUNTING FACTORS:

REPORTING PERIOD
Reporting Period: Consumption occurring in an equivalent period,
after energy efficiency program has been implemented.
The data used should:
Span a full operating cycle, from maximum to minimum energy
use
Be sure to include all fixed and variable energy-governing facts
that are known about the facility
Coincide with the period just after commitment to changes, in
order to provide a proper baseline for measuring effects
Consider the life of the ECM and the likelihood of degradation over
time of originally achieved savings

Source: Patrick Crittenden, University of Technology, Sydney.

ENERGY ACCOUNTING FACTORS:

ADJUSTMENTS
Routine adjustments
Factors expected to vary during a typical reporting period
Weather
Production volume
Operating Hours

Non-routine adjustments
Factors that may or may not vary (but which must be monitored for
variations/changes throughout reporting period)

Facility size
Design and operation of installed equipment
Number of occupants

Source: Patrick Crittenden, University of Technology, Sydney.

TYPES OF SAVINGS: AVOIDED ENERGY USE

Avoided energy use (or avoided costs)
Savings in reporting period, relative to expected energy use
without the enacted energy conservation measures.
Degree depends on operating conditions during Reporting Period
Can not be directly compared with savings predicted under
baseline-period conditions
Equation

Avoided Energy Use (or Savings) = (Adjusted-Baseline Energy

Reporting-Period Energy) Non-Routine Adjustments of Baseline
Energy to Reporting Period Conditions

Source: Patrick Crittenden, University of Technology, Sydney.

TYPES OF SAVINGS: NORMALIZED SAVINGS

Normalized Savings
Not affected by reporting-period conditions
Fixed set of conditions is established once and doesnt change

May be directly compared with savings predicted under same

conditions
Reported after a full cycle of Reporting Period use
Conditions other than those of reporting period may be used as the
basis for adjustment (e.g., conditions of baseline period, other
arbitrary period, or an average or normal set of conditions)
Equation
Normalized Savings = (Baseline Energy Routine Adjustments NonRoutine Adjustments) (Reporting-Period Energy Routine
Adjustments Non-Routine Adjustments)

Source: Patrick Crittenden, University of Technology, Sydney.

WHAT IS COMMISSIONING?

Existing building commissioning, or retrocommissioning, applies a

systematic process for improving and optimizing a buildings operations
and supporting those improvements with enhanced documentation and
operator training.

- Building Commissioning Association

WHY COMMISSION
NEW BUILDING SYSTEM PROJECTS?
Commissioning new systems helps ensure that they will:

Meet energy efficiency goals

Meet operational requirements
Provide reliability, functionality, and durability
Operate as intended
Meet any additional requisite specifications

Source:
http://www1.eere.energy.gov/femp/pdfs/
commissioning_fed_facilities.pdf, p. 6
Seven World Trade Center, NYC.
(Source: Wikimedia Commons)

DEFINING KEY PERFORMANCE INDICATORS

Key Performance Indicators (KPIs) Goals in the energy management plan
are converted into key performance indicators (KPIs) to be measured and
tracked.
Appropriate KPIs:
1. Are defined well in advance of any data collection
Must determine the scope of data collection activities

2. Provide the foundation required to determine which data to collect,

how often to collect it, and how to present it.
3. Must support assumptions that are carefully stated to clarify
exactly what is going to be measured.
4. Can be expanded into levels of additional detail to help understand
the driving behavior of the defined performance metric.
To determine which measurement details to highlight:
Understand the underlying drivers of the performance metric
Know which details will give energy mangers the information they need to
correct deviations from target goals
Source: Patrick Crittenden, University of Technology, Sydney.

DATA COLLECTION: SCOPE

Data collection systems should be designed to capture just the right
amount of data required (not too much, not too little) to accomplish ones
primary goals. Adding extraneous measurements just in case theyre
needed usually just leads to unnecessary cost and effort.

T.M.I.?
(Photo: Tom Ventura, via Wikimedia Commons.)

Source: Patrick Crittenden, University of Technology, Sydney.

DATA COLLECTION: TYPES OF DATA

Two major types of data:
Static Data, such as facility floor space and equipment ratings, is
inherently consistent. It is often collected as part of an initial
energy audit and typically used to normalize measurements for
benchmark comparisons.
Dynamic Data, such as energy consumption and external
temperature, is inherently changing. It needs to be collected at
regular intervals and processed to generate the desired
performance metrics.

Source: Patrick Crittenden, University of Technology, Sydney.

DATA COLLECTION: POTENTIAL SOURCES

Potential Data Sources
Energy consumption from:
Energy bills
Shadow metering
Sub-meters
Existing automation systems

Temperature Data from:

Publications
Live, online sources
Local measurements
Existing automation systems

Source: Patrick Crittenden, University of Technology, Sydney.

Image adapted from work by Ranjithsiji,

via Wikimedia Commons.

BASIC MODELING
Basic models:
1. Critical step in constructing the Key Performance Indicators
(KPIs)
KPIs signal the impact of Energy Conservation Measures (ECMs).

2. Requires accurately intuiting relationships between energy

consumption data and certain variables (e.g., occupancy rates,
temperatures) to isolate the factors that are the primary drivers
of consumption; then testing those hypotheses.
3. The approach is typically comprised of the following steps:
A. The researcher selects a baseline period and identifies a primary
driver by analyzing historical data
B. A baseline model of energy vs. the primary driver is created and
tested.
C. A correlation is sought between energy and driver usage
D. ECMs are applied to the driver activity, and one or more target
models are created to track the resulting energy performance
Source: Patrick Crittenden, University of Technology, Sydney.

2. ENERGY MONITORING,
TARGETING, & REPORTING

ENERGY M.T.&R.: KEY ACTIVITIES

Energy Monitoring
Involves the collection and analysis energy use data.
Targeting

Requires identifying and defining energy consumption goals.

Reporting

Consists of sharing information in ways that enable:

Ongoing management of energy use

Achievement of reduction targets
Verification of cost and energy savings

Source: Patrick Crittenden, University of Technology, Sydney.

WHY ESTABLISH MT&R PROCEDURES?

Analyze historical energy performance

Set energy reduction targets

Control current energy performance

Project future energy budgets

Wind Farm. (Source: Jurgen, via Wikimedia Commons)

Source: Patrick Crittenden, University of Technology, Sydney.

WHAT ARE THE OBJECTIVES OF MT&R?

Improved budgeting and

forecasting

Improved product/service costing

Tracking and verification of energy

efficiency retrofits

Opportunities for improved O&M

practices

Chronograph. (Source: Rama, via Wikimedia Commons)

Source: Patrick Crittenden, University of Technology, Sydney.

WHAT FACTORS ARE INVOLVED IN

ENERGY MT&R?
1. Cumulative sum of difference analysis (CUSUM)
Statistical technique that is the cornerstone of MT&R; analysis of
the variance between energy consumption predicted by an
energy performance model (EPM) and the actual measured
consumption.
2. Energy cost center (ECC)
Organizational basis for MT&R; a unit for which energy use may
be measured along with other factors that influence energy
consumption (e.g., single building in a portfolio, major energy
consuming system such as the heating plant).
3. Units of measure
Must measure data for all energy forms in the ECC; should be
recorded in physically measured units (e.g., gallons, litres,
therms, kWh, ft3).
4. Independent variables
e.g., operating hours, occupancy schedules, degree days.

Source: Patrick Crittenden, University of Technology, Sydney.

ENERGY MT&R PROCESS

Measurement of
energy consumption
over time

Measurement of
independent
variables

Development of an
energy performance
model (EPM)

Historical analysis

Setting performance
targets

Frequent
comparison of
actual consumption
to targets

Reporting of
consumption and
target variances

Savings verification

Source: Patrick Crittenden, University of Technology, Sydney.

3. DEVELOPING AN ENERGY
PERFORMANCE MODEL

HOW TO DEVELOP
AN ENERGY PERFORMANCE MODEL
Three methods:
1. Previous years data
Using last years data to predict this years consumption; when
there are no significant factors of influence
2. Regression analysis

Statistical approach based upon historical consumption and

factors of influence; most common method for a basic system
3. Simulation model

Using computer models to simulate energy consumption

Source: Patrick Crittenden, University of Technology, Sydney.

HOW DO YOU SET PERFORMANCE TARGETS

FOR YOUR EPM?
Four methods:
1. Looking at periods of peak performance.
2. Eliminating the highest or least efficient points from the data set and
using what remains as a target range.
3. Defining targets by using the best historical performances as the
goals (instances well below the regression line).
4. By assessing the base and incremental loads to identify specific
actions that can be taken to reduce them.

Source: Patrick Crittenden, University of Technology, Sydney.

WHAT IS ENERGY SYSTEMS MAINTENANCE?

Energy systems maintenance (ESM) is an integral part of an energy
management program that measures energy consumption and compares it to
company goals or an established standard of energy consumption.
Purpose:

Keep equipment from failing

Help keep energy costs within reason
Help prevent excess capital expenditures
Address safety/compliance issues
Challenge:
Need to adjust consumption data for independent variables, including:
Changes in weather (e.g., degree days, over time, place to place)
Varying levels of activity (e.g., occupancy)
Changes in space utilization (e.g., changes in conditioned floor
space)
Source: Patrick Crittenden, University of Technology, Sydney.

WEEK 2: IN-CLASS EXERCISES

1. Describe some of the ways in which energy savings are calculated, and
what role such calculations could play in the context of performance
assurance.
2. What are the three major methods for developing an energy
performance model (EPM)? Briefly discuss the steps involved in setting
targets, and explain why they may be varied from one site to another.

WEEK 2: HOMEWORK
Consider the Imperial building again. Briefly describe the independent
variables that you would take into account when determining the work
loads that are being placed on its energy system components. For
example, think about the varying intensities of use by time of day, season,
or economic conditions. Also consider how the specific activities that are
conducted within the building may have a unique impact on its patterns
of energy needs.