Frequently Asked Questions

Find answers to common questions about EEVS, IPMVP and the role of Measurement & Verification (M&V) in energy and carbon saving schemes.

M&V Basics

  • Measurement and Verification (M&V) refers to the process of calculating and reporting the energy savings attributable to energy efficiency measures and upgrade projects (e.g. new technologies or energy management services) implemented in buildings or industrial facilities.

    By providing a robust, evidence-based approach to determining the performance - and value for money achieved - by potentially significant investment in schemes, robust M&V is vital to build trust and transparency in the market for energy efficiency and decarbonisation products and services.

  • A key challenge when determining the impact of energy efficiency schemes is that energy savings cannot be directly measured since a ‘saving’ represents energy that is no longer being used due to the introduction of more efficient plant, equipment, or business processes (e.g. via an improvement project or energy management service).  

    In order to determine how much energy is no longer being used (‘avoided energy’) we need compare metered energy consumption against the energy consumption that would otherwise have occurred had the project not taken place (i.e. in a do-nothing or business-as-usual scenario) – the difference is our energy saving.

    This is the core function of IPMVP-adherent M&V process.

  • Whenever it is important to understand the energy saving performance and value for money achieved by energy efficiency or decarbonisation projects .

    As organisations seek pathways to net zero, M&V is increasingly vital to understand the success, or otherwise, of these projects. 

    M&V is also has a key commercial function. in particular where minimum energy savings have been guaranteed by a supplier, or where a share of the cost saving gain is incorporated into a commercial arrangement.

    These deals are often referred to as Energy Performance Contracts. To avoid disagreement and dispute, the energy savings should be robustly proven and independently verified. 

  • Developed and owned by the Efficiency Valuation Organization (EVO), the International Performance Measurement & Verification Protocol (IPMVP) is recognised as a global best practice framework for M&V.

    It provides a standardised set of methodologies, processes and procedures for measuring and verifying the results of energy efficiency or decarbonisation projects, ensuring consistency, transparency, and reliability in the assessment process.

    EEVS M&V services are always carried out in accordance with IPMVP standards.

    For further information including the option to download the protocol, see EVO’s website: https://www.evo-world.org/en/

  • An Energy Performance Contract (EPC) is typically a long-term (5+years) commercial agreement between a building owner and an Energy Service Company (ESCO) that is designed to improve the energy efficiency of a site and reduce its energy costs / carbon emissions.

    A unique aspect of an EPC is that the ESCO guarantees that the energy savings attributable to the implemented measures will be sufficient to cover the cost of the project over a specified period. If these savings are not realised, the ESCO is typically responsible for covering the shortfall.

    An essential component of an EPC is a robust and reliable M&V process as the energy savings must be measured and verified over time to ensure they meet the guaranteed levels.

  • Independent verification of energy savings is important for several reasons:

    1. Credibility and Transparency - by providing an objective assessment of the performance of energy efficiency schemes it ensures reported savings are accurate and free from bias - helping to build trust among key stakeholders such as customers or investors.

    2. Commercial Self Interest & Over-Claiming - without independent verification, there is a material risk of savings being overstated (given the commercial interests that are often at stake). As well as causing poor investment decisions, over-claimed savings is likely to cause disagreement and dispute between contracting parties.

    3. IPMVP Compliance: Many energy efficiency programmes (such as NDEE in Scotland) specify adherence to M&V standards such as IPMVP and verification can be used to ensure compliance. In the NDEE example, verification of supplier savings claims leads to the payout of retention fund monies to suppliers.

    4. Improved Decision-Making: Verified energy savings provides reliable data for decision-makers. Companies and policymakers can make better decisions regarding investments in energy efficiency technologies, services, or policies, when they have accurate and validated information.

    5. Accountability and Risk Management: For projects that rely on energy savings for financial returns, such as Energy Performance Contracts (EPCs), independent verification ensures that the financial benefits of energy savings are real and meet agreed KPIs / SLAs.

    6. Supports Environmental Goals: Verified energy savings contribute to accurate reporting on the reduction of carbon emissions and other environmental goals – helping to ensure organisations are meeting their sustainability targets and commitments.

    7. Encourages Continued Improvement - it provides an opportunity to identify areas for further improvement, helping organisations refine their energy efficiency strategies over time.

M&V In Practice

  • The 3 principal phases are:

    Stage 1 – M&V Planning - before project commencement it is crucial to define and document the methodology that will be used to calculate and report the savings attributable to the project once it is implemented.  IPMVP refers to this as the M&V Plan (see separate FAQ for further details).

    Stage 2 – Project implementation. Once the project is underway, Operational Verification (OV) is undertaken to help confirm that the energy saving measures have been installed correctly and are delivering the levels of savings expected.  This helps to mitigate the risk of installation defects (causing a material under-performance) not being identified until later in the process when the full savings verification process reports its results (e.g. up to 12 months later with an annual reporting cycle).

    Stage 3 – Savings Analysis & Reporting

    Once the energy efficiency measures are in place, requisite energy and associated data (e.g. weather data, production data) and information (e.g. evidence of site changes, project milestones) is collected according to the M&V Plan. The agreed savings calculation process can then implemented in accordance with the agreed M&V Plan – typically, this will require the post-project dataset to be compared to a baseline dataset. The difference being the energy savings achieved.

    This analytical process will then be documented in a Savings Verification Report (again, the M&V Plan will have specified the structure and form of this report) which provides a detailed statement of the energy savings achieved along with the underlying calculations and supporting evidence used.

  • A Measurement and Verification Plan (or M&V Plan) is a key document outlining the methods and procedures that will be used to measure and verify the energy savings resulting from an energy efficiency project. It identifies what will be measured, the frequency of those measurements, the data collection methods, and any instrumentation required.

    The primary goal of an M&V Plan is to ensure that the reported energy savings are accurate, reliable, and based on standardised methods.

    IPMVP sets out how an M&V Plan should be structured and what must be included to achieve IPMVP-adherence.

    It is also important to note that M&V Plans are project specific and should be developed and signed off by all parties - the end-user, supplier and independent M&V expert, where used - prior to the implementation of any project works.  

    This way all parties have certainty in relation to how the savings will be calculated and reported once the scheme is implemented.

  • Adjustments are often used the M&V process, so what is meant by them and why are they relevant?

    It is worth noting that there are two types of adjustment defined by IPMVP best practice – 'Routine' and 'Non Routine' as follows:

    Routine Adjustments

    These describe changes made to baseline or reporting period data to account for expected changes in energy consumption or demand. For example, as external temperature becomes colder, heating fuel consumption would be expected to increase, or if a manufacturing facility produces less, its consumption would be expected to reduce. Weather and production are examples of “independent variables” – these influence energy consumption and for a fair comparison, with and without energy saving measures, they should be taken into account.

    This is often achieved by developing a mathematical model using regression analysis, allowing statistical metrics to validate the model and provide information about how well variation in energy data is explained by independent variables.

    Non-Routine Adjustments

    These are used to take into account unexpected changes to aspects of a facility that would usually remain static. For example, building floor space/area, power outages, changes of use type etc. Such changes will need to be taken into account and their value estimated – this is often achieved via an engineering calculation specific to the change identified.

    Such changes can present a challenge for M&V, especially if they are not well monitored as this can lead to a lack of good information and potentially disagreement between the core parties (with vested interests at stake) . Outlining a process for capturing and calculating non-routine adjustments is important for M&V, particularly to enable transparency in the savings reporting.

  • In IPMVP a Baseline Model refers to the methodology used to establish a reference point or baseline for energy consumption against which the impact of energy efficiency measures can be measured and verified.

    A site Baseline Model (e.g. for electricity and/or gas consumption) is a critical part of the International Performance Measurement and Verification Protocol (IPMVP) since it represents the energy consumption that would have occurred if the energy efficiency measures had not been implemented. This is typically based on historical energy usage data and relevant operational conditions.

    To determine the savings, Baseline Model consumption is compared against Actual Consumption once the project has been implemented.

  • There are a few options!

    To develop the expertise of professionals involved in Measurement & Verification, the M&V Fundamentals and IPMVP course leading to the Certified Measurement & Verification Professional (CMVP) was jointly developed by the Efficiency Valuation Organisation (EVO) - who own the IPMVP - and the Association of Energy Engineers (AEE).

    This course has run in various locations worldwide for well over a decade and continues to be run by the AEE.

    In 2022, EVO also created two new certifications, which, following their global survey of 2019, reflect industry wide interest in the further enhancement of the knowledge and skills of M&V Professionals. The Performance Measurement & Verification Analyst (PMVA) certification is EVO’s programme for M&V fundamentals, whilst the Performance Measurement & Verification Expert (PMVE) certification establishes an advanced level qualification in IPMVP and M&V to distinguish individuals who are regularly involved in preparing or assessing M&V Plans.

    EEVS is an approved M&V training provider, supporting dozens of individuals to be awarded their professional M&V qualifications.

Other FAQs

  • Yes we are - and this is why so many customers and suppliers alike choose to work with us to prove the performance of their schemes.

    EEVS was founded on the premise that there was a need for a wholly independent and objective performance verifier in the market for energy efficiency investments. We felt this was essential to build trust in supplier claims, and greater transparency within the market more generally.  

    Independence is a key USP. We operate as a dedicated performance analysis, verification, and assurance business for energy efficiency schemes. This is all we do – nothing else.

    We do not offer any other energy-related consultancy services.  And to avoid any perceived vested interest, we will never recommend specific energy saving technologies or services; we only evaluate saving performance to best practice standards.

    To maintain objectivity, client payments for EEVS services are always on a ‘work delivered’ basis – we will never build performance-related payments into any of the schemes we work on.

    Finally, EEVS is privately owned by its Directors (following a management buy-out of the business in 2019) and has no commercial conflicts of interest with the supply-side of the energy saving and decarbonisation markets.

Get in touch

Find out more about EEVS and how we can help you.

Hilary Wood

Hilary Wood

Director

 
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