Current Industry Methods for Quantifying Energy Service Projects: Key Findings and Lessons Learned

Abstract

The use of energy service performance contracts (ESPCs) has become a popular method for financing energy conservation upgrades. To date, the use of the stipulated savings approach, often expressed as tables and equations, has been a popular method for calculating energy savings in ESPCs. However, no studies to date have confirmed or denied the literature findings regarding the use and acceptance of this method in the current industry through a systematic investigation. Therefore, this research identified other practices by conducting an ethnographic study with subject-matter experts, by reviewing publicly available technical reference manuals, and by analyzing a typical utility assessment report from a recent ESPC. In particular, the methods for quantifying lighting and lighting control measures were explored in detail. The findings indicate that the current industry relies on a stipulated savings method as a foundation for determining the baseline and postretrofit savings. In addition, the current industry relies on experienced engineers and their valuable tactical and institutional knowledge to build upon the stipulated equations and tailor them to individual projects.