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Investing budgets and resources in a project is a decision based on one fundamental aspect: ROI. The first question that entrepreneurs ask themselves, even when they intend to carry out an energy requalification of their sites, is: “What will be the return on this investment? The only way to be sure is to use forecasting and monitoring tools that respect the IPMVP® protocol.
In this article we will explain the importance of knowing and relying on this convention. Here are the topics we will cover:
- Why IPMVP® was originally developed.
- The benefits of using IPMVP.
- Request a DEMO of Energis.Cloud, the only software that uses IPMVP compliant models and calculations.
Why was the IPMVP® originally developed
IPMVP® stands for International Performance Measurement and Verification Protocol. It is an international agreement to standardise the way in which the performance of energy, water and renewable energy projects is measured and verified.
Why was it needed?
As the EVO® website itself states, energy savings are not directly measurable as they represent the absence of consumption of an energy source. The only way to determine real energy savings is to compare consumption before and after the implementation of some measure or efficiency improvement project, taking into account variables.
The purpose of the International Protocol is to define exactly what and how to measure, to ensure consistency and clarity.
What are the benefits of using IPMVP?
The IPMVP applies to a wide range of facilities, including existing and new buildings and industrial processes. The protocol provides a serious and impartial means of measuring the savings achieved by a company through the implementation of energy efficiency, water and renewable energy projects. In particular:
- Where financial payments are based on proven energy or water savings, as in the case of Energy Performance Contracts (EPCs), compliance with the IPMVP ensures that the savings are in line with best practice. An IPMVP-compliant savings report allows a customer, energy user or utility to readily accept the reported performance. Energy service companies (ESCOs) whose bills are supported by IPMVP-compliant savings reports typically receive prompt payment.
- For professionals such as ESCOs and energy managers, specifying IPMVP as the basis for designing a project’s M&V can simplify negotiations for an energy performance contract. Using a tool to forecast the costs and benefits of a project based on this protocol also removes the risk of discussion.
- Your reports, when produced using IPMVP®-based software products, will have greater credibility and value, providing a competitive advantage for energy professionals.
A reference is provided at the level of tools and methodologies that allow companies to promote and achieve energy savings goals more easily.
Choose software that measures and verifies savings according to IPMVP guidelines
Our energy management software, Energis.Cloud, has been programmed in compliance with the IPMVP® to fully support the activities of energy professionals and companies.
We all know that consumption is influenced by many factors, such as weather conditions and building occupancy. Energis.Cloud uses artificial intelligence algorithms that identify these factors and relate them to consumption with great precision. Energis.Cloud is the only software on the market that can identify energy models with just a few clicks and in accordance with the International Performance Measurement and Verification Protocol.
The resulting consumption baselines can be used to:
- Optimise energy performance (generate intelligent alerts);
Forecast energy consumption and production;
Calculate savings before and after project implementation, under the same conditions.
The figure below illustrates the various criteria used to create and use highly accurate models that guarantee the correct forecasting of energy consumption and the determination of the savings achieved.
EVO® is a non-profit organization whose services and products help professionals manage and invest in energy efficiency projects. In particular, the organisation aims to ensure that the savings and the impact of such projects can be measured in an accurate and verifiable manner.
In EVO®, the internal commission dedicated to IPMVP® is composed of volunteers (all qualified professionals) from all over the world who are committed to developing and updating the protocol, promoting the dissemination of energy efficiency tools and best practices.