Monitoring and Verification
The development of standard procedures for measurement and verification (M&V) of savings is an important task for the promotion of the ESCO business. The key to unlocking the enormous potential for energy efficiency worldwide is securing financing. Good measurement practices and verifiability are some of the important elements in providing the confidence needed to secure funding for projects. Securing financing requires confidence that energy efficiency investments will result in a savings stream sufficient to make debt payments.
Measurement and verification practices allow project performance risks to be understood, managed, and allocated among the parties.
The European Commission DG JRC recommends that performance-based projects are subject to M&V protocols, and in particular the International Performance Measurement and Verification Protocol (IPMVP) protocols would be a good first step and instrument to be used.
All the documentation about IPMVP can be found at http://www.ipmvp.org.