Simplified measurement and verification combined with quality assurance instruments: a more practical and accessible method for M&V of energy savings

Abstract

Energy efficiency (EE) is our “first fuel” and an essential resource in reaching climate goals, reducing dependence on fossil fuels, increasing security of supply, and many other “Multiple Benefits.” However, by their nature, savings are intangible. Demand-side EE measures are typically decentralized, heterogeneous, and small-scale opportunities. The difficulties in measurement and verification (M&V) of “Negawatts” are an important and often overlooked barrier to their greater application.

M&V is a prerequisite to assess the performance of any energy, water, or CO₂-saving measure, and to quantify the savings into physical and monetary units for reporting, re-financing, GHG accounting, or other purposes. However, in practice, M&V is often perceived (particularly by clients) as cumbersome, incomprehensible, and costly.

In the broader context, energy cost savings alone are often not a sufficiently strong project driver because they lack strategic relevance for decision makers. As “Multiple Benefits” of EE become better understood, the value of quantifying savings to a high degree of accuracy may be declining, creating opportunities for more flexible M&V standards.

As a new methodology, this conceptual paper proposes to combine simplified M&V (sM&V) for individual EE measures with quality assurance instruments (QAIs) to verify functionality. This “sM&V + QAI” approach is less cumbersome, less costly, and easier to comprehend than standard M&V approaches, particularly by clients, financiers, and other non-M&V experts. It has been reviewed by international experts and successfully tested and evaluated in the field. Multiple case studies are reported to verify its practical feasibility.