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May 2014
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Existing Buildings Partner Orientation
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Presenters• Tom Rooney, Vice President
• Kelly Bryan, NH P4P Pipeline Manager
• Heather Healey, Senior Energy Engineer
• Maria Karpman, Technical and Modeling
consultant
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Agenda• Program Introduction & Overview• Energy Reduction Plan Development• Lunch (12:00)• Post-Retrofit Activities • Building Simulation• Combined Heat and Power / Fuel Cells• Q&A Session
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Program Introduction
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PlayersNew Jersey Board of Public Utilities (BPU)
Office of Clean Energy (OCE)Overall Program Management
TRCProgram design, management and reporting
Partners Energy efficiency market players
ParticipantsOwners, developers, managers
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Who is NJ BPU?New Jersey Board of Public Utilities
• In 2003, the New Jersey Board of Public Utilities established the Office of Clean Energy (OCE) - Oversight and delivery of energy efficiency programs
• New Jersey's Clean Energy Program (NJ CEP)- Combination of renewable, residential and C&I incentive based
programs to deliver energy reductions in attainment of NJ Energy Master Plan
- Funded through Societal Benefits Charge
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Who is TRC?• Commercial & Industrial Market Manager for the NJ
Office of Clean Energy– Marketing of programs
– Intake and qualification of applications
– Incentive determination (prescriptive/custom) and payment
– Field verifications/inspections
– Engineering reviews
– Customer support (engineering level project support)
– Contractor/partner management
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NJ Clean Energy C&I Programs• Benchmarking (no-cost)
• SmartStart (prescriptive & custom) both retrofit and new const.
• Local Government Energy Audit Program (LGEA)
• Direct Install (DI)
• Large Energy Users Program (LEUP)
• Pay for Performance (P4P)– Existing Buildings
– New Construction
• Combined Heat and Power & Fuel Cells (CHP/FC)
• Federal SEP funds (non-IOU)
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NJ Clean Energy C&I Programs• Programs budgets are established for 12 months
beginning July 1st through June 30th
– Fiscal year 2014 runs from July 1, 2013- June 30, 2014
• Final program filings (details) can be found here: http://www.njcleanenergy.com/filings
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What is the Pay for Performance Program?
• Comprehensively addresses energy efficiency needs of the Commercial and Industrial (C&I) sector
• Provides incentives based on a whole-building approach to energy savings
• Leverages existing market players (engineering firms, architects, contractors, etc.) for program delivery
• Ties together traditional one-off measures with other energy saving opportunities
• Raises the bar, the more you save the more we pay
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Partners, Customers and TRC• Program Participants must work with Partner
• Partners can bring Participants into the Program
• NJCEP website provides Partner List to interested Participants
• Partners will:- Continue to develop and strengthen market-based relationships
- Act as the building owner’s energy professional
- Promote the Program
- Grow their business
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Goals
• Generate deep, verifiable energy savings• Promote a whole building approach & ENERGY STAR®
Label• Reduce system peak demand• Address all energy saving measures within a building • Ease of participation, make the Program process
painless• Develop and reward whole building work scopes• Pay for Performance!
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How the Program WorksStep-by-Step Overview for Partners
Program Guidelines Section 2
Overview
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Submittal and Approval
of P4P Application
Development of ERP by
Partner
Review & Approval of ERP by TRC
Implementation of All
Recommended Measures
Post Construction Verification of
Savings
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Step 1 - Establish Eligibility• Existing commercial, industrial, or certain multifamily
building
• Located in New Jersey
• Pays Societal Benefits Charge– Customer of one of the 7 investor-owned electric and/or gas
utilities
• Annual peak demand of 100kW or greater*
• Meets scope of work requirements
Step 1 - Establish Eligibility* 100kW requirement does not apply to the following
customer classes:– Hospitals
– Non-profits 501(c)(3)
– Public Universities/Colleges
– Local Governmental entities (including K-12)
– Affordable-rate multifamily housing (“affordable” is defined as low income, subsidized, HUD, etc.)
• Direct-metered multifamily may assume no more than 2kW per tenant
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May 2014
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Step 1 - Establish Eligibility• Comprehensive work scope
– Must identify 15%* annual source energy savings
– 15% may not come from a single measure
– At least 50% of energy savings from electricity, natural gas (if other non-IOU fuels present)
– No more than 50% of energy savings from lighting measures
– Minimum 10% IRR
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Step 1 - Establish Eligibility*High Energy Intensity User: Manufacturing and/or processing loads equal to or greater than 50% of the total metered energy use.
– manufacturing, pharmaceutical, chemical, refinery, packaging, food/beverage, data center, transportation, mining/mineral, paper/pulp, biotechnology, water treatment etc.
• May apply for exception to 15% savings, instead project must deliver minimum of:– 100,000 kWh
– 350 MMBTU or
– 4% of total facility consumption, whichever is greater.
• Exceptions must be pre-approved by Market Manager prior to ERP submittal (during application submittal).
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Define the Project: • Single, detached commercial and/or industrial building with its own
utility accounts.
• Multiple buildings may be treated as a single project. ALL the following conditions must apply:– There are two or more buildings that are located on adjacent properties.
– Buildings are owned by a single entity.
– AND one of the following:• Buildings are master-metered
• Buildings are served by a common heating and/or cooling plant.
• Buildings share walls and/or are connected via a physical structure.
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Step 1 - Establish Eligibility
Multifamily: • Must be 4 stories or more
• OR less than 4 stories with central meter(s) serving more than 1 building
• Multifamily garden-style complex must be treated as a single project.
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Step 1 - Establish Eligibility
See Program Guidelines, Section 2 for more information and guidance on eligibility
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Step 2 – Submit Application • Submit Completed P4P Application to TRC
– Signed application
– Participant’s W9
– 12 months of most recent utility bills
– Brief description of facility/project
• Assigned to TRC Case Manager
• GET APPROVED! (~2 weeks)
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P4P Application and Participation Agreement
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Who is the Case Manager?Point of contact once the Application has been approved
Submit to Case Manager:• All project-related questions
• All project-related documents
– Energy Reduction Plan
– Incentive Requests
– etc….
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Step 3 – Develop ERP• Develop Energy Reduction Plan
– Templates/tools provided
– 15% energy reduction target
• Submit ERP to Case Manager for review, pre-inspection, and approval– Within 6 months of Application approval
• Request Incentive #1
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ERP Review Schedule• ERP Rev0 averages 3 weeks in review.
• Subsequent Revisions average 1-2 weeks.• ERPs with Incentives ≤$500,000 are approved by TRC
and potentially AEG (QC consultant) ---adds 2weeks.
• ERPs with Incentives >$500,000 are approved by TRC, AEG, and BPU. (BPU meets monthly to review projects)---adds 4+ weeks depending on BPU schedule.
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Incentive #1 – Energy Reduction Plan
Incentive Amount $0.10 Per square foot
Minimum Incentive $5,000
Maximum Incentive $50,000 Or 50% of facility annual energy cost
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Incentive #1 – Energy Reduction Plan
• Requested upon completion and approval of ERP by Case Manager
• Payment contingent upon implementation of work scope – Installation Agreement
• Reduced by 50% for Participants who have received incentives from LGEA Program
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Step 4 – Installation• Installation should not begin until ERP is approved and
incentives committed. – Exception: Once pre-inspection is completed can begin work at
your own risk.
• Install all recommended measures in the approved ERP– Within 12 months of ERP approval; Extensions may be available.
• All measures inspected and approved by Partner
• Project review and post-inspection upon submission of Installation Report and approval by Case Manager
• Request Incentive #2
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Incentive #2 – Measure InstallationMinimum Performance Target of 15%
Electric Incentives
Based on 15% savings $0.09
per projected kWh savingsFor each % over 15% add $0.005
Maximum Incentive $0.11
GasIncentives
Based on 15% savings $0.90
per projected Therm savingsFor each % over 15% add $0.05
Maximum Incentive $1.25
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Incentive #2 – Measure Installation
• May not exceed 25% of total project cost
• Incentives paid for gas and electric savings only (investor-owned utilities)
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Step 5 – Post Construction Benchmarking
• Complete Post-Construction Benchmarking Report– One-year post installation utility bills
– Extension available if 15% savings not met
• Receive approval of Benchmarking Report by Case Manager
• Request Incentive #3
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Incentive #3 – Post Construction Benchmarking Minimum Performance Target of 15%
Electric Incentives
Based on 15% savings $0.09
per actual kWh savingsFor each % over 15% add $0.005
Maximum Incentive $0.11
GasIncentives
Based on 15% savings $0.90
per actual Therm savingsFor each % over 15% add $0.05
Maximum Incentive $1.25
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• May not exceed 25% of total project cost
• Requested upon approval of Post-Construction Benchmarking Report
• Incentive adjusted based on actual savings (true-up)
Incentive #3 – Post Construction Benchmarking
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P4P Incentives
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Incentive CapsIncentives will be capped at the lesser of:• 50% of total project cost (combined Incentives #2 and #3)
• $1 million per electric and gas account – Not to exceed $2 million per project
• $4 million per Entity in any one fiscal year – $5 million cap with CHP
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Sample Incentive CalculationProject Data
• Size: 300,000 sqft.
• Project Cost: $500,000
• Estimated Savings: 19%
• Actual Savings: 19%
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Incentive #1300,000 sqft. x $0.10 = $30,000Incentive minimum = $5,000
Incentive maximum = $50,000 or 50% of facility annual energy cost
Committed Incentive = $30,000
Sample Incentive Calculation
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Incentive #219% Projected Energy Reduction (from ERP)
400,000 kWh x $0.11 = $44,000 [$0.09 + (4 x $0.005) = $0.11]
50,000 Therm x $1.10 = $55,000 [$0.90 + (4 x $0.05) = $1.10]
$99,000
Maximum Incentive = $500,000 x 25% = $125,000
Committed Incentive = $99,000
Sample Incentive Calculation
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Incentive #3 19% Actual Energy Reduction (As-Built)
400,000 kWh x $0.11 = $44,000 [$0.09 + (4 x $0.005) = $0.11]
50,000 Therm x $1.10 = $55,000 [$0.90 + (4 x $0.05) = $1.10]
$99,000
Maximum Incentive = $500,000 x 25% = $125,000
Committed Incentive = $99,000
Sample Incentive Calculation
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Total IncentivesIncentive #1 = $30,000
Incentive #2 = $99,000
Incentive #3 = $99,000
$228,000
46% of Project Cost is paid for by incentives
Sample Incentive Calculation
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• Not all details covered in orientation, review Program Guidelines v4.0
• Guidelines are manual for “all things P4P”:– General Requirements & Eligibility
– Document Submission & Incentive Request Process
– Energy Reduction Plan Development
– Metering & Simulation Guidelines
– Installation Guidelines
– Post-Construction Benchmarking Guidelines
– Supporting References
Program Guidelines
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• ERP Excel Tables – primary submittal document– Model Calibration Tool – calibrate energy model
– Portfolio Manager – create energy baseline benchmark
• ERP Word Template – document for final report
• Installation Report – summarizes installation of measures
• Savings Verification Tool – quantifies actual savings
Tools and Templates
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Questions
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Energy Reduction Plan Overview
Program Guidelines - Section 3
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Energy Reduction Plan• “Roadmap” for comprehensive energy improvements.
• ERP contains information on: – Baseline Energy Consumption & Existing Equipment– Recommended Measure & Savings Projections– Building Simulation & Metering– Financing Plan– Implementation Schedule– EPA’s Portfolio Manager benchmarking – Estimated Incentives
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Energy Reduction Plan• Submitted at onset of project (6 mo. after application approval)
• Comprehensive work scope
– Must identify 15% annual source energy savings
– 15% may not come from a single measure
– At least 50% of energy savings from electricity, natural gas (if other non-IOU fuels present)
– No more than 50% of energy savings from lighting measures
– Minimum 10% IRR
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Objectives• Create consistency among projects and Partners
• Building assessment conducted/supervised by CEM or equivalent
• Follow industry standards (AEE, ASHRAE, EPA ENERGY STAR Buildings Program)
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ERP DevelopmentSeveral elements required to complete ERP:
• ERP Excel Tables – Primary submittal document
• ERP Word Template –Final report
• Model Calibration Tool – Calibrate energy model
• Portfolio Manager – Create baseline energy benchmark
• Modeling Software – Not provided
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Steps to Develop ERP
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Steps to Develop ERP
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ERP – Final Comments• ERP templates and tools must be used in all projects
• ERP must match the model and site conditions
• Recommend internal review of ERPs before they are submitted
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Questions
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Energy Auditing Requirements
Program Guidelines - Section 3
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Facility Audit
• Utility Bill Collection
• Benchmarking
• Existing Conditions
• Pre-metering
• Measure Evaluation
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Utility Bill Collection• Must be collected for ALL accounts/meters and
fuels at facility for baseline period. Sub-metered data may also be collected for model calibration.
• Cover 12 consecutive months of data
• No older than 2 years from ERP submittal
• Actual utility invoices or utility summaries. Internal utility tracking software not acceptable.
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Direct Metered Multifamily• Collect minimum 10% representative sampling
of tenant utility data. Extrapolate and add to commercial utility data.
• Alternative methods described in Program Guidelines. May require prior approval from Market Manager– Example: Calculating usage based on previous
similar sites normalized for square footage
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Benchmarking
EPA Portfolio Manager
www.energystar.gov/benchmark
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What is EPA Portfolio Manager?
• Online property management and energy assessment tool
• Created by the US EPA under the ENERGY STAR Buildings Program
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What is EPA Portfolio Manager?• Enables you to:
– Track energy consumption
– Rate individual facility energy performance
– Analyze efficiency of building improvements
– Prioritize investments
– Receive EPA recognition for superior energy performance
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Using EPA Portfolio Manager
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EPA Portfolio Manager in P4P• Required in P4P
• Secondary reference for energy savings
• Potential for ENERGY STAR Certification
• PM’s reports included in ERP (Appendix A)– Statement of Energy Performance (SEP)
– ENERGY STAR Data Verification Checklist
– Score Card (if applicable; not all building types receive scores)
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Sharing Portfolio Manager• If you have shared with TRC before, then our
name should already be on your contacts as “Solutions, TRC”.
• If sharing with TRC for the first time, you will need to add us as a contact first by searching for username “TRCSOLUTIONS”.
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Existing Conditions• Lighting Survey
• Mechanical Survey
• Building envelope
• Plug and misc. loads
• Occupants and schedules
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Existing Conditions• Operator/Occupant interviews
– Operating problems
– Special conditions
– Deviation from intended operation of equipment
– Preventative Maintenance practices
– Current energy efficiency practices
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Existing Conditions• Baseline Facility Variables
– Occupancy
– Hours of operation
– Production volumes
– Types of tenants
– Etc.
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• Required - Option D, Calibrated Simulation, as defined by the IPMVP
• Option A & B used to help develop an energy baseline for the building simulation when:1. Equipment cannot be directly modeled in the simulation software,
especially if it will be replaced or affected by scope of work (e.g. process equipment, water fixtures, appliances, etc.)
2. Modeling inputs that are out of the ordinary or unusual (e.g. very high or very low indoor air temperatures)
3. Has unknown or variable loads (meter end-uses for which the least amount of data is available)
Pre-Installation Metering
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• ERP must detail:– Description of metering method and schedule
– How data was used to support savings calculations and/or model inputs
– Description of any variables/assumptions that may differ between pre and post retrofit periods
– Description of metering method and schedule for post retrofit period, if applicable
• Simulation inputs not directly metered must use appropriate conservative assumptions
Pre-Installation Metering
Additional information to be presented in building modeling section
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Examples of measures that may be evaluated:
• Lighting: Retrofit or new fixtures, occupancy sensors, daylighting
• HVAC and DHW Measures: High efficiency boilers, chillers, and water heaters, solar water heaters, motors and pumps, insulate hot surfaces, controls, EMS/BMS
• Envelope: Air sealing, improved insulation, windows, doors, cool roofs
• Refrigeration: Mechanical subcoolers, Evaporator controls
• Other: Plug loads, transformers, energy efficient appliances and office equipment, low-flow water fixtures
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Measure Evaluation
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Non-Eligible Measure• On-site renewable energy generating equipment (e.g. PV panels, wind
turbines, etc.)
• CHP or fuel cells
• Retro-commissioning– Improvements uncovered due to RCx may be eligible, but the process of RCx
itself is not
• Sub-metering
• Monitoring equipment
• Power factor correction equipment
• Permafrost/refrigerant additives
• Non-permanent measure (e.g. removal of misc. plug loads)
• Emerging technologies without third-party verification
• O&M measures unless granted prior approval by Market Manager
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Minimum Performance Standards• Measures must meet or exceed:
– Minimum Performance Standards (Program Guidelines, Appendix A)
– ASHRAE 90.1 2007 prescriptive requirements, or
– Local code, whichever is more stringent
• Must comply with Measure Lifetimes per NJCEPProtocols (Program Guidelines, Appendix B)
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Examples of Minimum Performance Standards
• The minimum water-cooled chiller efficiency level is 0.75 kW/ton. Air-cooled chillers must have an efficiency of at least 1.20 kW/ton
• Gas boilers must have 85% or greater AFUE
• CFL fixtures must be new and ENERGY STAR qualified. LED fixtures must DLC qualified
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Individual measures aggregated into a proposed work scope will often interact with each other and impact energy savings.
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Measure Interactivity
Savings attributable to a package are usually less than the sum of the savings of each measure alone
Interactive effects will be taken into account in the building simulation+
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• ENERGY STAR Quantity Quotes service
• Previous contacts to help itemize local prices of labor and materials
• Contractors and vendors
• R.S. Means handbook or other industry standard cost guide.
• Bulk pricing initiatives
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Cost Estimation Resources
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• Include associated demolition, construction, finishing work and other “hidden costs.”
• Unless in-house labor is proposed, assume all installations will be performed by an outside contractor
• Design, analysis and construction management costs must be included in the cost of associated measures.
• Construction Management and Partner Fees to be included in the overall project cost.
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Cost Estimation
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Partner must ensure that all performance assumptions made in the simulation and
reflected in the ERP are translated into bid and construction documents
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Questions
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Financing PlanProgram Guidelines - Section 3.5
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Financing Plan Objective • Clearly present how project is to be funded
– Estimated total construction cost including cost of proposed measures
– Partner Fees
– Pay for Performance Program Incentives
• Verify that incentives do not exceed caps
• Verify project is not “double-dipping” (measures cannot be funded through multiple SBC programs)
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Implementation PlanProgram Guidelines - Section 3.6
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Implementation Plan Objective• Clearly present energy efficiency work
scope timeline– Timeline for approvals
– Bid document preparation
– Installation schedule
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Implementation Plan• Implementation of measures should not begin
until ERP is approved and funding is committed.
An ERP must be approved by the program and an approval letter sent to the customer in order for incentives #2 and #3 to be committed. Upon receipt of an
ERP, all project facilities must be pre-inspected. Measures installed prior to pre-inspection of the facility shall not be included as part of the ERP scope of work and will not be eligible for incentives. Measure installation undertaken
prior to ERP approval, but after pre inspection, is done at the customer’s own risk. In the event that an ERP is rejected by the program, the customer will not
receive any incentives.
Everything discussed up to
this point pertains to
ERP development.
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Lunch
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Post-Installation ActivitiesProgram Guidelines – Section 5
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Partner Responsibilities• Verify all measures installed as per the approved ERP
• Verify measures operating as planned/modeled
• Submit Incentive #2 Request, including completed Installation Report and supporting invoices
• Continue to monitor measures and utility bills during post-retrofit period
• Post Inspection will be conducted by TRC at this time.
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Installation Report
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Installation Report
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Changes to Scope of Work• Required action depends on magnitude and timing of
changes
– Does change affect overall savings by more than 10%?
– Is measure being completely removed or added?
– Is new measure already installed?
– Does new scope of work still meet savings thresholds?
Reference Section 5 of Program Guidelines for details
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Post-Construction Benchmarking ReportProgram Guidelines - Section 6
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Post-Construction Benchmarking• Collect 12 months of retrofit utility bills
• Use Savings Verification Tool to calculate actual monthly energy savings
• Submit to Case Manager: – Savings Verification Tool– Portfolio Manager Post-retrofit Benchmark– Post-retrofit Utility Bills (including Utility Tool)– Request for Incentive #3
• Savings Verification Tool normalizes for weather– Assumes all other variables remain constant – Must obtain permission from Market Manager to
adjust baseline (baseline facility variables)
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Questions
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Building ModelingProgram Guidelines - Section 4
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Calibrated Simulation
A Building Energy Model, Calibrated to Utility Bills, is used to Determine Interactive Energy Savings
for Proposed P4P Work Scopes
Get to Know the Simulation Section of the Guidelines
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1. Gather Baseline Data from Site Visit/Drawings
2. Create Baseline Model
3. Calibrate Baseline Model
4. Include Baseline Assumptions in ERP
5. Enter Measures into Model
6. Include Measure Results & Assumptions in ERP
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Simulation Overview
Approved Simulation Tools• Compliant with ASHRAE 90.1 Section 11 or
Appendix G
• Approval for use in LEED and Commercial Building Tax Deduction Program may serve as proxy to demonstrate compliance
• Examples of allowed tools: – eQUEST, Trane Trace, HAP, EnergyPlus, DOE 2.1E
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Approved Simulation Tools• eQUEST Wizard mode not permitted
• TRACE 700 must use Full Year (8760) analysis
• TREAT may only be used with prior approval by Market Manager
• Refrigeration facilities must use appropriate software (e.g. eQUEST Refrigeration, TRACE)
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External Calculations• If simulation tool cannot model measure savings,
external calculations may be used such as custom spreadsheets– resulting savings may then be subtracted from the usage
projected by model
– spreadsheets may also be used to support simulation inputs.
• Spreadsheet calculations alone will not be accepted
• Vendor-supplied and proprietary tools that were not / cannot be peer-reviewed cannot be used as external calculations to estimate savings
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RETScreen good option for external calculations
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• Gather building data including:– Architectural/mechanical drawings
– Dimensions, construction type
– Condition of building envelope and equipment
– Name plate data for HVAC and other equipment
– Operating schedules
– Measurement/metering to support model inputs
Step 1 – Baseline Data Collection
Key Operating Conditions/Variables• Affect Energy Use/Demand
– Computer Stations in Office Building
– Guests in a Hotel
– Volume of Items Produced in Manufacturing Facility
– Meals Served in Restaurant
• Must be Documented for Baseline and Post-Retrofit Period
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Useful Resources
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IPM&V CHAPTER 3: Principles of M&V
• Accurate M&V reports should be as accurate as the M&V budget will allow. M&V costs should normally be small relative to the monetary value of the savings being evaluated. M&V expenditures should also be consistent with the financial implications of over- or under-reporting of a project’s performance. Accuracy tradeoffs should be accompanied by increased conservativeness in any estimates and judgments.
• Complete The reporting of energy savings should consider all effects of a project. M&V activities should use measurements to quantify the significant effects, while estimating all others.
• Conservative Where judgments are made about uncertain quantities, M&V procedures should be designed to under-estimate savings.
• Consistent The reporting of a project’s energy effectiveness should be consistent between different types of energy efficiency projects; different energy management professionals for any one project; different periods of time for the same project; and energy efficiency projects and new energy supply projects.
• Relevant The determination of savings should measure the performance parameters of concern, or least well known, while other less critical or predictable parameters may be estimated.
• Transparent All M&V activities should be clearly and fully disclosed.
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Step 2 – Create Baseline Model
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Simulation Requirements• Baseline and measures must be created in same
program, using same weather and rate structure
• Baseline Model Inputs = Existing Conditions – All end-use component connected to building meter(s)
must be modeled – Observed or measured on-site– Documented in the ERP
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Simulation Requirements
Model must capture thermal zones, as per ASHRAE 90.1 Appendix G or Section 11 (Energy Cost Budget Method).
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Step 3 – Calibrate Baseline Model
Collect utility bills (should be completed already)
– All energy use (Electric, Gas, Oil, etc)
– For all meters in building
– Cover most recent 12 consecutive months
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Utility Bill ExampleMixed use building with retail spaces on the first floor and apartments on floors 2-8.
Electricity:
Meter A: Master-meter for all loads on floors 2-8 (residential portion)
Meters B1-B100: Sub-meters that measure consumption in each apartment
Meter C: Meter for common spaces on floors 2-8
Meter D1-D5: Meters for individual commercial tenants on 1st floor
Natural Gas:
Meter E: Gas used for space and service hot water boilers, entire building
Meter F: Gas used for cooking and clothes driers on floors 2-8
1. Collect utility bills for Meters A, C, D, E and F 2. Calculate the actual pre-retrofit energy consumption as follows:
Actual kWh = Meter A + Meter C + Sum(Meter D1+D2+D3+D4+D5) Actual Therm = Meter E + Meter F
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Allowed Adjustments to Utility Bills
Irregular Deliveries
Original Data Adjusted Data
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Allowed Adjustments to Utility Bills
Outliers
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Allowed Adjustments to Utility Bills
Estimated Bills
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Calibrate Baseline Model
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• Enter Utility Bills into Calibration Tool
• Enter Modeled Energy Use into Tool– Compare Model Outputs to Utility Bills and Spot
Measurements.
• If Model is not Calibrated:– Review/Refine Model Inputs
– Review Utility Bills
– Iterative Process
Do Not Move On Until Model Passes Calibration Tests
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P4P Model Calibration Tool: Input
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P4P Model Calibration Tool: Etracker Results
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P4P Model Calibration Tool - Results
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Calibration AccuracyMean Bias Error • Measures how close the annual energy use predicted by the
weather-normalized model corresponds to the actual pre-retrofit bills (<5%)
Coefficient of Variation• Measures variation in consumption during each bill period
between the model and actual billing data (15%-30%).
Uncertainty• Measures how well the regression model fits the utility bills
(50%).
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Calibration Techniques1. Review usage profile of electricity bills
• Peak during summer months associated with cooling
• Lower consumption during spring/fall months
• Peak during winter, may be associated with electric heat, longer fan / pump runtime for heating, longer lighting runtime hours.
2. Is the usage profile consistent with the findings of energy audit?
3. Are there seasonal variations in usage?
4. Are there unexpected / unexplainable drops or peaks in monthly usage values?
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Calibration Techniques5. Compare Usage Profile of Electricity Bills to Model Predictions
6. Compare Usage During Spring/Fall Months when Heating/Cooling Loads are Low• Adjust Lighting, Equipment, and Service Hot Water Heating
7. Compare Usage During Heating and Cooling Months• Adjust Model Inputs
8. Repeat For Fuel #2• Adjust Usage during Spring/Fall Months
• Calibrate Consumption during Heating/Cooling Season.
9. Use Model Calibration Tool to Verify Acceptable Calibration
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Step 4 – Documentation in ERP• Input & Output reports for Calibrated Baseline, including a
breakdown of energy use by:– Lights– Internal Equipment Loads– Service Water Heating Equipment– Space Heating Equipment– Space Cooling / Heat Rejection Equipment– Fans– Other HVAC Equipment (pumps, etc.)
• Output Reports showing amount of time any loads are not met (limit per Section G3.1.2.2 of ASHRAE 90.1-2007 Appendix G)
• Explanation of Error Messages from Simulation Outputs (if any)
See Section 4.2 of Guidelines
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Step 5 –Simulating Measure-Level Savings
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Simulation Requirements• Measure must be modeled incrementally (e.g. parametric
runs, alternatives, etc.)
• EEM model inputs must be based on solid data (e.g. specs, site measurements) or conservative assumptions
• Only parameters associated with measures can vary between baseline and post-retrofit model
• Operating assumptions must not change unless affected by a measure, including:– Heating temperature set-points– Lighting runtime hours, etc.
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Measure-Level Savings• Rank measures and add one at a time to baseline model
• Order in which measures are added may be based on – Cost-effectiveness
– Proposed sequence of implementation
• Must use parametric runs (eQuests), Alternatives function (Trace), or equivalent.
• Derive incremental savings for each measure
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Measure-level SavingsStep 1
• Add the highest ranking measure (M1) to the Baseline
• Calculate usage of Baseline with Measure #1
Step 2
• M1 Savings = (Baseline) – (Baseline + M1)
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Measure-level SavingsStep 3
• Add Measure #2 to (Baseline + M1) model to obtain the
(Baseline+M1+M2)
Step 4
• M2 Savings =(Baseline+M1) – (Baseline+M1+M2)
Step 5
• Repeat with remaining measures
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Measure Granularity• Distinct energy efficiency measures should not be
combined, for example:– Lighting fixture improvements– Lighting controls– Boiler improvements– Wall insulation – Air-sealing – Pipe insulation
• Defined by available measures in drop-down list of ERPExcel Tables
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Measure Specific Modeling Requirements• Program Guidelines, Section 4.6.3 provides modeling
requirements (must be followed) for common EEMs, including:– Lighting fixtures– Lighting controls– Daylighting controls– Air-sealing measures– Envelope insulation – Window improvements – Boiler improvements– Piping insulation– Programmable thermostats
– Plug and Process Loads (transformers, computers/ monitors, vending machine controls)
– Low-flow fixtures– Fuel Conversions– Dual-fuel measures– Measure increase energy use
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Measure Specific Modeling Requirements
Example- Boiler Measures:• Exiting boiler efficiency may only be de-rated per formula:
EFF = Eff.original*(1-M)age• Condensing boilers’ return water temperature must be verified on site. If
unknown 180°F supply and 160°F return must be assumed.
Example- Lighting Occupancy Sensors:• Must be modeled by adjusting either installed lighting wattage or fixture
runtime hours by percent reduction provided in Guidelines (0-40% depending on device and building type).
See Section 4.6.3 of Guidelines for additional information
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Step 6 – Document in ERP: Post-Retrofit Model
• List energy-related features included in design – Document all features and inputs that differ between baseline
and post-retrofit models
• Input/Output Reports
• Output Reports showing the amount of time any loads are not met
• Explanation of Error Messages (if any)
See Section 4.2
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Questions
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Combined Heat and Power
& Fuel Cells
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Overview• Stand alone program
• “Bonus” incentive for projects participating in Pay for Performance
• Systems 1 MW and less handled by TRC
• Systems over 1 MW handled directly by BPU staff
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Incentives
Eligible Technology Size
(Installed Rated Capacity)
Incentive ($/Watt)(2)
P4P Bonus(3) ($/Watt)
(cap $250,000)
% of Total Cost Cap
per project
$ Cap per project
Combined Heat & Power Powered by non-renewable fuel source – Gas Internal Combustion Engine – Gas Combustion Turbine – Microturbine
≤500 kW $2.00
$0.25
30-40%(4) $2 million >500 kW – 1 MW $1.00
>1 MW – 3 MW(1) $0.55 30% $3 million
>3 MW(1) $0.35
Fuel Cells Powered by non-renewable fuel source. Incentives available for systems both with and without waste heat recovery.
≤1 MW w. waste heat $4.00 60% $2 million
≤1 MW $3.00
>1 MW w. waste heat $2.00
45% $3 million
>1 MW $1.50
Heat Recovery(5) Powered by non-renewable fuel source. Heat recovery or other mechanical recovery from existing equipment utilizing new electric generation equipment (e.g. steam turbine)
≤1 MW $1.00 30% $2 million
>1 MW $0.50 30% $3 million
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Footnotes(1) Incentives for CHP systems greater than 1 MW are tiered. For example, a 4 MW CHP system would receive $0.55/watt
for the first 3 MW and $0.35/watt for the last 1 MW. No other incentives are tiered.
(2) In the past, utilities have offered incentives towards CHP and Fuel Cell technologies ranging from $0 to $1,000,000. Although no utility incentives are currently available, should they become available at a later time NJCEP incentives will subsidize utility incentives to bring the combined incentive up to the $/Watt amount shown in the table above, up to the maximum caps listed, to ensure a consistent incentive is paid throughout New Jersey.
(3) Any facility successfully participating in Pay for Performance prior to applying for CHP or Fuel Cell incentives will be eligible for an additional $0.25 per Watt from NJCEP, not to exceed $250,000. This amount is in addition to the “$ cap per project” listed above. The “% of project cost” caps listed above will be maintained.
(4) The maximum incentive will be limited to 30% of total project. This cap will be increased to 40% where a cooling application is used or included with the CHP system (e.g. absorption chiller).
(5) Projects installing CHP, fuel cell, and heat recovery generation will be eligible for incentives shown above, not to exceed the lesser of % per project cap or $ per project cap of the CHP/FC.
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Procedure• Complete and submit CHP/FC Application (Excel-based) per instructions
– CHP/FC does not factor into 15% savings of P4P
• TRC and/or BPU reviews submittal and issues a CHP/FC Incentive commitment. – Pre-inspection completed
• Install and commission project within 18 months of CHP/FC approval– Post-inspection completed; invoices reviewed
• Measure performance over 12 month period
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Purchase Installation Acceptance of 12
months post-installation data
30% 60% 10%
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Equipment RequirementsEquipment Must Be:
• Natural gas or hydrogen fueled (fuel cells)
• New, commercially available, and permanently installed (incremental expansions of existing systems also qualify)
• Installed on the customer side of the meter
• Electric only fuel cells must be sized for ≤100% historical consumption/peak demand
• Meet minimum 65% LHV annual system efficiency (50% for electric only Fuel Cells)
• Must operate minimum of 5,000 annual full load equivalent hours (3,500 for eligible critical facilities)
• 10 year all-inclusive warranty or service contract
The Following are Not Eligible:
• Prior installations
• Portable and emergency backup power systems
• Used, refurbished, temporary, pilot, or demonstration equipment
• Systems that use diesel fuel, other types of oil or coal for continuous operation.
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See CHP /FC Application for more information on eligibility and technical requirements
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Other Evaluation Criteria
• Environmental performance
• Projected system startup date
• Annual system utilization
• Alignment with general program goals
• Project clarity
• Operation as an emergency management center or critical facility
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Sample Calculation
600 kW Nat Gas Engine w/heat recovery and absorption cooling
• Total Installed Cost = $1,200,000
• Requested Incentive - 600,000 x $1.00/Watt = $600,000
• Incentive Cap - $1,200,000 x .40 = $480,000
• Final Incentive - $480,000
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Sample Calculation
4 MW Nat Gas Engine w/heat recovery for HH & DHW
• Total Installed Cost = $5,000,000
• Requested Incentive – First 3,000,000 x $0.55/Watt = $1,650,000
– Second 1,000,000 x $0.35/Watt = $350,000
Final Incentive = $2,000,000
• Incentive Cap - $5,000,000 x .30 = $1,500,000
• Final Incentive - $1,500,000
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Questions
Building Performance w/ ENERGY STAR
• National program
• NJ Clean Energy program a participant
• Benchmarking and Pay for Performance means to participate
• Additional publicity available for early participants
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See Section 7 of Program Guidelines
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Partner BenefitsExpand your business
– Qualified leads
– Marketing support – Sales literature and Mass Media
– Listed at www.njcleanenergy.com/ssb
– No Partner, no project, no incentive
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Next Steps• Bring in Projects
• TRC holds a monthly Partner conference call– 4th Wednesday of every month
• 888-330-1716
• Access Code: 4502707
– Updates and changes to Program
– Questions & Technical discussions
– Feedback loop with our Partners
– Ideas about improving the Program
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Additional Notes• Designate one P4P Contact Person within your
organization– Control all submissions
– Participate in conference calls
– Collect questions and inquiries for clarification
• Establish shared P4P folder to maintain most recent documents and templates
Additional Notes• Download most recent ERP documents from
Partner Portal:– http://www.njcleanenergy.com/p4p-portal-login
– Current password: tRP47px
• Keep an eye out for emails from “P4P” – Email questions to [email protected]
• Join LinkedIn Group: search for “NJ Pay for Performance Partner Network”
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Additional Notes• Dial-into Energy Efficiency Committee meetings:
– Email [email protected] with “CEC Committee Participation- Energy Efficiency Committee” in subject line and include your name, company or other affiliation, and address to get listserv updates.
– Minutes from monthly EE Committee meetings: http://www.njcleanenergy.com/main/event-listings/clean-energy-council-committees/energy-efficiency-committee-meeting/energy-effic
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Thank you!Final Q&A
