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Industrial Energy Efficiency Technical Review Guidelines and Best Practices
Abstract
Objective:
The role of technical review is to mitigate risk to DSM program administrators. If done effectively, technical review should aid the cost effectiveness of DSM programs by improving on targeted net-to-gross ratios and savings persistence.
Ex-post impact evaluations of programs have detailed protocols for evaluators to follow, however those conducting the technical review of ex-ante projects have limited guidance material to follow.
The objective of this paper is to assess the benefits and costs of ex-ante technical review for large, unique and, primarily, industrial projects to develop a framework for technical review practice that advises an appropriate approach and rigor for maximizing the cost-effectiveness of DSM programs.
Methodology and Scope of Research:
1. Empirical analysis of reported energy savings at the application, reviewed (contracted), measurement and verification (M&V) and evaluation stages for multiple large or industrial incentive programs.
a. Assess impact of technical review rigor on reviewed values compared to M&V results
b. Assess impact of technical review rigor on reviewed values compared to evaluation results (net-to-gross)
c. Assess impact of technical review rigor on program participation
2. Identify examples of appropriate approaches to technical review based on empirical results.
3. Develop methods to screen potential projects to maximize program cost effectiveness, considering the effective useful life, free-ridership (partial and deferred) and incremental savings and costs.
4. Develop stratified approaches and practices for performing base case, measure and cost analysis.
Results: Development of a framework to align various large, capital incentive, DSM program designs to a standard approach for technical review.
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Citation
Dalziel, N. (2013). Industrial Energy Efficiency Technical Review Guidelines and Best Practices. Energy Systems Laboratory (http://esl.tamu.edu); Texas A&M University (http://www.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /149169.