Cost Avoidance Introduction

One of EnergyCAP’s important functions is to audit the effectiveness of energy management programs. Using procedures in compliance with the International Performance Measurement & Verification Protocol (IPMVP), EnergyCAP helps answer the question, "What is the estimated Cost Avoidance that can be reasonably attributed to energy management efforts?"

Cost Avoidance refers to avoided spending due to the implementation of energy management activities.

EnergyCAP Cost Avoidance methodology and core calculations date back to 1982, when EnergyCAP’s predecessor (FASER Energy Accounting) first introduced Cost Avoidance. Members of the pioneering team of software engineers and developers for Cost Avoidance in 1982 are still refining and enhancing EnergyCAP today. Over the years these principles have served the needs of thousands of energy managers and assessed billions of dollars in energy management projects.

EnergyCAP and Measurement and Verification (M&V) Methods

"Measurement and verification (M&V)" is the terminology commonly used to describe the practice of measuring energy savings and verifying Cost Avoidance. EnergyCAP 's Cost Avoidance module is an M&V tool — it is one method available to measure and report energy and cost savings.

The U.S. Department of Energy funded an effort to develop a written standard to define and describe various M&V options. The standard, called the International Performance Measurement & Verification Protocol (IPMVP) was U.S. Department of Energy document DOE/GO-102002-1554. DOE has passed the maintenance and distribution of this document to a non-profit organization called the Efficiency Valuation Organization; it is available for download from www.EVO-World.org. EnergyCAP is considered an "Option C--Whole Building" method of M&V under this standard.

See www.EVO-World.org for additional M&V resources.

Cost Avoidance Introduction

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