Measurement & Verification for EPCs & IPMVP


Measurement and Verification for Energy Performance Contracts (EPCs):

Measurement and Verification provides an appropriate measurement and verification of savings, to be used in the internationally recognized process, IPMVP. This is typically used to perform the measurement of savings for Energy Performance Contracts (EPCs).

ResourceKraft provides a comprehensive system from the initial benchmarking of energy use ahead of M&V through to the final Measurement and Verification reports.

The Challenge:

By now, you are probably aware of some of the scary headlines regarding energy in business:

  • Energy, for many businesses, is the second biggest expensed item after labour
  • Energy is the fastest growing cost
  • Energy is the largest uncontrolled cost – i.e. bills are often paid without being checked


The IPMVP (the International Performance Measurement and Verification Protocol) is a guidance document describing common practice in measuring, computing and reporting savings achieved by energy or water efficiency projects. This framework is recommended by energy efficiency authorities such as the US Department of Energy and the SEAI of Ireland.

The IPMVP presents a framework and four measurement and verification (M&V) Options for transparently, reliably and consistently reporting a project’s savings. M&V activities include site surveys, metering of energy or water flow(s), monitoring of independent variable(s), calculation, and reporting. When adhering to IPMVP’s recommendations, these M&V activities can produce verifiable savings reports. The IPMVP process is managed by a Certified Measurement and Verification Professional (CMVP).

Measurement and Verification Chart

Measurement and Verification (M&V)

This is the process of using measurement to reliably determine actual savings created within an individual facility by an energy management program. Savings cannot be directly measured, since they represent the absence of energy use. Instead, savings are determined by comparing measured use before and after implementation of a project, making appropriate adjustments for changes in conditions. It will include how to isolate savings generated by the proposed Energy Conservation Measures (ECMs). To maintain integrity of the process, we recommend using high quality meter data to attain the highest possible accuracy. ResourceKraft energy management platform systems enable long term periodic reporting to the highest accuracy, for as long a duration as is required by the Measurement and Validation Plan.

An M&V plan using IPMVP Option C – Whole Facility Measurement (kWh) is ideal for multifaceted energy management program.

The ResourceKraft energy management platform software will provide a transparent savings report suitable for verification by the CMVP.

The process is two parted:

Measurement: Establish baseline energy usage. The gathering and collation of metered energy usages and weather data plus other variables, to be agreed with the CMVP.

Verification: the database and software ensure that data is correct and highlights when energy usages go beyond agreed ranges. Confidence levels and other checks are considered to be part of the plan being prepared by the CMVP.

Analysis Procedure

The procedure to analyze and extract the actual savings will be outlined in the agreed M&V plan. Typically this would be extracted from a baseline of use data and strong correlation variables such as Heating and Cooling Degree Days, using multi-variant regression analysis; to produce an ‘intercept’ that is our base-load. This is the adjustment used to calculate savings. Energy price changes may then be then added to the equation.

The availability of digital data of meter readings and weather data allow this process to be conducted, operated and reported on to a very high degree of accuracy, using ResourceKraft systems for the full duration of the project.


An IPMVP reporting period may be as short as an instantaneous measurement during commissioning of an ECM, or as long as the time required to recover investment costs of the ECM program (See IPMVP 4.5.2). Our systems provide the data stability and reliability to maintain auditable measurement and validation for whatever period is required.

Persistence of Saving

An organization which has improved its energy efficiency should ensure systems are in place to avoid adverse shifts in ECMs performance. It should also utilize the benefits of continuous monitoring and reporting so unrelated incidents of avoidable energy waste do not pass unchallenged.

Persistence of energy savings can be achieved by completing follow on efforts that build on M&V. A recommended approach is Advisor automated Monitoring and Targeting (aM&T), which can seamlessly overlay the M&V process as it uses the same metering data, for the routine measurement, analysis and reporting of consumption, obtaining additional management capabilities and staff awareness benefits.