Measurement and Verification for Federal Energy Savings Performance Contracts

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Measurement and verification (M&V) activities help agencies confirm that legally and contractually required savings guarantees are met in federal energy savings performance contracts (ESPCs). When done correctly, M&V:

  • Appropriately allocates risks
  • Reduces uncertainty of savings estimates
  • Accurately assesses cost and energy savings
  • Potentially identifies operations and maintenance issues.

Read M&V Guidelines: Measurement and Verification for Performance-Based Contracts to learn about the Federal Energy Management Program's standard M&V procedures and guidelines.

Measurement and Verification Requirements

M&V is required in phase 3, phase 4, and phase 5 of the ESPC procurement process. Section C.4 of the U.S. Department of Energy's (DOE) ESPC indefinite-delivery, indefinite-quantity (IDIQ) master or “umbrella” contract prescribes the M&V process in general; M&V specifics are defined in each individual task order. 

Learn about M&V activities required in the ESPC process.

Measurement and Verification Options

Four M&V options may be considered in an ESPC project. Learn about M&V options A, B, C, and D.

Degree of Measurement and Verification

The degree of M&V needed for an energy conservation measure (ECM) in an ESPC project is proportional to its performance risk and the magnitude of expected savings. 

The quantity of savings and the complexity of the ECM determine how much money and effort should be devoted to the ECM. For example, lighting retrofits generally don’t require a large investment in M&V to ensure they are delivering expected savings. However, combined heat and power plant projects are more complex and require more rigorous M&V to verify savings.