Incorporating IPMVP and Six Sigma Strategies into Energy Efficiency Program Design, Implementation, and Evaluation

Robert J. Mowris, Ean Jones, and Anne Jones, Robert Mowris & Associates

Keywords

Abstract

Increased emphasis on energy efficiency to reduce energy use and mitigate global warming requires rigorous evaluations based on the International Performance Measurement and Verification Protocol. The California Public Utilities Commission, NYSERDA, the World Bank, and many state and federal agencies require adherence to IPMVP. The World Resources Institute is recommending evaluation standards such as IPMVP for the Kyoto Protocol. Increased emphasis on customer satisfaction and resource efficiency to improve profitability has motivated businesses worldwide to adopt Six Sigma strategies. Motorola, General Electric, Sony, Honda, Toyota and many other companies have adopted Six Sigma to decrease costs and increase profitability and market share.

IPMVP and Six Sigma have similar objectives with respect to improving performance through measurement and verification of quality and efficiency improvements. IPMVP provides a framework to measure and verify energy efficiency and renewable energy savings. Six Sigma strategies provide a framework to measure and verify energy savings and performance metrics at critical steps in the market chain (i.e., design, manufacturing, installation, and service). Incorporating IPMVP and Six Sigma into program design, implementation, and evaluation will improve reliability and cost effectiveness.

The goal of publicly-funded energy efficiency programs is to transform the market so the societal cost to deliver energy efficiency products and services is included within transactions costs and market intervention is no longer necessary. This goal can be achieved by incorporating IPMVP and Six Sigma into program design, implementation, and evaluation to help consumers, corporations, and government agencies better understand the value of energy efficiency.