Incorporating IPMVP and Six Sigma Strategies into Monitoring and Evaluation

Kathleen Carlson, Verified, Inc, USA
Robert Mowris and Ean Jones, Robert Mowris & Associates, USA

Keywords

International Performance Measurement and Verification Protocol, Six Sigma, monitoring, energy efficiency, reliability, cost effectiveness, performance, quality, global warming, building commissioning, Annex 40

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 (IPMVP). The California Public Utilities Commission, New York State Energy Research and Development Authority (NYSERDA), the World Bank, and many state and federal agencies require adherence to IPMVP. The World Resources Institute recommends 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.

The objectives of IPMVP and Six Sigma are similar to IEA Annex 40 which provides tools, guidelines, and recommendations for commissioning HVAC systems to optimize building energy efficiency. IPMVP provides a framework to measure, verify, and commission energy efficiency and renewable energy savings. Six Sigma provides a framework to measure and verify energy efficiency performance metrics at critical steps in the market chain (i.e., design, manufacturing, installation). Incorporating IPMVP and Six Sigma into monitoring and evaluation will help program implementers, utilities, consumers, corporations, and government agencies better understand the value of energy efficiency.

This paper provides an example of how to incorporate IPMVP and Six Sigma strategies into monitoring and evaluation studies of four residential air conditioner incentive programs implemented by public utilities in California. The net realization rates for the four residential air conditioner programs are 0.53 ± 0.1 for kWh and 0.58 ± 0.04 for kW. The net realization rates are lower than anticipated due to lower baseline usage, lower ex post savings, and lower net-to-gross ratios. Findings for the four utility programs underscore the importance of incorporating IPMVP and Six Sigma into monitoring and evaluation.