CERTIFICATE PROGRAM

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WEEK 4

ENERGY TECHNOLOGIES FOR BUILDINGS:

PART 2

WEEK 4: LEARNING OBJECTIVES

Identify the purposes and process of an energy audit
Differentiate between the different energy assessment levels and
describe the steps involved in each

Assess an energy audit report for completeness and reliability

Understand how to use the audit opportunity strategically for
internal and external purposes

WEEK 4: READINGS
The Energy Management Handbook (Turner & Doty)
Chapter 3: Energy Auditing
A Retrocommissioning Guide for Building Owners (PECI)

Supplemental readings, as useful

WHAT IS THE PURPOSE OF AN ENERGY

AUDIT?
Provides a baseline of current energy consumption
Incorporates benchmarking, technology evaluations and
coordination with other planning processes

Establishes targets for reductions via specific, economicallyevaluated projects (recommendations which would be likely to
result in cost savings)
Creates measurement and verification framework for
maintaining target energy performance

WHAT IS THE PURPOSE OF AN

ENERGY AUDIT?
Asset Strategy
Assessment based on
needs, market analysis, etc.
Determines

Technology Evaluation
How deep of a retrofit will
you do?
Influences

Financing Sources and

Strategies
Guides

Implementation
Design and
Construction Process

WHAT IS INVOLVED IN THE ENERGY

AUDIT PROCESS?

Energy Audit of Building Systems: An Engineering Approach, Second Edition. By Moncef Krarti.

WHAT IS INVOLVED IN THE ENERGY AUDIT

PROCESS?
Benchmarking establish baseline conditions
Allows buildings to track their own progress over time
Most effective when performed regularly (e.g., annually)

ENERGY STAR Portfolio Manager

Simplifies process
Compares to national data
Uses actual building energy usage data
for most recent 12 months
Data collection worksheet
(benchmarking starter kit)
Additional resources (quick reference
guide, training videos)
Generates a Statement of Energy
Performance

WHAT IS INVOLVED IN THE ENERGY AUDIT

PROCESS?
Determine your strategy
Which building systems need an upgrade?
Are there upcoming renovation or investment projects that could
incorporate energy-saving measures?
What are the costs and benefits of improving buildings systems and
technologies?

WHAT ARE THE LEVELS OF

ENERGY ASSESSMENT?

Preliminary Energy Usage Analysis (PEA)

Level I: Walkthrough Survey
Level II: Energy Survey and Engineering Analysis
Level III: Detailed Analysis of Capital-Intensive Modifications
Other: Targeted Audits

Source: ASHRAE

PRELIMINARY ENERGY USAGE ANALYSIS

(PEA)
Purpose:
Analyze buildings current energy and cost efficiency relative to
other, similar buildings
Provide necessary background data for Level I, II and III audits
Process:

Analyze historic utility use and cost

Develop Energy Cost Index (ECI) and Energy Utilization Index
(EUI) for the building
Compare building EUI to similar buildings to assess potential for
improved energy performance; determine if further analyses are
likely to produce significant energy savings
Review monthly energy use or, if available, interval billing data
(e.g., 15-minute data) to identify efficiency or behavioral
modification opportunities

LEVEL I: WALKTHROUGH SURVEY

Purpose:

Identify low-cost / no-cost measures and a list of potential capital

investments for further consideration
Establish the general savings potential for a building or see which
buildings in a portfolio offer the greatest potential savings
Develop a priority list for conducting Level II and III analyses

Process:

Assess the buildings energy cost and efficiency through analysis of

energy bills, as developed in the PEA
Conduct a brief on-site survey of the building and major energyrelated systems

Source: ASHRAE

LEVEL II: ENERGY SURVEY AND

ENGINEERING ANALYSIS
Purpose:
Identify and provide savings and cost analysis of all practical
energy efficiency measures (EEMs) that meet owners constraints
and economic criteria, along with proposed changes to O&M
procedures
Establish the general savings potential for a building or see which
buildings in a portfolio offer the greatest potential savings
Provide a listing of potential capital-intensive improvements that
require more thorough data collection and engineering analysis and
an assessment of potential costs and savings
Process:
Level I process with a more detailed building survey and energy
analysis, including a breakdown of end uses of energy within the
building

Source: ASHRAE

LEVEL III: DETAILED ANALYSIS OF

CAPITAL-INTENSIVE MODIFICATIONS
Purpose:
Provides detailed project cost and savings calculations with a high level
of confidence sufficient for major capital investment decisions
Focuses on potential capital-intensive projects identified during a Level II
analysis
Process:
Level II process but with more detailed field gathering and a more
rigorous engineering economic analysis, often including modeling
(simulation) of the annual energy performance of the building and
vendor pricing
Typically uses Life Cycle Cost Analysis (LCAA) as a decision-making tool

Source: ASHRAE

WHAT SHOULD AN ENERGY AUDIT

REPORT INCLUDE?
Actionable recommendations

Realistic treatment of rates

Transparent Analysis
Guidance to more resources

Reasonable savings
Reasonable cost estimates
Interactive effects

Measurements
Hourly modeling

HOW DO YOU EVALUATE AN AUDIT

FOR RELIABILITY?
Quality Control (QC)
Review energy audit report and calculations
Are recommendations feasible and appropriate for the building?
Do proposed measures meet all applicable building codes?
Is the data internally consistent and error-free?
Do the savings estimate methods follow established principles?
Are potential energy savings estimates reasonable compared to quick
estimates and historical energy use?
Are interactions between energy efficiency measures identified and
addressed?
Do the recommendations and report meet the project scope, goals
and owner/operators needs?
Who performs QC?

Energy auditors team

Third-party
Peer reviewer
Property owner/operator

EVALUATING ENERGY INVESTMENTS: SIMPLE

PAYBACK PERIOD ANALYSIS
Capital Investment Components
Acquisition Cost
Utilization Cost (Cost Savings Opportunity)
Disposal (Salvage Value)
Simple Payback Analysis
SPP = Initial Cost/Annual Savings
Example:

$10,000 Acquisition Cost

$500 Utilization Cost
$2500 Energy Cost Savings
Net $2000 Annual Savings
SPP = $10,000/$2,000 = 5 years

HOW DO YOU USE THE AUDIT

OPPORTUNITY STRATEGICALLY?

Obtain buy-in from management

Develop a strategy for implementing recommended energy efficiency

improvements

Designate an energy manager for the facility

Develop a long-term energy cost control program

Institute a program of continuous monitoring, feedback and action

Leverage the value of energy efficiency improvements in market

transactions

Formalize performance expectations to support leasing, building sales,

appraisals, insurance, staff management and energy/O&M service
contracts

Secure tenant buy-in for building-wide performance improvements

Rethink lease structures with an eye toward optimizing owner return on

energy efficiency investments

WEEK 4: IN-CLASS EXERCISES

In 1-2 pages, respond to the following prompts:
1. Describe the basic steps of an energy audit, according to the Handbook,
and the major differences between the three assessment levels that were
discussed in this week's lecture. Which of the steps might be omitted in a less
intense survey? What considerations would you apply when deciding which
assessment level to use for a particular property? What trade-offs are
involved in a decision about the depth of an energy audit? Are certain criteria
more essential than others, even in more limited audits?
2. According to the PECI's 2009 Retrocommissioning Guide for Building
Owners, what types of projects are good candidates for retrocommissioning?
What are some of the factors that go into making such a determination? What
are some of the goals of a retrocommissioning project? Based on your
readings, identify an appropriate application of the retrocommissioning
process to a property in the AEP portfolio, and describe your objectives.

WEEK 4: HOMEWORK
Choose a property from the AEP Portfolio, and briefly describe its
features and components. Then determine which type of energy
audit you would apply, if you were the property's owner, and
provide the reasoning for your decision.
Next, identify the systems in which you would expect the audit to
uncover deficiencies, and describe how you might use the audit as a
strategic economic opportunity.