About Energy Savings M&V

Energy savings is the amount of energy consumption reduction, which can satisfy the same needs or achieve the same objective. The amount of energy savings is a major sign to judge energy saving management performance of enterprises, and also a main ways to inspect influence of energy saving and consumption reduced. 
Energy savings M&V includes the programs authorized by government and enterprise (public institutions).
1) Program authorized by government
In August, 2007, for realizing obligatory target of unit GDP energy consumption reduced around 20% in the period of "11th five-year plan", according to “The decision of the State Council on strengthening the performance of energy saving” and “The notice of the State Council on publishing the comprehensive performance of energy conservation and emission reduction”, Central government arrange essential guidance funds to Provide “The ten major energy conservation projects” with appropriate support and reward.
For the programs applying national financial rewards, the way of energy savings Verification can adopt the following three steps: reported by enterprise, audited by third party, determined by government. The files submitted by enterprise include energy consumption before reconstruction, energy conservation measures, amount of energy savings and the way of counting. The third party certification body authorized by government is in charge of verification and response for audit report.
In Oct.2011, Ministry of Finance, National Development and Reform Commission (NDRC) have issued “Announcement of third party audit organizations directory for energy savings”. CQM has been one of the first 26 audit organizations. According to this document, CQM can undertake the energy saving M&V for the programs on energy-saving technological transformation and energy management contract.
By August 31, 2012, CQM has completed more than 500 audits of energy-saving technological transformation program or energy management contract program,which make CQM accumulate a great deal of experiences in the field of energy savings M&V. The energy savings audits relate to Coal-fired boiler (furnace) reconstruction, utilization of left heat, left pressure, Conservation and replace oil, energy saving ofmotor system, optimization of energy system, Green Lights Program, Building energy saving reconstruction, etc.
2) Program authorized by enterprise (public institutions)
With the development of energy conservation and emission reduction, enterprise (public institutions) has realized the importance of energy-saving technological transformation for its healthy development. But many enterprises (public institutions) aren’t able to evaluate the result of energy conservation implemented after energy-saving technological transformation has been completed. So the third party with rich experience and strong technology is needed for M&V on the amount of energy savings.
Moreover, in recent years, energy management contract has a rapid development in China. Central government also provides support to energy management contract and provides the necessary financial rewards. When implementing energy management contract project, the energy management contract will be signed between energy conservation service company (Party B) and enterprise (public institutions) (Party A). The energy management contract include the agreed energy conservation targets, energy saving reconstruction services provided and reasonable profit through the energy-saving benefit sharing. However, at present, the domestic enterprise (public institutions) generally lack of necessary relevant experience of energy consumption monitoring and counting for energy measurement, so that caused many contradictions between both parties in energy savings of settle accounts. Therefore, it is quite necessary to involve third-party evaluation body approved by both parties.
As the third party audit organization, CQM with rich experiences on energy conservation M&V and technology can provide the related services on energy savings M&V. Through the involvement of third party audit organizations, many critical problems can be solved such as energy consumption benchmark is not unified, the energy-saving benefit before transformation is not clear, energy savings calculation is unscientific.




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