Setting the Energy Baseline For Performance Contracts
Abstract
Measurement and verification for performance contracting is
necessary to verify the achieved savings. In some cases, verified
savings is required in order to repay the capital investment for the
project. One very key, but often overlooked element is the estab-
lishment of the baseline to be used. In a lot of performance con-
tracting projects, actual construction of the energy project becomes
paramount to all parties, and baseline becomes a neglected or sec-
ondary element. Since the project typically requires replacement of
old, inefficient equipment, establishment of a baseline after
completion of the project is virtually impossible. This article will
discuss the importance of properly establishing a baseline for PC
projects, including acceptance by all parties.