Load variability and its effects on energy efficiency investment valuation

Building owners face many complex decisions when attempting to identify energy efficiency measures (EEMs) that best suit their investment in the construction of a new building. There are a tremendous variety of EEM alternatives available, but the lack of information available for interpreting official EEM ratings and hence using them in specific project settings makes it difficult for owners to determine the EEMs that would allow the building to exceed minimum compliance figures. This study investigates the problems that owners may encounter when assessing EEMs for equipment efficiency and load allocation in energy efficiency design. Its objective is to provide better technical information on the effectiveness of particular EEMs, so that owners can make more-informed decisions. Much of the existing research has emphasized the importance of maximizing equipment efficiency, and it has also provided new knowledge about valuing EEMs with regard to such improvements. This study examines the process of quantifying energy efficiency investments for EEMs, including the process through which EEMs are conventionally quantified by comparing with recent developments that enhance valuations. The study also evaluates areas in which additional improvements can be made. The study specifically investigates the relationship between ambient-temperature loading conditions and the effectiveness of EEMs. The findings demonstrate that load variability may outweigh improvements made in equipment efficiency. This suggests that, when load variability is expected, a careful investigation of load allocation is necessary. The study therefore proposes that a sensitivity analysis of load assignment is especially helpful in the identification of the effects of energy savings when load variability is anticipated.