Understanding how energy savings are measured is crucial for any successful energy efficiency program or performance contract. Both Normalized Metered Energy Consumption (NMEC) and International Performance Measurement and Verification Protocol (IPMVP) Option C are highly effective, whole-facility, meter-based methods for quantifying savings.
While they share the core goal of using utility data to verify realized performance, NMEC is often considered the “M&V 2.0” approach. It leverages high-granularity smart meter data and standardized, automated modeling protocols to meet rigorous regulatory requirements. In contrast, Option C provides a flexible, globally recognized framework often applied in Energy Performance Contracts (EPCs).
Choosing the right approach depends on your project’s complexity, regulatory environment, and the data available to you. Use the table below to compare these powerful M&V methods side-by-side.
| Category | NMEC M&V | IPMVP Option C M&V |
|---|---|---|
| Purpose & Regulatory Alignment | Primarily designed for utility energy efficiency programs and compliance (e.g., in California). Focuses on standardizing and automating meter-based savings claims. | A global, non-prescriptive framework for quantifying energy and water savings. Used widely in Energy Performance Contracting (EPC) and by various government/utility programs. |
| Modeling Requirements | Typically utilizes high-granularity interval data (e.g., hourly or sub-hourly) for modeling. Emphasizes highly specified, statistically rigorous, and often automated regression models to meet regulatory requirements. | Uses utility meter data at a facility or sub-facility level, often monthly, but can use more granular data. Requires developing a multivariate regression model to relate energy use to independent variables. |
| Data Normalization & Adjustments | Emphasizes comprehensive normalization using granular data to account for routine variables (e.g., weather, time of day). Non-Routine Event (NRE) adjustments are critical and follow specific, rigorous protocols. | Normalizes for key, routine independent variables that affect energy consumption (e.g., weather). Requires adjustments for Non-Routine Events (NREs), which are defined and executed as part of the project’s M&V plan. |
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| Level of Complexity | High/Moderate. Requires sophisticated data infrastructure and specialized, often standardized, software/algorithms. The M&V process itself may be automated, but setting up the standardized protocols and handling NREs requires high expertise. | Moderate/High. Requires justification of independent variables, develops a statistically valid regression model, and defines/applies routine and non-routine adjustments. Complexity depends on data granularity and site variables. |