Measurement and verification: the next wave of rewarded energy savings

Historical article, 20 January 2021. This page points to Northmore Gordon’s account of how measurement and verification (M&V) supported energy-efficiency certificate projects at that time. Program rules, approved methods and incentive values can change; the 2021 examples are not current eligibility advice.

What the article explains

M&V compares measured energy use after an upgrade with a credible baseline adjusted for relevant conditions, such as production and weather. The original article describes collecting site data before installation, setting a measurement boundary, building an engineering model and documenting savings after the work. It discusses certificate incentives as a possible project value stream, subject to the applicable scheme method and evidence rules.

The article uses historical examples from Van Wyk Flowers, 5G Networks, Molycop and Metro Trains Melbourne. Its project figures are company-reported accounts from the period, not a forecast for a new site.

Read the source-backed 2021 archive overview. For a current project, explore our M&V service and government-scheme guidance, then contact the team to confirm the method and evidence required before implementation.

What did the 2021 article mean by measurement and verification?

It described measuring energy use before an upgrade, defining the measurement boundary and relevant operating variables, then comparing actual post-upgrade use with an adjusted baseline. This can show savings that an unadjusted before-and-after bill comparison would miss. The article is historical; the exact method and evidence for a current scheme claim must be checked against today's rules.

Why does baseline data need to be planned before an upgrade?

The original article explains that production, weather, equipment operation and metering can affect energy use. Collecting representative pre-upgrade data makes an adjusted baseline possible. If data are missing after installation, a project-based method may be difficult or impossible to substantiate. An accredited provider should identify any method-specific timing and professional-review requirements before work starts.

Do measured energy savings automatically create certificates?

No. Measurement and verification can quantify an energy change, but certificate eligibility also depends on the jurisdiction, approved activity, method version, provider accreditation, equipment, implementation date and required records. The 2021 article's incentive examples are not proof that a new project qualifies or will receive a fixed amount.

Which projects appeared in the historical article?

The January 2021 source discussed Van Wyk Flowers, 5G Networks, Molycop and Metro Trains Melbourne as examples of projects using or considering M&V and efficiency certificates. Their reported engineering and financial figures belong to those projects and periods. They should not be used as a standard saving or forecast for another facility.

How should a business approach M&V for a project now?

Start with the equipment, existing energy data, operating conditions, proposed change and decision date. Define the measurement boundary and a technical savings hypothesis, then ask an accredited provider whether a current certificate activity applies and what baseline and evidence it requires. Keep expected bill savings, scheme-recognised savings, certificate quantity and customer proceeds separate in the investment case.

Images on This Page