Probabilistic risk assessment of the energy saving shortfall in energy performance contracting projects-A case study

P. Lee, Tsun Ip Lam, F. W.H. Yik, Hon Wan Edwin Chan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

33 Citations (Scopus)

Abstract

Lack of a proper assessment method on performance risks in Energy Performance Contracting (EPC) projects is one of the reasons hindering the further development of energy service companies (ESCOs) market. This paper proposes a simulation-based method to evaluate the probability of energy saving shortfall taking into account the variations in the influential parameters, including weather conditions, occupancy, operating hours, thermostat set-point, etc., during the contract period. The proposed method involves the use of a detailed building energy simulation programme, sensitivity analysis and Monte Carlo simulation techniques. Empirical data is also used to develop the probability distribution functions for the identified parameters to simulate the actual yearly variations in the post-retrofit conditions. A real case study of replacement of heat rejection system for a central chiller plant in Hong Kong is used to demonstrate the application of this probabilistic method. The result shows that the possible energy savings after a 1-year retrofit period ranges from 393,000 kW h (2.86%) to 1098,000 kW h (10.8%) with 90% statistical significance.
Original languageEnglish
Pages (from-to)353-363
Number of pages11
JournalEnergy and Buildings
Volume66
DOIs
Publication statusPublished - 3 Sep 2013

Keywords

  • ESCOs
  • Monte Carlo simulation
  • Performance contracting
  • Risks
  • Sensitivity analysis

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction
  • Mechanical Engineering
  • Electrical and Electronic Engineering

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