What is an Energy Appraisal?

An energy appraisal is usually carried out in an existing building or facility with the objective of improving its energy efficiency. It is an investigation involving a detailed analysis of energy flows into and out of a facility. The aim is to identify and quantify areas where energy savings can be made and estimate the extent of savings achievable. These may include improvements to facility design and installation, operation and management. An energy appraisal is commonly performed by an ESCO

Why conduct Energy Appraisals?

There is a lot of potential for energy savings from energy appraisals. From the recommended energy conservation measures proposed in the energy appraisals, it can be seen that a $1 spent on a level III appraisal generates $5 - $10 in annual savings.

What is the Scope of Work of Energy Appraisals?

There are three levels of energy appraisals commonly undertaken by ESCOs.

Level I Appraisal - Preliminary

A level I appraisal, sometimes referred to as preliminary appraisal, evaluates the overall energy consumption of the facility and is expected to provide a rough estimate of savings and costs.

This appraisal is usually designed to determine if the level of energy use of a facility has been reasonable or excessive. It provides initial benchmarks of the facility so that the effect of energy measures may be monitored and evaluated. It may or may not involve a site visit. The information given to or gathered by the Appraiser needs to be sufficient to enable the overall efficiency of the facility to be ascertained.

The scope of work for Level I appraisal is as follows:

• Gather facility-wide energy use on a monthly and/or annual basis;
• Derive performance indicators;
• Propose broad conclusions and recommendations; and
• Submit written report.

Level II Appraisal - Standard

A level II appraisal identifies the source of energy to a facility, the amount supplied and what the energy is used for. It also identifies areas where savings may be achieved, recommends measures to be taken, and provides a statement of expected costs and potential savings. It also involves short term metering and logging.

The expected scope of work for Level II appraisal is as follows:

• Follow-up from Level I appraisal and report where available;
• Facility investigation;
• Detailed facility and systems energy input and energy use;
• Reconciliation of energy accounts with loads;
• Variation on energy use on a month-to-month basis;
• Energy performance indicators;
• Recommended improvement work with indicative cost and saving;
• Implementation priority and plan;
• Alignment of recommendations with client’s energy program; and
• Written report and presentation.

Level III Appraisal - Comprehensive

Level III appraisal is similar to a level II appraisal except it also involves long term detailed metering and data logging. A level III appraisal provides a detailed analysis of energy usage, the savings that can be made, and the cost of achieving those savings. It may cover the whole facility or may concentrate on an individual item and/or system, such as a single industrial process or one of the services.

The expected scope of work for Level III appraisal is as follows:

• Follow-up from Level II appraisal and report where available;
• Define facility/process audited;
• Facility/process investigation and detailed measurements;
• Detailed metering down to half-hourly time interval where required;
• Derive target energy use and develop baseline model where relevant;
• Detailed recommendations including costs, savings and accuracy of estimates;
• Detailed investment plan;
• Suggest refinement to energy policy and energy program; and
• Written report and presentation.

What are the Incentives for Energy Appraisals?

Companies that wish to engage an ESCO to conduct an energy appraisal can apply for the Energy Efficiency Improvement Assistance Scheme (EASe), which funds up to 50% of the cost of an energy appraisal.