Cost Effectiveness testing in the Energy Efficiency Program Life Cycle

Due to the cumbersome spreadsheet method of evaluating cost effectiveness for energy efficiency and demand-side management programs, Transmission and Distribution Utilities (TDU) tend to face a mammoth challenge in methodically meeting their business needs. Utilities prefer testing and evaluation of cost effectiveness ‘instantaneously’ during the planning and implementation phase, considering every measure in a project.

ePLAN, a module of eTRACK, enables TDUs to compute cost effectiveness on the go as measures and projects are implemented within programs. eTRACK is a one stop platform that can be used by planners, implementers, and evaluators. ePlan can integrate with eTRACK or be used as a standalone tool, and cost effectiveness is computed on the fly at the measure, project, program, and portfolio levels during implementation. Evaluators are given access to the data collected to complete their post implementation tests.

Read our Press Release: ePLAN conforms to the NSPM

The energy efficiency life cycle consists of five phases shown below that overlap to some extent in the calendar year.

Typically, the cost effectiveness testing is done during the planning and evaluation phases. Planners sets up expectations and Implementers hope that there are no surprises when the Evaluators review the program performance at the end of the cycle.

eTRACK can test the cost effectiveness during the implementation phase even before an incentive is authorized and offered. In a recent program rollout for large commercial projects that are based on custom measures, eTRACK computes the cost effectiveness and generates an offer letter that quantifies the Benefit Cost Ratio and the amount of the incentive that can be paid. Using this eTRACK feature, the program manager is able to fine tune the program to be a cost effective program, and not be surprised by the evaluation results.

Read our case study. Talk to the experts at ANB to learn how cost effectiveness can be built into your energy efficiency tracking and database. We can be reached at

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