What is the purpose of setting performance baselines in ESCO projects?

Setting performance baselines in ESCO projects serves primarily to provide a point of reference against which current performance can be measured. By comparing current performance to historical data, project stakeholders can evaluate the effectiveness of energy-saving measures and track improvements over time. This baseline comparison enables teams to quantify energy savings, assess the impact of various strategies implemented, and justify expenditures associated with upgrades or changes.

Establishing maximum allowable energy usage or forecasting future energy prices are not the primary functions of performance baselines, as those focus on limits and predictions rather than measurements of current and past performance. Identifying non-compliant practices is also not a direct purpose of establishing performance baselines, as baseline data aims more to evaluate impact and efficiency rather than compliance-related issues. Thus, the approach of measuring against established benchmarks brings measurable insights that are critical for the success of energy efficiency projects.