Measuring the Actual Energy Cost Performance of Green Buildings: A Test of the Earned Value Management Approach

Abstract

Abstract:Reduced energy consumption is a key aspect of the green building. Nonetheless, research indicates that there is a performance gap between the predicted and the actual energy performance once buildings are occupied, which implies a cost deviation from the anticipated energy cost performance. However, the cost deviation also might result from lower or higher energy rates than expected. As an appropriate research methodology for existing theory testing, case study research strategy was adopted to empirically examine the earned value management (EVM) approach to measure the actual life cycle cost performance of energy in green buildings. With slight methodological and terminological adaptations, it is found that the EVM approach can be applied to conduct a holistic cost performance measurement of the actual energy consumption in green buildings. The strength of the earned value approach is that it allows for detecting whether the energy cost saving or overrun results from lower or higher energy consumption, or from actual energy rate variations. The earned value approach allows for quantifying each cost variance independently, which is a significant aspect of actual energy cost performance measurement in green buildings.

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“…The range of cost savings considering residential EMSs in the literature is between 25% and 75% [19]. This cost saving percentage is measured with respect to the baseline PC cost.…”

“…Equation (19) expresses the objective function with the respective constraints. obj1 = min(C N t=24 ) (19) such that:…”

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