Abstract
Reliable quantification of industrial energy savings requires accurate detection of non-routine events (NREs) that distort post-retrofit baselines. Conventional statistical and rule-based anomaly detection methods often misinterpret operational variability, leading to biased or overstated savings under the International Performance Measurement and Verification Protocol (IPMVP). This study develops a novel IPMVP-compliant hybrid deep learning framework that integrates a deterministic Deep Neural Network (DNN) for baseline modeling with stochastic architectures, namely the Factored Conditional Restricted Boltzmann Machine (FCRBM) and Generative Adversarial Network (GAN), to capture probabilistic reconstruction patterns. Their outputs are fused using a hybrid thresholding mechanism that balances detection sensitivity and specificity. Using high-resolution data from an industrial glove manufacturing facility, the hybrid DNN–FCRBM model achieved the best trade-off, demonstrating an accuracy of 94.3%, a precision of 91.1%, and a low false positive rate of 5.1%. This model validated 11.32% industrial energy savings (approximately 478,050 kWh), equivalent to 237 tonnes of CO2 avoided. The integration of stochastic generative learning within a deterministic framework strengthens transparency, auditability, and IPMVP compliance, offering a scalable pathway for credible industrial energy savings verification.
1. Introduction
Industrial facilities are frequently exposed to non-routine events (NREs) such as equipment breakdowns, sensor failures, and abrupt production shifts. These irregularities introduce anomalies into energy consumption data, distorting baseline models and undermining the accuracy of savings estimates in the reporting period. Such issues directly compromise the integrity of energy performance verification under the International Performance Measurement and Verification Protocol (IPMVP), where transparent and auditable reporting is essential. Despite their significance, anomalies are often treated in a generalised manner or omitted entirely from analysis, resulting in biased or unreliable savings assessments.
Traditional anomaly detection methods typically rely on static thresholds or rule-based logic, which struggle to differentiate between genuine anomalies and normal operational variability. This limitation leads to high rates of false positives and false negatives, reducing the credibility of reported savings. Moreover, conventional approaches often emphasise classification accuracy (e.g., F1-score, precision) without addressing the engineering-oriented requirements of IPMVP, such as uncertainty quantification and reproducibility. To address these shortcomings, recent studies have proposed hybrid approaches that combine statistical principles with machine learning [1]. Deep learning methods in particular have shown promise for high-dimensional, multivariate, and time-dependent industrial datasets, enabling more effective anomaly detection in complex and dynamic environments [2,3].
Beyond modelling, adaptive thresholding strategies have been developed to enhance sensitivity under varying power levels and operating conditions [4]. Other approaches, such as functional data clustering and non-intrusive monitoring, have been explored to improve interpretability and operational relevance in industrial systems [4,5]. Recent advances also include synthetic oversampling and feature selection to address class imbalance, which remains a key barrier to detecting rare but impactful events such as equipment breakdowns [6]. In parallel, explainable AI frameworks have emerged to support decision-making in cyber–physical systems, combining interpretability with robust detection capabilities [7,8,9]
Nevertheless, the integration of these methods within IPMVP-compliant M&V remains limited, especially in industrial contexts characterised by noisy, irregular, and large-scale datasets [10,11]. Current practices frequently lack transparency and traceability [12,13,14]. While deep learning architectures such as DNNs can capture complex nonlinear behaviour, they are often criticised as “black-box” models that offer limited interpretability and auditability—both essential for IPMVP compliance [15,16,17]. Similarly, many anomaly detection methods still rely on manually tuned static thresholds, which fail to adapt to operational variability and risk either overstating or underreporting savings [18]. Attempts at dynamic thresholding and ensemble optimisation remain underdeveloped and rarely deployed in industrial-scale applications [19,20,21].
These methodological gaps are particularly concerning given the increasing demand for verifiable energy savings in response to climate commitments, ESG frameworks, and national energy policies. International bodies, including the International Energy Agency (2022) [22], emphasise that industrial energy verification must align with the Paris Agreement and sustainability reporting standards. At the same time, industrial facilities generate vast, high-frequency datasets through advanced metering, building management systems, and IoT infrastructure, which exceed the capabilities of traditional spreadsheet-based or static M&V approaches [23,24]. While automated anomaly detection and predictive modelling are advancing, their integration into modular, scalable, and IPMVP-aligned workflows remains rare [25,26,27]. This gap limits adoption in performance-based contracting, investment-grade audits, and real-time savings verification [28].
Despite the growing application of deep learning in energy analytics, its integration into industrial Measurement and Verification (M&V) frameworks remains limited, particularly within the stringent requirements of the International Performance Measurement and Verification Protocol (IPMVP). Existing studies rarely address the dual challenge of anomaly interpretability and uncertainty quantification, which are critical for verifying real energy savings under complex and dynamic operating conditions. Furthermore, deterministic models such as Deep Neural Networks (DNNs) offer high predictive accuracy but fail to represent stochastic variability inherent in industrial processes, while generative models such as Factored Conditional Restricted Boltzmann Machines (FCRBM) and Generative Adversarial Networks (GAN) capture uncertainty but lack baseline alignment with engineering metrics.
To address these shortcomings, this study proposes an IPMVP-compliant hybrid deep learning framework that fuses deterministic and stochastic modelling through a hybrid thresholding mechanism based on reconstruction error statistics. The objectives are threefold: (1) to develop baseline energy prediction models using deterministic architectures for robust and auditable forecasting; (2) to enhance anomaly detection by integrating stochastic generative learning that captures contextual variability; and (3) to validate the framework through real industrial datasets, linking anomaly detection directly to measurable and verifiable energy savings.
The novelty of this research lies in its methodological synthesis of DNN and FCRBM/GAN models within a reconstruction error-driven hybrid threshold that aligns statistical learning with IPMVP uncertainty principles. It is hypothesised that this hybridisation improves anomaly detection accuracy, reduces false positives, and yields more credible post-retrofit savings estimates compared with traditional regression and standalone deep learning models. Through this approach, the study advances the field of industrial energy verification by bridging data-driven anomaly detection with transparent, policy-aligned decarbonisation practices.
2. Literature Review
2.1. The International Performance Measurement and Verification Protocol (IPMVP)
In industrial energy measurement and verification (M&V), traditional anomaly detection techniques have historically relied on statistical thresholds, rule-based logic, or regression-based residual analysis. While simple to implement, these methods are prone to misclassifying operational variability as anomalies, resulting in high rates of false positives or false negatives. This limitation reduces confidence in reported savings, particularly under the International Performance Measurement and Verification Protocol (IPMVP), which demands both accuracy and reproducibility [13,14,29]. Furthermore, static thresholding approaches are unable to adapt to dynamic industrial operating conditions, often leading to overstated or understated savings [18].
The International Performance Measurement and Verification Protocol (IPMVP) provides a structured framework for quantifying and verifying energy savings through four predefined options, namely Option A, Option B, Option C, and Option D, as summarised in Table 1. Among these, Option C adopts a whole-facility approach, where energy savings are determined by comparing measured energy consumption during the reporting period against a statistically validated baseline model. In alignment with this framework, the present study adopts IPMVP Option C due to its suitability for industrial environments characterised by complex, high-frequency, and aggregated energy consumption data. This approach enables the evaluation of overall facility performance while accommodating multiple interacting energy efficiency measures (EEMs).
Table 1.
Summary of IPMVP Options.
Figure 1 illustrates the fundamental structure of IPMVP-based verification through three key phases, namely the baseline period, installation period, and reporting period. During the baseline period, a reference energy model is established under normal operating conditions. In the reporting period, actual energy consumption is measured and compared with the adjusted baseline to quantify verified energy savings. In the figure, the blue line denotes measured energy consumption, whereas the orange line denotes the adjusted baseline energy during the reporting period. The shaded section indicates the installation period, and the gap between the adjusted baseline and the measured reporting period energy represents the verified savings or avoided consumption. To ensure compliance with IPMVP requirements, the baseline model must also satisfy the prescribed statistical validation criteria.
Figure 1.
Standard IPMVP Framework for Measuring Energy Savings.
As summarised in Table 2, IPMVP Core Concepts (2022), IPMVP’s Snapshot on Advanced Measurement and Verification (2020), and the IPMVP Application Guide on Non-Routine Events and Adjustments (2020), all published by the Efficiency Valuation Organization (EVO) [30,31,32], mandate the use of CVRMSE and NMBE as primary indicators of model accuracy and bias. Confidence intervals are further recommended to quantify uncertainty in savings estimation. While additional metrics such as RMSE, MAE, and R2 may enhance analytical rigour, they are considered supplementary and do not substitute the required IPMVP metrics.
Table 2.
Comparative Summary of Performance Metrics Across IPMVP Documents.
Furthermore, the IPMVP Application Guide on Non-Routine Events emphasises the importance of identifying and accounting for operational deviations that may influence energy consumption. In industrial contexts, such deviations often manifest as anomalies arising from equipment breakdowns, production changes, or system disturbances. These events must be explicitly incorporated into baseline adjustment procedures to ensure that reported savings accurately reflect the impact of EEMs rather than external operational factors.
2.2. Machine Learning Approaches
To overcome these shortcomings, machine learning (ML) methods have been widely investigated for anomaly detection. Techniques such as support vector regression, clustering algorithms, decision trees, and k-nearest neighbours (K-NN) provide improved flexibility for modelling complex datasets with nonlinear and multivariate relationships. These methods have demonstrated effectiveness in industrial monitoring tasks, including condition-based maintenance and fault detection [20,21]. However, their application to IPMVP-compliant M&V remains limited due to challenges in handling high-dimensional time-series data and the lack of integration with engineering-focused performance metrics required for energy savings verification.
2.3. Deep Learning Methods for Anomaly Detection
Deep learning (DL) architectures have recently gained prominence for anomaly detection in industrial energy data. Models such as Deep Neural Networks (DNN), Convolutional Neural Networks (CNN), and Recurrent Neural Networks (RNN) can capture temporal dependencies and nonlinear behaviours across high-frequency datasets. They have been shown to improve anomaly detection performance in dynamic and complex environments [2,3]. Long Short-Term Memory (LSTM) networks, for instance, have been applied successfully to sequential energy data, enabling predictive modelling and anomaly detection with improved sensitivity. Despite their predictive power, these models are often regarded as “black boxes,” limiting interpretability and auditability, which are critical for compliance with IPMVP and stakeholder trust [16,17,33].
2.4. Hybrid Approaches and Thresholding Strategies
Hybrid approaches that combine statistical principles with advanced machine learning techniques have been proposed to address the weaknesses of standalone models. Ref. [34] demonstrated that combining statistical baselines with DL methods improves anomaly classification in industrial systems. Adaptive thresholding techniques have also been developed to account for variations in power levels and operating conditions, improving sensitivity to genuine anomalies [4]. Complementary strategies such as functional data clustering, non-intrusive load monitoring, and synthetic oversampling have been introduced to enhance interpretability, reduce class imbalance, and increase robustness in detecting rare events such as equipment breakdowns [5,6]. Nevertheless, these methods are rarely implemented in IPMVP-compliant M&V workflows, limiting their role in verified energy savings estimation. As summarised in Table 3, recent frameworks demonstrate progress across diverse applications but often face challenges in adaptability, interpretability, or compliance with verification standards. The proposed DNN–FCRBM hybrid framework advances this landscape by explicitly aligning anomaly detection with IPMVP-compliant energy savings verification, ensuring both technical rigour and practical applicability in industrial environments.
Table 3.
Summary of Hybrid Deep Learning Models for Anomaly Detection in Energy Systems.
2.5. Explainable and Interpretable Anomaly Detection
The increasing adoption of data-driven modelling has significantly enhanced anomaly detection capabilities within energy measurement and verification (M&V) frameworks. Nevertheless, several critical gaps persist, particularly in the context of industrial energy systems, as shown in Figure 1 below. Despite progress, few studies integrate deep learning-based anomaly detection into IPMVP-compliant M&V workflows. Most existing methods generalise anomaly types and lack focus on confirmed NREs. Additionally, probabilistic models like FCRBM remain underutilised, particularly in energy contexts. This study addresses these gaps by proposing a hybrid anomaly detection framework using DNN-FCRBM and DNN-GAN, guided by reconstruction error thresholds and validated against real industrial datasets. It aims to enhance interpretability, accuracy, and scalability in industrial M&V applications
2.6. Identified Gaps and Research Motivation
The literature demonstrates substantial progress in anomaly detection using machine learning and deep learning methods, yet critical gaps remain. Most existing models either prioritise generic classification accuracy over engineering precision or lack integration with IPMVP standards, resulting in limited transparency, reproducibility, and stakeholder confidence [10,11]. Furthermore, industrial-scale studies remain scarce, and existing frameworks often fail to handle operational noise, class imbalance, and real-world scalability. Finally, optimisation strategies such as dynamic thresholding and ensemble weighting remain underexplored in industrial energy contexts [19,21].
This study addresses these gaps by proposing a hybrid deep learning framework that integrates deterministic (DNN) and stochastic (FCRBM, GAN) models through a reconstruction error-based thresholding mechanism. The framework enhances anomaly detection accuracy, reduces false alarms, and enables IPMVP-compliant adjustment of baselines. By validating the method on high-resolution industrial data, this work advances the state of practice in M&V and provides a pathway for scalable, transparent, and verifiable energy savings verification.
3. Methodology
3.1. Methodological Framework
This study adopts an IPMVP-compliant framework, based on Option C, in which whole-facility energy savings are determined by comparing measured energy consumption during the reporting period with an adjusted baseline established from pre-implementation data. The overall structure of the study follows the standard IPMVP sequence of baseline period, installation period, and reporting period. As shown in Figure 2, the methodological framework links baseline modelling, anomaly detection, baseline adjustment, and savings verification within a single analytical procedure. To ensure consistent performance assessment throughout the study, the evaluation metrics used across all modelling stages are summarised in Table 4. These include IPMVP-compliant baseline metrics such as CVRMSE and NMBE, together with supplementary measures including RMSE, MAE, MSE, R2, precision, recall, F1 score, AUC ROC, and Relative Precision.
Figure 2.
Overview of Methodological Framework.
Table 4.
Key Performance Evaluation Metrics and Methods Recommended by IPMVP.
The inclusion of these metrics was supported by established protocols (IPMVP Core Concepts, 2022; IPMVP’s Snapshot on Advanced Measurement and Verification, 2020; IPMVP Application Guide on Non-Routine Events and Adjustments, 2020) [31,32,46] and literature [1,7,14], which recommend multiple error measures to capture distinct error characteristics.
The selection of these metrics was intended to ensure that each phase of the study was evaluated using criteria appropriate to its analytical objective. Baseline model validity was assessed primarily using CVRMSE and NMBE in accordance with IPMVP guidance, whereas anomaly detection performance was evaluated using precision, recall, F1 score, and AUC ROC. Savings reliability was subsequently assessed using Relative Precision, as defined in Equation (13). This integrated framework enables the study to maintain methodological consistency while extending conventional M&V practice through advanced data-driven anomaly detection.
3.2. Industrial Facility and Dataset
The study was conducted using operational data collected from a glove manufacturing facility in Malaysia operating under a continuous three-shift schedule. The industrial profile of the case facility is summarised in Table 5, which includes information on location, industry type, product, tariff category, annual electricity consumption, operating hours, data sources, monitoring period, and implemented energy efficiency measures. This industrial context is important because the facility exhibits complex multivariate energy behaviour that is strongly influenced by production activity, utility demand, and operational interruptions.
Table 5.
Industry Information.
The monitored industrial system and data acquisition architecture are illustrated in Figure 3. The monitoring framework covers the primary energy-consuming subsystems of the facility, including compressors, chillers, scrubber fans, and production lines. Data were acquired through SCADA and SEMS platforms at 30 min intervals, thereby enabling the development of a high-resolution dataset suitable for baseline modelling and anomaly detection under the IPMVP Option C approach. The arrows in the figure indicate the flow of data from the monitored subsystems through the sensor and metering infrastructure to the data logger or SCADA/BMS platform, and subsequently to the industrial energy dataset. The combination of metered energy variables, operational indicators, environmental measurements, and downtime records provides the information necessary to represent both normal operating conditions and abnormal system behaviour.
Figure 3.
Industrial Energy Monitoring and Data Acquisition System.
The full list of monitored variables used in modelling is presented in Table 6. These variables include production-related indicators, equipment-level electricity use, utility consumption, and weather-related predictors such as temperature, humidity, pressure, and wind characteristics. The dependent variable is the electricity consumption of the production line, while the remaining variables serve as predictors describing process, equipment, building, and environmental behaviour. The inclusion of this multivariate structure improves the ability of the models to capture nonlinear interactions between plant operation and facility-level energy demand.
Table 6.
Description of Monitored Variables and Their Role in Modelling.
To provide greater clarity on the role of downtime in anomaly detection, the recorded downtime events were further classified as either routine or non-routine. This classification helps to contextualise anomaly flags identified in the later analysis and ensures that observed energy deviations are interpreted in relation to actual plant conditions. As shown in Table 7, routine activities represent expected operational interventions, whereas non-routine events include breakdowns, mechanical failures, ad hoc repair activities, and other unexpected disruptions. This categorisation forms the basis for linking detected anomalies to IPMVP-compliant baseline adjustment.
Table 7.
Types of Downtime Events.
3.3. Data Processing and Feature Preparation
Prior to model development, a structured preprocessing procedure was applied to ensure data quality and analytical reliability. Exploratory data analysis was first performed to identify missing values, outliers, and the general statistical properties of the monitored variables. Variables with more than 30% missing values were excluded, while the remaining missing observations were imputed using cubic spline interpolation in order to preserve temporal continuity. Outliers were subsequently detected and removed using the interquartile range method. These preprocessing steps were necessary to minimise noise and prevent distorted learning behaviour during model training.
The pre-processed variables were then normalised using Z-score standardisation to ensure consistent feature scaling and to improve convergence during optimisation. In addition, multiple feature selection approaches were employed to reduce redundancy and strengthen model efficiency. The final dataset was divided into training, validation, and testing subsets using a 50:25:25 ratio. This data preparation stage provides the input foundation for the deterministic and stochastic models described in the subsequent sections, and its role within the complete analytical workflow is reflected in Figure 4.
Figure 4.
Hybrid Deep Learning Framework for IPMVP-Compliant Anomaly Detection and Energy Savings Verification.
3.4. Baseline Modelling and Benchmarking
A deterministic Deep Neural Network was first developed to establish the baseline model of expected facility energy consumption under normal operating conditions. The DNN learns the nonlinear relationship between whole-facility electricity use and the multivariate operational and environmental predictors described previously in Table 6. In parallel, a conventional ordinary least squares (OLS) linear regression model was implemented as an IPMVP-compliant benchmark. This reference model allows the proposed framework to be evaluated against a traditional baseline adjustment approach commonly used in measurement and verification practice.
The architecture and hyperparameter settings of the DNN, FCRBM, GAN, and hybrid models are summarised in Table 8. The DNN employed three hidden layers with ReLU activation and a linear output layer for energy prediction. The linear regression benchmark, by contrast, uses residual analysis and a fixed three sigma decision rule to identify anomalous observations. This comparison enables the study to assess the added value of hybrid deep learning approaches relative to a standard statistical reference model.
Table 8.
Model Architecture and Hyperparameters.
3.5. Hybrid Detection Architecture
Two hybrid anomaly detection configurations were developed, namely DNN–FCRBM and DNN–GAN. The DNN–FCRBM workflow is illustrated in Figure 5, while the DNN–GAN workflow is shown in Figure 6. In both configurations, the DNN serves as the deterministic component that captures the expected baseline relationship between energy use and its explanatory variables. The stochastic component is then used to reconstruct system behaviour and quantify deviations through reconstruction error. This dual structure allows the framework to distinguish between normal operational variability and behaviour that is inconsistent with the learned energy patterns.
Figure 5.
Workflow Hybrid Threshold for DNN-FCRBM.
Figure 6.
Workflow Hybrid Threshold for DNN-GAN.
In the DNN–FCRBM configuration, the stochastic component is represented by the Factored Conditional Restricted Boltzmann Machine, which is trained using contrastive divergence to model temporal and contextual variability in facility operation. This configuration is particularly suitable for identifying physically meaningful deviations such as compressor instability, abnormal chiller loading, or intermittent process disturbances that may not be fully captured by deterministic baseline prediction alone. In the DNN–GAN configuration, the stochastic component is represented by a Generative Adversarial Network trained through adversarial optimisation. This approach improves sensitivity to subtle deviations and weak disturbances, although it may also increase the false positive rate due to its higher detection sensitivity. The overall relationship between deterministic baseline prediction, stochastic reconstruction, anomaly detection, and baseline adjustment is illustrated conceptually in Figure 4.
3.6. Anomaly Detection with Reconstruction Error
Anomaly detection in all deep learning configurations was based on reconstruction error. An observation was flagged as anomalous when its reconstruction error exceeded a predefined threshold, as defined in Equation (14). In this equation, the threshold is derived from the mean reconstruction error, the corresponding standard deviation, and a sensitivity factor. This formulation provides a consistent statistical decision rule for distinguishing normal and abnormal observations across all models.
The threshold formulation in Equation (14) is based on the residual-based statistical screening principle described in the IPMVP Application Guide on Non-Routine Events and Adjustments, where the mean and standard deviation of the data are used to identify observations that fall outside the expected range. In that guide, data exceeding approximately two to three standard deviations from the mean are treated as potential indicators of outliers or non-routine events by IPMVP Core Concepts (2022), IPMVP’s Snapshot on Advanced Measurement and Verification (2020), and the IPMVP Application Guide on Non-Routine Events and Adjustments (2020), all published by the Efficiency Valuation Organization (EVO) [31,32,46].
Equation (14) shows the general threshold for reconstruction error-based anomaly detection:
where
- is the mean of the REs under normal conditions;
- is the Standard deviation of the reconstruction errors;
- represents the sensitivity factor.
Building on the general threshold in Equation (14), Equations (15)–(17) define the model-specific threshold formulations for DNN, FCRBM, and GAN, respectively. These equations retain the same statistical basis of mean and standard deviation, but are applied to the reconstruction error distributions generated by each model.
The model-specific forms of the reconstruction error threshold are given in Equations (15)–(17) for the DNN, FCRBM, and GAN models, respectively. These expressions allow each model to generate its own anomaly detection boundary according to its reconstruction behaviour. For the linear regression benchmark, anomaly detection followed the conventional three sigma rule based on residual deviation, as represented in Equation (18). This conventional threshold was included to provide a reference point for comparison with the adaptive reconstruction error thresholds used in the deep learning models.
Equation (15). DNN Reconstruction Error Threshold
Equation (16). FCRBM Reconstruction Error Threshold
Equation (17). GAN Reconstruction Error Threshold
Equation (18). Linear Regression Residual Threshold
The anomaly decision rule itself is formalised in Equation (19), where a value of 1 indicates an anomalous observation and a value of 0 indicates normal operation. In practical terms, if the reconstruction error remains below the threshold, the observation is treated as normal because the model is able to reconstruct it satisfactorily. Conversely, if the reconstruction error exceeds the threshold, the observation is classified as anomalous because the model is unable to represent it within the learned normal pattern space. This rule is applied consistently across the single and hybrid model configurations.
Equation (19). Binary Anomaly Decision Rule
3.7. Hybrid Thresholding Strategy
To improve anomaly detection reliability, the study introduces a hybrid thresholding strategy that combines the error statistics of two models at the decision level. This mechanism is central to the proposed DNN–FCRBM and DNN–GAN frameworks and is reflected in the workflows shown in Figure 5 and Figure 6. Rather than combining models at the feature level or structural level, the integration is performed by fusing their reconstruction error statistics into a single hybrid decision threshold.
The hybrid threshold is defined in Equation (20). This equation combines the mean reconstruction errors of the DNN and the secondary stochastic model with their corresponding standard deviations and a sensitivity parameter. The resulting threshold balances mean consensus and uncertainty averaging, thereby improving the trade-off between sensitivity and specificity. An anomaly is subsequently confirmed when the reconstruction error for a given observation exceeds the hybrid threshold, as expressed in Equation (21). Through this mechanism, deterministic feature learning from the DNN is integrated with probabilistic uncertainty representation from either the FCRBM or the GAN, producing a statistically robust decision boundary.
Equation (20) extends the residual-based thresholding principle into the hybrid formulation proposed in this study, where the average of the mean reconstruction errors from the deterministic DNN and the corresponding stochastic model represents the mean consensus component, and the average of their standard deviations represents the uncertainty averaging component. These components are combined to form a unified anomaly threshold. This formulation preserves the statistical logic of outlier screening while adapting it to the dual-model decision structure of the proposed framework.
Equation (20)—Hybrid Threshold Equation:
where
- and are the mean reconstruction errors of the DNN and the secondary model, respectively;
- and are their corresponding standard deviations;
- is the sensitivity factor;
- refers to either the FCRBM or GAN model, depending on the hybrid combination.
Using this hybrid threshold, an observation is classified as anomalous when its reconstruction error exceeds the combined decision boundary defined in Equation (20), as formalised in Equation (21). This decision rule enables both deterministic and stochastic characteristics to be considered jointly during anomaly identification.
Equation (21)—Hybrid Anomaly Detection Condition:
where is the reconstruction error for observation and is the hybrid threshold.
The role of this hybrid thresholding mechanism within the full computational process is further illustrated in Figure 4, Figure 5 and Figure 6, which show how baseline prediction, stochastic reconstruction, anomaly detection, baseline adjustment, and energy savings verification are linked in one unified framework. This figure is especially important because it clarifies that anomaly detection does not operate as an isolated stage, but as an integral component of the IPMVP-compliant savings verification procedure.
3.8. Performance Evaluation Across the Analytical Phases
Model performance was evaluated in a phase-specific but internally consistent manner using the metrics defined earlier in Table 4. During baseline modelling, CVRMSE, NMBE, and R2 were used as the primary criteria for assessing predictive validity, while RMSE, MAE, and MSE were used to provide additional information on bias, average error magnitude, and variance. During anomaly detection, precision, recall, F1 score, and AUC ROC were used to evaluate classification quality. During savings verification, Relative Precision was used to assess the reliability of the final energy savings estimates, as defined in Equation (13).
To further strengthen reproducibility and robustness, k-fold cross-validation was incorporated during model evaluation, as listed in Table 4. This was particularly important in assessing the stability of model performance across different data partitions and in reducing the risk of overfitting, especially in the deep learning configurations. Through this approach, all analytical stages remained connected to a common performance evaluation framework while still using metrics appropriate to the specific modelling objective of each stage.
3.9. Baseline Adjustment and Energy Savings Computation
Following anomaly detection, flagged observations were cross-referenced with downtime records and operational logs to determine whether they represented genuine non-routine events. Only anomalies that corresponded to confirmed NREs were used for baseline adjustment. This step is important because it prevents abnormal operational disturbances from being misinterpreted as energy savings. The baseline adjustment procedure therefore ensures that savings are attributed only to routine operational improvement and not to breakdowns, production disruption, or temporary plant malfunction.
The adjusted baseline for each confirmed anomalous period was computed using Equation (22), in which the original baseline prediction is modified using breakdown information and an adjustment factor. Verified interval level savings were then calculated using Equation (23) as the difference between the adjusted baseline and the measured energy consumption. Cumulative verified savings across the reporting period were subsequently obtained using Equation (24). Together, these equations form the mathematical basis of the savings verification stage under the proposed framework.
Equation (22)—Adjusted Baseline Equation:
where is the original baseline prediction, is the breakdown data, and λ is an adjustment factor.
Equation (23)—Interval Energy Savings Equation:
Equation (24)—Cumulative Energy Savings Equation:
This baseline adjustment and savings computation process is also conceptually aligned with the full modelling framework shown in Figure 6, where anomaly detection outputs are passed forward into the baseline adjustment stage before final savings verification. Accordingly, the proposed methodology preserves transparency, reproducibility, and auditability while extending traditional M&V practice through adaptive anomaly-informed baseline correction. Building on this methodological framework, Section 4 evaluates the performance of the proposed approach by first comparing it with the conventional IPMVP baseline model before examining the anomaly detection and savings verification results in greater detail.
4. Result and Discussion
4.1. Comparison with Conventional IPMVP Baseline Model
To evaluate the proposed framework against established measurement and verification practice, the hybrid deep learning models were benchmarked against a conventional baseline model based on linear regression using the ordinary least squares method. Linear regression remains widely used in IPMVP Option C applications because of its simplicity, transparency, and ease of interpretation. As such, it provides an appropriate reference model for assessing the extent to which the proposed hybrid framework improves anomaly detection and savings verification under dynamic industrial operating conditions.
The linear regression model describes the relationship between energy consumption and its influencing variables through the prediction function given in Equation (25), while the corresponding residuals were computed using Equation (26) as the difference between observed and predicted energy values. In accordance with conventional IPMVP-based statistical thresholding practice, anomaly detection was performed using a three-sigma criterion, where observations with residuals exceeding ±3σ standard deviations were classified as potential non-routine events.
Equation (25)—Linear Regression Prediction Model:
where is the predicted energy consumption; is the intercept; , and ,……., are the slope coefficients for each independent variable.
Equation (26)—Residual Calculation:
where represents the actual observed value, and is the predicted value from the model.
The anomaly detection summary obtained from the linear regression benchmark is presented in Table 9, which shows that only a limited number of anomalies were identified under the statistical thresholding approach. This behaviour is further illustrated in Figure 7, where the detected anomalies appear as isolated deviations from the predicted baseline. In parallel, the residual distribution shown in Figure 8 indicates that although the linear regression model captures the general energy trend, it remains constrained by its linear assumptions and fixed statistical threshold, which reduce its ability to identify transient, nonlinear, and context-dependent anomalies.
Table 9.
Linear Regression Anomaly Detection Summary.
Figure 7.
Anomalies Detected Using Linear Regression (Traditional Method).
Figure 8.
Distribution of Residuals (Deviation from Predicted Baseline Energy).
Despite these limitations in anomaly detection, the baseline prediction performance of the linear regression model remained within acceptable IPMVP validation limits. As reported in Table 10, the model achieved compliant CVRMSE and NMBE values, together with a high coefficient of determination. This confirms that the linear regression benchmark provides a statistically valid and IPMVP-compliant baseline model, thereby ensuring that the comparison with the proposed hybrid models is both fair and methodologically consistent.
Table 10.
Model Evaluation Summary for Baseline Prediction under IPMVP Framework.
A more detailed examination of the detected anomalies is provided in Table 11, which links residual exceedances with downtime events and their classification as non-routine events. The results show that not all statistically detected anomalies correspond to actual operational disruptions. This finding highlights a key limitation of conventional threshold-based detection, namely that statistical exceedance alone is insufficient to distinguish between genuine NREs and normal process variability. In practical terms, this limitation may lead either to missed disturbances or to insufficient baseline adjustment during savings verification.
Table 11.
Analysis of Energy Anomalies as Non-Routine Events.
Overall, the linear regression benchmark demonstrates that conventional IPMVP-compliant methods remain useful for basic anomaly screening and baseline validation. However, their reliance on linear relationships and fixed thresholds limits their effectiveness in complex industrial environments characterised by nonlinear behaviour, intermittent disturbances, and operational variability. This limitation provides the basis for the subsequent evaluation of the proposed hybrid deep learning models, which utilise reconstruction error-based thresholding to improve anomaly sensitivity and contextual discrimination.
4.2. Comparative Performance of Deep Learning Models
Five deep-learning-based models, namely DNN, FCRBM, GAN, DNN–FCRBM, and DNN–GAN, were trained and evaluated using identical datasets. As summarised in Table 12, DNN–FCRBM achieved the highest overall accuracy (0.943), F1-score (0.893), and the lowest false-positive rate (5.1%), whereas DNN–GAN recorded the highest recall (0.944) but with a comparatively larger false-positive rate (8.8%). The ROC curves further support these findings, with DNN–FCRBM producing the largest enclosed area under the curve (AUC = 0.925), indicating superior discrimination between normal and abnormal operating states. This improved balance between sensitivity and specificity can be attributed to the complementary learning roles of the deterministic and stochastic components, in which the DNN captures the average operational behaviour while the FCRBM reconstructs probabilistic deviations around that baseline. Statistical significance testing using a two-sample t-test (p < 0.05) further confirmed that the improvement in accuracy and precision achieved by the hybrid model over the standalone DNN was not random, but reflects a genuine methodological gain.
Table 12.
Performance Analysis.
To facilitate clearer comparison across models, the quantitative values reported in Table 12 were used directly to generate Figure 9. Thus, Figure 9 serves as the visual representation of the same performance metrics presented in Table 12, rather than as an independent result. As shown in Figure 9, the comparative profile of accuracy, precision, recall, and F1-score confirms that DNN–FCRBM provides the most balanced overall performance, while DNN–GAN achieves higher recall at the expense of more false positives. This consistency between the tabulated values and the graphical visualisation strengthens the robustness and transparency of the reported comparison.
Figure 9.
Comparative performance metrics of deep learning models (Accuracy, Precision, Recall, and F1-Score).
To further examine the discriminative capability of the models, Figure 10 presents the Receiver Operating Characteristic (ROC) curves for the FCRBM, GAN, DNN–FCRBM, and DNN–GAN models. The figure shows that DNN–FCRBM encloses the largest area under the curve (AUC = 0.925), confirming its superior ability to distinguish between normal and abnormal operating states. This observation is consistent with the quantitative results reported in Table 12 and further strengthens the conclusion that the DNN–FCRBM configuration provides the most robust overall anomaly detection performance among the evaluated models.
Figure 10.
Receiver Operating Characteristic (ROC) curves for FCRBM, GAN, DNN–FCRBM, and DNN–GAN models. DNN–FCRBM (highest AUC, lowest FPR) → topmost and leftmost curve. DNN–GAN (highest TPR but slightly higher FPR) → slightly below red. GAN (higher FPR, lower precision) → mid-level. FCRBM (lowest TPR) → lowest among all.
4.3. Reconstruction Error and Threshold Sensitivity
Figure 11 and Table 13 show the probability density of reconstruction errors. The DNN and DNN–FCRBM models yielded the smallest mean errors (0.31 and 0.45) and lowest standard deviations (0.62 and 0.84). In contrast, GAN-based models exhibited wider error distributions (mean > 0.8) and higher variance, implying weaker convergence and higher sensitivity to noise.
Figure 11.
Probability Density of Reconstruction Errors for Different Models.
Table 13.
Summary of Mean and Standard Deviation of Reconstruction Errors for Different Models.
The hybrid threshold mechanism dynamically weighted the mean and standard-deviation components of the deterministic and stochastic errors, producing adaptive detection boundaries that minimised both missed detections and false alarms. Sensitivity analysis on the weighting parameter α (0.2 ≤ α ≤ 0.8) showed optimal stability at α ≈ 0.5, where the hybrid model achieved maximum F1-score with minimal fluctuation in recall and precision. This confirms that balanced weighting between deterministic and stochastic components yields robust detection under variable industrial conditions.
Anomaly Detection Patterns and Interpretation
Visual examination of the detection scatter plots in Figure 12 reveals distinct clustering patterns among the models. In the individual model plots, the coloured points represent normal data points and detected anomalies as indicated in each panel legend, while the dashed vertical lines denote the anomaly thresholds. In the hybrid model plots, different colours are used to distinguish the outputs of the component models and their corresponding anomaly points. DNN and FCRBM anomalies are concentrated around operational transitions, indicating sensitivity to production-level fluctuations. GAN-based detections are more dispersed, suggesting higher responsiveness but also greater sensitivity to transient noise. The hybrid models display more bounded anomaly clusters aligning with recorded downtime intervals, demonstrating improved contextual detection of genuine non-routine events. This visual behaviour supports the quantitative results, showing that DNN-FCRBM more effectively isolates physically meaningful anomalies while reducing spurious detections.
Figure 12.
Anomaly Detection Pattern.
4.4. Impact on Energy Savings Verification
All deep learning models complied with IPMVP precision limits (RP < 0.01), but the verified savings magnitude varied with detection accuracy (Table 14).
Table 14.
Anomaly Detection and Savings.
- Linear regression: 650,579 kWh (15.4%)—overstated due to under-detection of anomalies.
- DNN: 458,362 kWh (10.85%).
- FCRBM: 473,333 kWh (11.21%).
- GAN: 465,147 kWh (11.01%).
- DNN–FCRBM: 478,050 kWh (11.32%).
- DNN–GAN: 400,698 kWh (10.71%).
The DNN–FCRBM result corresponds to 237 tonnes of CO2 avoided, confirming both environmental and economic significance. The close proximity of DNN, FCRBM, and DNN–FCRBM results indicates convergence toward realistic savings once anomalies are properly filtered, whereas the inflated regression estimate illustrates the cost of relying on static thresholds.
From an engineering perspective, this demonstrates that the hybrid framework prevents false savings attribution, improving audit credibility and supporting investment-grade verification.
To provide greater clarity on the role of downtime in anomaly detection, the recorded downtime events were first classified as either routine or non-routine. This classification helps to contextualise the anomaly flags identified in the subsequent analysis, ensuring that observed energy deviations are interpreted in relation to actual operational conditions. The summary of this classification is presented in Table 15.
Table 15.
Types of Downtime Events and NRE Classification.
This categorisation distinguishes planned operational activities from unplanned disruptions. Routine activities refer to scheduled or expected interventions, whereas non-routine events (NREs) represent unexpected deviations such as breakdowns, mechanical failures, or ad hoc repairs. As such, Table 15 establishes the basis for interpreting the anomaly detection results discussed in the following sections.
Building on this classification, Table 16 presents a worked example for one representative week in August 2022 to further illustrate how anomaly detection influences baseline adjustment and verified savings. The table compares measured energy consumption with the predicted baseline, identifies anomalous observations, and demonstrates how confirmed NREs lead to adjustments in the baseline and, consequently, the resulting savings.
Table 16.
Worked Example (Weekly Energy Data with Anomalies and Adjusted Baseline (August 2022)).
This example shows that anomalies confirmed as NREs (e.g., 2022-08-02) are incorporated into the adjusted baseline, effectively nullifying the savings for that day. In contrast, anomalies not validated as NREs (e.g., 4 August) are excluded, preserving the original baseline and ensuring that routine fluctuations do not distort savings. This case study demonstrates the operational credibility of the DNN-FCRBM framework, where baseline adjustments are directly tied to validated NREs.
Figure 13 illustrates how differences in anomaly detection behaviour across models translated into distinct adjusted baselines, directly impacting the magnitude of reported energy savings. The comparison underscores that reliable anomaly detection is not only a technical requirement but also central to ensuring transparency and auditability in industrial energy performance verification.
Figure 13.
Adjusted Baselines Generated by Different Models.
The robustness of the proposed framework under varying conditions is supported by both the dataset characteristics and the modelling approach. The dataset spans an extended monitoring period and includes environmental variables such as temperature, humidity, and pressure, which enable the model to capture variations associated with seasonal changes. In addition, operational variability is represented through different categories of industrial activities and downtime events, as summarised in Table 15, which includes both planned operations (e.g., production changes, cleaning, and maintenance) and unplanned disruptions (e.g., breakdowns and mechanical failures). These variations reflect realistic and dynamic operating conditions within the industrial facility.
Furthermore, the incorporation of anomaly detection and non-routine event (NRE) based baseline adjustment allows the model to adapt to operational disturbances. By distinguishing between normal variations and actual disruptions, the framework ensures that changes in operating conditions do not distort energy savings estimation. Overall, these elements demonstrate that the proposed model is capable of handling both seasonal variability and operational changes within the evaluated industrial context.
Key Insights and Final Considerations
The comparative analysis demonstrates that DNN–FCRBM provides the most balanced combination of accuracy, precision, recall, and interpretability, making it the most reliable model for industrial anomaly detection within an IPMVP-compliant framework. Compared with conventional regression-based detection, which identified only a limited number of anomalies and risked overstating savings, the hybrid model captured a broader range of non-routine events while maintaining statistical robustness.
Although DNN–GAN achieved higher recall, its higher false positive rate reduced its suitability for practical M&V deployment. By contrast, DNN–FCRBM produced more stable reconstruction error behaviour, resulting in fewer false alarms and more credible baseline adjustment. This finding underscores the importance of balancing sensitivity with reliability in industrial environments, where excessive false positives may distort reported savings and weaken operational confidence.
A major contribution of this study is the hybrid thresholding mechanism, which integrates deterministic and stochastic modelling into a unified anomaly detection strategy. Applied to real industrial data from a glove manufacturing facility, the framework verified 11.32% energy savings, equivalent to 478,050 kWh and 237 tonnes of CO2 avoided. Although the validation was conducted on a single facility, the results demonstrate strong potential for transparent, auditable, and scalable energy savings verification in complex industrial settings.
5. Conclusions
This study introduced a robust, IPMVP-compliant framework for industrial energy performance verification that integrates advanced baseline modelling with hybrid deep learning-based anomaly detection. By combining deterministic (DNN) and stochastic (FCRBM, GAN) models through a novel hybrid thresholding mechanism, the framework effectively overcomes the limitations of traditional thresholding and accurately identifies non-routine events (NREs). Among the tested configurations, the DNN–FCRBM consistently offered the best balance between accuracy, precision, and false positive control, establishing it as the most reliable model for practical M&V deployment. The framework was successfully validated on real industrial data from a glove manufacturing facility and confirmed 11.32% energy savings (≈478,050 kWh, 237 tonnes CO2 avoided). Although the proposed framework demonstrated robust performance within the studied industrial setting, the present evaluation was conducted on a single industrial facility. Accordingly, broader generalisation to other sectors and facilities should be interpreted with caution, and future work should include validation across multiple plants with diverse operating characteristics and process conditions. Although the proposed hybrid framework is more computationally demanding than conventional statistical models, its intended deployment is based on interval-level industrial monitoring rather than ultra-low-latency control. Since the monitored data are acquired at 30 min intervals, the principal computational burden lies in offline model training, whereas operational deployment involves applying the trained models to periodic incoming data for anomaly screening and savings verification. Although seasonality was not isolated as a separate experimental factor, the framework was evaluated using long-duration, high-resolution industrial data spanning diverse environmental conditions, operating states, and downtime scenarios, supporting its robustness within the studied industrial context. Overall, these findings demonstrate that the proposed end-to-end pipeline offers a scalable, auditable, and transparent approach to energy savings estimation, directly linking anomaly detection to actionable, verifiable energy impact in line with industrial decarbonisation objectives.
Author Contributions
Conceptualization, S.S., M.F.S. and A.F.A.K.; methodology, S.S., M.H.S. and S.W.Y.; validation, S.S., M.F.S., M.H.S. and S.W.Y.; formal analysis, S.S.; investigation, S.S., N.S., M.H.S. and S.W.Y.; resources, M.F.S., N.S., M.H.S., S.W.Y. and A.F.A.K.; data curation, S.S.; writing—original draft preparation, S.S.; writing—review and editing, M.F.S.; visualization, S.S. and N.S.; supervision, M.F.S. and A.F.A.K. All authors have read and agreed to the published version of the manuscript.
Funding
This research received no external funding.
Data Availability Statement
Restrictions apply to the availability of these data. The data were obtained from Top Glove Sdn. Bhd. and are not publicly available due to industrial confidentiality and proprietary considerations.
Conflicts of Interest
Author Muhamad Hafizal Shamsor was employed by the company Terang Nusa (M) Sdn. Bhd. He participated in investigation, methodology and resources in the study. The role of the company was providing the industrial expert for this study. Author Siaw Wei Yao was employed by the company Super Cooling & Electrical Sdn. Bhd. He participated in investigation, methodology and resources in the study. The role of the company was providing the industrial expert for this study. The remaining authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.
Abbreviations
The following abbreviations are used in this manuscript:
| Symbols | Definition |
| Actual observed value | |
| Predicted (forecasted) value | |
| Mean of observed values | |
| Total number of predictions in the analysis period | |
| Number of variables in the model | |
| TP | True positive |
| TN | True Negative |
| FP | False Positive |
| FN | False Negative |
| Deviation in energy consumption relative to baseline | |
| Number of recorded consumption data points used in savings analysis | |
| Acronym | Full Form |
| M&V | Measurement and Verification |
| IPMVP | International Performance Measurement and Verification Protocol |
| ASHRAE | American Society of Heating, Refrigerating and Air-Conditioning Engineers |
| ISO | International Organization for Standardization |
| EEMs | Energy Efficiency Measures |
| SDGs | Sustainable Development Goals |
| ESG | Environmental, Social, and Governance |
| IoT | Internet of Things |
| AI | Artificial Intelligence |
| ML | Machine Learning |
| DL | Deep Learning |
| AM&V | Advanced Measurement and Verification |
| DNN | Deep Neural Network |
| CNN | Convolutional Neural Network |
| RNN | Recurrent Neural Network |
| LSTM | Long Short-Term Memory |
| GAN | Generative Adversarial Network |
| FCRBM | Factored Conditional Restricted Boltzmann Machine |
| RBM | Restricted Boltzmann Machine |
| ANN | Artificial Neural Network |
| LR | Linear Regression |
| SHAP | Shapley Additive Explanations |
| MENSA | Multi-task Energy-aware Neural-based Smart-grid Anomaly detection (cited work) |
| WaDGAN-AD | Wasserstein Deep Generative Adversarial Network for Anomaly Detection (cited work) |
| SVR | Support Vector Regression |
| K-NN | K-Nearest Neighbour |
| NRE(s) | Non-Routine Event(s) |
| ROC | Receiver Operating Characteristic |
| AUC | Area Under the Curve |
| TPR | True Positive Rate |
| FPR | False Positive Rate |
| RE | Reconstruction Error |
| HT | Hybrid Threshold |
| CVRMSE | Coefficient of Variation of the Root Mean Squared Error |
| NMBE | Normalised Mean Bias Error |
| MAE | Mean Absolute Error |
| MBE | Mean Bias Error |
| RMSE | Root Mean Squared Error |
| R2 | Coefficient of Determination |
| SE | Standard Error |
| CI | Confidence Interval |
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