CEM Methods and Strategies 4 — Questions and Answers
Question 1: Which financing mechanism allows an organization to fund energy upgrades with no upfront capital by using guaranteed future energy savings?
- Operating lease
- Energy savings performance contract (ESPC) (Correct answer)
- Revenue bond
- Capital appropriation
Correct answer: Energy savings performance contract (ESPC)
An ESPC uses an energy service company (ESCO) that guarantees savings sufficient to cover project costs, eliminating the need for upfront capital.
Question 2: In the Plan-Do-Check-Act (PDCA) cycle applied to energy management, what occurs during the 'Check' phase?
- Energy improvement projects are implemented
- Performance is monitored and measured against objectives (Correct answer)
- Energy policy is formally adopted by management
- Corrective actions are documented and approved
Correct answer: Performance is monitored and measured against objectives
The Check phase involves comparing actual energy performance against targets using metered data and KPIs to determine whether actions achieved expected results.
Question 3: A manufacturing plant uses a steam distribution system. Which strategy offers the GREATEST energy savings potential with moderate investment?
- Increasing boiler operating pressure by 25 psi
- Auditing and replacing failed steam traps (Correct answer)
- Switching to electric resistance heating throughout
- Installing a second boiler for redundancy
Correct answer: Auditing and replacing failed steam traps
Failed steam traps continuously vent live steam, and a systematic trap survey and replacement program typically yields 10–20% steam system energy savings.
Question 4: What does 'load disaggregation' mean in the context of advanced energy management strategies?
- Separating peak demand from base load for billing purposes
- Identifying energy consumption by individual end-use from whole-building meter data (Correct answer)
- Distributing electrical load equally across phases
- Disconnecting non-essential loads during curtailment events
Correct answer: Identifying energy consumption by individual end-use from whole-building meter data
Load disaggregation uses algorithms to extract appliance- or system-level consumption signatures from aggregate metering data without sub-metering each device.
Question 5: Which factor MOST significantly affects the decision to pursue an on-site combined heat and power (CHP) system?
- Proximity to a river for cooling water
- High simultaneous demand for both electricity and thermal energy (Correct answer)
- Availability of federal investment tax credits only
- Building height and structural load capacity
Correct answer: High simultaneous demand for both electricity and thermal energy
CHP is economically attractive when a facility has a consistent, year-round need for both power and heat (or cooling via absorption chiller), allowing most of the fuel energy to be utilized.
Question 6: An energy manager is presenting a project to senior leadership. Which financial metric is typically MOST persuasive to executive decision-makers unfamiliar with energy?
- Equivalent full-load hours
- Simple payback period in years (Correct answer)
- Levelized cost of energy (LCOE)
- Annual energy use intensity (EUI)
Correct answer: Simple payback period in years
Simple payback — the time in years for savings to repay the investment — is intuitive and requires no financial modeling expertise, making it the most accessible metric for executives.
Question 7: What is the primary purpose of an energy policy statement in an organizational energy management strategy?
- Specify technical setpoints for all HVAC equipment
- Establish management commitment, scope, and goals to guide the energy program (Correct answer)
- List all utility contracts and their expiration dates
- Define maintenance schedules for energy-consuming equipment
Correct answer: Establish management commitment, scope, and goals to guide the energy program
An energy policy provides the top-level mandate and direction — similar to a quality or safety policy — that legitimizes the energy program and aligns staff behavior.
CEM Methods and Strategies 4
Which financing mechanism allows an organization to fund energy upgrades with no upfront capital by using guaranteed future energy savings?