CEM Strategic Planning and Management 2

Question 1

Which financial metric measures the percentage return on an energy project relative to its initial investment cost?

Accepted Answer

Return on investment (ROI)

Answer

ROI expresses profit or savings as a percentage of the initial investment, making it easy to compare projects of different scales.

Question 2

A company sets an energy reduction target of 20% over 5 years. What type of planning document should govern this commitment?

Accepted Answer

Energy management plan (EMP)

Answer

An Energy Management Plan (EMP) formally documents targets, strategies, timelines, and responsibilities for achieving energy reduction goals.

Question 3

In strategic energy management, a 'baseline' is primarily used to:

Accepted Answer

Establish a reference point for measuring energy performance improvement

Answer

A baseline represents historical energy use under defined conditions and serves as the reference against which savings are measured.

Question 4

Which framework is most commonly used to align an organization's energy strategy with its overall business objectives?

Accepted Answer

ISO 50001 energy management system

Answer

ISO 50001 provides a systematic framework for integrating energy management into an organization's overall management processes and business goals.

Question 5

When prioritizing energy projects using an energy audit report, which criterion is typically weighted most heavily in the initial screening?

Accepted Answer

Simple payback period

Answer

Simple payback period quickly filters projects by how fast they recover their investment, making it the most commonly used initial screening metric.

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