CEP Sustainability & Energy Efficiency 5 — Questions and Answers
Question 1: What is the key role of a Measurement & Verification (M&V) plan in an energy efficiency project?
- To quantify actual energy savings achieved compared to an established baseline after project implementation (Correct answer)
- To forecast energy prices over the life of the efficiency project
- To set minimum efficiency standards that the project must meet before approval
- To certify the contractor's installation quality and equipment performance
Correct answer: To quantify actual energy savings achieved compared to an established baseline after project implementation
M&V establishes a pre-project baseline and uses defined protocols (such as IPMVP) to measure actual post-installation savings against that baseline.
Question 2: Under the GHG Protocol, which Scope covers emissions from purchased electricity consumed by a company?
- Scope 2 (Correct answer)
- Scope 1
- Scope 3
- Scope 0
Correct answer: Scope 2
Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heat, or cooling consumed by the reporting company.
Question 3: A utility offers a 'Critical Peak Pricing' (CPP) tariff. How does this tariff structure incentivize demand reduction?
- It charges significantly higher rates during a limited number of pre-announced peak hours, incentivizing customers to reduce load (Correct answer)
- It provides rebates for customers who install renewable energy during peak periods
- It offers a fixed discount on annual bills for customers who pre-commit to curtailment
- It charges higher baseline rates in exchange for guaranteed rate stability during peak events
Correct answer: It charges significantly higher rates during a limited number of pre-announced peak hours, incentivizing customers to reduce load
CPP tariffs apply very high rates during designated critical peak hours (typically 10-15 days per year), creating a strong price signal to reduce consumption.
Question 4: What is the difference between 'market-based' and 'location-based' methods for reporting Scope 2 emissions?
- Market-based uses contractual instruments like RECs and green tariffs; location-based uses the average emission factor for the grid where electricity is consumed (Correct answer)
- Market-based reports emissions from spot market purchases only; location-based uses long-term contract prices
- Market-based applies to voluntary reporting; location-based is required for regulatory compliance
- Market-based is used for on-site generation; location-based is used for grid purchases
Correct answer: Market-based uses contractual instruments like RECs and green tariffs; location-based uses the average emission factor for the grid where electricity is consumed
The GHG Protocol allows both methods: market-based reflects actual contractual choices (RECs, green tariffs), while location-based uses regional grid average emission factors.
Question 5: Which type of energy storage technology is most commonly paired with utility-scale renewable energy projects in the US to address intermittency?
- Lithium-ion battery energy storage systems (BESS) (Correct answer)
- Pumped hydroelectric storage
- Compressed air energy storage (CAES)
- Flywheel energy storage
Correct answer: Lithium-ion battery energy storage systems (BESS)
Lithium-ion BESS has become the dominant storage technology paired with utility-scale solar and wind due to falling costs and rapid deployment capability.
Question 6: In corporate sustainability reporting, what does the acronym 'TCFD' stand for and what does it primarily address?
- Task Force on Climate-related Financial Disclosures; it addresses how companies should disclose climate-related financial risks and opportunities (Correct answer)
- Total Carbon and Fuel Disclosure; it addresses full lifecycle reporting of fuel-related emissions
- Transparency in Carbon Finance and Development; it addresses carbon market investment standards
- Territorial Carbon and Footprint Database; it addresses national-level carbon accounting
Correct answer: Task Force on Climate-related Financial Disclosures; it addresses how companies should disclose climate-related financial risks and opportunities
TCFD provides a framework for companies to disclose climate-related risks and opportunities in financial filings, covering governance, strategy, risk management, and metrics.
Question 7: A facility procures electricity under a 'slice-of-system' PPA structure. What does this mean?
- The buyer purchases a proportional share of output from an existing renewable facility rather than a fixed price per MWh (Correct answer)
- The buyer receives delivery of electricity from a specific portion of a solar array dedicated to their account
- The buyer purchases RECs sliced from multiple renewable projects in a portfolio
- The buyer takes a contractual right to a fixed capacity block from a new renewable project
Correct answer: The buyer purchases a proportional share of output from an existing renewable facility rather than a fixed price per MWh
In a slice-of-system PPA, the buyer receives a percentage of total project output (variable MWh) rather than a fixed volume at a set price.
CEP Sustainability & Energy Efficiency 5
What is the key role of a Measurement & Verification (M&V) plan in an energy efficiency project?