EMP Energy Economics & Financial Analysis Flashcards

What does the term 'energy intensity' measure in a facility context?

Answer: Energy consumption per unit of output, area, or production

Energy intensity is expressed as energy consumed per unit of a relevant metric (e.g., kBtu/sq ft/year) and serves as a key performance indicator for efficiency benchmarking.

Under the IPMVP (International Performance Measurement and Verification Protocol), Option A refers to:

Answer: Retrofit isolation with key parameter measurement

IPMVP Option A measures key parameters while stipulating others, isolating the retrofitted system to verify savings without metering the entire facility.

What is the most important factor when comparing energy costs across multiple utility rate structures?

Answer: Total annual cost under each rate at the facility's actual load profile

Total annual cost must be modeled using the facility's actual load profile—including demand charges and time-of-use rates—to accurately compare rate structures.

Which US program allows commercial and industrial customers to receive financial incentives for reducing electricity demand during peak grid stress periods?

Answer: Demand Response (DR) programs

Demand Response programs compensate participants for voluntarily reducing electricity consumption during peak demand events, helping stabilize the grid.

What is the purpose of benchmarking energy performance using EPA's ENERGY STAR Portfolio Manager?

Answer: To compare a building's energy use to similar facilities nationally and earn certification

ENERGY STAR Portfolio Manager assigns a 1–100 score based on normalized energy use compared to similar US buildings, enabling benchmarking and certification eligibility.

In energy finance, what does 'avoided cost' refer to?

Answer: The value of energy savings generated by an efficiency measure

Avoided cost represents the monetary value of energy that does not need to be purchased because an efficiency measure reduced consumption.