Energy Efficiency and Conservation
Expert-defined terms from the Certificate in Energy Planning and Policy course at London School of Planning and Management. Free to read, free to share, paired with a professional course.
Active Power Factor Correction (APFC) – A technique that uses electronic… #
A higher power factor reduces reactive power, lowers electricity bills, and eases stress on distribution networks. Related terms: Power factor, reactive power, harmonic distortion. Example: A manufacturing plant installs APFC units on large motor drives; the facility’s utility bill drops by 8 % because the utility no longer charges for low‑power‑factor penalties. Practical application: APFC is common in industrial settings where large inductive loads dominate. Challenges: Selecting the correct capacity, ensuring compatibility with existing protection devices, and maintaining the equipment to avoid over‑compensation that can cause voltage rise.
ASHRAE Standard 90 #
1 – The American Society of Heating, Refrigerating and Air‑Conditioning Engineers’ benchmark for the energy performance of commercial and high‑rise residential buildings. The standard sets minimum efficiency requirements for building envelope, HVAC, lighting, and service water heating. Related terms: Building code, energy efficiency, performance rating. Example: A developer in a U.S. City designs a new office tower to meet ASHRAE 90.1‑2021, Achieving a 25 % reduction in projected energy use compared with the baseline. Practical application: Compliance is often required for building permits and can be demonstrated through Energy Modeling Software. Challenges: Keeping pace with updates, integrating the standard into early design stages, and balancing cost versus performance.
Baseline Energy Consumption – The reference level of energy use against w… #
Baselines are typically derived from historical data, industry averages, or simulation models. Related terms: Benchmarking, energy audit, performance metric. Example: A university campus establishes a 2015 baseline of 12 GWh per year; after retrofitting lighting and HVAC, the campus reports a 15 % reduction relative to that baseline. Practical application: Baselines enable tracking of savings, verification for incentive programs, and setting of targets. Challenges: Data quality, accounting for changes in occupancy or function, and selecting an appropriate normalization factor (e.G., Floor area, weather).
Building Envelope – The physical separator between interior conditioned s… #
A well‑designed envelope minimizes heat loss in winter and heat gain in summer, reducing HVAC demand. Related terms: Insulation R‑value, thermal bridging, air leakage. Example: Replacing single‑glazed windows with double‑glazed low‑emissivity units reduces heat loss by 30 % and cuts heating energy by 12 % in a mid‑latitude office building. Practical application: Envelope upgrades are a core component of retrofit projects and new construction energy codes. Challenges: Cost of high‑performance glazing, ensuring airtightness without compromising ventilation, and addressing thermal bridges at structural connections.
Benchmarking – The process of comparing a building’s energy performance a… #
Benchmarking often uses metrics such as Energy Use Intensity (EUI). Related terms: Baseline, Energy Star, EUI. Example: A retail chain uses a national database to benchmark each store; stores performing worse than the 75th percentile receive targeted retro‑fit recommendations. Practical application: Benchmarking drives continuous improvement, supports reporting for corporate sustainability, and can qualify projects for financing. Challenges: Ensuring comparable data (climate, operating hours), data privacy concerns, and interpreting results in context of building function.
Carbon Intensity – The amount of carbon dioxide (CO₂) emitted per unit of… #
Lower carbon intensity indicates cleaner energy sources. Related terms: Greenhouse gas emissions, decarbonisation, renewable energy mix. Example: A utility reports a carbon intensity of 0.45 Kg CO₂/kWh after adding 30 % wind generation to its portfolio, down from 0.68 Kg CO₂/kWh a year earlier. Practical application: Carbon intensity metrics are used in policy targets, carbon pricing, and corporate ESG reporting. Challenges: Accurately allocating emissions in mixed‑fuel grids, accounting for transmission losses, and communicating the metric to non‑technical stakeholders.
Combined Heat and Power (CHP) – Also called cogeneration, CHP simultaneou… #
Related terms: District heating, waste heat recovery, fuel cell. Example: A hospital installs a natural‑gas‑fired CHP plant that supplies 70 % of its electricity and all of its steam, reducing annual energy costs by 18 %. Practical application: CHP is suited to facilities with constant heat demand such as hospitals, campuses, and industrial plants. Challenges: High capital cost, regulatory barriers related to grid interconnection, and matching heat output to variable demand.
Co‑generation – Synonymous with CHP; emphasizes the joint production of h… #
Related terms: CHP, trigeneration, thermal recovery. Example: A food‑processing plant recovers waste heat from its boilers to pre‑heat incoming water, achieving a 10 % reduction in fuel consumption. Practical application: Co‑generation can be integrated with renewable fuels (biomass, biogas) to lower carbon footprints. Challenges: Ensuring reliable heat distribution, managing maintenance of dual‑purpose equipment, and navigating utility tariffs that may penalise self‑generation.
Demand Side Management (DSM) – Strategies and programs that influence con… #
DSM includes load shifting, energy efficiency incentives, and behavioral programs. Related terms: Demand response, peak shaving, load curtailment. Example: An electric utility offers commercial customers rebates for installing automated lighting controls that dim during peak hours, achieving a 5 % peak reduction. Practical application: DSM is a key component of integrated resource planning and can be coordinated with renewable integration. Challenges: Customer engagement, measuring actual load reductions, and aligning incentives with regulatory frameworks.
Decarbonisation – The systematic reduction of carbon dioxide emissions fr… #
Related terms: Net‑zero, carbon pricing, low‑carbon technology. Example: A national energy plan targets a 70 % reduction in electricity sector emissions by 2035, primarily via solar PV expansion and mandatory efficiency standards. Practical application: Decarbonisation pathways guide investment decisions, policy design, and corporate climate strategies. Challenges: Balancing reliability with variable renewables, financing large‑scale infrastructure, and managing social equity impacts.
Energy Audits – Systematic evaluations of a building or facility’s energy… #
Audits are classified as Level 1 (walk‑through), Level 2 (detailed analysis), or Level 3 (investment‑grade). Related terms: Baseline, retro‑fit, EUI. Example: A Level 2 audit of a manufacturing plant discovers that outdated motor drives account for 15 % of electricity use; recommended upgrades promise a 12 % savings. Practical application: Audits form the basis for capital budgeting, grant applications, and certification programs. Challenges: Access to accurate metering data, stakeholder buy‑in for recommended investments, and ensuring post‑implementation verification.
Energy Management System (EMS) – An integrated suite of hardware and soft… #
EMS typically includes sensors, meters, data analytics, and automated control logic. Related terms: Building automation, SCADA, demand response. Example: A university campus deploys an EMS that reduces HVAC runtime by 10 % during mild weather through predictive scheduling. Practical application: EMS enables real‑time visibility, supports performance contracting, and can integrate with renewable generation monitoring. Challenges: Interoperability with legacy equipment, data security, and ensuring staff have the expertise to interpret analytics.
Energy Performance Contracting (EPC) – A financing arrangement where a se… #
The provider assumes performance risk. Related terms: ESCO, guarantee, pay‑back period. Example: A municipal building contracts an ESCO to replace lighting; the ESCO guarantees a 20 % reduction, and the city repays the upfront cost from the verified savings over ten years. Practical application: EPCs enable capital‑constrained entities to pursue upgrades without upfront expenditure. Challenges: Accurately measuring savings, structuring contracts to align incentives, and navigating regulatory approval for third‑party financing.
Fuel Switching – The process of replacing one fuel type with another, typ… #
Common switches include coal‑to‑natural gas, oil‑to‑biomass, or fossil‑fuel‑to‑hydrogen. Related terms: Fuel mix, carbon intensity, boiler conversion. Example: An industrial boiler is retrofitted to burn biomass pellets instead of coal, cutting CO₂ emissions by 40 % and qualifying for renewable subsidies. Practical application: Fuel switching can be part of a broader decarbonisation strategy, especially where renewable electricity is limited. Challenges: Availability and price stability of alternative fuels, equipment compatibility, and potential changes in emissions of other pollutants (e.G., NOₓ).
Fossil Fuel Phase‑out – Policy or market‑driven initiatives aimed at elim… #
The phase‑out can be scheduled by year or tied to emissions targets. Related terms: Coal exit, renewable integration, carbon budget. Example: A city council adopts a 2030 coal‑phase‑out, mandating that all municipal buildings transition to electric heat pumps. Practical application: Phase‑out plans drive investment in renewable capacity, grid upgrades, and demand‑side measures. Challenges: Managing reliability during transition, ensuring affordable energy for vulnerable customers, and addressing stranded assets.
Green Building Rating – Certification systems that assess a building’s en… #
Prominent schemes include LEED, BREEAM, and DGNB. Related terms: Sustainable design, certification, credit. Example: A new office achieves LEED Gold by incorporating high‑performance glazing, rainwater harvesting, and a rooftop solar array that supplies 30 % of its electricity. Practical application: Rating systems provide market differentiation, can unlock financing incentives, and guide design decisions. Challenges: Documentation burden, cost of certification, and ensuring that credits translate to actual operational performance.
Grid Parity – The point at which the levelized cost of electricity from a… #
Reaching grid parity signals economic competitiveness without subsidies. Related terms: LCOE, renewable tariffs, market price. Example: In a sunny region, utility‑scale solar achieves a levelized cost of $0.045/KWh, below the regional wholesale price of $0.050/KWh, indicating grid parity. Practical application: Grid parity accelerates renewable deployment, influences policy decisions, and reduces reliance on feed‑in tariffs. Challenges: Variability of market prices, accounting for integration costs, and regional differences in resource quality.
Heat Recovery Ventilation (HRV) – A mechanical ventilation system that ex… #
Related terms: Energy recovery ventilator, ventilation efficiency, indoor air quality. Example: A residential building installs an HRV, cutting winter heating demand by 12 % while maintaining compliance with ventilation standards. Practical application: HRVs are common in cold climates where airtight construction would otherwise cause indoor air quality issues. Challenges: Proper sizing, regular filter maintenance, and ensuring that the system does not introduce moisture problems.
Hydrogen Economy – A vision for an energy system in which hydrogen, produ… #
Related terms: Electrolysis, fuel cell, green hydrogen. Example: A pilot project blends 20 % hydrogen into natural gas pipelines, demonstrating compatibility with existing infrastructure while reducing CO₂ emissions. Practical application: Hydrogen can provide long‑duration storage for excess renewable electricity and decarbonise hard‑to‑electrify processes. Challenges: High production cost, need for safe handling infrastructure, and establishing a market price that reflects environmental benefits.
Insulation R‑Value – A measure of thermal resistance; the higher the R‑va… #
R‑values are used to specify wall, roof, and floor insulation performance. Related terms: U‑value, thermal conductivity, building envelope. Example: Adding 100 mm of rigid foam board with an R‑value of 5 m²·K/W to an exterior wall reduces heat loss by 30 % in a temperate climate. Practical application: Designers select insulation based on climate zone requirements and cost‑benefit analysis. Challenges: Diminishing returns at very high R‑values, installation quality, and moisture management.
Integrated Resource Planning (IRP) – A systematic, long‑term approach use… #
IRP incorporates reliability, cost, environmental, and policy considerations. Related terms: Capacity planning, demand forecasting, portfolio optimization. Example: An IRP for a regional utility recommends adding 500 MW of solar, 200 MW of battery storage, and implementing a demand‑response program to defer building a new coal plant. Practical application: IRP informs investment decisions, tariff design, and compliance with renewable targets. Challenges: Uncertainty in technology costs, forecasting future demand, and balancing stakeholder interests.
Joule (unit) – The SI unit of energy, defined as the work done when a for… #
In electricity, energy is often expressed in kilowatt‑hours (kWh), where 1 kWh = 3.6 MJ. Related terms: Watt, kilowatt‑hour, energy conversion. Example: A 100‑W light bulb operating for 10 hours consumes 1 kWh, equivalent to 3.6 MJ or 3 600 kJ. Practical application: Understanding joules helps engineers convert between thermal and electrical energy, crucial for efficiency calculations. Challenges: Communicating large energy values to non‑technical audiences and ensuring consistent units in cross‑disciplinary studies.
Kilowatt‑hour (kWh) – A unit of electrical energy representing the consum… #
It is the standard billing unit for electricity utilities. Related terms: Joule, demand charge, load factor. Example: A household’s monthly electricity bill of 800 kWh reflects an average power draw of about 1.1 KW. Practical application: KWh data drives load profiling, informs tariff design, and underpins energy‑efficiency incentive calculations. Challenges: Accurate metering, accounting for time‑of‑use rates, and avoiding rebound effects where efficiency gains lead to higher consumption.
Load Management – The practice of adjusting electricity demand to match s… #
Load management can be automated through control systems or achieved via behavioral programs. Example: A food‑processing facility implements a load‑management system that throttles non‑essential compressors during grid congestion, reducing its peak demand by 10 %. Practical application: Load management supports grid stability, reduces need for peaking plants, and can earn revenue through participation in ancillary service markets. Challenges: Ensuring process continuity, coordinating with utility signals, and quantifying the value of flexibility.
Lifecycle Cost Analysis (LCCA) – An economic evaluation that sums all cos… #
LCCA helps identify the most cost‑effective option in the long run. Related terms: Net present value, discount rate, total cost of ownership. Example: Comparing a conventional HVAC system with a high‑efficiency heat‑pump, LCCA shows the latter saves $15,000 over 20 years despite higher upfront cost. Practical application: LCCA is used in procurement, policy analysis, and green‑building certification to justify investment in efficiency measures. Challenges: Selecting appropriate discount rates, forecasting future energy prices, and incorporating non‑monetary benefits such as comfort.
Metering and Submetering – The installation of devices that record electr… #
Submetering provides detailed data for individual tenants, equipment, or zones within a larger facility. Related terms: Smart meter, data logger, energy monitoring. Example: A multi‑tenant office building installs submeters for each suite, enabling tenants to be billed for actual usage and encouraging energy‑saving behavior. Practical application: Accurate metering is essential for verification of savings, demand‑response participation, and allocation of costs in shared‑use facilities. Challenges: Installation cost, data management, and ensuring meter accuracy over time.
Microgrid – A localized energy system that can operate autonomously or in… #
Related terms: Islanding, resilience, distributed energy resources. Example: A university campus operates a microgrid with solar panels, battery storage, and a natural‑gas generator, maintaining power during a regional outage. Practical application: Microgrids enhance energy security, support renewable integration, and can provide ancillary services to the grid. Challenges: Complex control strategies, regulatory barriers to grid interconnection, and capital costs of storage.
Net Zero Energy Building (NZEB) – A building that, on an annual basis, pr… #
Related terms: Zero‑energy building, on‑site generation, performance gap. Example: A newly constructed office achieves NZEB status by using high‑performance envelope, LED lighting, a rooftop PV system that generates 120 % of the building’s electricity demand. Practical application: NZEBs are central to national decarbonisation targets and can qualify for tax incentives. Challenges: Upfront cost, ensuring actual performance matches design predictions, and managing seasonal mismatches between generation and demand.
Operational Efficiency – The ratio of useful output to input during norma… #
Improving operational efficiency reduces energy consumption without altering capacity. Related terms: Thermal efficiency, load factor, performance ratio. Example: Optimising pump speed using a variable frequency drive improves the pump’s operational efficiency from 55 % to 70 %, saving electricity. Practical application: Continuous monitoring and control adjustments can maintain high operational efficiency across plant equipment. Challenges: Degradation over time, need for skilled operators, and balancing efficiency with product quality requirements.
Passive Solar Design – Architectural strategies that harness sunlight for… #
Techniques include orientation, thermal mass, shading, and window placement. Related terms: Solar gain, glazing, daylight factor. Example: A south‑facing office incorporates large double‑glazed windows, overhangs, and a concrete floor slab that stores solar heat, reducing heating demand by 25 % in winter. Practical application: Passive design is most effective in climates with distinct heating and cooling seasons and can be combined with active systems for optimal performance. Challenges: Precise design to avoid overheating, integration with modern building codes, and limited applicability in high‑rise structures.
Power Factor – The ratio of real power (kW) to apparent power (kVA) in an… #
A power factor close to 1.0 Is desirable. Related terms: Reactive power, PF correction, harmonic distortion. Example: An industrial facility with a power factor of 0.78 Installs capacitor banks, raising the factor to 0.95 And avoiding utility penalties. Practical application: Monitoring power factor helps identify inefficient loads and informs corrective measures. Challenges: Over‑compensation can cause voltage rise, and harmonic currents from non‑linear loads may limit the effectiveness of simple PF correction.
Quality Assurance (QA) – Systematic processes that ensure energy‑efficien… #
QA includes documentation, testing, and independent verification. Related terms: Commissioning, verification, audit. Example: A QA protocol for a retrofit includes pre‑ and post‑installation infrared surveys to confirm insulation installation quality. Practical application: Robust QA reduces the risk of under‑performance and supports eligibility for incentive programs. Challenges: Additional project time and cost, need for qualified personnel, and maintaining QA throughout the asset life.
Retrofit – The upgrading or replacement of existing building components (… #
Retrofits can be shallow (e.G., LED lighting) or deep (e.G., Whole‑building envelope overhaul). Related terms: Refurbishment, upgrade, energy savings. Example: A historic school undergoes a deep retrofit that adds external insulation, high‑efficiency boilers, and building automation, achieving a 35 % reduction in annual energy use. Practical application: Retrofits extend asset life, reduce operating costs, and contribute to climate goals. Challenges: Disruption to occupants, financing constraints, and aligning upgrades with heritage preservation requirements.
Smart Metering – Advanced metering infrastructure that records energy con… #
G., 15 Minutes), enabling two‑way communication between the meter and the utility. Related terms: AMI, demand response, data analytics. Example: A utility deploys smart meters that allow customers to view real‑time usage on a mobile app, leading to an average 5 % reduction in peak demand. Practical application: Smart meters facilitate time‑of‑use tariffs, automated demand response, and accurate billing. Challenges: Data privacy concerns, cybersecurity, and ensuring that customers can interpret and act on the data provided.
Sustainable Development Goal (SDG) 7 – The United Nations objective to “e… #
” It emphasizes universal energy access, renewable integration, and energy efficiency improvements. Related terms: Global targets, climate action, energy poverty. Example: A developing country launches a rural electrification program that combines solar home systems with community microgrids, advancing progress toward SDG 7. Practical application: SDG 7 guides national policy, donor funding, and corporate sustainability reporting. Challenges: Financing large‑scale infrastructure, balancing rapid access with long‑term sustainability, and measuring progress across diverse contexts.
Thermal Mass – Materials that absorb, store, and release heat slowly, hel… #
Common thermal‑mass elements include concrete, brick, and water. Related terms: Heat capacity, passive solar, phase‑change material. Example: A residential building incorporates a concrete slab floor that absorbs daytime solar heat and releases it at night, reducing heating demand by 10 %. Practical application: Thermal mass is most effective when paired with proper shading and ventilation strategies. Challenges: Oversizing can lead to overheating, and retrofitting existing structures may be limited by floor‑to‑ceiling heights.
Utility Demand Response (DR) – Programs where utilities incentivize custo… #
DR can be manual (customer-initiated) or automated (via control systems). Related terms: Peak shaving, load curtailment, ancillary services. Example: A manufacturing plant enrolls in an automated DR program; during a grid emergency, the plant’s control system temporarily reduces compressor load, earning $8,000 in DR payments. Practical application: DR enhances grid reliability, defers new generation, and provides revenue streams for participants. Challenges: Ensuring reliability of load reductions, integrating DR signals with existing control systems, and quantifying the value of flexibility.
Variable Frequency Drive (VFD) – An electronic device that controls motor… #
Related terms: Motor control, energy savings, power factor. Example: Installing VFDs on HVAC fans reduces fan energy consumption by 30 % during part‑load conditions. Practical application: VFDs are widely used in HVAC, water treatment, and industrial processes to improve part‑load efficiency. Challenges: Proper sizing, harmonic generation that may require filtering, and ensuring motor compatibility.
White Certificate – A tradable energy‑efficiency instrument issued by gov… #
Holders can sell certificates to entities that need to meet mandated efficiency targets. Related terms: Green certificate, renewable obligation, market‑based instrument. Example: A building retro‑fit project generates 500 MWh of saved electricity, earning 500 white certificates that are sold to an electricity supplier to fulfil its efficiency quota. Practical application: White certificates create financial incentives for private‑sector efficiency investments and can be integrated with national climate policies. Challenges: Establishing robust verification protocols, preventing double counting, and ensuring market liquidity.
Xenon Lighting – A high‑intensity discharge (HID) light source that produ… #
While more efficient than older HID types, xenon lamps are being superseded by LED technology. Related terms: HID, lumen efficacy, replacement cycle. Example: A warehouse replaces 10 kW xenon fixtures with LED modules, achieving a 45 % reduction in lighting energy use. Practical application: Xenon lighting may still be selected where high colour fidelity is required, but lifecycle cost analysis usually favors LEDs. Challenges: Higher upfront cost, limited lifespan relative to LEDs, and disposal of mercury‑containing components.
Yield (Energy) – The amount of usable energy obtained from a source or te… #
Yield can be expressed as a percentage, as kWh per dollar, or as a performance ratio. Related terms: Efficiency, capacity factor, return on investment. Example: A solar PV system with a 20 % panel efficiency and a capacity factor of 18 % yields an annual energy output of about 1,576 kWh per kW installed. Practical application: Yield calculations help compare technologies, inform investment decisions, and set performance expectations. Challenges: Variability due to site conditions, degradation over time, and the need to incorporate ancillary losses (inverters, wiring).
Zero Energy Building (ZEB) – A building that, on a net‑annual basis, cons… #
ZEB is synonymous with NZEB but may differ in regional definitions. Related terms: Net zero, on‑site generation, performance gap. Example: A university research lab achieves ZEB status by integrating a geothermal heat‑pump, high‑R insulation, and a rooftop solar array that matches its annual electricity consumption. Practical application: ZEBs serve as demonstration projects for policy, education, and technology validation. Challenges: High capital cost, need for precise energy modeling, and managing seasonal mismatches between generation and demand.
Accelerated Energy Efficiency (AEE) – A policy approach that fast‑tracks… #
AEE aims to achieve deeper savings in shorter timeframes. Related terms: Fast track, incentive program, energy savings guarantee. Example: A city launches an AEE program offering expedited permits for commercial lighting upgrades, resulting in a 12 % increase in retrofit uptake within one year. Practical application: AEE can be combined with utility demand‑response initiatives to amplify grid benefits. Challenges: Maintaining safety and code compliance while accelerating processes, and ensuring that rapid deployment does not compromise quality.
Building Automation System (BAS) – A network of sensors, controllers, and… #
Related terms: EMS, SCADA, IoT. Example: A BAS integrates occupancy sensors to dim lights and adjust ventilation rates, achieving a 9 % reduction in overall building energy consumption. Practical application: BAS enables schedule‑based control, fault detection, and data collection for performance benchmarking. Challenges: Interoperability with diverse equipment, cybersecurity risks, and the need for skilled operators to interpret data.
Carbon Capture, Utilisation, and Storage (CCUS) – Technologies that captu… #
CCUS can complement efficiency measures in hard‑to‑decarbonise sectors. Related terms: CCS, CO₂ sequestration, negative emissions. Example: A cement plant captures 90 % of its process emissions and injects the CO₂ into a depleted oil reservoir for enhanced oil recovery. Practical application: CCUS provides a pathway to achieve net‑zero targets where direct electrification is challenging. Challenges: High cost, energy penalty of capture processes, and public acceptance of underground storage sites.
Demand Response Aggregator – An entity that pools the flexibility of mult… #
Aggregators coordinate curtailment, load shifting, or storage discharge. Related terms: Virtual power plant, flexibility market, DR program. Example: An aggregator contracts with 150 small‑business customers, collectively providing 5 MW of demand‑response capacity during peak events. Practical application: Aggregators enable participation of otherwise uneconomic loads in ancillary service markets. Challenges: Communication latency, verification of actual load reductions, and aligning incentives across diverse participants.
Energy‑as‑a‑Service (EaaS) – A business model where energy efficiency or… #
Related terms: Performance contract, OPEX model, ESCO. Example: A school district enters an EaaS agreement for solar PV and battery storage; the district pays a fixed monthly fee while the provider handles installation, operation, and maintenance. Practical application: EaaS reduces capital barriers, aligns provider incentives with performance, and simplifies budgeting for customers. Challenges: Contract complexity, long‑term risk allocation, and ensuring transparent measurement of energy savings.