Energy Efficiency Action Curves

01 Dec 2010Archived News Climate Change Matters

Energy efficiency is often regarded as the “low hanging fruit” of reducing power costs and securing lower operating costs, because energy efficiency measures are usually comparatively cost effective and easy to implement.

An Energy Efficiency Action Curve is a simple tool for understanding, costing and prioritising the various projects in a business. It provides an overview of potential energy efficiency projects, calculates a common comparator (eg. $/MWh savings for electricity projects), and ranks projects in a marginal cost curve.

Below is an example of an Energy Efficiency Action Curve. It illustrates the potential projects, the energy savings that can be achieved, and the marginal cost of the energy savings project. 

The curve sorts the projects from the most attractive to the least attractive and identifies those that offer compelling financial savings. It can be used to sort the competing opportunities by size and cost to develop a simple priority plan, and can compare the cost of energy efficiency with renewable energy or energy upgrade projects. 

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