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Energy Management Economics

4.3 Filled star Filled star Filled star Filled star Empty star
Based on 119 ratings
see reviews
Abdelhameed Qotb Ali

Hello and Welcome to “Energy Management Economics”. My idea while preparing for this course is providing a simple yet well explained material for anyone who is interested in The field of Energy Management. Whether you are coming from technical or non-technical background. Attending this course would help you having your first steps in the field, also helping you finding what next steps to take.

The course content is covered through four main sections

Section 1: Life Cycle Costing Analysis & Financing

Read more

Hello and Welcome to “Energy Management Economics”. My idea while preparing for this course is providing a simple yet well explained material for anyone who is interested in The field of Energy Management. Whether you are coming from technical or non-technical background. Attending this course would help you having your first steps in the field, also helping you finding what next steps to take.

The course content is covered through four main sections

Section 1: Life Cycle Costing Analysis & Financing

In first section, we are going to discuss the process of LCCA, and financial analysis starting from the common terminologies you may encounter during the course, difference between interest rate and effective interest rate, Future and Present value calculations.

Then we’ll move to Capital Budgeting Techniques and in this part, we’ll talk about five of these techniques, Net Present value, Payback Period, Return on Investment, Internal Rate of Return and Hurdle Rates.

Finally, we have the Financing and Alternative Financing options which are available for you to fund your energy projects. In this part we’re covering equity, debt, leasing financing and finally Energy performance contracting.

Section 2: Energy Rates & Tariff Structure

Here we’re going to understand how utilities are billing your energy consumption. And the difference between energy Consumption and Demand. Then we’ll discuss in detail how energy demand is calculated.

During this section as well, you’ll know different types of Tariff Structures and how to read/analysis your energy bill and understand its components. Finally, we’ll see what’s Demand Response programs and why utilities offer such programs.

Section 3: Energy Accounting & Benchmarking

Going then to the third section, where it’ll help you to understand how to perform Energy Accounting activities for your facility or project. And explaining the whole process steps from measuring, recording, and collecting to analysis your energy-related data.

The second part of this section will be for Benchmarking and assess how well your facility is performing. To do so we need methods or techniques to measure and manage your performance so we can judge how good or bad your facility performs compared with other projects or facilities.

Section 4: Energy Procurement

Fourth and Final section would be for Energy Purchasing planning in different energy markets, different energy sources. What is the Energy Balance sheet and how to read it? And finally, Cost Allocation planning, why we need it and how to build it?

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What's inside

Learning objectives

  • Preforming life cycle costing analysis and identifying different financing options
  • Understanding clearly energy rates and different tariff structures
  • Performing energy accounting and benchmarking activities
  • Preparing energy procurement and energy cost allocation plan

Syllabus

LIFE CYCLE COSTING ANALYSIS & FINANCING
Section 1 intro

1.1. Time Value of Money “TVM”

1.2. Principal or Capital

1.3. Costs

Read more

1.4. Interest Rate (IR) and Rate of Return (ROR)

1.5. Cash Flows Diagram (CFD)

1.6. Present Value (PV) & Future Value (FV)

1.7. Inflation and Purchasing Power

3.1. Future Value of a single amount

3.2. Future Value of an annuity amounts

3.3. Future value limitations

4.1. Present Value of a single amount

4.2. Present Value of an annuity amounts

4.3. Present & Future Value limitations

5.1. Net Present Value "NPV"

5.2. Payback Period "PBP"

5.3. Return on Investment “ROI”

5.4. Internal Rate of Return "IRR"

5.5. Hurdle rate or Minimum Accepted Rate of Return “MARR”

6.1. Equity Financing

6.2. Debt Finance

6.3. Lease Financing

Performance Contracting

Energy Performance Contracting Insurance

What ESCO can provide

Types of ESCO companies

1.1. Consumption Vs Demand

1.2. Why it is important?

1.3. Demand Calculation Methods

3.1. Customer Service Charges

3.2. Demand Charges

3.3. Ratchet Charges.

3.4. Power Factor Charges

3.5. Fuel Charge

3.6. Delivery and Supply

3.7. Energy Export

1.1. Simplified Energy Accounting

1.2. Load-based Energy Accounting

1.3. Data analysis

2.1. Demand Charge

2.2. Load Factor “LF”

2.2. Energy Use Index “EUI”

2.3. Energy Cost Index “ECI”

3.1. Measurement and Verification “M&V”

3.2. What’s M&V?

3.3. Why we need M&V?

3.4. M&V Guidelines and Protocols

3.4.1. IPMVP Framework

3.4.2. FEMP M&V Guidelines

3.4.3. ASHRAE Guideline 14

3.5. M&V planning structure & Process

4.1. Energy Monitoring, Targeting and Reporting (MT&R)

4.2. Energy Modeling

4.2.1. White-Box Energy Modeling

4.2.2. Black-Box Energy Modeling

4.2.3. Grey-Box Energy Modeling

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Provides a foundational understanding of energy management economics, making it suitable for individuals with both technical and non-technical backgrounds seeking to enter the energy management field
Covers life cycle costing analysis, which is a crucial skill for evaluating the long-term economic viability of energy efficiency projects and making informed investment decisions
Explores various capital budgeting techniques, such as Net Present Value, Payback Period, and Internal Rate of Return, which are essential for evaluating and prioritizing energy projects
Examines energy rates and tariff structures, enabling learners to understand how utilities bill energy consumption and to analyze energy bills for potential cost savings
Discusses energy accounting and benchmarking, which are important for tracking energy performance, identifying areas for improvement, and comparing a facility's performance against industry standards
Addresses energy procurement planning in different energy markets, which is relevant for organizations seeking to optimize their energy purchasing strategies and manage energy costs effectively

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Reviews summary

Practical energy management economics introduction

Learners say this course provides a solid and practical introduction to energy management economics. It is often described as comprehensive, covering essential topics such as Life Cycle Costing Analysis (LCCA), financing options, energy rates and tariffs, and benchmarking. Many students found the explanations clear and accessible, making it ideal for beginners or those with non-technical backgrounds looking to enter or understand the financial side of the energy field. While some learners expressed a desire for deeper dives into certain advanced areas, the course is widely seen as providing the necessary foundational knowledge and practical tools to take first steps in this domain.
Suitable for both technical and non-technical backgrounds.
"Coming from a non-technical background, I found this course surprisingly easy to follow and understand."
"The material was explained simply yet effectively for any background, making it very inclusive."
"It didn't assume prior knowledge of either finance or energy, which was perfect for me."
Includes essential areas like LCCA and Tariffs.
"I appreciated the detailed sections on Life Cycle Costing Analysis and financial metrics."
"The coverage of different energy rates and tariff structures was very insightful."
"Benchmarking and energy accounting methods were clearly explained and are important skills."
Concepts are relevant for real-world use.
"The explanations of LCCA and financing were very practical and directly applicable."
"I can see how to use these economic tools and strategies in my work immediately."
"Understanding energy rates and tariff structures was particularly useful for analyzing bills."
Provides essential introductory knowledge.
"This course gave me a solid foundation in energy management economics."
"It's a great starting point for anyone new to this field and covers the basics well."
"I learned the essential concepts needed to understand the economics of energy projects and decisions."
Primarily introductory; some want more detail.
"I wish some topics went into more depth, especially on complex financing models or optimization."
"It's great for an overview, but not deep enough if you're already somewhat familiar with the field."
"Could use more detailed, advanced examples or case studies."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Energy Management Economics with these activities:
Review Time Value of Money Concepts
Reinforce your understanding of fundamental financial concepts like present value and future value, which are crucial for life cycle costing analysis.
Browse courses on Time Value of Money
Show steps
  • Review the definitions of key terms like principal, interest rate, and rate of return.
  • Practice calculating present and future values using different interest rates and time periods.
  • Work through example problems involving annuities and single amounts.
Read 'Engineering Economy' by Blank and Tarquin
Gain a deeper understanding of engineering economics principles, which are essential for energy management economics.
View Basics of Engineering Economy on Amazon
Show steps
  • Obtain a copy of 'Engineering Economy' by Blank and Tarquin.
  • Read the chapters related to life cycle costing, present worth analysis, and rate of return analysis.
  • Work through the example problems and exercises in the book.
Participate in a Peer Study Group
Collaborate with peers to discuss course concepts, work through practice problems, and share insights.
Show steps
  • Form a study group with other students in the course.
  • Schedule regular meetings to discuss course materials.
  • Work through practice problems together and share your solutions.
  • Ask each other questions and clarify any confusing concepts.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Build an Energy Bill Analysis Spreadsheet
Apply your knowledge of energy rates and tariff structures by creating a spreadsheet to analyze your own energy bill or a sample bill.
Show steps
  • Gather your energy bills for the past year.
  • Create a spreadsheet with columns for date, consumption, demand, and various charges.
  • Calculate the average cost per unit of energy and identify any demand charges.
  • Analyze the impact of different tariff structures on your bill.
Write a Blog Post on Energy Benchmarking
Reinforce your understanding of energy accounting and benchmarking by writing a blog post explaining the concepts to a general audience.
Show steps
  • Research different energy benchmarking methods and metrics.
  • Write a blog post explaining the importance of energy benchmarking.
  • Provide examples of how to use benchmarking to improve energy performance.
Develop an Energy Procurement Plan
Solidify your understanding of energy procurement by developing a plan for a hypothetical facility or organization.
Show steps
  • Define the energy needs of the facility or organization.
  • Research different energy sources and suppliers in your area.
  • Evaluate the costs and benefits of each option.
  • Develop a procurement plan that outlines your recommended strategy.
Read 'Energy Management Handbook' by Wayne C. Turner
Expand your knowledge of energy management practices and strategies.
View Energy Management Handbook, Sixth Edition on Amazon
Show steps
  • Obtain a copy of 'Energy Management Handbook' by Wayne C. Turner.
  • Review the sections related to energy auditing, conservation, and procurement.
  • Take notes on key concepts and strategies.

Career center

Learners who complete Energy Management Economics will develop knowledge and skills that may be useful to these careers:
Energy Manager
An Energy Manager develops and implements energy management strategies to reduce costs, improve efficiency, and ensure compliance with environmental regulations. This role involves conducting energy audits, analyzing energy consumption patterns, and identifying opportunities for improvement. A course like “Energy Management Economics” helps to build a foundation in life cycle cost analysis, which is essential for evaluating the financial viability of energy-saving projects. Understanding energy rates and tariff structures, as covered in the course, enables the Energy Manager to optimize energy procurement strategies. The course's focus on energy accounting and benchmarking allows for effective performance tracking and reporting, while procurement planning equips the manager to navigate energy markets effectively.
See salaries and explore the career path for Energy Manager
Energy Auditor
An Energy Auditor assesses the energy efficiency of buildings and industrial processes, identifying areas for improvement and recommending energy-saving measures. They conduct on-site inspections, analyze energy data, and prepare reports with recommendations for clients. The “Energy Management Economics” course helps build a base in energy accounting and benchmarking, which are core skills for evaluating energy performance. The course covers the importance of understanding energy rates and tariff structures for effective energy cost analysis. The course's material on life cycle cost analysis helps in assessing the financial viability of recommended energy efficiency upgrades. Energy procurement knowledge from the course enables the auditor to advise clients on optimizing their energy purchasing strategies.
See salaries and explore the career path for Energy Auditor
Energy Analyst
An Energy Analyst examines energy data, market trends, and regulatory policies to provide insights and recommendations for energy-related decisions. They may work for utilities, government agencies, or consulting firms. The “Energy Management Economics” course prepares one for the role by offering a thorough understanding of energy rates and tariff structures, which are essential for analyzing energy costs and consumption patterns. Furthermore, the course helps build a foundational understanding in energy procurement. Life cycle cost analysis skills learned from the course are critical for evaluating the economic feasibility of energy projects. The course's content on energy accounting and benchmarking empowers analysts to assess energy performance and identify areas for optimization. Energy Analysts should find the course helpful in better understanding their day to day job.
See salaries and explore the career path for Energy Analyst
Energy Efficiency Consultant
An Energy Efficiency Consultant works with businesses and organizations to identify and implement strategies to reduce energy consumption and lower energy costs. This includes conducting energy audits, recommending energy-efficient technologies, and overseeing implementation of energy-saving projects. The “Energy Management Economics” course helps build a foundation in life cycle cost analysis, essential for evaluating the financial benefits of energy efficiency projects. The course covers energy accounting and benchmarking, which allows the consultant to assess current energy usage and track improvements. A thorough knowledge of energy rates and tariff structures, gained from the course, allows the consultant to develop strategies for lowering energy bills. The section on energy procurement helps the consultant advise clients on optimal energy purchasing practices.
See salaries and explore the career path for Energy Efficiency Consultant
Sustainability Consultant
A Sustainability Consultant advises organizations on how to operate in a more environmentally responsible manner, often focusing on energy efficiency and renewable energy adoption. They conduct assessments, develop sustainability plans, and help implement sustainable practices. This course on “Energy Management Economics” gives a solid grasp of energy accounting and benchmarking, crucial for assessing a company's current energy performance and setting improvement targets. The course also helps build a strong base in energy procurement and cost allocation. Life cycle cost analysis will enable the Sustainability Consultant to evaluate the long-term economic and environmental benefits of proposed sustainability initiatives. Understanding energy rates and tariff structures, as taught in this course, is valuable for developing cost-effective energy strategies.
See salaries and explore the career path for Sustainability Consultant
Facility Manager
A Facility Manager oversees the operation and maintenance of buildings and infrastructure, ensuring they are efficient, safe, and cost-effective. They often play a key role in managing energy consumption and implementing energy-saving measures. The “Energy Management Economics” course helps build a solid foundation in life cycle cost analysis, which is essential for assessing the long-term cost-effectiveness of facility upgrades. The course's exploration of energy rates and tariff structures helps the Facility Manager to negotiate favorable energy contracts and manage energy costs. Additionally, the course helps with energy accounting and benchmarking, enabling data-driven decisions for improving energy efficiency. An understanding of energy procurement planning, covered in the course, enables the Facility Manager to optimize energy purchasing strategies.
See salaries and explore the career path for Facility Manager
Utility Program Manager
A Utility Program Manager designs, implements, and manages energy efficiency and demand response programs for utility companies. These programs aim to reduce energy consumption, promote energy conservation, and improve grid reliability. The “Energy Management Economics” course helps build a strong foundation through its discussion of demand response programs. Also, the course helps introduce and explain energy rates and tariff structures, which are important for designing effective utility programs. These programs must be justified to the utility and its customers, and must make economic sense. Those who take the course will better understand how to achieve these outcomes.
See salaries and explore the career path for Utility Program Manager
Energy Trading Analyst
An Energy Trading Analyst monitors energy markets, analyzes price trends, and makes trading decisions to maximize profits for energy companies or financial institutions. This typically requires an advanced degree. Since energy is bought and sold just like any other commodity, Energy Trading Analysts must understand its economics. The “Energy Management Economics” course helps by covering energy rates and tariff structures, which provides a foundation for understanding energy pricing. Furthermore, it helps by covering energy procurement, which is directly related to energy trading. An Energy Trading Analyst is also expected to understand energy balance sheets.
See salaries and explore the career path for Energy Trading Analyst
Sustainability Manager
A Sustainability Manager leads and coordinates an organization's sustainability initiatives, focusing on environmental performance, social responsibility, and economic viability. The “Energy Management Economics” course may be useful in understanding energy accounting and benchmarking, which are important for tracking and reporting on energy-related sustainability metrics. The course contributes to understanding life cycle cost analysis, which helps in evaluating the financial implications of sustainability projects. Furthermore, knowledge of energy procurement planning, covered in the course, allows the manager to develop sustainable energy purchasing strategies.
See salaries and explore the career path for Sustainability Manager
Renewable Energy Project Developer
A Renewable Energy Project Developer identifies, assesses, and develops renewable energy projects, such as solar, wind, and hydro power facilities. This role involves feasibility studies, financial modeling, and securing necessary permits and financing. The “Energy Management Economics” course may be useful in life cycle cost analysis, which is critical for evaluating the economic viability of renewable energy projects. The course also touches on different financing options, which is valuable for securing funding for these projects. An understanding of energy rates and tariff structures, as covered in the course, enables the developer to negotiate power purchase agreements effectively.
See salaries and explore the career path for Renewable Energy Project Developer
Sustainability Coordinator
A Sustainability Coordinator assists in developing, implementing, and monitoring sustainability programs within an organization. They often work on projects related to energy efficiency, waste reduction, and resource conservation. The “Energy Management Economics” course may be useful because it covers energy accounting and benchmarking, which are important for tracking and reporting on energy-related sustainability metrics. The course helps build valuable fundamental skills through its discussion of life cycle cost analysis, which is useful when evaluating the financial implications of sustainability projects. A Sustainability Coordinator would benefit from the course's discussion on energy procurement planning.
See salaries and explore the career path for Sustainability Coordinator
Corporate Social Responsibility Manager
A Corporate Social Responsibility Manager develops and implements strategies and initiatives that align a company's operations with social and environmental goals. The “Energy Management Economics” course helps by providing an introduction to energy procurement and energy cost allocation planning. These concepts can be used to achieve various social responsibility goals. The course may also be useful in energy accounting and benchmarking activities, since CSR initiatives must be measurable and verifiable. Knowledge of energy rates and tariff structures helps CSR managers to make prudent decisions.
See salaries and explore the career path for Corporate Social Responsibility Manager
Smart Grid Engineer
A Smart Grid Engineer designs, develops, and implements advanced technologies and systems to improve the efficiency, reliability, and security of the electrical grid. The “Energy Management Economics” course includes a discussion of demand response programs, which is useful to Smart Grid Engineers. In order to design smart grids, one needs to know about energy rates, since these economic incentives drive smart grid adoption. The course is particularly useful, since it covers energy rates and tariff structures. It examines energy consumption and demand, as well as demand calculation methods.
See salaries and explore the career path for Smart Grid Engineer
Carbon Footprint Analyst
A Carbon Footprint Analyst measures and analyzes the total greenhouse gas emissions caused by an organization, event, product, or individual. To perform this analysis, one needs to understand various economic incentives and programs related to energy. The “Energy Management Economics” course helps by providing training on energy accounting and benchmarking, which provides a good background for assessing energy-related emissions. The course may also be useful because it covers energy procurement, which can inform strategies for reducing emissions through purchasing decisions.
See salaries and explore the career path for Carbon Footprint Analyst
Data Center Technician
A Data Center Technician maintains the hardware and software systems that support an organization's data. Many data centers are very large, using as much electricity as a small city. Given that data centers are energy hogs, Data Center Technicians should know how energy use is billed. The “Energy Management Economics” course may be useful to this role, since it discusses how utilities are billing energy consumption. It helps technicians understand the difference between energy consumption and demand. The course also may be useful because it delves into different types of tariff structures and how to read and analyze an energy bill.
See salaries and explore the career path for Data Center Technician

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Energy Management Economics.
Cover image
Engineering Economy
Save
Standard textbook for engineering economics courses. It provides a comprehensive overview of the principles and techniques used to evaluate the economic feasibility of engineering projects. It is particularly helpful for understanding life cycle costing analysis and capital budgeting techniques. This book is commonly used as a textbook at academic institutions.
Basics of Engineering Economy
Paperback
$$
Loose Leaf for Engineering Economy
Loose Leaf
$$$
Engineering Economy
Hardcover
$$$
Basics of Engineering Economy
Hardcover
$$$
Engineering Economy
Hardcover
$$$
Engineering Economy
Hardcover
$$
Basics of Engineering Economy
Hardcover
$$
Connect Access Card for Engineering Economy
Printed Access Code
$$
Engineering Economy
Mass Market Paperback
$$
Engineering Economy Student Text with OLC Passcode...
Hardcover
$$$$
Energy Management Handbook, Sixth Edition
Save
This handbook provides a comprehensive overview of energy management principles and practices. It covers a wide range of topics, including energy auditing, energy conservation, and energy procurement. It useful reference tool for energy managers and professionals. adds more breadth to the existing course.
Energy Management Handbook, Sixth Edition
Paperback
Check
Energy Management Handbook, Sixth Edition
Kindle Edition
Check

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Course image
Rating
4.3 Filled star Filled star Filled star Filled star Empty star
Effort
5.5 total hours
Via
Udemy
Instructor
Abdelhameed Qotb Ali
Language
English
Traffic lights
Read about what's good
what should give you pause
and possible dealbreakers
Provides a foundational understanding of energy management economics, making it suitable for individuals with both technical and non-technical backgrounds seeking to enter the energy management field
Covers life cycle costing analysis, which is a crucial skill for evaluating the long-term economic viability of energy efficiency projects and making informed investment decisions
Explores various capital budgeting techniques, such as Net Present Value, Payback Period, and Internal Rate of Return, which are essential for evaluating and prioritizing energy projects
Examines energy rates and tariff structures, enabling learners to understand how utilities bill energy consumption and to analyze energy bills for potential cost savings
Discusses energy accounting and benchmarking, which are important for tracking energy performance, identifying areas for improvement, and comparing a facility's performance against industry standards
Addresses energy procurement planning in different energy markets, which is relevant for organizations seeking to optimize their energy purchasing strategies and manage energy costs effectively
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