Industry Terminology Guide - Power Management

Understanding the Energy Market: Industry Terminology Guide

The energy industry is constantly evolving, and so is the language that surrounds it. Whether you’re managing your organization’s energy strategy or simply reviewing a utility bill, understanding key energy terms is essential. This glossary is designed to help you navigate the terminology, empowering you to make more informed and confident energy decisions. Power Management is here to help you understand and navigate the complex, ever-changing energy market—serving as your trusted partner every step of the way.

  • AC Level 1 Charger: A basic EV charger that uses a standard 120-volt outlet, typically providing 3-5 miles of range per hour of charging, making it suitable for residential use.

  • AC Level 2 Charger: A charger that operates on a 208-240 volt circuit, commonly installed in commercial and public settings, delivering 10-20 miles of range per hour and requiring approximately 3-8 hours for a full charge.

  • Benchmarking: The process of comparing a facility’s energy performance against similar buildings or industry standards to identify areas for improvement.

  • Capacity: The maximum amount of electrical power that a system or facility can produce or deliver at a given time, often used to determine charges based on peak usage demand.

  • Capacity Tag Management: The process of managing and potentially reducing capacity charges on an electricity bill by controlling peak demand, which can lead to cost savings.

  • ChargePoint Network: A widely recognized EV charging network that offers hardware and software solutions for charging station management, providing users with access to a vast number of charging stations.

  • Charging Load: The amount of electrical power, measured in kilowatts (kW), that a charging station delivers to an electric vehicle during charging.

  • Charging Range per Hour: The estimated number of miles an electric vehicle can travel based on one hour of charging at a specific charger type.

  • Charging Station Utilization: The frequency and extent to which an EV charging station is used, which can impact operating costs and potential revenue generation for station owners.

  • Community Solar: A program that allows multiple participants to benefit from a single, shared solar energy system, typically located off-site. Subscribers receive credits on their electricity bills for their share of the power produced, enabling access to solar energy without installing panels on their property.

  • DC Fast Charger (DCFC) Level 3: Also known as “Super Chargers,” these provide rapid charging by converting AC power to DC within the charging station, offering charging capacities exceeding 150 kW per port and significantly reducing charging times.

  • Demand Charges: Fees imposed by utilities based on the highest level of power a customer uses during a billing period, reflecting the cost of maintaining capacity to meet peak demand.

  • Electricity Generation: The process of producing electrical energy from various sources such as natural gas, oil, coal, nuclear, and increasingly, renewable resources like solar and wind.

  • Efficiency and Sustainability Initiatives: Projects aimed at reducing energy consumption and promoting environmental responsibility, such as lighting upgrades or solar installations, which provide a timely return on investment and long-term savings.

  • Energy Audit: A systematic assessment of a facility’s energy use aimed at identifying opportunities to improve efficiency and reduce costs.

  • Energy Efficiency Measures (EEMs): Actions or technologies implemented to reduce energy consumption while maintaining the same level of service or output.

  • Energy Mix: The combination of different energy sources used to generate electricity. In the U.S., this includes traditional sources like natural gas, oil, coal, nuclear, and a growing share of renewables such as solar and wind.

  • Energy Procurement: Energy procurement is the strategic purchasing of electricity and natural gas to minimize costs, often involving analysis of market conditions, pricing trends, and supplier options.

  • Energy Strategy Development: Crafting a long-term plan to manage energy consumption and costs effectively, aligning with a company’s budget and sustainability objectives.

  • ESCO (Energy Services Company): A company that provides a range of energy solutions, including the supply of electricity or natural gas, energy efficiency improvements, and infrastructure upgrades. ESCOs often offer customized plans to help businesses reduce energy costs and consumption, sometimes through performance-based contracts where savings are guaranteed over time.

  • Fixture Retrofit: The process of upgrading existing lighting fixtures with more energy-efficient components, such as replacing incandescent bulbs with LEDs, to improve performance and reduce energy consumption.

  • Incentive Coordination: Assistance in identifying and applying for financial rebates, incentives, and tax deductions available for energy-efficient lighting projects to offset costs.

  • Investment Tax Credit (ITC): A federal incentive that allows businesses to deduct a percentage of the cost of installing a solar energy system from their taxes. The ITC percentage varies by year and is designed to encourage investment in renewable energy.

  • Kilowatt (kW): A unit of power equal to 1,000 watts, commonly used to measure the rate at which electricity is used or produced.

  • Kilowatt Hours (kWH): Kilowatt-hour (kWh): A unit of energy representing the consumption of one kilowatt of power over the span of one hour, commonly used for measuring electricity usage on utility bills.

  • LED Lighting: Light-emitting diode (LED) technology that offers high energy efficiency and longevity compared to traditional lighting, leading to significant cost savings and reduced maintenance.

  • Low-Cost Power Allocation (ReCharge NY): Is a New York State economic development program that provides qualifying customers with allocations of low-cost electricity to support business growth and job creation.

  • Lumen Depreciation: The gradual decrease in light output from a lamp over time, which is less pronounced in LED lighting compared to traditional bulbs, contributing to longer effective lifespans.

  • Megawatt (MW): A unit of power equal to 1,000 kilowatts or 1 million watts, typically used to describe the capacity of large power plants or the energy usage of industrial facilities.

  • Natural Gas Distribution: The delivery of natural gas to end-users by local utility companies, which manage the infrastructure to ensure safe and reliable supply.

  • Natural Gas Transmission: The transportation of natural gas from production sites to consumption areas through a network of pipelines operated by transmission companies.

  • Net Metering: A billing mechanism that credits solar energy system owners for the electricity they add to the grid. If the system produces more electricity than is consumed on-site, the excess energy is sent to the grid, and the owner receives credits that can offset future electricity bills.

  • Occupancy Sensors: Devices that detect the presence of people in a space and automatically control lighting, turning lights on or off to conserve energy when areas are unoccupied.

  • On-Site Solar Generation: The installation of solar panels at a business’s own facility to generate electricity directly for on-site use. This approach provides control over energy production, reduces electricity expenses, and supports sustainability objectives.

  • Power Purchase Agreement (PPA): A financial arrangement in which a third-party developer owns, operates, and maintains a solar energy system, while a business agrees to host the system on its property and purchase the generated electricity at a predetermined rate, often lower than the local utility’s rate.

  • Rate Class: A category assigned by utilities that determines the pricing structure for a customer’s energy consumption, based on factors like usage patterns and business type.

  • Renewable Energy Certificates (RECs): Tradable certificates that verify the generation of one megawatt-hour (MWh) of electricity from a renewable energy source. Businesses can purchase RECs to claim the environmental benefits of renewable energy generation, even if they cannot produce the energy on-site.

  • Solar Array: A collection of multiple solar panels that work together to capture sunlight and convert it into electricity. Arrays can vary in size and are configured to meet the specific energy needs of a business or community.

  • Solar PV System (Photovoltaic System): A renewable energy system that converts sunlight directly into electricity using solar panels composed of photovoltaic cells, often used to offset a building’s energy consumption or reduce utility costs.

  • Supply Charges: The portion of an energy bill that reflects the cost of the electricity or natural gas consumed, which can be procured from various suppliers.

  • Tariff: A document outlining the rates, charges, and terms of service between a utility and its customers, approved by regulatory agencies.

  • Therms/Dth: Units used to measure natural gas consumption. One therm equals 100,000 British thermal units (BTUs), while one dekatherm (Dth) equals 10 therms, or 1,000,000 BTUs. These units help quantify the amount of energy provided by natural gas and are commonly used for billing and energy usage analysis.

  • Turn-Key Solution: A complete service package that includes all aspects of a lighting upgrade project, from initial assessment and design to installation and post-installation support.

  • Virtual Net Metering: An arrangement that allows energy credits from a solar installation located off-site to be applied to a customer’s electricity bill, enabling participation in community solar programs and access to renewable energy benefits without on-site installations.

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