Model-based decision making to support energy efficiency investments

Neves-Silva, R. (Keynote speaker)

Activity: Talk or presentationInvited talk

Description

It has been identified by many studies that the the main driver for energy efficiency is cost reduction. After an initial stage of the energy efficiency process in which we can have large reductions just by applying obvious and almost costless measures, the additional gains require the deviation of financial resources that compete with other investment possibilities, including financial investments.

The typical measures and technologies in the market for energy efficiency are, nowadays, well supported by the literature, standards, vendors and consultants. The knowledge about what is available to face each challenge in energy consumption is somehow available. Nonetheless, the lack of precise knowledge about the return on investment has been identified by market players as a major barrier to convince investors towards energy efficiency. While for the basic energy efficient measures, the rules of thumb regarding typical payback periods (and associated risk) for the investments are considered trustworthy, the return on additional investments is very much dependent on the specific aspects of each case, undermining the confidence of the investor when compared with more explained alternatives.

This keynote presents a model-based decision support methodology based on the simulation of possible investment alternatives (i.e. technical solutions) for energy efficiency. The goal is to provide the investor (with the support of a technical consultant) well supported evidence on the source of each cash-flow item. The proposed approach has been applied in the scope of two European projects, the first in energy efficiency in office buildings, and the second in energy efficiency in manufacturing plants.
Period2 Jul 2015
Event title2015 KES International Conference on Sustainability in Energy and Buildings: null
Event typeConference
LocationLisboa, Portugal
Degree of RecognitionInternational