Research
Internal Process Perspective
Energy Reinvestment Index
Performance indicator:
Energy Reinvestment Index
Energy Efficiency Index (E.F.I.)
Strategy for Selection:
This indicator is expressed as a percentage of the annual expenditure for energy conservation and efficiency efforts as compared to the total annual energy expenditures. This performance indicator was selected to emphasize processes and programs for investing resources to save energy. It establishes an accountability reference of energy stewardship and reflects comprehensive institutional planning with regards to overall energy efficiency planning.
Definition:
The indicator includes all expenditures for new, replacement or retrofit equipment, devices, and modifications that can be justified by cost savings in energy usage over the life of the equipment installed or retrofitted. Energy conservation efforts are generally considered to be environmentally friendly and have an associated "payback" period. Energy conservation costs need to be expressed in dollars spent in the given annual year for total energy conservation expenditures and include total labor, supplies, transportation, and other special conditions for installation. Energy Reinvestment Index can be averaged over several years to accommodate unusually large, one-time projects that would otherwise distort a multi-year trend.
Equation:
Annual Expenditure on Energy Efficiency Measures X 100
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Annual Institution Energy Expenditure
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