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What is CEA?

To evaluate the economic soundness of energy efficiency investments in buildings, cost-effectiveness analysis or CEA can be used. A CEA calculation will produce the culation is virtual in the sense that it was never consumed but rather saved due to some energy efficiency investment being made. Thus CEA allows comparing the price of negawatts with price of energy such as electricity from the grid or the cheapest renewable alternative. The benefit of the CEA approach in energy systems is that it avoids the need to guess future energy prices for the purposes of the calculation, thus removing the major source of uncertainty in the appraisal of energy efficiency investments.

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