Glossary
All technical terms in the ESG Business Case Calculator explained.
- Base Year
- Reference year for calculations, typically the current year. All projections start from this year's values.
- CO₂ Certificates
- Tradable emission allowances that entitle companies to emit a certain amount of CO₂. Prices are expected to rise continuously, increasing the cost of fossil fuels.
- Degree Days (Heating Degree Days)
- A measure of heating demand based on outdoor temperature. Allows normalization of gas consumption and comparison between years.
- EEG (Renewable Energy Sources Act)
- German law promoting renewable energy. Regulates feed-in tariffs and priority dispatch for green electricity.
- Emission Factor
- A coefficient indicating how much CO₂ is emitted per unit of energy carrier (e.g., kg CO₂/kWh).
- EU ETS (EU Emissions Trading System)
- European cap-and-trade system for CO₂ emissions. Affects large industrial installations and the energy sector.
- Feed-in Tariff
- Fixed compensation for feeding renewable electricity into the public grid, regulated by the EEG in Germany.
- Green Electricity
- Electricity from renewable energy sources with proof of origin. Counted as zero emissions in CO₂ accounting.
- Grey Electricity
- Conventionally generated electricity without proof of origin from renewable sources. Causes Scope 2 emissions.
- Heating Oil
- Fossil fuel for heating systems. Has a relatively high emission factor of 2.66 kg CO₂ per liter.
- LPG (Liquefied Petroleum Gas)
- A propane and butane mixture used as heating fuel. Causes CO₂ emissions and is subject to CO₂ pricing.
- Natural Gas
- Fossil energy source for heating and process heat. Emits 0.201 kg CO₂ per kWh and is subject to the nEHS.
- nEHS (National Emissions Trading System)
- German system for CO₂ pricing of fuels like natural gas and heating oil. The CO₂ price is being gradually increased.
- Network Fees (Grid Charges)
- Fees for using the electricity and gas grid. They make up a significant portion of energy prices and typically increase annually.
- Own Generation
- Electricity from own renewable installations (e.g., solar PV, wind). Reduces grid electricity costs and CO₂ emissions.
- Projection Period
- Timeframe for cost projections, default 20 years. Shows the long-term development of energy costs.
- Scope 1 (Direct Emissions)
- CO₂ emissions from own combustion processes such as natural gas, heating oil, or LPG. These occur directly at your facilities.
- Scope 2 (Indirect Emissions)
- CO₂ emissions from purchased electricity and district heating. The amount depends on the electricity mix and green electricity share.