How is annual energy savings calculated according to the Power Law?

Annual energy savings according to the Power Law involves assessing the potential reduction in energy use that can be achieved when reducing the operating hours of equipment. This method emphasizes the importance of not just the capacity of the equipment but also how effectively and efficiently it is used over time.

When calculating annual energy savings, one can start by determining the equipment's capacity and then consider how many hours per year that equipment operates at full capacity. By applying the expected reduction in operating hours, the formula effectively highlights the relationship between usage patterns and energy consumption—indicating that less operational time directly leads to reduced energy expenditure.

This approach is particularly useful in energy efficiency programs where understanding the impact of operational habits can drive better decision-making for energy conservation measures. It emphasizes proactive management of equipment usage rather than merely focusing on consumption figures.