Certified Energy Manager Practice Exam 2025 – Complete Test Preparation

Question: 1 / 400

What does the term "grid parity" refer to in energy management?

The cost of energy from the grid

When renewable energy costs equal grid prices

The term "grid parity" refers specifically to the situation when the cost of energy generated from renewable sources, such as solar or wind, becomes equal to or less than the price of energy sourced from the conventional grid. When renewable energy costs reach this point, it indicates a significant milestone in the energy sector, as it makes renewables a more competitive option without the need for subsidies or incentives.

Reaching grid parity not only encourages the adoption of renewable energy technologies but also promotes a shift away from fossil fuels, contributing to environmental sustainability. This concept is crucial in energy management as it highlights the economic viability of investing in renewable energy and signifies a transition toward a more sustainable energy future.

Other options do not capture this specific definition. The cost of energy from the grid is a broader concept that does not imply a comparison with renewable energy costs. The reduction in energy prices overall does not specifically address the relationship between renewable energy and the grid. The notion that all energy sources become equal is an oversimplified interpretation and does not reflect the particular context of pricing and competitiveness that grid parity embodies.

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The reduction in energy prices overall

The point at which all energy sources become equal

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