Heating degree days Definition & Meaning | Energy Term | CSIMarket
CSI Market
Sign In | Register

Glossary

Heating degree days

Energy Term

Heating degree days (HDD) is a measure that is used to estimate the amount of energy required to heat a building or a room. It is based on the difference between the daily average temperature and a set reference temperature, usually around 65 degrees Fahrenheit (18.3 degrees Celsius).

To calculate HDD, the daily average temperature for a given period is subtracted from the reference temperature. Any negative value is ignored (i.e., set to zero), as this indicates that the average temperature was above the reference temperature and no heating was required. This process is repeated for each day in the period, and the resulting values are summed to give the total HDD for that period.

In the energy industry, HDD is used to estimate the demand for heating fuel (e.g., natural gas, heating oil) during the colder months of the year. By tracking the total HDD for a given region over time, energy companies can predict when and how much heating fuel they will need to supply to their customers. This can help them to better manage their inventory, avoid shortages, and ensure that prices remain stable.

HDD can also be used to evaluate the energy efficiency of buildings and to compare the heating requirements of different regions. A building that has high HDD values (i.e., requires a lot of heating) may be less energy-efficient than one with lower values, which could indicate the need for insulation or other improvements to reduce heat loss. Regional differences in HDD can also affect the choice of heating systems or fuel types, as some may be better suited to colder climates than others.


More Glossary Terms Beginning with H
  • Haircut
    With respect to each Transaction, if the Purchase Price is less than par, an amount equal to the difference between par and the Purchase Price, which shall be considered a ?settlement payment? as defined in Bankruptcy Code Section 741(8).
    Financial Term Letter: H
  • Hazard Ratio HR
    The relative likelihood of experiencing a particular event. In a survival study, this is the relative likelihood of death. A hazard ratio (HR) of 0.5 indicates that one group has half the risk of the other group.
    Health Care Term Letter: H
  • HDL Cholesterol
    high density lipoprotein associated with cholesterol.
    Health Care Term Letter: H
  • Headcount-Related Expense
    Includes salary and benefits (excluding performance-based incentives), and other noncompensation costs related to employees.
    Financial Term Letter: H
  • Heating degree days
    A measure of the number of degrees the average daily outside temperature is below 65 degrees Fahrenheit.
    Energy Term Letter: H
  • Heavy Crude Oil
    A relatively inexpensive crude oil characterized by high relative density and viscosity. Heavy crude oils require greater levels of processing to produce high value products such as gasoline and diesel fuel.
    Energy Term Letter: H
  • Hedge
    Establishing an opposite exposure position in a futures or OTC market by means of an option, swap or futures contract from that held and priced in a physical commodity or financial market. Without hedging, the physical or financial exposure would be at risk to price or rate fluctuations.
    Financial Term Letter: H
  • Hedge Fund-Linked Derivatives
    are derivative instruments, the value of which is primarily linked to the price movement of a hedge fund, hedge fund index or hedge fund futures or option contract.
    Financial Term Letter: H
  • Hedging
    The use of derivative commodity and interest-rate instruments to reduce financial exposure to commodity price and interest-rate volatility.
    Financial Term Letter: H
  • Hematopoietic Stem Cells
    Stem cells that give rise to all the blood cell types including myeloid (monocytes and macrophages, neutrophils, basophils, eosinophils, erythrocytes, megakaryocytes/platelets, dendritic cells), and lymphoid lineages (T-cells, B-cells, NK-cells).
    Health Care Term Letter: H
  • Hemodialysis
    pertains to the use of a machine to clean wastes from blood after the kidneys have failed. The blood flows through a device called a dialyzer, which removes the wastes. The cleaned blood then flows back into the body.
    Health Care Term Letter: H
  • Hemofiltration Hemofiltrate
    "Hemofiltration" is a continuous dialysis therapy in which blood is pumped through a hollow-fiber cartridge and the liquid portion of blood containing substances is removed into the sink department. The liquid portion of the blood ("hemofiltrate") is discarded.
    Health Care Term Letter: H