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Heating Degree Day - HDD

What does Heating Degree Day - HDD mean?

A statistics used to monitor the energy consumption required to heat buildings. Heating degree day (HDD) is a measure of outside air temperature compared to a specific base inside room temperature. It measures both how much (in degrees), and for how long (in days) outside air temperature remain lower than a specific base temperature.

Futures Knowledge Explains Heating Degree Day - HDD

Heating degree day is used to analyze the difference between outside and inside air-temperature data. The inside temperature is usually taken as a standard comfort temperature of 65 F (18 C). If the day's average outside temperature is equal to or above 65 F, this is considered no heating degree day for that 24-hour period. HDD is an index of fuel consumption and is used in the energy industry in planning building energy consumption. HDD data is useful while trading weather derivatives.

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