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This paper reviews the potentials and problems associated with using daylight both to improve visual performance and interior aesthetics and to reduce electrical lighting energy consumption and peak electric loads. Use of daylighting as a design strategy is not always synonymous with effective use of daylighting as an energy-saving strategy unless both approaches are, jointly pursued by the design team. We review criteria for visual performance, disability and discomfort glare, historical perspectives on daylight utilization, building form as a limit to daylight penetration, beam sunlighting strategies, luminous efficacy of daylight versus efficient electric light sources, comparative thermal impacts, peak load and load management potential , and non-energy benefits. Although the energy benefits of daylighting can be oversold, we conclude that in most cases a solid understanding of the energy and design issues should produce energy-efficient and pleasing working environments.