This document summarizes a research paper that presents a methodology for cycle-accurate simulation of energy dissipation in embedded systems. The methodology tightly couples component models to enable accurate estimates of performance and energy consumption within 5% of hardware measurements. The simulator can be used to explore hardware design alternatives and estimate the impact of software changes. It also includes a profiler to relate energy consumption to source code, allowing quick identification and evaluation of energy-efficient software optimizations. The tools were tested on an industrial application called the SmartBadge, reducing energy consumption by 77% for an MP3 audio decoder example.