Environmental Engineering Reference
In-Depth Information
4.4.2 Commercial Electricity Consumers
Businesses use electricity differently than residential customers. For some businesses
electricity is a major expense, while for others it is a minor cost. Interest in smart grid
varies considerably depending on the type of business and how much electricity the
company uses. Some firms may have the ability to shift energy use to different times
of day and take advantage of different electricity pricing options, but others with fixed
hours may not have that flexibility, making the demand management capabilities of smart
grid less appealing. For example, a small independent lunchtime restaurant selling panini
sandwiches toasted on an electric grill may have little ability to shift its electricity use,
while a large commercial mall may have an easier time managing and reducing electricity
use during specific times of peak use.
Commercial building energy use is important and some firms are strategically engaging
in energy management. Ikea, Kohls, and other commercial firms are using investment
in green energy to bolster their reputations. For example, Walmart has announced plans
to increase renewable energy production by 600 percent from 2010 levels and plans to
produce 7 billion KWh every year, with a 2020 goal of being 100 percent powered by
renewable energy. The company plans to install solar PV on 1,000 rooftops (200 are under
development now), as well as to decrease the energy intensity of their retail buildings by 20
percent and increase the use of energy-efficient LED lighting. The primary driver of these
changes is cost savings, but the company recognizes the added bonus of the sustainability
goals (Walmart
2013
). Walmart is leasing rooftop PV systems from SolarCity and other
emerging renewable energy companies.
4.4.3 Industrial Electricity Consumers
Of the different consumer classes, consumers in the industrial sector are farthest along
in already reaping benefits from smart grid. Many industrial consumers already have
real-time, time-of-day, or time-of-use pricing and have interruptible power contracts which
allow their utilities to interrupt service in exchange for lower rates. Some industrial
consumers may reduce their electricity usage by turning off equipment at certain times
while others may run backup distributed generators to make up for the lost power. Some
large industrial customers also generate their own electricity through distributed
generation, such as combined heat and power systems or onsite renewables, and some also
participate in regional electricity markets. While almost all utilities use emergency demand
response with their large industrial customers, in some regions of the United States, such as
thosewithintheNewEnglandRTOorthePJMRTO,industrialcustomerscanparticipatein
market-based demand response programs. These programs link large industrial customers,
and often third-party demand response aggregators, to RTO energy markets. The industrial
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