Environmental Engineering Reference
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customer projects its ability to reduce its electricity usage on the following day through a
bid in the electricity market.
Industrial customers use energy for manufacturing and processing of goods including
food, paper, chemicals, refining, iron, steel, and nonferrous metals. Non-manufacturing
sectors such as agriculture, mining, and construction also rely on electricity for their
industrial activity (EIA 2011 ) . Industrial energy use varies by region, sector, and the
energy intensity of the industrial processes. Electricity makes up roughly 14 percent of
total industrial energy use, because many industries use liquid fuels, coal, and natural gas
directly. Some energy-intensive industries which use a lot of electricity, such as aluminum
smelting, have been strategically sited in areas with low electricity prices and reliable
hydropower (EIA 2011 ) . The ability of industrial customers to decrease or shift their
electricity use depends on the type of process, as well as other technical and economic
considerations.
Industrial customers may also worry about data privacy concerns posed by smart grid,
fearing that energy use could reveal sensitive and confidential business information to
competitors. While smart grid may give industrial consumers more control of their energy
use, it also might present new risks.
4.4.4 Municipalities, Universities, Schools, and Hospitals
(MUSH)
Another important electricity consumer group is public building managers. Public
buildings and facilities have unique capabilities, limitations, and interests with regard
to smart grid. Municipal and state buildings, universities, colleges, K-12 schools, and
hospitals (often abbreviated as MUSH) are important electricity customers, with unique
patterns of demand and use. Due to their public function, these buildings also have a
demonstration quality that is different than privately owned residential or commercial
buildings. Tight public sector budgets motivate these consumers to reduce electricity use
and save money on energy expenditure. However, their ability to manage their energy use
can be limited by their institutional capabilities, which vary significantly. For example,
the University of Minnesota manages 857 buildings with 27.8 million square feet and is
Xcel Energy's twelfth-largest customer. The university has an energy management office,
runs its own steam generation plants, and monitors real-time electricity use in every
building on the Twin Cities campus. The energy management team is actively engaged
with energy management and in regular contact with the utility. Compared to a small rural
hospital or elementary school, the university possesses a greater institutional capacity to
take advantage of smart grid opportunities.
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