The Smart Grid Is Awarded $3.4 Billion By The Recovery Act

The Smart Grid was given an additional $3.4 billion stimulus, to fund a hundred projects nationwide, by President Obama Wednesday. The amount was the largest one day stimulus award.

The grid is meant to modernize the old energy infrastructure into a infrastructure that is more “flexible”. Where it is easy for energy to “get on and off” the energy grid, sort of like the internet.

This grid will add many jobs to the economy, bring our energy infrastructure to the 21st century and help pollution and fossil fuel consumption.

WBAL NBC Baltimore reported that Baltimore-based Constellation said it will receive $200 million of that stimulus money to manufacture and install 2 million smart meters for commercial and residential purposes.

WBAL NBC:

The high-tech meters will allow customers to better manage electricity use and save money by using power at off-peak times. BGE said it believes the system can save consumers $2.6 billion over the life of the project.

"Based on how many kilowatt hours you save, you'll get a reduction in your bill. That helps us reduce the cost of energy we buy because we're not buying it at that very high price," said BGE spokesman Ken Defontes.

BGE said smart grid technology will enhance capabilities to avoid brownouts and blackouts and, when they do occur, the company will immediately know the location.

The meters for electricity and gas are designed to automatically measure energy usage hour by hour and let customers know when prices are higher.

During pilot programs in 2008 and 2009, BGE said participating customers received a phone call, a text message or an e-mail a day before an expected peak period. They also received a rebate on their bills if they adjusted their thermostat, appliance usage or turned off electronics such as TVs and computers.

"The average customer savings during the summer months was $115 -- a significant savings for making modest changes," said BGE spokesman Mark Case.

The smart grid does come with a lot of issues.

• regulatory environments that don't reward utilities for operational efficiency
• consumer concerns over privacy
• social concerns over "fair" availability of electricity
• social concerns over Enron style abuses of information leverage.
• concerns over giving the government or energy companies mechanisms to control the use of all power using activities.

Even though there are a lot of moral, political and Constitutional obstacles in the way, it looks like we are going to get it, whether we like it or not.

The Smart Grid became U.S. public policy under President BushPresident Bush, with passage of the Energy Independence and Security Act of 2007. The law, Title13, sets out $100 million in funding per fiscal year from 2008–2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of demand response and to recommend needed protocol standards.

The Energy Independence and Security Act of 2007 directs the National Institute of Standards and Technology to coordinate the development of smart grid standards, which FERC would then distribute through official rulemakings.

Smart grids received further support with the passage of the American Recovery and Reinvestment Act of 2009, which set aside $11 billion for the creation of a smart grid. So far President Obama has only awarded $3.4 billion.

More to come.