Summary
As noted in this template article, the U.S. Smart Grid initiative is poised to accelerate the development and implementation of a modernized and secure electrical grid, which is essential for delivering clean, renewable energy to American consumers, while ensuring an effective, reliable, and efficient electricity system across the U.S.
Analysis
A previous article introduced the concept and supported the notion for the development of a smart grid both here and abroad. The Department of Energy (DOE) announced the availability in June of $3.9 billion in stimulus grants for modernizing the nation's electricity grid. The majority of this funding will be composed of cost-shared grants totalling $3.3 billion to support manufacturing, buying and installing electricity transmission, and distribution technologies. The remaining $617 million will be designated for "smart grid" demonstration projects, such as installing meters that allow homeowners and utilities to track and adjust electricity use in real-time to improve U.S. energy conservation and efficiency.
Collectively, this initiative is poised to accelerate the development and implementation of a modernized and secure electrical grid, which is essential for delivering clean, renewable energy to American consumers, while ensuring an effective, reliable, and efficient electricity system across the U.S.
The maximum award for the $3.3 billion of investment grants will be $200 million; the maximum award for the $617 million of demonstration grants will be $100 million. These caps were requested to be raised by California Governor Arnold Schwarzenegger due to the preference for smaller companies to capitalize on the funds, as he believes larger utility companies are more capable of enabling smart grid technology in the marketplace if sufficient, higher funding was offered. There are many complexities that require analysis on a large scale such as the incorporation of as much as 20% of intermittent and sometimes unpredictable solar and wind power onto a local grid and the strain of numerous inverters from residential solar installations.
U.S. Energy Secretary Steven Chu announced in late July the delivery of more than $47 million in funding under the American Recovery and Reinvestment Act for eight projects to further smart grid demonstration projects in seven states. Many of these projects were already in the works and being considered by the DOE; thus, they were fast-tracked for approved funding. Secretary Chu also announced $10.5 million in Recovery Act funding available for local governments to develop emergency response plans for their electrical systems in the case of physical or cyber attack. This particular allotment is available to local governments in the form of competitive energy assurance grants ranging between $60,000 and $300,000. The funding will facilitate cities and counties in Green job creation, while developing comprehensive emergency preparedness plans in the case of energy and supply disruptions, which have caused severe economic, health and safety consequences for citizens and business enterprise in the past. Furthermore, this funding adds to the nearly $40 million previously announced for state-level energy assurance planning. The official Local Energy Assurance Planning funding announcement is listed here. As of yet, Arizona has not reportedly received any stimulus money for smart grid projects, as confirmed at the official state stimulus site. The next deadline for smart grid stimulus grant applications is Aug. 26, and the details have been published at this site.
A follow-up article will be published on this main site next week concerning specific smart grid stimulus projects associated with innovations in materials technology and large-scale utility operations in addition to a review of non-stimulus smart grid developments in Arizona.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
