According to government sources, the United States plans to announce the formation of the International Smart Grid Action Network, or ISGAN, to expand the U.S. energy market through smart grid standardization and take the lead in the new energy business. The Obama administration is expected to make the announcement at the first ministerial meeting on clean energy to take place in Washington, D.C. on July 19-20.

The Network will consist of the United States and other as-of-yet unnamed countries, although South Korea and Italy are also expected to become core members of the organization, and it’s believed Japan is also considering taking part in the new organization. In South Korea, the government and the private sector are working together to promote clean energy through nuclear power and Italy has successfully implemented the widespread use of smart meters.

ISGAN is a framework for high-level coordination among governments on a voluntary basis to speed up the global development of smart grids and the countries comprising the Network will work closely with the International Energy Agency and the International Organization for Standardization, along with other related organizations, to develop a plan of action.

A government source told Kyodo News: “We anticipate broad membership among major economies and other smart grid innovators. Membership is open to interested national-level governments. They can choose to participate in specific ISGAN activities on a voluntary basis where they see added-value for themselves, taking into account their national circumstances.”

It’s expected ISGAN will be launched with an $8 million annual budget, the cost to be split evenly among the participating networks. Working panels will be created to focus on specific areas such as the promotion of an international standard and research and development of new technology.

The Obama administration has made the smart grid a priority, earmarking $3.4 billion in the form of government grants to fulfill the plan. A recent U.S. Energy report indicates that complete penetration of smart grid technology in the United States could lead to an 18 percent reduction in carbon dioxide emissions by 2030 in the country.