Smart Spending on a Smart Grid
Nov 1, 2010 12:00 PM

By Cathy Swirbul, Contributing Writer

Transmission & Distribution World profiles the utilities receiving the top smart grid investment grants. Their smart grid projects are the foundation on which other projects nationwide will be built.

In October 2009, the U.S. federal government awarded $3.4 billion in investment grants for 100 smart grid projects through the American Recovery and Reinvestment Act of 2009. Approximately 30 investor-owned utilities and an equal number of municipals were selected as recipients of the grants, along with a few cooperative utility projects involving dozens of individual co-ops in different states. Industry will match the federal grants for a total investment of more than $8 billion, according to the Department of Energy (DOE).

Specifically, the grant program provides $1 billion for the installation of smart meters and related customer programs that will enable communication between utilities and customers. Approximately $2 billion is allotted for the infrastructure required to support networks of smart grids. Another $400 million will be used to modernize transmission lines, both to limit the losses during transmission and to allow greater long-distance transportation of power. An additional $25 million is earmarked for the development of smart device manufacturing capabilities.

All of the projects receiving the investment grants must be executed by April 19, 2013. The DOE will distribute the grant funds as project work progresses over that time period. As a stipulation of the funding, the companies submit detailed monthly progress reports that include schedule and cost updates to ensure that the work is being completed on schedule and within budget. On a quarterly basis, the companies must report on the number of jobs created. Semi-annually, they must identify the benefits realized from the projects. After April 2013, the companies must report on the project benefits up to two years after completion.

All of the states, with the exception of Alaska, have smart grid projects that received investment grants. The majority of the awardees were utility companies, though hundreds of technology solutions companies will benefit from increased business with utility clients because of the grant funds.

Smart Grid Benefits

In announcing the smart grid investment grants, Energy Secretary Steven Chu explained in a press release how the United States will benefit from smart grid.

“These investments will be used to develop a smart, strong and secure electrical grid that will help integrate renewable resources onto the grid, deliver power more reliably and effectively with less environmental impact, and create new jobs across the country,” said Chu. “By investing in updating the grid now, we will lower utility bills for American families and businesses, lessen our dependence on oil and help advance a clean energy future for the nation.”

more: http://tdworld.com/iep/smart-grid-spending-20101101/