President Obama Announces $3.4 Billion for Smart Grid Development

November 4th, 2009 BY njkaters | No Comments

President Obama unveiled $3.4 billion in federal grants last week that will benefit
more than 100 recipients working to create dynamic
electrical grids. These American Reinvestment and Recovery Act grants will be
matched by nearly $4 billion in private funds to ensure industrial commitment
to “smart” grids. The biggest winners in this grant program are 39 recipients
that will use $2.2 billion from the government to ensure integrated utility
systems. The grant program will also assist 31 recipients with $818 million in
grants to create better electrical metering.

The latest infrastructure initiative by the Obama
administration will use these grants for four purposes.  The creation of “integrating and crosscutting”
electrical grids is contingent on getting regional utilities, city agencies and
consumers to use compatible equipment. This grant program features $1 billion
to help utilities and city agencies educate consumers on energy savings methods ranging
from appliance programming to off-peak pricing. An additional $400 million will
be mobilized to create monitoring devices and ensure the efficient delivery of
energy to customers throughout the United States. The final $26 million will be
delivered to manufacturers focusing on “smart” products including substations
and appliances.

President Obama highlighted several goals for the $3.4
billion “smart” grid development plan. The primary purpose of this program is
to create reliable electrical grids to stave off $150 billion in lost energy
per year. The federal government and grant recipients will aim for 200,000 new
transformers, 700 substations, 40 million meters and a million home electric
displays to achieve measurable gains in grid reliability. Utilities involved in this grant
program will be able to monitor customers more carefully to determine surges
and blackouts due to vehicle charging. The White House ultimately wants its
alternative fuel grants to create 20% of the nation’s energy from sustainable
sources in the next 11 years.

The latest use of recovery funds to develop sustainable
infrastructure and encourage smarter energy use will be beneficial to hybrid and EV
producers. As homes are equipped with chargers and appliances, consumers will
become more comfortable with the lingo of energy savings. This heightened
awareness of one’s energy use should make consumer feel at home with vehicles
rechargeable at home and work. Automakers like Ford, Toyota and Fisker
Automotive have taken federal grants and loans to match impending demand for
cleaner vehicles. The goal of reliable electricity is something that should not
be lost in these goals and figures. The infrastructure for sending electricity
from plant to home must be streamlined to make effective use of every watt
produced; otherwise, the ideas of sustainability and clean transportation are revealed as facades. 

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