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Stimulus Bill Has Billions for Smart Grids

February 19, 2009 By Tod Newcombe, Editor

President Barack Obama signed the $787 billion stimulus bill in Denver on Feb. 17, in part, to highlight the package's impact on alternative energy initiatives. Obama signed the bill after touring the Denver Museum of Nature and Science, which uses solar power. But in his remarks he also focused on another strategy to reduce reliance on fossil fuel energy production: smart grids.

"The investment we are making today will create a newer, smarter electric grid that will allow for the broader use of alternative energy," Obama said. "We will build on the work that's being done in places like Boulder, Colo. -- a community that is on pace to be the world's first smart-grid city."

The stimulus package has numerous provisions for clean energy, but the largest single investment appears to be in smart grids: $11 billion.

Smart Grids Increase Energy Conservation

Why such a big investment? Despite the huge strides in technology that have changed everything from phones to automobiles, the electric grid has remained dumb. Utilities don't make a profit by encouraging customers to consume less electricity. As a result, they haven't invested in smart technology and continue to build huge energy plants, most of which run on carbon-based fuels.

Smart grids combine a variety of technologies to help consumers reduce energy consumption. According to Earth2Tech, a smart grid enables multiple applications to operate over a shared, interoperable network, similar in concept to the way the Internet works today. These applications can include:

special meters;
wireless technology;
network technology; and
software.

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Obama Announces $3.4 Billion for Smart Grid Projects

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