Smart grid gets multibillion-dollar injection

The U.S. electricity grid will get a 21st century upgrade, including installation of millions of smart meters, through a government-led program.

The Obama administration is scheduled to announce Tuesday where it is spending $3.4 billion of stimulus money on 100 smart-grid projects in 49 states. As part of the funding, utilities are contributing $4.7 billion to the projects, pushing the total spending to $8.1 billion.

Images: The many faces of the smart grid

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The injection of capital in the grid will make electricity delivery more reliable and help consumers use energy more efficiently, Carol Browner, the president's assistant on energy and climate change, said during a call with the media Monday night. Improving the infrastructure will also allow the country to use more solar and wind power, she said.

President Obama is scheduled to detail the smart-grid program awards in Arcadia, Fla., the location of one of the largest solar farms in the U.S.

The smart grid covers a range of digital devices and software. The bulk of the smart-grid stimulus grants will be spent on installing new hardware, including 18 million smart meters that have two-way communications to convey information between a home or business and the utility.

Smart meters can be used to shift the electricity load, such as running clothes driers or dishwashers, to off-peak times, which means that expensive and polluting auxiliary power plants may not need to be turned on.

The funding will also result in the installation of 200,000 more reliable advanced transformers and 700 automated substations that will be converted to digital controls, Matt Rogers, senior adviser for Recovery Act implementation at the Department of Energy, said Monday.

In addition to smart meters, over 1 million consumers will get in-home displays to provide information on electricity usage in real time and allow them to program their big appliances. The projects are expected to lead to over 130,000 network-connected thermostats as well, according to the DOE.

The DOE anticipates that the initial 18 million smart meters, which will cover 13 percent of homes, will allow utilities to use the grid more efficiently. That will lead to a higher penetration of advanced meters--as many as 40 million in the next few years, Rogers said.

The giant digital upgrade--anticipated for months--was applauded by companies trying to capitalize on grid modernization efforts, such as Cisco Systems, meter manufacturers, and a raft of start-ups that sell software or devices for the smart grid.

"These grants are an important down payment on building a smarter grid and will certainly jump-start both industry and state regulators to deploy smart-grid technologies," Katherine Hamilton, president of industry advocacy group GridWise Alliance, said in a statement.

The largest grants are $200 million while the smallest are less than $10 million. Altogether, there are 25 large-scale projects and 75 smaller ones, officials said. There were 400 applications for funding.

A list of projects by category can be found here and by state here. A map of the awarded projects can be found here.

[doubtthat]

Great, more big brother intrusion. I love how they are going to penalize us for using electricity when we actually need it but sell it to us cheaper when we don't actually need it. For example, we can wash our clothes at 2:00 in the afternoon except we aren't home at 2:00 in the afternoon, we are at work. But then even if we put the washer on a timer, who is going to put the clothes into the dryer and hang them up before they wrinkle afterward? Also, if we all switch to off peak usage, won't that become the new peak? Maybe BO can work on a schedule for us all to stagger out the usage throughout the day. Maybe I can do laundry at 2 while my neighbor does it at 2:30 and the next house down at 3?

[doubtthat]

One more thing, with plugging in all these new meters, monitors, timers, etc, how much more electricity will we be using to monitor our electricity usage?

[squished]

You are so right on the mark. It's like going to the movies... why do they have have to charge more at night when I can go with my friends yet theaters charge matinee prices when I'm still at work? Or why does the price of gas have to go up when everyone wants to use it for going on summer vacations. Or how about just about everything in the world that's sold, why does the price have to go up when demand is higher. <br /> <br />It's called Capitialism. Don't like it? Go somewhere else.

[bschmock]

@doubtthat<br /><br />Your looking at this the wrong way. Because the off peak hours are during the work day. We will certainly have gov run mandatory break times throughout each work day to leave the office will an escort of armored guards to do our energy consuming tasks such as, washing/drying cloths, running dishwasher, etc. And if we go over our limit on energy usage there will be the guards there to "escort" us to holding facilities where we can be "educated" on proper energy conserving techniques.

[doubtthat]

@squished - Your analogy is completely wrong. Movie prices are up because of limited seating. There are peaks and valleys in electric usage because people normally work 8-5. Maybe the Gov't will put us all on shifts? 1/3 of us work mornings, 1/3 of us work afternoons and 1/3 take the graveyard shift?<br /><br />Maybe before rationing electric we could look at conservation first. Maybe some of the stimulus pork could go to upgrading older homes with low-E windows, energy efficient heat pumps and A/C, energy efficient appliances? All this money spent on controlling us could be put to use reducing consumption. But then again, they wouldn't get to control us would they?

[Jonathan Monahan]

Well you could get one of those new combined washer/dryers.

[doubtthat]

@Jonathan - Is Obama going to buy it for me? Is he going to hang the clothes so they don't wrinkle? Is he going to put in the next load?

[Noswal44]

Its called Global Climate Change and Pollution, and it effects way more people than just you. Don't believe in Global Climate Change? Can even the most stuborn ignore the pollution factor. These smart grids aren't trying to "control the masses," they are trying to organize electric useage in a manner that allows for the most efficiency. The government doesn't have the time or money to "monitor electric useage" for purpose of control... They could do that already if they wanted to... the electric companies already have a monitor on your house...its called a meter. <br />It is ridiculous how many people fear efficiency and change for the sake of fearing... efficiency and change. Capitalism, based on profit, does nothing for the betterment of society. Sure, it works to get cheap electronics in our houses, but it doesn't have the capacity to be the judge of societal benefit vs. harm. Luckily we humans have brains, and when used well, they work for helping people have cleaner rather than dirtier air, etc. Grow up people.

[doubtthat]

You sir have it completely backwards. Spreading the demand out doesn't actually lessen it, it just spreads it out. Thus we are left with the same amount of pollution/CO2. Instead of spending billions on spreading demand, why don't we spend billions on lessening demand? Spend that money on energy efficient homes and businesses instead.<br /><br />For example, I had a 1,560 sq ft home that was 8 years old. I spent $220 a month on the gas and electric bill. I built a 3,320 sq ft home 2 years ago with low-E glass, SEER 15 heat pumps and use all CFL light bulbs. My electric bill (no gas) averaged $100 the first year and $110 the second year. See, less demand = less pollution.

[Noswal44]

I don't doubt your gain in efficiency after building a new house. Regardless, others are not going to do the same, but if we can spread out the useage we can rely more on renewable sources. If I use my dryer at night when fewer people are asking for energy, it is more likely that my power can be pulled from one of the Columbia River basins wind farms. If we all ask for it at the same time, we have to opt into using coal power or nuclear power. <br /><br />Reduction is obviously the key, but it simply is not available to everyone.

[cavemanthinking]

Accually there is a bigger picture here. You can say goodbye to cable companys and dsl. they will use this gateway to deliver internet as well and seeing the government paid for alot of system they will take over the worldwide web in american and beginning charging you by the usage.<br /><br />obama just sold his soul to the power company. Humanity is moving fast on technology. sad part what leads the world or makes dicissions is still neaderthal

[ChrisIreland1]

Man...no matter what Obama does, there's gonna be some whiny anti-government paranoid element. Our grid is ancient and in desperate need of an upgrade. This creates jobs and will make things more efficient. Can you people ever look at the glass as half full? <br /><br />And exactly how are they going to move the internet through electrical lines?

[i-arman]

My problem isn't that I'm anti-government. It's that I'm anti-stupid. The new meters and such that are going to be installed are a security nightmare; just read the recent articles. A proof-of-concept worm was designed that can shut down every meter in a city in minutes. As badly as the government does security, I really, really don't want it trying to install open access points that control (or even read) my power usage. <br /> <br />Yes, the grid needs an upgrade. No, we don't need "smart" meters. What we need is an upgrade at the power origin, first, then push the upgrades down the wire. Why install 500 "smart" meters, when you could install 20 "smart" transformers? Or one "smart" power plant? Sure, a power plant upgrade would cost a lot more than one smart meter, but once you figure in how many houses will need a smart meter, the power plant starts making more sense. <br /> <br />Instead of wind or solar power (which is unreliable at best, and scales miserably), how about a nice nuclear power plant? Renewable resources, low pollution, and high power output and scalability. C'mon, how hard can this be? <br /> <br />Oh, and moving "the internet" through power lines? Not as hard as you'd think - it works just like DSL, only instead of a filter between phone and network, it's a filter between house power and the network.

[ittesi259]

Wow you just claimed a nuclear plant to be a renewable resource? Maybe if the government would do something about recycling the fuel...which is NOT renewable. I'm all for nuclear power, but that was the dumbest thing I've read in a while. <br /> <br />Also please define what a "smart" power plant is. <br /> <br />Don't forget smart meters benefit utilities (I work for one in CA) which means when a customer doesn't pay I will turn their power off remotely no sending someone out, locking up all the gates won't keep it on, tying the dog to the panel won't keep it on (yes these things happen regularly).

[akasyap]

As much as I like to say conservation is the answer, most of us are never realistically going to participate in it. We live in a world that basically does not have the time or inclination to "Save the Planet." The only way to do this is to create infrastructure or everyday devices that consume less energy, while maintaining the same if not better user experience we have today. I guess an example of what I am trying to get at is a plug in electric car that you have to charge over night and has a working distance of 300 miles. It seems nice, but its useless. No one can go on a holiday with a plug in electric car. Until there is something where you go to a station, fill-up your "tank", and drive off there is no way a fully electric car is going to be useable.<br /><br />And as for big brother's intrusion, federalism is the foundation of this government and has become stronger over time, say the last 40 years. So you should have voiced your decent then. People depend on the federal government in bad times and shun it away in times of economic prosperity. That the way it is. And, if some changes come with it that, I don't know, bring about the modernization of an aging relic of an electrical grid, what the frick is your problem with that? No one is telling you when your wash your clothes you blithering idiot. Its just that this is a way to divert power away from those who do not use as much electricity to those who do at different times during the day.

[akasyap]

Are you an idiot? Or do they have pills for what you are on?<br /><br /><br />The federal government is not going to put windows in homes. Ask your state to help you with that. They are the ones receiving and applying for the stimulus doe re mi. They will pick the feasible projects. Or better yet run for Congress and make a difference.

[Fabizzlish]

You have the wrong idea of what the SMART meters are suppose to help with power usage.<br /><br />Right now there is no way for power plants to tell how much power is needed at a given moment. They are simply running at a power out-put they believe they are needed at, often quite a bit above whats needed. Installing SMART meters will allow it to relay information to the power plant and it will ask for an amount of power, to which the power plant can then adjust to, instead of running with a large over-head.<br />For this to work in any effective manner we need have these smart meters on either end, not simply one end, which is what this is going to do. We're going to get the power plants and substations fitted so they are ready (the easy part of this task), but it won't be complete until every house is fitted with a SMART meter because otherwise it can't function at it's maximum efficiency.<br /><br />We need to improve power usage on all sides, and this is just one of them. If this gets fixed now, or in twenty years won't hinder the drive for improving home's energy usage. I personally would like to see get it fixed earlier than later. And if we fix our infrastructure, make it a lot less wasteful we will then have more money, time, and energy to dedicate to other projects.

[askgees]

Another ill conceived plan by this band of misfits. LOL Obama just loves spending your money. They should name it more appropriately. The dumb grid if changing out the meters is their solution. The meter simply calculates the energy you use it?s a dumb device. Making it smart will only raise it?s failure rate and in the long run the system will be expensive and a failure. There?s no need to complicate a simple device. They need to make the delivery of elec. more efficient. Not the counting of elec. used.

[Joe Real]

No surprise there. Government just tends to count everything, from oversight committees to electricity. They can only improve it if they can count, so in the end they will hire more bean counters, and their managers, and the manager's managers. For all we know, the $8.1 Billion upgrade would just be a 8,100 pages of report with no real work done, after all the counting.

[Noswal44]

I don't really understand what people are complaining about here. This is going to be subsidized by the government, not run by it. Oil has been subsidized by the government for years. Doesn't mean the government is running it. The timber industry... subsidized.<br />What is getting subsidized is a system that will act as a liason between the customer and the power provider. It will read your meter, and charge you accordingly. What is different is that it will read it with more layers of sophistication. It will know when power is cheaper, and let you the consumer know this so that if you want, with your own free will and God given individual mind, choose to use energy when there is less demand. Lower demand=Lower fee... Capitalism, right? Breath deep. The government isn't sending soldiers in to tell you when to do the laundry.<br /><br />And all of you people complaining about government spending... please, seriously examine the defense budget. It is a lot bigger, has a lot more pork, is much harder to find information about, is has a lot more fat to cut.

[HeavyJim]

Gubmint and How Gubmint Works<br /><br />Once upon a time the government had a vast scrap yard in the middle of a desert. Congress said, "Someone may steal from it at night." So<br />they created a night watchman position and hired a person for the job.<br /><br />Then Congress said, "How does the watchman do his job without<br />instruction?" So they created a planning department and hired two<br />people, one person to write the instructions, and one person to do<br />time studies.<br /><br />Then Congress said, "How will we know the night watchman is doing the<br />tasks correctly?" So they created a Quality Control department and<br />hired two people. One to do the studies and one to write the reports.<br /><br />Then Congress said, "How are these people going to get paid?" So They<br />created the following positions, a time keeper, and a payroll officer,<br />Then hired two people.<br /><br />Then Congress said, "Who will be accountable for all of these people?"<br />So they created an administrative section and hire d three people, an<br />Administrative Officer, Assistant Administrative Officer, and a Legal<br />Secretary.<br /><br />Then Congress said, "We have had this command in operation for one<br />Year and we are $18,000 over budget, we must cutback overall cost."<br /><br />So they laid off the night watchman.<br /><br />NOW slowly, let it sink in.<br /><br />Quietly, we go like sheep to slaughter.<br /><br />Does anybody remember the reason given for the establishment of<br />the DEPARTMENT OF ENERGY.... during the Carter Administration?<br /><br />Anybody?<br /><br />Anything?<br /><br />No?<br /><br />Didn't think so!<br /><br />Bottom line. We've spent several hundred billion dollars in support of<br />an agency...the reason for which not one person who reads this can remember!<br /><br />Ready?? It was very simple...and at the time, everybody thought it very appropriate.<br /><br />The Department of Energy was instituted on 8-04-1977.<br />TO LESSEN OUR DEPENDENCE ON FOREIGN OIL.<br />Hey, pretty efficient, huh???<br /><br />AND NOW IT'S 2009 -- 32 YEARS LATER -- AND THE BUDGET FOR THIS "NECESSARY" DEPARTMENT IS AT $24.2 BILLION A YEAR. THEY HAVE 16,000 FEDERAL EMPLOYEES AND APPROXIMATELY 100,000 CONTRACT EMPLOYEES; AND LOOK AT THE JOB THEY HAVE DONE! THIS IS WHERE YOU SLAP YOUR FOREHEAD AND SAY, "WHAT WAS I THINKING?"

[Joe Real]

100 years ago, 95% of the government taxes we are paying now did not exist!