DOE invests more than $57 million to advance smart grid development

U.S. Energy Secretary Steven Chu in late July announced delivery of more than $47 million in funding under the American Recovery and Reinvestment Act for eight projects to further smart grid demonstration projects in seven states, plus $10.5 million in Recovery Act funding available for local governments to develop emergency preparedness plans for their electrical systems.

“Modernizing our electrical grid to make it stronger, smarter, more efficient and more secure is a crucial step in expanding renewable energy and creating jobs,” said Secretary Chu. “These investments will help lay the foundation for American leadership in the clean energy economy.”

The $47 million in Recovery Act awards will support existing projects that are advancing demonstration-scale smart grid technologies. This investment adds to the $17 million in funds the DOE had awarded these projects in 2008 following a competitive award process. Recipients include American Superconductor Corp., for development and demonstration of superconducting transmission cable and transmission voltage fault current limiters; the city of Fort Collins, Colo., for demonstration of peak load reduction using distributed energy resources; Consolidated Edison Co. of New York, for demonstration of demand response resources; and the Illinois Institute of Technology for demonstration of a “perfect power” system.

The $10.5 million to increase the nation’s energy security is available for local governments to apply for competitive energy assurance grants ranging between $60,000 and $300,000. The funding will help cities and counties create jobs while developing strong emergency response plans for supply disruptions. This funding adds to the nearly $40 million previously announced for state-level energy assurance planning.

DOE also released its first Smart Grid System Report, which examines the status of smart grid deployments nationwide and any regulatory or government barriers to continued deployment. The report finds that while many smart grid capabilities are just beginning to emerge, the adoption of various technologies – such as smart metering, automated substation controls and distributed generation – is growing significantly.

The report also notes that smart grid capabilities are socially transformational and that to achieve broader deployment and implementation, we are likely to need larger cultural change.

The department also announced development of a Smart Grid Information Clearinghouse. The Virginia Polytechnic Institute and State University (Virginia Tech) was selected as the winner of the $1.3 million initiative to develop and maintain the Clearinghouse website, which will be charged with answering questions from the public and distributing information about smart grid initiatives happening nationwide.