FEDS SPEND TO MAKE GRID SMARTER

Locke, Chu Announce Significant Steps in Smart Grid Development
May 18, 2009 (U.S. Department of Energy)

"U.S. Commerce Secretary Gary Locke and U.S. Energy Secretary Steven Chu…announced significant progress that will help expedite development of a nationwide "smart" electric power grid…[that] would replace the current, outdated system and employ real-time, two-way communication technologies to allow users to connect directly with power suppliers. The development of the grid will create jobs… spur the development of innovative products that can be exported…save consumers money and reduce America's dependence on foreign oil by improving efficiency and spurring the use of renewable energy sources.

"Before it can be constructed, however, there needs to be agreement on standards for the devices that will connect the grid…Locke and Chu announced the first set of standards that are needed for the interoperability and security of the Smart Grid and $10 million in Recovery Act funds provided by the Energy Department to the National Institute of Standards and Technology to support the development of interoperability standards."

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"Secretary Chu also announced that based on feedback from the public and Smart Grid stakeholders, the Department of Energy is increasing the maximum award available under the Recovery Act for Smart Grid programs…[T]he Smart Grid Investment Grant Program will be increased from $20 million to $200 million and…Smart Grid Demonstration Projects from $40 million to $100 million…DOE will ensure that funding is provided to a diversity of applications, including small projects as well as end-to-end larger projects…

"The initial batch of 16 National Institute of Standards and Technology (NIST)-recognized interoperability standards… will help ensure that software and hardware components from different vendors will work together seamlessly, while securing the grid against disruptions."

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"Spanning areas ranging from smart customer meters to distributed power generation components to cybersecurity, the list of standards is based on the consensus expressed by participants in the first public Smart Grid Interoperability Standards Interim Roadmap workshop…$10 million [the Energy Department] received to support the development of interoperability standards under the American Recovery and Reinvestment Act has been provided to NIST to help accelerate their efforts to coordinate these critical standards…

"The Energy Department is the lead federal agency responsible for Smart Grid development. Creating national standards is a critical part of that process. Coordinating these standards and achieving industry buy-in is the responsibility of the Commerce Department…"