Obama and the Smart Grid Grant Awards
In what is being reported as the biggest single transmission grid investment in the history of the United States, President Barack Obama has declared a $3.4 billion in grant awards under the American Reinvestment and Recovery Act that will leverage more than $4.7 billion in private investment funds to correspond with the federal funds. Read more about Smart Grid Promises and Challenges
Obama said that around 100 private firms, utilities, manufacturers, cities and others will get grants of between $400,000 and $200 million to help build a countrywide “smart energy grid” that will cut down prices for consumers and make the US’ electrical system more dependable.
The grants are likely to produce tens of thousands of jobs and also create the very foundation for making a new renewable energy industry, that has been one of Obama’s longstanding goals.
The stimulus funds will draw an additional $4.7 billion in private investment to match the grant awards.
According to many administration officials, making improving in the electrical grid will bring up the energy efficiency as well as energy independence by boosting development in renewable power resources such as solar power, geothermal power, and of course, wind power. The Obama administration has already set a target of getting at least 20 percent of energy from renewable sources by 2020.
The funding will be utilized to establish 700 automated substations, more than 200,000 smart transformers, 170,000 smart thermostats, 40 million smart meters, and other new technologies. The projects will bring down electrical energy prices for consumers and give consumers in 49 states access to renewable power sources.
Ranging in size from just under $400,000 to $200 million, each grant constitutes only a fraction of the proposition’s approximated cost. But in every case, there are matching resource commitments from other sources, bringing the actual fully funded investment from the program to over $8 billion.
They will also help prevent power failures, which the administration says costs consumers about $150 billion yearly, and help utilities respond more effectively when electricity disruptions occur.
Jared Bernstein, Biden’s chief economist, said the financial support will produce new jobs for manufacturers, electricians, equipment installers, business analysis, IT system designers, data entry clerks, and others.
So, which companies stand to benefit from smart grid technology funding? One leader is Itron Inc. Itron manufacturers smart meters that, when installed in your home, will alert you when the public utility company needs a boost in electrical usage, such as in the case of high temperatures. Householders can then decide if they want to adjust their usage and thus save on electricity costs. Other companies that could benefit include DTE Energy Corporation., Centerpoint Energy Inc., and Glendale Power and Water.
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