Smart grid in the United States
Encyclopedia
Support for the smart grid in the United States
became federal policy with passage of the Energy Independence and Security Act of 2007
. The law, Title13, sets out $100 million in funding per fiscal year from 2008–2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of demand response
and to recommend needed protocol standards. The Energy Independence and Security Act of 2007 directs the National Institute of Standards and Technology
to coordinate the development of smart grid standards, which FERC would then promulgate through official rulemaking
s.
Smart grids received further support with the passage of the American Recovery and Reinvestment Act of 2009
, which set aside $11 billion for the creation of a smart grid.
The Federal Energy Regulatory Commission
(FERC) issued a proposed policy statement and action plan on March 19, 2009 for standards governing the development of a smart grid, leading to a final rule issued July 16, 2009. However, FERC notes that the electric industry is already moving ahead with smart grid technologies, so it is proposing to establish some general principles that the smart grid standards should follow. FERC is also looking at the growth in clean energy, so the commission wants to be sure that smart grids will better accommodate renewable energy
resources, demand response
systems, energy storage systems, and electric vehicle
s. For electric vehicles, FERC at least wants the smart grid to allow charging during times of low power demand, but ideally the commission would like the smart grid to accommodate vehicle-to-grid
technologies, which would use the nation's electric vehicles as a vast, distributed, energy storage system.
The United States Department of Energy
(USDOE) issued a Notice of Intent and a draft Funding Opportunity Announcement
(FOA) that will lay the groundwork for providing nearly $4 billion in American Reinvestment and Recovery Act funds to support smart grid projects. The Notice of Intent was issued for DOE's Smart Grid Investment Grant Program, which will provide grants of $500,000 to $20 million for smart grid technology deployments and grants of $100,000 to $5 million for the deployment of grid monitoring devices. The program will provide matching grants of up to 50% of the project cost, and the total funding for the program is $3.375 billion. In addition, the draft FOA paves the way toward an offer of $615 million to support demonstrations of regional smart grids, utility-scale energy storage systems, and grid monitoring devices.
Commerce Secretary Gary Locke
announced that he will co-chair a smart grid meeting with Secretary of Energy Steven Chu
in Washington, D.C., in early May 2009. The meeting will bring together industry and government leaders to begin a critical discussion about developing industry-wide standards for smart grid technologies. Industry leaders at this meeting are expected to pledge to harmonize industry standards and to commit to a timetable to reach a standards agreement. Additional meetings on May 19–20 will be used to make further progress on a standards agreement.
In September 2008, the National Science Foundation
established the FREEDM Systems Center, an Engineering Research Center to develop future smart grid technologies that will enable plug-and-play
integrations of distributed generation
s and distributed storages. At the heart of the center's technology development is the use of wide bandgap power electronics technology to control and protect the power grid.
On July 20, 2009, USDOE awarded $47 million in American Recovery and Reinvestment Act funds on July 20 to eight ongoing smart grid demonstration projects. The $47 million investment will add to the $17 million in funds DOE had awarded these eight projects in 2008, thereby accelerating the timelines for the projects. Most of the projects relate to technologies to help transmission and distribution systems operate better, but a few are directly related to renewable energy
. For example, the city of Fort Collins, Colorado
, will research, develop, and demonstrate a coordinated and integrated system of mixed clean energy technologies and distributed energy resources, allowing the city to reduce its peak electrical demand by at least 15%. Meanwhile, the Illinois Institute of Technology
(IIT) in Chicago will focus on implementing distributed energy resources and creating demand-responsive microgrids, which are small power networks that can operate independently of the utility power grid. In addition, the University of Hawaii
will explore the management of its electrical distribution system to better accommodate wind power.
President Barack Obama
announced the largest single electric grid modernization investment in U.S. history on Oct. 27, 2009, with DOE tapping $3.4 billion in American Reinvestment and Recovery Act funds for 100 projects. The funds will be matched by $4.7 billion in private investments. According to the president, the smart grid projects will help build a renewable energy superhighway, with a goal of increasing energy efficiency and helping to spur the growth of renewable energy resources such as wind and solar power. The grants range from $400,000 to $200 million, and will reach every state except Alaska.
The smart grid grants will pay for installing more than 2.5 million smart meters, which allow utility customers to access dynamic pricing information and avoid periods of peak electricity use, when power is most expensive. The grants will also support the installation of other smart grid components, including more than 1 million in-home energy displays, 170,000 smart thermostats, and 175,000 other load control devices to enable consumers to reduce their energy use. The funding will help expand the market for smart washers, dryers, and dishwashers, so that U.S. residents can further control their energy use and lower their electricity bills. Such smart grid technologies can also better accommodate the use of plug-in electric vehicles and the production of renewable energy from customer-owned systems, such as solar power systems or wind turbines.
Much of the funding will support upgrades to the utility power grids, including the installation of more than 200,000 smart transformers, which will make it possible for power companies to replace units before they fail. Utilities will also install more than 850 sensors that will cover all of the electric grid in the contiguous United States, making it possible for grid operators to better monitor grid conditions and allowing them to take advantage of intermittent renewable energy, such as wind and solar power. Finally, utilities will install nearly 700 automated substations, which will make it possible for power companies to respond faster and more effectively to restore service when bad weather knocks down power lines or causes electricity disruptions.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
became federal policy with passage of the Energy Independence and Security Act of 2007
Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007 is an Act of Congress concerning the energy policy of the United States...
. The law, Title13, sets out $100 million in funding per fiscal year from 2008–2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of demand response
Demand response
In electricity grids, demand response is similar to dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce their consumption at critical times or in response to market prices...
and to recommend needed protocol standards. The Energy Independence and Security Act of 2007 directs the National Institute of Standards and Technology
National Institute of Standards and Technology
The National Institute of Standards and Technology , known between 1901 and 1988 as the National Bureau of Standards , is a measurement standards laboratory, otherwise known as a National Metrological Institute , which is a non-regulatory agency of the United States Department of Commerce...
to coordinate the development of smart grid standards, which FERC would then promulgate through official rulemaking
Rulemaking
In administrative law, rulemaking refers to the process that executive and independent agencies use to create, or promulgate, regulations. In general, legislatures first set broad policy mandates by passing statutes, then agencies create more detailed regulations through rulemaking.By bringing...
s.
Smart grids received further support with the passage of the American Recovery and Reinvestment Act of 2009
American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.To...
, which set aside $11 billion for the creation of a smart grid.
The Federal Energy Regulatory Commission
Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates...
(FERC) issued a proposed policy statement and action plan on March 19, 2009 for standards governing the development of a smart grid, leading to a final rule issued July 16, 2009. However, FERC notes that the electric industry is already moving ahead with smart grid technologies, so it is proposing to establish some general principles that the smart grid standards should follow. FERC is also looking at the growth in clean energy, so the commission wants to be sure that smart grids will better accommodate renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
resources, demand response
Demand response
In electricity grids, demand response is similar to dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce their consumption at critical times or in response to market prices...
systems, energy storage systems, and electric vehicle
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
s. For electric vehicles, FERC at least wants the smart grid to allow charging during times of low power demand, but ideally the commission would like the smart grid to accommodate vehicle-to-grid
Vehicle-to-grid
Vehicle-to-grid describes a system in which plug-in electric vehicles, such as electric cars and plug-in hybrids , communicate with the power grid to sell demand response services by either delivering electricity into the grid or by throttling their charging rate.Vehicle-to-grid can be used with...
technologies, which would use the nation's electric vehicles as a vast, distributed, energy storage system.
The United States Department of Energy
United States Department of Energy
The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
(USDOE) issued a Notice of Intent and a draft Funding Opportunity Announcement
Funding Opportunity Announcement
A funding opportunity announcement is a notice in Grants.gov of a federal grant funding opportunity.Funding opportunity announcements can be found at Grants.gov/FIND and this website lets organizations apply for grants for over 1,000 grant programs from 26 federal agencies.Each FOA includes...
(FOA) that will lay the groundwork for providing nearly $4 billion in American Reinvestment and Recovery Act funds to support smart grid projects. The Notice of Intent was issued for DOE's Smart Grid Investment Grant Program, which will provide grants of $500,000 to $20 million for smart grid technology deployments and grants of $100,000 to $5 million for the deployment of grid monitoring devices. The program will provide matching grants of up to 50% of the project cost, and the total funding for the program is $3.375 billion. In addition, the draft FOA paves the way toward an offer of $615 million to support demonstrations of regional smart grids, utility-scale energy storage systems, and grid monitoring devices.
Commerce Secretary Gary Locke
Gary Locke
Gary Locke may refer to:*Gary Locke , Chinese American politician; U.S. Secretary of Commerce and former Governor of Washington*Gary Locke *Gary Locke...
announced that he will co-chair a smart grid meeting with Secretary of Energy Steven Chu
Steven Chu
Steven Chu is an American physicist and the 12th United States Secretary of Energy. Chu is known for his research at Bell Labs in cooling and trapping of atoms with laser light, which won him the Nobel Prize in Physics in 1997, along with his scientific colleagues Claude Cohen-Tannoudji and...
in Washington, D.C., in early May 2009. The meeting will bring together industry and government leaders to begin a critical discussion about developing industry-wide standards for smart grid technologies. Industry leaders at this meeting are expected to pledge to harmonize industry standards and to commit to a timetable to reach a standards agreement. Additional meetings on May 19–20 will be used to make further progress on a standards agreement.
In September 2008, the National Science Foundation
National Science Foundation
The National Science Foundation is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National Institutes of Health...
established the FREEDM Systems Center, an Engineering Research Center to develop future smart grid technologies that will enable plug-and-play
Plug-and-play
In computing, plug and play is a term used to describe the characteristic of a computer bus, or device specification, which facilitates the discovery of a hardware component in a system, without the need for physical device configuration, or user intervention in resolving resource conflicts.Plug...
integrations of distributed generation
Distributed generation
Distributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
s and distributed storages. At the heart of the center's technology development is the use of wide bandgap power electronics technology to control and protect the power grid.
On July 20, 2009, USDOE awarded $47 million in American Recovery and Reinvestment Act funds on July 20 to eight ongoing smart grid demonstration projects. The $47 million investment will add to the $17 million in funds DOE had awarded these eight projects in 2008, thereby accelerating the timelines for the projects. Most of the projects relate to technologies to help transmission and distribution systems operate better, but a few are directly related to renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
. For example, the city of Fort Collins, Colorado
Fort Collins, Colorado
Fort Collins is a Home Rule Municipality situated on the Cache La Poudre River along the Colorado Front Range, and is the county seat and most populous city of Larimer County, Colorado, United States. Fort Collins is located north of the Colorado State Capitol in Denver. With a 2010 census...
, will research, develop, and demonstrate a coordinated and integrated system of mixed clean energy technologies and distributed energy resources, allowing the city to reduce its peak electrical demand by at least 15%. Meanwhile, the Illinois Institute of Technology
Illinois Institute of Technology
Illinois Institute of Technology, commonly called Illinois Tech or IIT, is a private Ph.D.-granting university located in Chicago, Illinois, with programs in engineering, science, psychology, architecture, business, communications, industrial technology, information technology, design, and law...
(IIT) in Chicago will focus on implementing distributed energy resources and creating demand-responsive microgrids, which are small power networks that can operate independently of the utility power grid. In addition, the University of Hawaii
University of Hawaii
The University of Hawaii System, formally the University of Hawaii and popularly known as UH, is a public, co-educational college and university system that confers associate, bachelor, master, and doctoral degrees through three university campuses, seven community college campuses, an employment...
will explore the management of its electrical distribution system to better accommodate wind power.
President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
announced the largest single electric grid modernization investment in U.S. history on Oct. 27, 2009, with DOE tapping $3.4 billion in American Reinvestment and Recovery Act funds for 100 projects. The funds will be matched by $4.7 billion in private investments. According to the president, the smart grid projects will help build a renewable energy superhighway, with a goal of increasing energy efficiency and helping to spur the growth of renewable energy resources such as wind and solar power. The grants range from $400,000 to $200 million, and will reach every state except Alaska.
The smart grid grants will pay for installing more than 2.5 million smart meters, which allow utility customers to access dynamic pricing information and avoid periods of peak electricity use, when power is most expensive. The grants will also support the installation of other smart grid components, including more than 1 million in-home energy displays, 170,000 smart thermostats, and 175,000 other load control devices to enable consumers to reduce their energy use. The funding will help expand the market for smart washers, dryers, and dishwashers, so that U.S. residents can further control their energy use and lower their electricity bills. Such smart grid technologies can also better accommodate the use of plug-in electric vehicles and the production of renewable energy from customer-owned systems, such as solar power systems or wind turbines.
Much of the funding will support upgrades to the utility power grids, including the installation of more than 200,000 smart transformers, which will make it possible for power companies to replace units before they fail. Utilities will also install more than 850 sensors that will cover all of the electric grid in the contiguous United States, making it possible for grid operators to better monitor grid conditions and allowing them to take advantage of intermittent renewable energy, such as wind and solar power. Finally, utilities will install nearly 700 automated substations, which will make it possible for power companies to respond faster and more effectively to restore service when bad weather knocks down power lines or causes electricity disruptions.