Another Century of Prosperity - The Smart Grid Tipping Point

Why Do We Need the Smart Grid Facilitation Act of 2007?

You need to tell your Senator or Congressman how important this part of the comprehensive energy legislation is to this country. It will save our economy over $100B a year. It provides $1.25B in matching funds for smart grid technology implementation through 2012. It creates a nationwide commission, the ‘Grid Modernization Commission’ that will drive standards, interoperability and smart grid implementation.

In its most recent Report Card of America’s Infrastructure, issued in 2005, the American Society of Civil Engineers gives the national power grid a grade of D, lower than bridges (scoring a C), stating that the “U.S. power transmission system is in urgent need of modernization.”

In July, the U.S. Conference of Mayors, representing all major cities around the country, passed a resolution endorsing smart grid concepts, emerging technologies and policies, which called for the digital automation of the entire electric power supply system. Just last week the Arkansas Public Service Commission told Entergy Arkansas to put into place demand response and energy efficiency programs to meet increasing residential power demands. Earlier this month, the California Public Utilities Commission proposed a rule forcing utilities to pay attention to energy efficiencies by introducing significant rewards and penalties.

Similar changes are taking place around the country. Local and state authorities get the message -- Just as the power grid drove significant societal change in the 20th century, a Smart (power) Grid will drive similar changes in the 21st century. An intelligent infrastructure enabling distributed, “consumer-friendly” energy technologies is the key.

What is the Future for a Smart Grid?

We know the short-term benefits from a Smart Grid –fewer outages and cheaper power; but, what about the future? The Smart Grid Facilitation Act implements a long-term vision of affordable, available, non-polluting power by making energy efficiency and renewable energy a reality  

But to realize the Smart Grid, you need to tip the scale. If you read this newsletter, this matters to you, so tell your Senator and Congressman that now is the time to unleash a wave of innovation, prosperity and energy security for the next 100 years. Implement the Smart Grid Facilitation Act of 2007!

Steve Hauser is President of the GridWise Alliance and Vice President of Strategy for GridPoint.