Keeping It Real: Evaluating Proposals for Smart Grid Stimulus Funds

By Eric Dresselhuys

Vice President

Silver Spring Networks

Wisely implemented, the $4.5B allocated in the American Recovery and Reinvestment Act (stimulus funding) for Smart Grid could go a long way toward accelerating and broadening deployment of the critical Smart Grid networking infrastructure. The technology is ready; it has been proven through field deployments; and utilities know that it works. Now utilities will have the funding they need to close the gap and deploy their smart grids faster.

In evaluating proposals for Smart Grid stimulus funding, there should be three key factors: Is it “smart,” is it open, and is it real?

Keep it smart: Make matching grants applicable only toward the “smart” aspect of Smart Grid devices. For example, the technologies that network a dryer to home area networks (HANs) should be eligible for funding, not the entire dryer. Similarly, the network interface card (NIC) in an advanced meter should be eligible for matching grant funding, not the entire meter. It is network connectivity that makes devices “smart.”

Keep it open: The Stimulus bill mandates Smart Grids to be built around open standards.  At the utility networking level, IP is proven to be the most interoperable, scalable, and secure standard available and should set the bar for openness.  Similarly at the HAN and application levels, devices should utilize widely recognized standards, such as ZigBee for home area networking, and ANSI for metering applications.

Keep it real: Any device or project receiving Smart Grid stimulus funding must be actively deployed in the field and utilized for its intended purpose. In other words, a smart meter that is installed but not communicating relevant information over a Smart Grid network should not receive stimulus funding.  This can be confirmed through regular reports and “true-ups” from funded projects to U.S. DOE.  At a minimum, projects based on press releases alone should not receive stimulus funding until actual deployment and utilization is achieved.  Only real infrastructure creates the jobs we need for economic recovery.