Obama: We must build the smart grid.  In a major address to the country, President-elect Obama outlined his economic stimulus plan and naming the creation of a Smart Grid and clean energy as key components. Speaking at George Mason University in Fairfax, Virginia, Obama said that "a new smart grid ... will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation." The January 8 address also called for computerization of medical records and rollout of broadband Internet to underserved areas.

   Quick Take:  We've been reporting on the role of the Smart Grid in Obama's campaign and expected stimulus package for some time. Now that promise is finally taking shape as Obama attempts to sell Congress and Americans in general on his proposals.

   Green Inc.'s New York Times coverage

   Environment News Service report on Obama economic speech

   IT World's report on the stimulus package contents

Experts agree 2009 will be a banner year for Smart Grid. A number of media reports extol the growth of the Smart Grid in 2008 and expect even greater things in 2009. Greentech's Jeff St. John documents the growth in Smart Grid ventures and technologies. In Sustainable Industries, Sarah Stroud reports on the optimism of economist Ahmad Faruqui. And Seeking Alpha's Michael Kanellos explains why IBM's Venture Capital Group foresees dollars flowing into Smart Grid projects in the coming year.

   Quick Take: Experts confirm what SGN readers already know: The Smart Grid is past the tipping point. But agreement on strategy doesn't constitute agreement on tactics. The Gore camp wants to beef up transmission. Others want to focus on smart devices in homes and businesses. Still another group thinks the first step should be the communications system that ties the separate parts together. Asking for everything is a good way of getting nothing. As we pointed out a few years ago, those with a stake in the Smart Grid need to agree on a top priority when talking to policymakers before focusing on their smaller, narrower interests.

   GreenTech's story on Smart Grids' Year of Growth
   Sustainable Industries' story on Ahmad Faruqui's Smart Grid optimism
   Seeking Alpha's report on IBM's Smart Grid expectations
   SGN's Jesse Berst on Selfish Altruism and the "Big Ask"

2009 the year of the Smart Grid for VCs too. Venture capital (VC) investments in green technology have begun to slow but are expected to remain significant in 2009, according to Greentech Media. Despite fewer VC dollars for alternative energy and related technologies in Q4 2008, Greentech Media Senior Analyst Eric Wesoff believes VCs are still optimistic about the sector and will be investing more in other greentech technologies besides the highly popular ones such as solar energy. "Look for 2009 to be the year of smart grid, energy storage, and energy efficiency," he said.

   Quick Take: If Eric thinks Smart Grid is popular now, wait until the Obama stimulus package hits. It is likely to contain billions in Smart Grid incentives.

   GreenTech Media article on investing in renewable energy

Demand Response the Killer App claims FERC. Use of demand response (DR) programs and advanced meters continues to expand in the U.S. according to a new report from the Federal Energy Regulatory Commission (FERC), which has been tracking such developments since 2006. Demand response "is clearly the ‘killer application’ for the smart grid,” stated FERC Commissioner Jon Wellinghoff in a news release. The news release and a full copy of the report can be found at the FERC Web site.

   Quick Take: John Wellinghoff is one of our brightest and most progressive regulators. We agree with him that DR is important. But we believe there will be even more valuable applications yet to come. The Smart Grid will be the foundation for a decade of innovative applications.

   FERC news release

   Assessment of Demand Response & Advanced Metering Staff Report (PDF)

Proof that Smart Grid means more jobs. Big name players are touting studies that say federal investment in Smart Grid would yield big growth in jobs. GridWise Alliance member KEMA Inc. claims investing $16B in Smart Grid technologies over the next four years would result in $64B in projects and 280,000 jobs. Similarly, IBM’s new study says spending $10B a year for 5 years on Smart Grid projects would yield 239,000 jobs.

   Quick Take: The Obama administration has pledged to invest in infrastructure. Although updating bridges and highways will bring short-term jobs, building out the Smart Grid will yield short-term jobs *and* a platform for long-term innovation and economic growth. Funding the Smart Grid will have the same positive benefits as building out the railroads and setting up telephone lines did for past centuries.

   KEMA report on job creation

   Article on IBM study

   GridWise Alliance Web site

How smart should the Smart Grid be? That's the question posed by Ars Technica's John Timmer, who looks into the pros and cons of giving electrical devices a high degree of intelligence or just enough for utilities to benefit from the intelligence. On the one hand, Sequentric Energy Systems argues that minimal intelligence is enough for utilities to control the device's power usage relative to peak usage periods while providing a system that has less to go wrong and fewer avenues for malicious attacks. On the other side of the debate are companies such as Tendril, a supporter of ZigBee compatible hardware. Tendril and others believe that providing highly intelligent devices to consumers will motivate them to customize their home for greatest savings.

   Quick Take: SmartGridNews started this debate a few months ago when we spotlighted Sequentric's less-is-more approach to demand response. Unlike the Tendril approach with its open-source ZigBee network and high degree of customer control, Sequentric employs a proprietary network and gives more power to the utilities. As Timmer's article implies, it may take more pilot studies before a clear winner emerges.

   John Timmer's Ars Technica article

   SmartGridNews article on Sequentric

A Smart Grid is a green grid, says EPRI report. The Electric Power Research Institute (EPRI) has released a report detailing the impact of Smart Grid deployment on the environment. According to the study, which was released last month, Smart Grid deployment could reduce carbon dioxide emissions by 60 to 211 million metric tons in the year 2030. The same year could see a reduction in energy consumption in the United States by 56 to 203B kWh, or a 1.2 to 4.3% reduction in electricity sales. A full copy of the report can be found on the SGN Resources page or by clicking the link below.

   Quick Take: In our interview in this issue, NARUC Chairman Fred Butler points out that we need to make the case to consumers and rate payers why the Smart Grid matters to them. In quantifying the environmental benefits of the Smart Grid, this report adds an important piece to that puzzle.

   The Green Grid: Energy Savings and Carbon Emissions Reductions Enabled by a Smart Grid

   EPRI Web site

Report documents Smart Grid regulations. Keeping up on the ever-changing world of state and federal regulations and policies affecting grid modernization is no small task. Fortunately, that job just got a little easier, with the release of a report from the National Council on Electricity Policy. The document reviews developments at the state and federal level from 2005 to the middle of 2008 as they relate to demand response, smart meters, and Smart Grid. Policies relating to energy efficiency or renewable energy are considered only as they relate to these topics. Look for it on the SGN Resources page, or simply click the link below.

   Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005

   National Council on Electricity Policy Web site