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Power, and pitfalls, of an electrical smart grid

The economic stimulus invests $4.5 billion in a digital energy network, which may prevent blackouts. The project to build one is daunting, though, experts say.

April 27, 2009|Rebecca Cole

WASHINGTON — One warm August afternoon in 2003, a power failure originating in Ohio coursed through the electrical grid in the Northeast, sparking the nation's largest blackout and leaving millions in eight states without air conditioning, traffic lights and cellphone service.

Energy experts say that shutdown, which cost an estimated $6 billion, might have been averted by a "smart grid."


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President Obama has made the smart grid a major plank of his "rebuilding America" plan, viewing it as a way not only to eliminate blackouts and power failures, but also to create jobs and cut greenhouse gas emissions that contribute to global warming.

A smart grid -- a digital network enabling utilities, consumers and alternative sources of renewable energy to "talk" to one another instantaneously -- could steer electricity to where it is needed most.

In the economic stimulus act that the president signed in February, Congress allocated $4.5 billion for smart grid investments, a thin slice of the $38.7 billion that the package funneled to the Department of Energy.

But is it enough?

"We are making a down payment," said Matt Rogers, a senior advisor to Energy Secretary Steven Chu.

The down payment will fund a set of pilot projects to demonstrate the viability of the smart grid and to show that it can deliver energy on a large scale, Rogers said.

Another goal: driving electrical utilities to make long-term investments in smart-grid technologies.

The Electric Power Research Institute, a utility industry think tank, has estimated the cost of building a smart grid at a staggering $165 billion -- about $8 billion a year for two decades.

And one of the biggest challenges in rolling out a smart grid, energy experts say, is getting hundreds of industries, from power generators to appliance and auto manufacturers, to agree on a set of standards -- some already developed, many not ready yet.

"If you look at how vast the grid is, all the way from generator to consumer, to bring together a communication fabric so that information can be exchanged will take four to five years, easy," said Arshad Mansoor, vice president of power delivery and utilization at the institute.

Hired by the National Institute of Standards and Technology, a nonregulatory agency within the Department of Commerce, to develop a road map of standards and find consensus on a plan, Mansoor's group will help NIST, Chu and Commerce Secretary Gary Locke jump-start the process in early May.

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