DOE Awards $620M for Smart Grid Demonstration and Energy Storage Projects
By Scott Doggett November 24, 2009
The U.S. Department of Energy today awarded $620 million for projects nationwide to demonstrate smart-grid technologies that will help build a more efficient and resilient electrical grid to handle the millions of plug-in hybrid electric vehicles expected to appear on American roads in coming years.
The 32 demonstration projects, which include large-scale energy storage, smart meters, distribution and transmission system monitoring devices, will act as models for deploying integrated smart-grid systems on a broader scale.
This funding from the American Recovery and Reinvestment Act will be leveraged with $1 billion in funds from the private sector to support more than $1.6 billion in total smart-grid projects nationally.
The funding awards are divided into two topic areas. In the first group, 16 awards totaling $435 million will support fully integrated, regional smart grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers.
Those projects include communication technologies that will allow different parts of the grid to "talk" to each other in real time; sensing and control devices that help grid operators monitor and control the flow of electricity to avoid disruptions and outages; smart meters and in-home systems that empower consumers to reduce their energy use and save money; energy storage options; and on-site and renewable energy sources that can be integrated onto the electrical grid.
In the second group, an additional 16 awards for a total of $185 million will help fund utility-scale energy storage projects that will enhance the reliability and efficiency of the grid, while reducing the need for new electricity plants. Improved energy storage technologies will allow for expanded integration of renewable energy resources such as wind and photovoltaic systems and will improve frequency regulation and peak energy management.
Among the award recipients is Southern California Edison, which sought (and will match) a $25 million grant to build the world's biggest lithium-ion grid storage facility using automotive-grade batteries supplied by A123 Systems. The 8,000-square-foot facility will be used to store electricity created by wind power.
You may recall that A123 Systems, the Watertown, Mass.-based developer of lithium-ion batteries, recently landed a $249 million Energy Department grant to build a battery factory specializing in batteries for plug-in electric vehicles.
One of the largest grant recipients is the Los Angeles Department of Water and Power, which with a consortium of local research institutions will deploy smart-grid systems at partners' university campuses and laboratories. The demonstration projects will include how to "integrate a significant number of plug-in hybrid electric vehicles onto the grid."
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