2009: The Year of the Smart Grid?

Smart grids and related technologies ranked fourth on a list of 17 green sectors venture capitalists invested in last quarter.

"Look for 2009 to be the year of smart grid, energy storage and energy efficiency," says senior analyst Eric Wesoff in a statement issued with a report from Greentech Media that showed VCs invested $208.5 million in 11 deals.

Investments in seven green IT deals topped $37.3 million, making it eighth on the list. Solar topped the list with nearly $1.34 billion invested in 29 deals.

$30B Sought for High-Tech Jobs In Obama's Stimulus Package

A report to be released Wednesday calls on the Obama administration to earmark about $30 billion on high-tech jobs in its stimulus package that could reach $1 trillion.

The report from the Information Technology and Innovation Foundation—The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America—promises to provide “a detailed analysis and estimate of the short-term jobs impacts of spurring investment in three critical digital networks: broadband, the smart grid (making the electric distribution system intelligent) and health IT and outlines policy steps to spur this investment.” ITIF says:

As Congress considers a substantial stimulus package to get the economy moving, investing in new economy digital infrastructures will provide significant opportunities not just for short-term stimulus and job creation, but also longer term economic and social benefits.

In an interview with The New York Times, ITIF president Robert Atkinson says “there’s another category of stimulus you could call innovation or digital stimulus—‘stimovation,’ as a colleague has referred to it.” as the article states:

Although many economists believe that a stimulus package must be timely, targeted and temporary, Atkinson’s organization argues that a fourth adjective—transformative—may be the most important. Transformative stimulus investments, he said, lead to economic growth that wouldn’t be there otherwise.

Atkinson also says that providing $30 billion in stimulus money for high tech jobs would provide a wonderful chance to integrate innovative technologies at a faster pace than otherwise would be possible. The ITIF chief, via NYT:

“You’d have an economy and society within three to four years that would be a lot better than we have today, and you’d create a lot of jobs.”

Employing Smart IT Seen Reducing Energy Use, Industry Study Says

An analysis by the industry trade research arm Electric Power Research Institute shows how IT smarts can help reduce electricity use.

In a web posting this week, the institute contends a smart grid could potentially reduce annual U.S. energy consumption by 56 to 203 billion kWh in 2030, corresponding to a 1.2% to 4.3% reduction in projected retail electricity sales in 2030.

In addition, according to the institute, a smart grid can provide the catalyst for greater integration of renewable generation resources and greater deployment of plug-in hybrid electric vehicles. The combined deployment of seven applications enabled by a smart grid could reduce CO2 emissions by an estimated 60 to 211 million metric tons in 2030.

A smart grid is one that incorporates information and communications technology into every aspect of electricity generation, delivery and consumption in order to: minimize environmental impact; enhance markets; improve service; reduce costs and improve efficiency.

(Click on image to enlarge)

The above diagram, from the institute, depicts the interaction between consumer devices with communication capabilities, energy providers and transmission and distribution functions enabled by smart-grid network operations.

Trade Group Advises Obama on Advancing the Smart Grid

The Demand Response and Smart Grid Coalition issued on Tuesday policy recommendations to President-elect Barack Obama and the incoming Congress that the association contends will stimulate the economy, enhance infrastructure and create green jobs.

One of the goals of the trade association of smart-grid technology providers, if realized, could create green jobs for IT professionals.

Provide electricity customers with new information, technologies and tools to control their electricity bills and increase their energy efficiency practices With electricity prices rising and consumer budgets being stretched, it is essential to provide customers with new energy saving tools, including new pricing structures and rates, as well as better information and feedback about how they use electricity. This will give them new ability to lower their electricity bills.

What's needed is not just more information and tools to let consumers make smart decisions on energy use, but technology to automate the entire process, without regular human intervention, as outlined in Tom Friedman's Hot, Flat and Crowded: an energy Internet.