By Kevin McCarty
November 9, 2009

President Obama – at a solar energy facility in Arcadia (FL) – announced a $3.4 billion commitment to initiate the largest single electricity grid modernization investment in U.S. history, adding significantly to the Department of Energy’s continuing commitments to spur the nation’s economic recovery with funding provided under the American Reinvestment and Recovery Act of 2009 (ARRA).

“Today I am pleased to announce that under the Recovery Act, we are making the largest ever investment in a smarter, stronger and secure electric grid. This investment will come in the form of 100 grants, totaling $3.4 billion, that will go to cities, power companies, utilities and other partners who applied with plans to install smart grid technology in their areas,” President Obama said at Florida Power and Light’s Next Generation Solar Energy Center.

“At this moment, there’s something big happening in America when it comes to creating a clean-energy economy. But getting there will take a few more days like this one, and more projects like this one. Here in this region of Florida, this project will reduce demand for electricity by up to 20 percent during the hottest summer days that stress the grid and power plants. It will provide smart meters to 2.6 million more customers. And most importantly, it will create thousands of jobs – good jobs, by the way, that can’t be outsourced; jobs that will last and jobs that pay a decent wage,” Obama said.

The grants awards to cities, utilities, manufacturers and others, principally electric utilities, will spur public-private investment of more than $8 billion in 49 states, stimulating the broad deployment of smart meters, digital transformers and other smart grid technologies as well as improvements to make transmission more reliable.

Among the largest grant awards, Florida Power and Light (FPL) will receive $200 million for smart grid investments throughout Florida, with $100 million committed to installing smart meters and related improvements in Miami and Miami-Dade County. Conference Past President Miami Manny Diaz had championed these commitments as part of his “Energy Smart Miami” initiative, seeking to make Miami and the Miami region a “test bed” for the deployment of smart grid technologies for the U.S.

In addition to the FPL award, DOE awarded $8.9 million to Tallahassee for its comprehensive demand response program aimed at reducing peak power demand and $9.7 million to Leesburg to enable a range of energy efficiency and conservation program. Other U.S. cities receiving grant awards were: Anaheim (CA) – $5.9 million; Fort Collins (CO) – $18.1 million; Glendale (CA) – $20 million; Knoxville (TN) – $3.6 million; Naperville (IL) – $11 million; and Westerville (OH) – $4.3 million.

In another recent Energy Department announcement, $30.6 million in ARRA funds were awarded to seven municipalities and companies to improve the efficiency of their hydropower facilities. Boulder (CO), North Little Rock (AR), and Tacoma (WA) were among the award winners for a share of these funds.