Power Grid Stimulus

A portion of the $30 billion chunk of the stimulus designed to go toward energy modernization will be used to develop a “smart” power grid.  This involves equipping the national grid with computers and sensors in order to better monitor and oversee the flow of energy.

Automated processes can take advantage of increased information while minimizing the inconvenience to the user, such as turning on a water heater for an early morning shower and lowering the energy needs of a refrigerator during the late night.  Additionally, consumers will be able to gather much more detailed information about the cost of different energy habits, providing avenues for better and less costly decision-making.

A smart power grid also plays into the increased emphasis on green technology and energy independence, two hallmarks of the Obama administration.  With such technology in place, home appliances will be able to take advantage of periods of different energy demand, which in turn will increase efficiency while decreasing overall cost and grid load.

There is strong evidence that consumers are willing to modify their behavior if it means saving money, and this will become increasingly possible with more precise information about energy costs.  Although there are many privacy concerns and other issues to address, the development of a smart power grid appears to be becoming a reality.

Is this a worthwhile investment?  How important is the larger issue of energy independence?  Let us know in the comments section, and join in the “Is Gas Too Cheap?” debate.