Stimulus funding just a down payment, DOE says

The $4.5 billion that the federal government has allocated in smart grid stimulus funding is just a utility's down payment on the grid, said Department of Energy senior advisor Matt Rogers, who oversees allocation of the funding. It is a down payment in customer choice, but the expected return on investment is what has nearly every utility and a range of players and new partners clamoring for a piece of the market. "We are trying to move this in quite a rapid fashion," Rogers said. "As part of making the down payment is the expectation that these are high payout projects...It'll take $150 to $180 million in investments, but the payout is four or five to one." The government's aid in the grid is also an investment in network reliability to create much more rapid response and a reliable grid network, as well as to create a grid that can handle the levels of renewable energy that the DOE is anticipating, he said. The DOE reports its progress every 100 days to encourage accountability and make sure the movement - being expedited by the Obama administration - stays on track. Today, at day 217, Rogers said the DOE has awarded $23 billion of the $36.7 billion it has available for America's energy and environmental future, of which the grid is a critical part.