Sep 16 2009

PG&E Partners to Create a Smarter Grid

Posted by: Jonathan Marshall

San Jose's City Hall almost reached critical mass today, as Mayor Chuck Reed was joined by representatives of PG&E, IBM, Cisco Systems, local civic organizations, congressional offices and, last but not least, major Bay Area print and broadcast media.

What brought them all together was an announcement of the details--and wider implications--of PG&E's recent application to the U.S. Department of Energy for a $42.5 million Smart Grid investment grant under the American Recovery and Reinvestment Act.

The grant would fund half of an $85 million Customer Energy Management Project that will allow PG&E to build the next stage of Smart Grid applications upon its existing SmartMeter™ program, already the largest and one of the most advanced in the nation. (The count is 3.5 million high-tech meters deployed to date, and growing one every two seconds.)

PG&E's Andrew Tang, who runs the utility's Smart Energy Web program, said the project would provide 75,000 business and residential customers with state-of-the-art energy use displays to help them better understand and control their energy usage in near-real time.

These devices are just a starting point for more sophisticated energy management appliances that will help customers take advantage of voluntary utility programs that let them save money by cutting back or shifting their energy use from peak to off-peak periods.

That lowers costs, improves grid reliability and spares the environment by reducing the need to build more peak generation, Tang said.

The Customer Energy Management project would also enhance electric reliability by helping PG&E manage wider adoption of clean customer solar. When large numbers of solar installations exist in a neighborhood, passing clouds and changing weather can cause voltage fluctuations. By installing high-tech sensors on distribution lines, Tang said, the utility will be able to detect and respond to those fluctuations before they create power quality issues.

This project represents just a few of the many ways smarter grids will help PG&E and other utilities integrate more intermittent renewable energy (read: wind and solar power) into their systems, improve reliability and lower costs.  

By setting the stage for future Smart Grid investments and innovations, this project will reinforce California's technological leadership, provide valuable lessons for other utilities nationwide and stimulate clean tech jobs.

Among PG&E's major partners are the City of San Jose--the largest city in PG&E's service area --IBM, Cisco Systems, ABB and Stanford University. The project has been endorsed by Governor Schwarzenegger and many Bay Area business, labor and civic assocations.

Mayor Reed kicked off the announcement with comments about the tremendous importance of Smart Grid to the region and the nation, including its potential for creating new jobs.

"There is no better place than San Jose to demonstrate how new technology can be used to address our country's energy problems," he said. "An investment here will help set the foundation for using 'Smart Grids' across the country."

IBM and Cisco both emphasized how strategic the partnership promises to be.

"This project is leading edge and one of the most impressive that I've seen in the country," said Marianne Dickerson, Associate Partner in IBM's North American Energy & Utilities Practice.

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"PG&E" refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation.