Energy Dept. Announces $6.5 Million for Two New Mexico Smart Grid Projects

New Energy Dept. video on the impact of smart grid

U.S. Energy Secretary Steven Chu released a statement today announcing that the Department of Energy is awarding more than $6.5 million for 2 projects in New Mexico to demonstrate advanced Smart Grid technologies and integrated systems that will help build a smarter, more efficient, more resilient electrical grid.

This announcement is part of $620 million in funding from the American Recovery and Reinvestment Act that will support 32 demonstration projects across the country. These projects will include large-scale energy storage, smart meters, distribution and transmission system monitoring devices, and a range of other smart technologies and will act as models for deploying integrated Smart Grid systems on a broader scale.

This funding will be leveraged with $1 billion in funds from the private sector to support more than $1.6 billion in total Smart Grid projects nationally. In New Mexico, this funding will support a total of more than $15 million in projects. 

The New Mexico projects are:

Albuquerque
Ktech Corporation
Flow Battery Solution for Smart Grid Renewable Energy Applications - Demonstrate a prototype flow battery system that can be grid connected, charged and discharged, and scaled to utility power levels. The project will combine a proven redox flow battery chemistry with a unique, patented design to yield an energy storage system that meets the combined safety, reliability, and cost requirements for distributed energy storage. Albuquerque, NM; Sunnyvale, CA; and Snelling, CA
Recover Act Funding: $4,764,284
Total Project Value Including Cost Share: $9,528,567

Albuquerque
Public Service Company of New Mexico
PV Plus Storage for Simultaneous Voltage Smoothing and Peak Shifting - Demonstrate how a 2.8MWh Zinc-Bromine flow battery along with a sophisticated control system turns a 500kW solar PV installation. into a reliable, dispatchable distributed generation resource. This hybrid resource will mitigate fluctuations in voltage normally caused by intermittent sources such as PV and wind andsimultaneously store more energy for later use when customer demand peaks.
Albuquerque, NM
Recovery Act Funding: $1,755,931
Total Project Value Including Cost Share: $5,851,303

“These demonstration projects will further our knowledge and understanding of what works best and delivers the best results for the Smart Grid, setting the course for a modern grid that is critical to achieving our energy goals,” said Secretary Chu in the press release. “This funding will be used to show how Smart Grid technologies can be applied to whole systems to promote energy savings for consumers, increase energy efficiency, and foster the growth of renewable energy sources like wind and solar power.”

These efforts will provide invaluable data on the benefits and cost-effectiveness of the Smart Grid, including energy and cost savings. An analysis by the Electric Power Research Institute estimates that implementing Smart Grid technologies could reduce electricity use by more than 4 percent by 2030. That would mean a savings of $20.4 billion for businesses and consumers around the country.

The demonstration projects announced today will also help verify the technological and business viability of new smart technologies and show how fully integrated Smart Grid systems can be readily adapted and copied around the country. Applicants say this investment will create thousands of new job opportunities that will include manufacturing workers, engineers, electricians, equipment installers, IT system designers, cyber security specialists, and business and power system analysts.

The funding awards are divided into two topic areas. In the first group, 16 awards totaling $435 million will support fully integrated, regional Smart Grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers. The projects include streamlined communication technologies that will allow different parts of the grid to “talk” to each other in real time; sensing and control devices that help grid operators monitor and control the flow of electricity to avoid disruptions and outages; smart meters and in-home systems that empower consumers to reduce their energy use and save money; energy storage options; and on-site and renewable energy sources that can be integrated onto the electrical grid.

In the second group, an additional 16 awards for a total of $185 million will help fund utility-scale energy storage projects that will enhance the reliability and efficiency of the grid, while reducing the need for new electricity plants. Improved energy storage technologies will allow for expanded integration of renewable energy resources like wind and photovoltaic systems and will improve frequency regulation and peak energy management. The selected projects include advanced battery systems (including flow batteries), flywheels, and compressed air energy systems.

The full list of selected projects, including projects in New Mexico, is available HERE.