Obama’s $3.4bn grant to upgrade power grid

President Barack Obama Tuesday is expected to announce $3.4 billion in government support aimed at upgrading the power grid.

The power transmission system's upgrading has been needed since long. It further gained momentum with support from the administration.

Projects to be funded
The 100 projects, selected from the 400 proposed ones, include installation of around 200,000 digital transformers and 850 grid sensors, and automating utility substations.

Further, some 18 million smart meters, 1 million other in-home devices, modern thermostats etc will be installed in U.S. homes, as part of the economic stimulus package aimed at energy conservation.

Each project will receive $200 million in grant coming from the $787 billion stimulus package called American Recovery and Reinvestment Act.

The grants will go to 100 companies, utilities, manufacturers, and various cities in 49 states in the nation.

The funds are expected to be distributed over the next two months and all projects will be carried out over next three years, stated Carol Browner, assistant to the president for energy and climate change.

Focusing on energy conservation
To achieve the objective, $3.4 billion in grants will be matched by $4.7 billion in private investments.

The 100 projects to be started in 49 states will focus on development of more renewable sources of energy, giving the citizens a complete control over electricity utilization.

The smart power grids will help consumers save money on utility bills and reduce black outs. Further, the grid will also add more energy from the renewable sources into the power transmission system.

With these projects, the government is aiming at reducing electricity consumption by 2030.

The press release issued by the White House states, "The end result will promote energy-saving choices for consumers, increase efficiency, and foster the growth of renewable energy sources like wind and solar."

Apart from energy conservation, this grant is also expected to create tens of thousands of jobs in the nation.