Two of today’s most pressing issues, the climate crisis and the economic downturn, converge on the question of how to build the smart grid. The need to efficiently transmit clean energy across the United States is undeniable and will only grow in the future as renewable energy sources are developed. Taking steps toward securing America’s energy independence will have long-term benefits for both our economy and national security. The current economic crisis should not be a deterrent from investing in America’s infrastructure but rather an incentive to do so as it will create jobs and stimulate the economy.
An investment in building a smart grid is overdue, and waiting any longer will jeopardize future energy and economic sustainability. Massive blackouts due to grid failure have occurred more frequently in recent years—with three in the past nine years alone— costing the U.S economy around $100 billion each year in damages and lost business. A smart grid will not only diminish the chances of recurrent blackouts by establishing automated control of the electricity network, but it will make the grid more secure from deliberate, and potentially disastrous, attempts to disrupt it.
In the Center for American Progress report "Wired for Progress: Building a National Clean-Energy Smart Grid," Bracken Hendricks wrote:
"The American Society of Civil Engineers has given the United States a "D" in infrastructure maintenance, citing more than $2.2 trillion of deferred and neglected investments in our roads, bridges, transit, schools, storm water, and energy systems. This failure to invest over the past several decades threatens U.S. industry, imposes costs on businesses and workers, and causes preventable harm to our communities. While the costs of inaction are staggering, the opportunity to rebuild the foundations of our economy and our public infrastructure is equally inspiring. Reconstruction must become a national priority no less urgent than the Marshall Plan."
The Obama administration has recognized this urgent need for action and included significant investment in smart grid technology in the recovery package: $4.5 billion for the smart grid and $6.5 billion for transmission construction. Innovative ideas and cross agency coordination can maximize the stimulus funding's effectiveness. In addition to investment in the smart grid, the stimulus package included funds for upgrading America’s broadband network, which has the same essential structure as the electricity network.
In CAP’s new report "Smart Grid, Smart Broadband, Smart Infrastructure: Melding Federal Stimulus Programs to Ensure More Bang for the Buck" Peter Swire makes the argument for this coordinated use of stimulus funds.
"So here’s a simple and powerful idea—construction of the electricity grid and the broadband network should go hand in hand. And here is an even more powerful idea—we should combine these efforts with other parts of the Recovery Act, such as health care information technology, education reform, weatherization initiatives, and future policy initiatives to create a nationwide smart infrastructure."
The report suggests that funds be conserved and put to the most efficient use by upholding the principle of "dig once." About 90 percent of the cost of laying broadband fiber along public roads is related to digging up the road and the subsequent repairs needed. Something as simple as syncing the deployment of broadband fiber with pre-existing plans for construction crews to be onsite can significantly reduce costs and the use of resources. Furthermore, using healthcare centers, libraries and schools as broadband hubs for their communities can simultaneously service the information technology needs of those institutions and the larger community.
The stimulus package provides a long overdue opportunity to create a national smart infrastructure, and this can be accomplished in a financially responsible and efficient way by following CAP’s recommendations. Smart infrastructure is vital to guaranteeing sustainability by protecting America’s economy from losses due to blackouts, dependence on foreign oil, and ensuring that we will be economically and technologically competitive in the future. The implementation of this infrastructure is not a choice we have the luxury to make, but how we do so is in our hands.