NV Energy to get $136 million in grants to create smart grid

By Stephanie Tavares

Friday, March 12, 2010 | noon

NV Energy will receive $136 million in grants from the U.S. Department of Energy to help create a smart grid in Nevada, the company announced today.

The grant comes from an American Recovery and Reinvestment Act program, which has $301 million in grants available to utilities for smart grid infrastructure. The grants pay up to half the cost of updating electric transmission systems, which are generally funded by fees passed on to rate payers. Under the agreement, NV Energy plans to match the funding with $160 million.

With a definitive grant agreement in place, NV Energy hopes to complete installation of advanced service delivery infrastructure statewide in late 2012.

Implementation of the smart grid will allow NV Energy to reduce operating costs as intermittent renewable energy comes on line.

"This grant, along with our own investment in this project, will benefit virtually the entire state of Nevada," NV Energy CEO Michael Yackira said.

"The energy landscape is transforming across the country, and I am proud to say NV Energy is leading the way.  Our (Advanced Service Delivery) project will change the way we do business, providing our customers with more information that will enable them to manage their energy use more effectively and efficiently.”

The smart grid will allow NV Energy customers to use state-of-the-art energy conservation technology for the first time.

Customers could, for example, install Internet connected thermostats in their homes and offices that can be controlled remotely from a computer or even a smart phone.

Other online applications can allow customers to see how using certain appliances or other electronic equipment impacts their energy use. Many new flat screen televisions, for example, use a large amount of electricity even when turned off.

The statewide smart grid project will deliver more than $65 million in annual benefits to the state, according Sen. Harry Reid. That includes more work for electrical and gas workers who will install thousands of advanced electric and natural gas meters on homes and businesses across the state.

These meters will make it easier for Nevadans to hook up roof top solar arrays or backyard wind turbines, which Reid said will grow jobs in the state.

“This project will create jobs, save consumers money and allow Nevadans to take charge of their energy consumption while allowing our state to become the model for other smart grid projects," Reid said. "I look forward to working with the Department of Energy, NV Energy and Nevada consumers as we pave the way for a better and more reliable grid that will integrate Nevada’s vast renewable resources.”