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Alternative Energy - Wednesday, November 25, 2009

DOE Dishes Out $620M More For Smart Grids

Developing smart grid technologies continues to be the priority for the Obama Administration as the DOE announced today that it was awarding $620 million for smart grid technology and energy storage projects. Less than a month ago the DOE awarded $3.4 billion to help build a stronger, more reliable grid.

32 demonstration projects will receive the latest funding that will help researchers see how smart grids can save consumers money, improve energy efficiency, and maximize the power generated from renewable energy sources like solar and wind. 16 awards totaling $435 million will help fund smart grid demonstration projects in 21 states.

The largest award for smart grid demonstration projects was the $88.8 million given to the Battelle Memorial Institute, Northwest Division to fund a $177.6 million smart grid showcase that spans 5 states and 60,000 customers. AEP Ohio (AEP:NYSE) received $75.1 million for a $150.3 million project that will affect approximately half of the state of Ohio.

The power consumption of the residents in Los Angeles will be studied through the $60.2 million awarded by the DOE for a $120.5 million project that will operated through a consortium of local research institutes. Southern California Edison (SCEDN:NASDAQ) received $40.1 million for an $80.2 million that will focus on technologies including communications networks, cyber-security requirements and the interoperability and interactions between each.

The other 16 awards totaling $185 million will go towards utility-scale energy storage projects. Of these awards, Pacific Gas & Electric (PCG:NYSE) received $25 million to help fund a $355.9 million compressed air energy storage facility. The 300MW facility will be built using a saline porous rock formation near Bakersfield, CA that will allow PG&E to store the compressed air and release it to power a turbine when power is needed. Southern California Edison received $24.9 million more to fund a $53.5 million project that will examine an 8MW lithium-ion battery that will store energy from the wind farm in Techapi, CA.

But three of the biggest winners from a funding standpoint are California start-ups. With venture capital funding still fairly scarce, Amber Kinetics, Primus Power Corporation, and SEEO received $4 million, $14 million, and $6.2 million respectively to test their technologies. Amber Kinetics is working on a flywheel energy storage technology at the utility level while Primus Power Corporation will be deploying a 25MW – 75MW to deploy an “EnergyFarm” at a total cost of $48.7 million. SEEO will develop and deploy a 25kWh solid state battery that is an advanced lithium-ion battery. Of the three companies, SEEO has received $10 million in venture funding from Khosla Ventures while Amber Kinetics and Primus Power do not disclose any details about funding on their sites.