SDG&E Gets $28.1M Federal Grant for Smart Grid Innovations

[Updated 10/27/09 12:55 pm. See below.] The Department of Energy has released a list of utilities that are getting federal grants to spur energy innovations under the $787 billion economic stimulus package, and San Diego Gas & Electric is getting $28.1 million to help build out its “smart grid” system.

Additional details are expected to follow President Obama’s speech at a solar facility in Florida, where he is expected to announce grants totaling $3.4 billion—the largest award made under the stimulus package in one day. The grants, which range from $400,000 to $200 million, are intended to help utilities build smart grid systems (which help consumers save money by providing real-time monitoring of their energy use), upgrade local power grids to reduce blackouts, and boost use of renewable energy.

The $3.4 billion is being allotted through 100 government grants in 49 states that will be matched by $4.7 billion in private investments.

[Updates below with new information from SDG&E and clarifies that the utility formed the coalition as part of a second grant application] SDG&E, a utility operated by San Diego’s Sempra Energy, said in September it has formed a coalition with the non-profit group Cleantech San Diego, UC San Diego, and major companies like Qualcomm, IBM, Cisco, and Intel. The coalitions was formed as part of a separate grant application that seeks $100 million for a regional demonstration system to help SDG&E manage the increasing demands on its power grid from electric vehicles as well as fluctuations in energy supplied to the grid by wind, solar and other renewable energy sources.

“It’s all part of the broader smart grid funding that the federal government has put aside,” says Chris Baker, a senior vice president for shared services and chief information officer for SDG&E and its sister utility, Southern California Gas. “You can’t do a smart grid without an enabling communications infrastructure.”

Baker says the $28.1 million DOE grant will enable the San Diego utility to address a variety of wireless communications needs with a more comprehensive plan. For example, while the utility has installed about 130,000 smart meters so far, Baker says the grant will enable SDG&E to establish a dedicated 700 megahertz “takeout point” for transmitting data from the smart meters’ wireless mesh network. The $28.1 million grant to SDG&E from the DOE will cover almost half of the $60 million project. The funding also enables the utility to install high-bandwidth wireless capabilities at its substations and certain corners of its grid.

SDG&E is working to integrate 1.4 million wireless “smart meters,” which the utility has been installing, with an advanced IT system that will allow increased monitoring, communication, and control of a regional power grid that spans 4,100 square miles.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.