President-elect Barack Obama has said he wants to invest in the modernization of the U.S. electrical grid to create new smart grid jobs and transition the nation to clearner, more efficient energy use.
The Demand Response and Smart Grid Coalition (DRSG) yesterday released its policy recommendations for the incoming Administration and the 111th Congress.
The recommendations are designed as options for how demand response and smart grid technologies can help policymakers meet their goals in the areas of economic stimulus, infrastructure enhancement, green job creation and climate change mitigation. DRSG has identified 21 different policy options that can be pursued.
Among the proposals is the establishment of a Reduction Tax Credit (RTC), whereby eligible parties would receive a tax credit for every kilowatt hour (kWh) of electricity reduced, just as wind and other renewable resources receive a Production Tax Credit (PTC) for every kWh produced. Just as the PTC has helped lift and support the renewable energy industry, an RTC would do the same for the demand response and smart grid industry, according to DRSG.
Another DRSG proposal would create a Smart Grid Infrastructure Fund, modeled after the System Benefit Funds that exist in many states which are dedicated for use on energy efficiency and renewable energy activities. A new national Smart Grid Infrastructure Fund would specifically accelerate the production and deployment of smart meters and other smart grid technologies, and it would help create the green jobs that come with them.
As Congress moves to establish a national Renewable Portfolio Standard (RPS), DRSG urges that special recognition be given to the ability of demand response to reduce higher value “peak” kWh (as opposed to average kWh) and complement and support the increased deployment of intermittent renewable resources that do not provide on-peak power. DRSG specifically urges that on-peak kWh reductions be provided with multiple credits in line with their higher value, providing a targeted incentive to develop demand response resources and deploy their enabling technologies.
In the area of Climate Change, DRSG recommends that policymakers recognize the essential role of smart meters and other smart grid technologies in verifying CO2 reductions achieved through reductions of electricity use. With CO2 reductions being more seriously monetized under new carbon- constraining policies, it becomes much more important that they be more precisely measured and verified.
The Demand Response and Smart Grid Coalition (DRSG) is the trade association for companies that provide products and services in the areas of demand response, smart meters and smart grid technologies.
The full list of policy recommendations are available at the link below.
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