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National Grid Applies for $200 Million in Stimulus Funding for Largest Collective Smart Grid Project in the Northeast
National Grid Applies for $200 Million in Stimulus Funding for Largest Collective Smart Grid Project in the Northeast

August 6, 2009

National Grid (LSE:NG;NYSE:NGG), the nation’s second-largest utility, has applied to the U.S. Department of Energy for $200 million in stimulus funding to develop an “end-to-end” smart grid deployment that will include approximately 200,000 customers in New York, Massachusetts and Rhode Island.

Through its smart grid program, National Grid is partnering with the three states to help them achieve their vision for a clean, efficient energy network of the future while creating new jobs and economic development opportunities for the region. The smart grid program will provide residential and business customers across the northeast with unprecedented ability to reduce their energy consumption, carbon emissions and utility bills.

Tom King, president of National Grid U.S., said, “Our smart grid program is highly consistent with and supportive of the purpose and goals of the DoE stimulus program and it will accelerate smart grid deployment.” King added, “The proposed project is a collaborative effort among National Grid, its customers and the leadership of New York, Massachusetts and Rhode Island. Working together, we aim to demonstrate the transformative value and benefits of the smart grid to the northeast and the rest of the nation.”

National Grid’s project will demonstrate the benefits of combining “smart” and “green” technologies from end-to-end (transmission to consumer) including demonstrations of clean energy technologies such as plug-in hybrid electric vehicles and solar and wind power as well as energy storage technology. The result will be one of the most technologically advanced smart grid deployments in the U.S. This initiative will provide an increased understanding of the interface between the next generation of green energy supply and the smart grid to pave the way for the broader roll out of these technologies in the states where National Grid operates.

King added, “While our smart grid is focused on customers, it also acts as a catalyst to accelerate and accommodate the integration of renewable energy applications into the distribution network. Our intent is to create a flagship smart grid system and we hope the Department of Energy will support us in this important effort.”

National Grid’s plan has been endorsed by the governors of New York, Massachusetts, and Rhode Island, as well as leaders from government and industry.

"Investment in the proposed advanced smart grid initiatives will provide an instrumental tool for accomplishing New York’s energy efficiency and renewable energy goals by enabling customer demand response through smart meters and appliance controls and by providing electric grid optimization to enable interconnection of renewable resources,” said New York Governor David A. Paterson. "It also will attract clean-technology businesses to the State, thereby creating green jobs, boosting the economy and protecting the environment."

“These grants will support our own recent smart grid initiatives to modernize the electric grid in Massachusetts,” said Massachusetts Governor Deval Patrick. “The goal is to save money and to give more control to both grid operators and consumers.”

"Federal stimulus support for the smart grid program will assist Rhode Island in moving forward with its renewable energy and energy efficiency programs,” said Rhode Island Governor Donald L. Carcieri. “Demonstrating the capability to store renewable energy will be a significant contribution to advancing these technologies."

National Grid also is developing a state-of-the-art “Smart Technology Center” in Syracuse, New York, where it will test, assess and evaluate smart grid technologies and applications before they are deployed in the field. The center also will serve as a lab for testing new smart grid applications before they are rolled out to customers.

For more information on National Grid’s smart grid program, visit www.nationalgridus.com/energy

National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.