President Barack Obama

According to the US Department of Energy, “U.S. Energy Secretary Steven Chu today detailed President Barack Obama’s $28.4 billion Fiscal Year 2011 budget request for the Department of Energy, highlighting the Administration’s commitment to create jobs with the development of a clean energy economy, invest in advanced science, research and innovation, maintain a strong nuclear deterrent and secure nuclear materials both at home and abroad, and improve energy efficiency to help curb greenhouse gas emissions that contribute to climate change. The FY 2011 budget request also places an emphasis on DOE improving fiscal performance with the proposed creation of a new initiative on Management Reform.

“The President’s budget cuts wasteful spending while making wise investments in innovation and clean energy that will put Americans back to work, save families money and keep our nation competitive in the global marketplace,” said Secretary Chu. “This budget supports new approaches to energy research and invests in the next generation of scientists and engineers, and it will spark new clean energy projects nationwide, including restarting the American nuclear power industry.”

Specifically the President’s FY 2011 budget request for the Department of Energy:

* Positions the United States to be the global leader in the new energy economy by developing new ways to produce and use clean and renewable energy.
* Maintains effective nuclear deterrence while working to secure all vulnerable nuclear materials around the world within four years.
* Engages in cross-disciplinary scientific approaches to our energy and national priorities – including innovative and transformative research at DOE’s National Laboratories.
* Expands the use of clean, renewable energy sources such as solar, wind, and geothermal while supporting the Administration’s goal to develop a smart, strong, and secure electricity grid.
* Promotes innovation in the renewable and nuclear energy sectors through the use of expanded loan guarantee authority.
* Advances responsible environmental management by cleaning up hazardous, radioactive legacy waste from the Manhattan Project and the Cold War.

In developing this budget, several program reductions and terminations are proposed, further demonstrating the Obama Administration’s commitment to fiscal responsibility. They include:

* Eliminating more than $2.7 billion in tax subsidies for oil, coal and gas industries. This step is estimated to generate more than $38.8 billion dollars in revenue for the federal government over the course of the next 10 years.
* Terminating Ultra-Deepwater exploration program, saving $50 million.
* Canceling planned expansion of the Strategic Petroleum Reserve, saving $71 million.

Some additional highlights in the FY 2011 budget include:

* More than $217 million in new funding for science research and discovery, including an additional $40 million for the existing Energy Frontier Research Centers program and $107 million for Energy Innovation Hubs.
* $300 million for the Advanced Research Project Agency – Energy (ARPA-E);
* Lending authority to support approximately $40 billion in loan guarantees for innovative clean energy programs.
* More than $108 million in new funding to advance and expand research in the areas of wind, solar and geothermal energies.
* More than $550 million in new funding for NNSA’s Defense Nuclear Nonproliferation program, which will accelerate the Department’s efforts to implement President Obama’s commitment to lead the international effort to secure vulnerable nuclear material around the world within four years.
* More than $624 million increase for the NNSA’s weapons activities, helping maintain the safety, security and effectiveness of the nuclear deterrent without underground nuclear testing, renewing our investment in Science, Technology and Engineering programs, and funding major long-term construction projects needed to restore critical capabilities in plutonium and uranium.”

Source: US Department of Energy

Steven Chu

According to the Press Release, “At an event in Columbus, Ohio this afternoon, Secretary Chu announced that the Department of Energy is awarding $620 million for projects around the country to demonstrate advanced Smart Grid technologies and integrated systems that will help build a smarter, more efficient, more resilient electrical grid.  These 32 demonstration projects, which include large-scale energy storage, smart meters, distribution and transmission system monitoring devices, and a range of other smart technologies, will act as models for deploying integrated Smart Grid systems on a broader scale. This funding from the American Recovery and Reinvestment Act will be leveraged with $1 billion in funds from the private sector to support more than $1.6 billion in total Smart Grid projects nationally.

“These demonstration projects will further our knowledge and understanding of what works best and delivers the best results for the Smart Grid, setting the course for a modern grid that is critical to achieving our energy goals,” said Secretary Chu.  “This funding will be used to show how Smart Grid technologies can be applied to whole systems to promote energy savings for consumers, increase energy efficiency, and foster the growth of renewable energy sources like wind and solar power.”

These efforts will provide invaluable data on the benefits and cost-effectiveness of the Smart Grid, including energy and cost savings. An analysis by the Electric Power Research Institute estimates that implementing Smart Grid technologies could reduce electricity use by more than 4 percent by 2030.  That would mean a savings of $20.4 billion for businesses and consumers around the country, and $700 million for Ohio alone — or $61 in utility savings for every man, woman and child in Ohio.

The demonstration projects announced today will also help verify the technological and business viability of new smart technologies and show how fully integrated Smart Grid systems can be readily adapted and copied around the country.  Applicants say this investment will create thousands of new job opportunities that will include manufacturing workers, engineers, electricians, equipment installers, IT system designers, cyber security specialists, and business and power system analysts.

The funding awards are divided into two topic areas.  In the first group, 16 awards totaling $435 million will support fully integrated, regional Smart Grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers.  The projects include streamlined communication technologies that will allow different parts of the grid to “talk” to each other in real time; sensing and control devices that help grid operators monitor and control the flow of electricity to avoid disruptions and outages; smart meters and in-home systems that empower consumers to reduce their energy use and save money; energy storage options; and on-site and renewable energy sources that can be integrated onto the electrical grid.

In the second group, an additional 16 awards for a total of $185 million will help fund utility-scale energy storage projects that will enhance the reliability and efficiency of the grid, while reducing the need for new electricity plants. Improved energy storage technologies will allow for expanded integration of renewable energy resources like wind and photovoltaic systems and will improve frequency regulation and peak energy management.  The selected projects include advanced battery systems (including flow batteries), flywheels, and compressed air energy systems.”

Source: Press Release – DOE

Coal is the world’s single biggest source of carbon emissions, at 40 percent. Other sources included burning oil and natural gas, and deforestation and the production of cement.

Chu was optimistic about the prospects for carbon capture and storage (CCS), even though no commercial-scale plant is being built yet anywhere. He said that the United States could have 10 demonstration plants online by 2016.

Most analysts do not expect the technology to be widely available before 2020 at the earliest.

Steven Chu

“I believe we must make it our goal to advance carbon capture and storage technology to the point where widespread, affordable deployment can begin in eight to 10 years,” Chu said in a letter to energy ministers gathered in London to promote global collaboration, and where Chu would speak on Monday.

Carbon capture technology is widely considered to be vital because high-carbon coal is one of the world’s cheapest and most available sources of energy, making it unlikely the world can simply stop burning it.”

Source: Reuters