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U.S. stimulus package and smart grid

Alexander Richter 18 Jan 2009

Smart grid projects in the U.S. could be the early winners in the U.S. stimulus package as proposed by Democratic lawmakers, so Cleantech.

Smart grid projects in the U.S. could be the early winners in the U.S. stimulus package as proposed by Democratic lawmakers, so Cleantech.

The US$ 54 billion for cleantech proposal, includes US$ billion to the smart grid sector. Smart grids are basically transformed electricity transmission and distribution network systems, which deliver electricity from suppliers to consumers using digital technology to save energy and cost. The potential energy savings are huge. Today, the U.S. electric grid loses roughly 7% of energy production through faulty transmission lines, theft and mechanical problems. This amount represents roughly US$ 20 billion.

Question is what implications this has to all the geothermal projects in the western states in the U .S.

Ian Tharp, senior analyst of cleantech and renewable energy with Toronto-based Dundee Capital Markets, noted in a recent report released that Canadian-listed geothermal companies with projects in the U.S. are likely to benefit from the stimulus, including U.S. Geothermal, Nevada Geo, Western GeoPower and Sierra Geothermal, because of the proposed extension of the eligibility period for receipt of the renewable energy Production Tax Credit.

The proposed stimulus package also includes a three-year extension of the production tax credit. This would mean the credit for wind energy would expire in 2012, while incentives for geothermal and other industries will remain in place through 2013.

Source: Emma Ritch for Cleantech.com, Jean Chemnick for Platts.com