FACTB0X-What is a smart grid?

Jan 8 (Reuters) – President-elect Barack Obama on Thursday said an economic stimulus package should include building a new electricity “smart grid.”

“Smart grid” describes a more efficient, cost-saving method of moving electricity along major long-distance transmission lines to local distribution power lines and disparate end-users in homes, businesses and schools.

The estimated cost of creating a nationwide “smart grid” by investor-owned utilities in the United States is $50 billion over 10 to 20 years, said Ed Legge, an analyst with the Edison Electric Institute, a power industry lobbyist. Adding federally and locally owned utilities, the full cost would be about $65 billion.

Smart grid advocates say utilities and customers will realize cost savings in the long run, despite the high roll-out costs.

Guardian