National Public Radio (NPR) reported today that Cisco Systems, General Electric (GE), Silver Spring Network and Florida Light and Power (FLP) will work together to install a smart grid system across the greater Miami area. The joint venture, to be called “Energy Smart Miami,” will cost $200 million (US) over the next two years. During that time, FLP will install smart meters in 1 million homes. In Boulder, Colorado Xcel Energy has a pilot program with 15,000 smart meters. However, the Florida project is not a pilot, it is a full fledged roll out of smart meters across Miami. $4.5 billion in stimulus money from the Obama administration has been made available explicitly for smart grid implementation.

Cisco Systems’ CEO John Chambers sees a parallel to the initial stages of the Internet. Mr. Chambers believes the smart grid will lead to reduced consumption by providing consumers with feedback about their energy usage. A Marketwatch article said that meters will give residents “more information and control over their electricity usage while also providing FPL with information that will enhance system efficiency and reliability.” The article goes on to state that the project “would help Miami-Dade County consumers save money by giving them more choices over how they consume and conserve electrical power. It would also generate near-term demand for ‘green collar jobs’ to support its implementation.” Both NPR and Marketwatch estimate that the initial installation will result in approximately 1,000 jobs.

According to a press release from GE,

“Energy Smart Miami has the potential to be the most extensive and holistic smart grid city implementation in the country with ‘smart’ energy infrastructure that will reach every resident. Energy Smart Miami will serve as a historic model for how other major metropolitan cities can – and should – take action to deliver lasting solutions to our nation’s most pressing energy challenges. The initiative will unite consumers, businesses, utilities and government around a common energy vision.”

Will the smart grid take hold like the Internet has? As projects like Xcel Energy’s Smart Grid City and “Energy Smart Miami” take shape, consumers become more aware of the benefits associated with having smart meters. Information is one of the keys to unleashing the second green revolution. By knowing how much electricity costs at various times throughout the day, consumers can make informed decisions about power consumption. In addition, the smart grid can effectively integrate renewable energy into the electrical grid and continue its “greening”.

- Eric Wilson