Once implemented, the smart grid is expected to save consumers money and reduce America’s dependence on foreign oil by improving efficiency and spurring the use of renewable energy sources.

Before it can be constructed, however, there needs to be agreement on standards for the devices that will connect the grid.

After chairing a meeting of industry leaders at the White House, Locke and Chu announced the first set of standards that are needed for the interoperability and security of the smart grid and $10 million in Recovery Act funds provided by DOE to the National Institute of Standards and Technology to support the development of interoperability standards.

Secretary Chu also announced that based on feedback from the public and Smart Grid stakeholders, the Department of Energy is increasing the maximum award available under the Recovery Act for Smart Grid programs. The maximum award available under the Smart Grid Investment Grant Program will be increased from $20 million to $200 million and for the Smart Grid Demonstration Projects from $40 million to $100 million. In making awards, DOE will ensure that funding is provided to a diversity of applications, including small projects as well as end-to-end larger projects.

President Obama has made a smart electrical grid a key element of his plan to lower energy costs for consumers, achieve energy independence and reduce greenhouse gas emissions, Secretary Locke said. Today, we took a significant step toward developing the open and transparent interoperability standards necessary to realize the Smart Grid vision.

The Smart Grid is an urgent national priority that requires all levels of government as well as industry to cooperate, Secretary Chu said. I’m pleased that industry leaders stepped forward today and are working with us to get consensus. We still have much to do, but the ultimate result will be a much more efficient, flexible power grid and the opportunity to dramatically increase our use of renewable energy.

The meeting was designed to encourage industry executives to work to expedite the adoption of standards in advance of a major two-day, public standards workshop tomorrow in metro Washington, DC.

The initial batch of 16 National Institute of Standards and Technology (NIST)-recognized interoperability standards announced today will help ensure that software and hardware components from different vendors will work together seamlessly, while securing the grid against disruptions.

Spanning areas ranging from smart customer meters to distributed power generation components to cybersecurity, the list of standards is based on the consensus expressed by participants in the first public Smart Grid Interoperability Standards Interim Roadmap workshop, held April 28-29, 2009 in Reston, Va. A full list of the announced standards is attached below.

The DOE also announced that the $10 million it received to support the development of interoperability standards under the American Recovery and Reinvestment Act has been provided to NIST to help accelerate their efforts to coordinate these critical standards.