Smart grid receives manufacturing tax credits
Last week, I wrote about the connection between data center energy efficiency and the intelligent utility, prompted by U.S. Energy Secretary Steven Chu's announcement of $47 million in awards to improve efficiency in information technology and communication technology.
On Friday, U.S. President Barack Obama awarded $2.3 billion in Recovery Act advanced energy manufacturing tax credits for clean energy manufacturing. Energy Central's Bill Opalka covered the clean energy aspects of these awards in his article yesterday in RenewablesBiz Daily.
But here, too, there was a clear monetary nod to smart grid manufacturers. In fact, eight of the 183 projects to receive manufacturing tax credits fall under the federal government's smart grid designation, totaling $23.2 million (or roughly half of the monies handed out to data center energy efficiency projects earlier in the week).
While some of the smart grid manufacturers whose projects were named on Friday are well known to readers of Intelligent Utility magazine and Intelligent Utility Daily, others are less known. But from the largest project, requesting $5.1 million in tax credits, to the smallest, requesting $495,510, all will result in the addition of new jobs in the intelligent utility and clean energy manufacturing sectors, so it's a true win-win all the way.
Projects awarded advanced energy manufacturing tax credits in the "smart grid" category included:
Cooper Power Systems, for two projects, one in Nacogdoches, Texas, and the other in Waukesha, Wis. The Texas project is a new facility to provide electrical transformers with amorphous steel cores, which provide lower no-load losses than normal steel transformers. The Wisconsin project, also a new facility, will be producing high-efficiency transformers.
Ice Energy, Inc., for expansion of a facility in Hammondsport, N.Y., to design and manufacture energy storage modules for use with direct expansion air conditioners commonly found in commercial and small industrial applications.
Itron, Inc., to re-equip an existing facility in West Union, S.C., to produce its OpenWay CENTRON meter. This expansion will allow Itron to increase the facilty's annual production to four million meters.
Metglas, Inc., to purchase equipment for a casting expansion to increase domestic production of amorphorous metals that form the core of most energy efficient transformers.
Premium Power, to establish a manufacturing facility in North Reading, Mass., to produce its proprietary energy storage systems.
S&C Electric Company, to re-equip its facility in Chicago, Ill., to produce a fault-interrupting device for overhead distribution system applications, and switchgear for underground distribution system applications.
Southwire, to re-equip its Carrollton, Ga., facility for new manufacturing lines to produce cables for specifically optimized for wind and solar applications.
It is refreshing to see the federal government giving a nod to both new facilities and re-equip projects.
And Secretary Chu has also said there will be more "smart grid" funding to be announced later (though he wouldn't indicate when) in the areas of transmission and distribution and smart appliances. We'll be watching.
I look forward to discussing this and other issues with all the players in the emerging intelligent utility. If you'd like to let me know what you think of this article, I encourage you to use the Comment link below. I welcome your insights, whether or not you agree with me. It's all informed dialogue, and an important part of the solution. If you have a story idea for me, please contact me by e-mail at krowland@energycentral.com or by telephone at 720-331-3555.
