The smart grid is said to be the center-piece of the new national energy policy, helping consumers save energy, take advantage of sustainable energy choices and create new jobs in the green economy.

In addition, the smart grid incorporates renewable energy generation, advanced electric transmission and distribution technologies, smart metering and energy storage. The technology also seeks to help utility customers play a central role in not only the consumption of energy, but also the production of it.

Michael Niggli, chief operations officer of SDG&E, said: “Realizing the benefits of the smart grid is more than just a high-tech experiment. SDG&E was the first utility in the continental United States to agree to generate 33% of our electricity from renewable resources by 2020, and the smart grid will help pave the way to this goal and develop a more sustainable energy future for all of us.”

Lisa Bicker, president of CleanTECH San Diego, said: “Greater interaction among all the stakeholders is essential to the success of the smart grid. By leveraging San Diego’s strong history of collaboration we will enable new products, services and markets to fuel an economic engine in San Diego and beyond. In addition, we will bring new clean technology jobs and export opportunities to our region.”

The federal government has dedicated more than $4.5 billion to smart grid development as part of the economic stimulus package and the San Diego coalition is seeking $100m of those funds for the project.

The coalition is expected to create a community-scale utility system within the region that can interconnect greater percentages of renewable generation at both the distribution- and transmission-system levels, store electricity and use automated sensors and communication technologies to help manage these intermittent energy resources.