First off, what is smart grid technology? Smart grid technology allows two-way communication between a home or business and the utility company.
Then you are probably wondering why is there so much interest in smart grid technology now? The key reason is that our electrical transmission system is outmoded and overloaded. Our present system will be unable to handle the increasing demand for electricity for much longer. Take the electric car. If thousands of these cars are on the road next year, we will need the electrical delivery system to power them.
President Obama has allocated $3.4 billion dollars in grants to companies for developing smart grid technology. They are matching grants, which means that the companies receiving them will match their monies, thus creating a multiplier effect to the tune of about $8 billion dollars. Companies will need to hire more people, which will create more jobs and help the economy.
So, which companies stand to benefit from smart grid technology funding? One leader is Itron Inc. (NASDAQ: ITRI). Itron manufacturers smart meters that, when installed in your home, will alert you when the utility company needs a boost in electrical usage, such as in the case of high temperatures. Homeowners can then decide if they want to adjust their usage and thus save on electricity costs. Other companies that could benefit include DTE Energy Corp. (NYSE: DTE), Centerpoint Energy Inc. (NYSE: CNP), and Glendale Power and Water.
And you may be wondering when the grants will be made public. According to Matt Rogers of the Department of Energy: "We will begin moving funds in the next 60 days."
You may want to wait and see if the companies mentioned above are recipients of these grants before making a final investment decision.
Closing Bell: Dubai almost stole the day (AMZN, LVS, AIG, SOMX) 
Serious Money: Fortune's 25 leaders among leaders
Can the Tiger Woods situation impact Nike?
Add your comments