Image courtesy of the US Department of Energy

Will A Tight Budget Prevent GPA From Building A More Efficient Energy Structure?

By Michael Rudolph

GUAM - The Department of Energy can help Guam generously in building a next-generation power grid. But not enough to get the project off the ground.

The $16.6 million Smart Grid Investment Grant awarded to Guam Power Authority is "is a good thing," according to GPA Public Information Officer Art Perez, although he qualifies his statement with a sense of alarm that only a lack of resources can bring when golden opportunity knocks. The problem is that GPA will have only three years to complete projects funded by this grant at an austere time when the budget isn't exactly running a surplus for such large capital investments.

A recent news release from Guam Congresswoman Madeleine Bordallo states that DOE's Smart Grid Investment Grant...is funded by the American Recovery and Reinvestment Act of 2009...and will allow the Guam Power Authority to install 46,000 smart meters, install automation technologies, and upgrade infrastructure island wide.

The 'Smart Grid' is a system that allows consumers to measure and know exactly how much electricity a device is using and what the cost of usage is. For example, you could conceivably measure how much electricity it takes to dry a load of laundry and how much it costs.

Sounds great. But here's the rub. The $16.6 million package is a 50/50 funding grant. GPA must match the funding requirements of a given project and will then be reimbursed as projects are completed. Although he can't deny the program would be exciting for GPA and ratepayers alike, spokesman Perez is quick to point out that "identifying the matching funds will be a challenge for GPA...cash is already tight."

Perez told Guam News Factor that these funds will allow GPA to pursue projects that will improve "outage response and tracking, manage power quality (voltage), reducing line losses (unaccounted for energy that is produced) and measure consumption loads (which will aid in planning and management of the power grid)."

Exactly the kind of measures that can save costs for the power authority and ratepayers alike. The challenge will be the  up-front cost.

Here is the original media release from the Office of Congresswoman Madeleine Z. Bordallo regarding GPA's $16.6 million dollar grant:

U.S. Department Of Energy Awards $16,603,507 For Smart Grid Technology To Guam Power Authority

October 27, 2009 / Washington, D.C. - Congresswoman Madeleine Z. Bordallo today announced that the U.S. Department of Energy (DOE) has awarded the Guam Power Authority $16,603,507 in federal financial assistance. The grant received today is part of the DOE's Smart Grid Investment Grant and is funded by the American Recovery and Reinvestment Act of 2009. In total, the Government of Guam is eligible for more than $178 million in formula grants not including $60 million in tax credits and has been notified of $173 million in financial assistance through the American Recovery and Reinvestment Act.

This grant is one half of a $33 million project that will allow the Guam Power Authority to install 46,000 smart meters, install automation technologies, and upgrade infrastructure island wide. The remaining balance will be matched by the Guam Power Authority who has entered into a partnership with the U.S. Department of Energy for these projects.

"The financial assistance received today from the U.S. Department of Energy will allow the Guam Power Authority to provide more efficient and reliable service to our community," Congresswoman Madeleine Z. Bordallo said today. "This grant awarded today is part of a $3.4 billion effort by the Obama administration to modernize our nation's energy grid, and is the largest single energy investment in U.S. history. I commend Joaquin Flores, General Manager of GPA, for securing these funds, and I look forward to the American Recovery and Reinvestment Act benefitting our island further."

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