With the passing of the American Recovery and Reinvestment Act, also known as the economic stimulus bill, utilities and states have even more incentive to develop smart grids.

The $787 billion economic stimulus package included $4.5 billion for research and development, pilot projects and federal matching funds for the Smart Grid Investment Program to modernize the electricity grid.

Smart grids feature intelligent meters, wireless technology, sensors and software that allow customers to monitor their energy use and cut back when the grid is maxed out. This helps prevent blackouts and conserves energy, reducing the need to access backup energy plants.

Senator Maria Cantwell, Democrat from Washington and recently appointed chair of the Energy Subcommittee of the Senate Energy and Natural Resources Committee,  worked to get $11 billion for "smart grid" technologies included in the plan. The White House said it would take about a month for the money to start flowing.

Cantwell has led the push for green energy in her state of Washington. An estimated 47,000 green energy jobs in the state's private sector already account for more than $2.2 billion in earnings annually – which some could more than double in 30 years. She helped the Bonneville Power Administration get an additional $3.25 billion in borrowing authority so it can modernize the region's power grid and bring alternative energy sources on line. And, as part of her congressional duty to oversee the nation’s nuclear sites, she must feel happy that $2 billion of the plan is going towards the cleanup of the decommissioned nuclear production complex, the Department of Energy Hanford Site.

The GridWise Alliance recently reported that a potential disbursement of $16 billion in smart grid incentives would act as a catalyst in driving associated smart grid projects worth $64 billion and create 280,000 jobs.

While this allotment is less than GridWise says is necessary to create a surplus of smart grid-related job opportunities, it should be sufficient incentive to drive the growth and development of new smart grid technologies. The government frequently makes mandates, but it’s not so often that there are equivalent funds to back up those mandates, so this is a rare opportunity for the energy and technology sector.

Another group that will reap financial benefits from the stimulus is the Demand Response and Smart Grid Coalition (DRSG). The trade association, which provides support for companies involved in the demand response and smart grid sectors, announced last week that four more companies – Honeywell, Echelon, Ambient and Steffes – have joined. DRSG, which works with policymakers, stakeholders and customers, now boasts nearly 20 members, including IBM and Google.

Federal and private secor investment in the smart grid will also be a boon to computing hardware and software companies that will leverage wireless and IP communications technology to add intelligence to the grid.