Following a one-year “courtship,” America and Russia have made it official: The two countries signed a Memorandum of Understanding in San Diego, California, and Belgorod, Russia, earlier this month that will lead to cooperation on energy efficiency and smart grids.
The process began at the 36th G8 summit , held in Ontario in June 2010, when U.S. President Barack Obama and Russian President Dmitry Medvedev agreed to implement a multifaceted initiative to promote energy efficiency and the development of clean energy technologies under the Action Plan of the Bilateral Presidential Commission’s Energy Working Group.
A visit by industry, technical, and government officials from Kaluga, Russia, to Texas in December 2010 provided an opportunity for them to see first-hand the activities of CenterPoint Energy and Austin Energy utilities in this field; and their interactions with consumers, vendors, and regulators. A seminar in Washington, D.C., provided an overview of policy, programs and technologies that are being supported by the U.S. Department of Energy and the private sector.
A return visit by CenterPoint Energy and Austin officials to Russia this spring exposed these U.S. utilities and technology companies to the challenges that Russian utilities face in modernizing their systems and moving to smart-grid applications.
At a bilateral meeting on May 26, 2011, before the 37th G8 Summit in Deauville, France, Presidents Obama and Medvedev highlighted the progress achieved during the past year. Under the Energy Working Group of the Presidential Bi-national Commission, the United States Agency for International Development (USAID) in cooperation with the U.S. Department of Energy (USDOE) and the U.S. Energy Association, (USEA) has developed and begun implementation of a smart grid partnership program
USAID's Deputy Assistant Administrator for Europe and Eurasia Jonathan Hale explained: “This new U.S. – Russia cooperation will enable utilities to reduce harmful emissions, including greenhouse gases, by enhancing their ability to help consumers use energy more efficiently; integrate and deliver renewable energy; and more efficiently transmit and deliver electricity to consumers. It is a win-win effort for the U.S., Russia, and the global environment and climate.”
USAID is an independent federal government agency that receives overall foreign policy guidance from the Secretary of State. Its work supports long-term and equitable economic growth and advances U.S. foreign policy objectives.
.
Austin Energy (News - Alert) commented that it planned to be an active participant in the international program. According to Jeff Vice, Director of Local Government Relations for the utility, “As the electric system adapts, we are trying to figure out what the business model is going to be. Power is not going to be pushed centrally and one way through the grid. It's a much more fluid environment, homes are going to be built much more efficiently, and consumers are better educated. We use a variety of mechanisms to get to the goal. It's not just about adopting one of the pieces of smart grid, it's about creating new policies – for example, every new home will have to be net zero by 2030—or introducing rebate programs for our customers.”
By participating in the bilateral exchange with Russia, Austin Energy is designing what they call the “energy system of the future.” According to Vice, “One thing we liked discussing was the pilot projects Russia was doing —start small, test, and learn.”
USAID and USDOE will be working to further these business and commercial ties over the coming year. Two specific activities are envisioned in addition to the utility and municipal partnerships. A business roundtable is planned for the fall in Russia, and a joint study on regulatory issues and barriers in smart grid deployment is in the works.
The achievements of the U.S. - Russia Presidential Commission are outlined in the Commission's annual report, which can be accessed at the website.
Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Rich Steeves
