Today the Obama administration announced that they will award $3.4 billion to help fund energy grid modernization. This announcement is long overdue. The U.S. Chamber's Energy Institute has been advocating for a rapid deployment of smart grid for over a year, and it was included in our recommendations delivered to President-elect Obama and the 111th Congress last January. Although government alone is not the answer to solving our energy problems, we welcome this investment and look forward to it paying dividends in the future. Reliable electricity is essential to a sound economy, and smart grid technology will make our system more reliable. Smart grid technology will allow our systems to self-diagnose and repair problems, accommodate new demands, and promote greater efficiency.

It is important to remember that smart grid by itself won't solve our electricity challenges. Today's announcement does not address the siting and permitting issues that have delayed or even scuttled dozens of clean energy projects, as well as the necessary construction of transmission lines to support these sources. Without additional transmission capacity, our grid will not be able to meet increased demands, no matter how smart it is.