(Thumbnail image from the New York Times)

"So that's why today, I am pleased to announce that under the Recovery Act, we are making the largest ever investment in a smarter, stronger, and more secure electric grid. This investment will come in the form of 100 grants, totaling $3.4 billion, grants that will go to private companies, utilities, cities, and other partners who've applied with plans to install smart grid technologies in their area." (CNN)

In addition to the $3.4 billion in stimulus dollars, up to $4.6 billion in private funds will also go towards the project. The new grid is supposed to create jobs and is designed to give consumers information about their energy-use habits, but some are skeptical about the long-term effects of this energy plan.

We are looking at reactions on the new grid's efficiency through perspectives from CNBC, Bloomberg, MSNBC and The Herald Tribune.
 
MSNBC talks to U.S. Energy Secretary Steven Chu about why a new electrical grid system would be beneficial. Chu says the "smart grid" has abilities the current, outdated system does not.

“So a smart grid system that can automatically and very quickly dispatch electrical power to where it’s needed is part of what we’re trying to do. As we go to more renewables, this is going to become an increasingly important part of our electricity distribution transmission system.”

But not everyone is supportive of this new electricity distribution plan. Bloomberg News reporter Hans Nichols explains some of the doubts Republicans have about the system's rewiring.

"Now at the core of this is ways to bring electricity, that wind-generated and solar-generated electricity, into peoples’ living rooms. That’s the long-term goal. The short-term goal is to create jobs. What Republicans are saying is that this energy strategy doesn’t have a nuclear component, so it’s short-sighted and it doesn’t have that long-term stability and energy independence."

Among the alternatives proposed by Republicans is a plan for offshore drilling in the Gulf. Florida newspaper The Herald Tribune interviews Republican State Representative Doug Holder.  While supporting the president's efforts, Holder warns not to overlook the Republicans' proposal.

“This whole idea of exploration in the Gulf should come into play,” Holder said. “It’s not the end-all, but it’s a part of the energy picture with renewable energy as the ultimate goal, but it’s going to take many years until we’re off fossil fuels.”

Finally, a climate change attorney and former assistant secretary of energy tells CNBC that money from the government's Recovery Act is the best answer to fixing the energy grid.

"Well sometimes the government has to step up to the plate and help out these emerging enterprises. I mean, for instance, the system's antiquated.  It needs to be upgraded.  You know, this has been a matter going on from administration to administration.  The time is now, as long as you have the political guts to do it it should be done. I mean for instance, not every mission can be done by the private sector, the government does have a role."

What do you think? Will smart grid technologies benefit U.S. in the short-term and in the long run?