Smart Grid, Smart Energy Networks, Smart Home, Smart Devices: just a few of terms being used to describe our energy future.

Thanks in large part to the economic stimulus package, the United States’ electric power supply (referred to as the grid) is getting a radical makeover. The U.S. Department of Energy is allocating $4.5 billion in grants and subsidies for promising projects which will improve the efficiency of the current electric grid. Estimates put the amount of electricity lost in transmission at between 15 and 50 percent.

This “Smart Grid” will incorporate a secure version of Internet technology, enabling wireless “smart electric meters” on your home to talk to your utility, in real time. If you experience a power outage or need additional power (for example during a hot day), your meter will communicate with the utility to request additional voltage. Connecting millions of these smart meters together constitutes a “smart energy network” designed to help the utility fine tune the allocation of an increasingly expensive and scarce resource.

So what’s in it for you? Although the transformation process is just beginning, there are many companies proposing “smart energy devices” designed to help you monitor your home electricity consumption.

An overview of 10 interesting energy monitoring devices for the consumer is available here. The idea is to tap into the smart meter and collect real time electricity information. Studies have shown that access to detailed energy consumption information typically motivates consumers to reduce their annual electricity consumption, with estimates of the actual reduction in consumption ranging from 5 percent up to 50 percent depending on the study and the way in which the information was displayed (real time displays are more effective than summary or aggregated information).

Using the average annual kilowatt figure of 11,232 (DOE/EIA U.S. household average) this could save between $60 and $180 annually. But here’s the catch: Even though smart meters are being deployed by many utility companies there are still limited mainly to participants in pilot projects, your utility may not upgrade your meter for several years.

In comes the Google foundation to the rescue. As Google’s (News - Alert) philanthropic arm, the foundation is combining Google technologies with ideas for a sustainable planet. The PowerMeter Software is a free, Web-based tool designed to display your power consumption on your PC, laptop or mobile device. This week, officials at the foundation announced that they’re teaming up with Energy Incorporated’s TED 5000 smart energy device to make the benefits of home energy monitoring available today. The device connects to your existing electrical system and is available for a one time investment of $200. PowerMeter takes output from TED 5000 on current and historic electricity usage and synthesizes it graphically for your immediate use.

Smart energy devices are part of the trend toward smart homes which utilize advanced communication and computer technologies to manage everything from your refrigerator to your DVR. Given the potential savings from energy monitoring devices, I’d suggest this is a good place to start your transformation to a smart home.