A “smart grid” is a digital energy system that incorporates advanced diagnostics and feedback control, allowing electric-car owners to sell power back to the utility company. Vehicle-to-grid (V2G) technology will save billions of dollars in energy costs. Cars charged at off-peak times can share excess power with the grid, creating a nationwide mobile energy storage matrix.

The smart grid will create winners in the marketplace. There are many savvy underdogs like Capstone Turbine (CPST) that makes micro turbines used in stationary applications as well as hybrid electric vehicles. There’s also FuelCell Energy (FCEL), a producer of fuel cells for electric power generation.

One of the darlings of the smart grid space is Itron (ITRI), which makes smart meters for electric, gas and water utilities. On September 19th, the California Public Utilities Commission approved a $1.63 billion program for Southern California Edison (EIX) to install 5.3 million smart electricity meters in houses and small businesses between 2009 and 2012.

There's a general consensus that President Obama won't be able to do everything he has said he can do. He will have to make some tough choices. And disappoint many people in the process.

But the smart grid presses all the right buttons. After all, 60% of our GDP comes from industries that run on electricity. So, it’s good for the economy, the environment, alternative energy, job, the domestic automakers and national security. With that much upside, you can be pretty sure this is going to get done.