Improving the power grid is short sighted. Lets put a substantial amount of the funds towards driving fuel cell technology forward. Last summer, MIT Professor Daniel Nocera made a splash with the announcement of a process he developed that "will allow the sun's energy to be used to split water into hydrogen and oxygen gases. Later, the oxygen and hydrogen may be recombined inside a fuel cell, creating carbon-free electricity to power your house or your electric car, day or night." (http://web.mit.edu/newsoffice/2008/oxygen-0731.html)
Bringing this technology to the market would, over time, reduce, or potentially eliminate the need to be on the grid at all and eliminate the need to build power plants.
This technology has the potential to be so revolutionary that we need to find a way to incent people to work day and night to make it deployable.
Do we need DARPA to issue a challenge the way it has for driverless vehicles?
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