“In many ways we see this scenario as analogous to the birth of the Internet”. That is a quote from Cisco’s website where they are discussing their recent venture into smart grid architecture. Cisco is better known as a manufacturer of network equipment and seller of a variety of network-related software products. However, just this month, Cisco entered into a three year partnership with Duke Energy to develop smart grid technology.
It could be a great match. The core of a smart grid should be its communications infrastructure. In order to effectively manage energy use, the grid must be able to deliver usage information from various nodes accurately, and in a timely manner. Its not unlike the challenge posed in current network management situations and Cisco has even taken the position that grid communications should be done in IP. Cisco’s website on smart grid solutions can be found here.
Given the tremendous sales opportunity, as smart grids are just starting up, its no surprise to hear that IBM is also competing as a vendor of Smart Grid solutions. IBM has an overview of Smart Grids on their Smarter Planet site. They have already signed deals with Ohio-based American Electric Power and Michigan-based Consumer Energy to work on their smart grid initiatives. According to Dan Clark, of IBM’s Venture Capital Group, one of their goals is to develop a common communication protocol, based on standards like TCP/IP, for utilities and smart grid start-ups companies to utilize.
Its very exciting to see large companies wading into the smart grid waters. I just hope that at the end of it all, we don’t wind up in a swamp of competing standards and smart grid devices that can’t talk to each other.
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