Cisco Predicts $20B Annual Smart Grid Business

May 19, 2009

Email this story Print this post Add your comments

Networking equipment giant Cisco has outlined its plans for a highly secure smart-grid infrastructure. The networking equipment giant’s solutions for the electricity grid will address everything from data centers and substations to neighborhood-area networks to businesses and homes.

Cisco’s move is a sign that the electricity distribution system is poised for a digital upgrade, reports CNET News. Other high-tech companies, including IBM, Intel, and several start-ups, are ramping up smart-grid efforts to capitalize on expected investments from utilities and federal governments, says the high-tech news site. Cisco estimates that the smart-grid communications infrastructure will reach $20 billion a year over the next five years.

Cisco started to develop a strategy to enter the smart-grid arena last fall, with some utilities already testing how well its routers and switches can help to more efficiently manage the flow of electricity and prevent outages in grid distribution equipment, according to CNET News. Cisco also released its EnergyWise software earlier this year for managing energy use in office buildings.

Marie Hattar, vice president of marketing in Cisco’s Network Systems Solutions group, said in the article that Cisco’s smart-grid program covers goods already part of its product portfolio, such as data center equipment, but in other cases, such as home networks and smart-meter security, Cisco is developing new products.

Hattar also said that a modernized electricity grid will be separate from the Internet — although Cisco advocates the use of Internet Protocol (IP) in conjunction with existing industry protocols and standards — which she said should lessen security vulnerabilities. Not all smart-meter companies use IP to communicate information and the utility and IT industries are still defining standards, reports CNET.

Hattar expects this network will be 10 or 100 times larger than the Internet because everyone has electricity access, and potentially every device in every home and business will participate in this network. Click here for a Q&A interview with Hattar.

Some of the challenges associated with smart-grid technology include conservative IT spending by utilities and state regulations that are structured around power plant investments rather than efficiency-related IT, reports CNET.

Cisco is involved in the $200 million Miami-Dade smart grid project.

Email this story Print this post Add your comments

Advertisers

Make sustainability part of your strategy.

Get equipped at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Survey Results: Product Environmental Compliance Best Practices

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader