IBM Global Financing, the lending and leasing arm of IBM, has put up $2 billion to provide funding to start-up companies focused on smart grid technology and related “greentech” projects.  The announcement puts IBM at the forefront of smart grid venture capitalists along with like-minded firms such as AT&T, GE, and Intel.

The big tech companies are positioning themselves to claim significant shares of the developing market for smart grid technology.  IBM says their action will give companies that qualify for the $4.5 billion in stimulus funding an opportunity for additional capital.  IBM says it will provide most of the money through low-interest loans, deferred payment plans, or lines of credit.

The global smart grid market is already worth an estimated $13 billion.  IBM stands to position itself as a major manufacturer of smart meters and related components.  In March, IBM finalised a deal in Australia worth $3.2 million to provide 12,000 sensors for a smart grid project.  The sensors will automate the process that sends information between the utility company and smart meters and other smart devices.

IBM is the latest major player to make a big play for the smart meter market.  AT&T announced a partnership with smart meter developer SmartSynch in March by giving the start-up access to its extensive wireless network.  Other telecoms including T-Mobile and Verizon have made similar announcements.  As more and more consumers become attuned to monitoring their power consumption online, the mobile phone carriers will be able to provide the service.

T-Mobile’s announcement came just last week when it announced a collaborative effort with Echelon.  T-Mobile will develop special SIM cards, similar to those used in mobile phones, for use in smart meters.

The telecoms have found the smart grid market so important that they substantially reduced their service fees for servicing smart meters in hopes to open up the residential smart metering market.  Utilities need access to wireless networks that can handle the abundance of data that will come about once smart meters go online.  Eventually, customers could access their power usage information, or even make adjustments, through gadgets installed on their cell phones.

Google has been paying attention to the potential of smart metering as well.  The search giant introduced its PowerMeter energy monitoring system in February.  Google says the application allows energy customers to monitor their energy usage in real time.  While still in the testing phase, PowerMeter is Google’s entry into the smart grid market.

Intel Capital, the venture capital arm of chipmaker Intel, has also made significant investments in smart metering.  Just like the others, Intel is developing a dashboard for customers to use in order to interact with their power usage.  Intel has also shown interest in smart buildings and has been lobbying government to develop policies that establish smart grid standards.

 

Intel is working with several organisations to develop standards including IEEE and Gridwise, which includes GE, Cisco, and others among its members.  Everyone agrees that the smart grid will never work until standards are established and accepted.

It will be interesting to see how well the stimulus funds succeed in moving the smart grid concept further.  IBM, GE, and the others certainly seem willing to make big investments even before the government funding becomes available.

IBM
One New Orchard Road
Armonk, NY 10504
http://www.ibm.com

AT&T
175 E. Houston
San Antonio, TX 78205
http://www.att.com

General Electric
3135 Easton Turnpike
Fairfield, CT 06828
http://www.ge.com

Intel
2200 Mission College Boulevard
Santa Clara, CA 95054
http://www.intel.com

T-Mobile USA
12920 SE 38th St.
Bellevue, WA 98006
http://www.t-mobile.com

Verizon
140 West Street
New York, NY 10007
http://www22.verizon.com

Echelon Corporation
550 Meridian Ave.
San Jose, CA 95126 USA
http://www.echelon.com

Cisco Systems, Inc.
170 West Tasman Dr.
San Jose, CA 95134
http://www.cisco.com

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