From UPLC: WSJ/NYT REPORTS SILICON VALLEY/WALL STREET IS SURFING THE SMART-GRID WAVE

WSJ/NYT REPORTS SILICON VALLEY/WALL STREET
IS SURFING THE SMART-GRID WAVE

Although not specifically focused on BPL, two articles in the Wall Street Journal (WSJ) and the New York Times (NYT) last week will be of interest to UPLC PowerLine readers. The NYT described a new "watt-com era" of interest among Silicon Valley start ups focusing on smart-grid/green-grid technologies. Meanwhile, the WSJ reported on recent investments and IPO’s by smart-grid companies, including EnerNOC Inc. and Comverge Inc. According to WSJ, firms like Energy Ventures, EnerTech Capital, Nth Power and Rockport Capital Partners have invested millions in start-up companies selling technologies that could improve the grid. Investments in energy intelligence, which includes smart-grid technologies and sensing-and-monitoring technologies, climbed above $450 million in 2006 from $150 million in 2003.

BPL was included as part of the WSJ story, which explained that BPL will "provide broadband-quality Internet service to rural communities that don't have access to high-speed Internet through DSL or cable-modem connections. In addition, these services offer utilities the ability to track current as it flows across the wire, and layer additional monitoring and control applications on top of the smarter network they've put in place." According to the WSJ, utilities lose between 50% and 70% of the power transmitted through their network before it even reaches the consumer currently. "Broadband-over-power line services like those from venture-backed start-ups Current Communications Group LLC, based in Germantown, Md., and Pittsburgh-based BPL Global Ltd., will help utilities track that loss so that they can try to prevent it." The WSJ also explained that chipsets from Intellon and others will enable utilities to monitor power as it flows through their networks and into homes. WSJ also recognized IBM as one of the big companies that is opening doors for smaller companies to ride the smart-grid wave with utilities. The WSJ story reported that TXU is working with Current Communications on BPL for smart-grid, and it noted that KKR’s recent acquisition of TXU proposes a further $400 million investment in conservation and energy-efficiency activities over the next five years.