A new report by NRG Expert, a global energy research company, shows the potential of the smart grid market.
According to the report, the smart grid is viewed as a solution due to its ability to detect faults, make repairs, enable a two-way flow of communication and help companies’ better match supply and demand. Drivers of smart grids include the need to minimize power outages, reduce carbon emissions, integrate renewable energy sources, and reduce energy consumption, says NRG Expert (London)
Top 5 Smart Grid stats
- $2 trillion – estimated total investment needed to achieve full smart grid penetration
- $480 billion - estimated cost of smart grid -related upgrades in US
- $100 billion - true value of the smart grid market by 2020
- $90 billion - the investment that China plans to make in smart grid technology by 2020
- 400% - the percentage by which Western countries' electricity prices will soar in the next 30 years if electricity grids do not become smart grids
“According to the International Energy Administration, the deployment of a smart grid can result in a 0.9 to 2.2 gigatonne reduction in CO2 emissions by 2050,” says Max Krangle, managing director of NRG Expert .
The report found that the key players in the smart grid sector included Echelon , Elster, Itron, Landis+Gyr and Sensus. No one company is vertically integrated across the entire smart grid sector, although Cisco and GE are the furthest along. Interestingly, IBM is now also looking at Smart Grid development, says MRG Expert.
Initial investment in smart grids will be focused in the European and U.S. markets but is expected to shift to the Asia Pacific region, particularly China, where most investment will occur by 2050.
“Chinese leaders view smart grid technology as the 'next industrial revolution,’” says Krangle.
With the future value of the Smart Grid sector forecast to grow to 100 billion by 2020, governments, companies and individuals are researching this market heavily.