18 March 2010 | Luca Del Buono
Carbon, Energy, Finance/insurance, Africa, Antarctica, Asia, Australia, Europe, North America, South America

 

Nearly all policymakers and utility companies agree on the benefits and necessity of investing in a new and modernised power-grid. Much of the technology in the US and EU is still derived from technology first devised in the 19th century. Potential for energy savings, 'green collar' jobs and long-term profits abound.

While all market analysts are in accord that the smart grid industry will undergo a rapid expansion from now until 2015-nearly all major economies have made the modernisation of energy grids a priority and will invest government funds to subsidise development-it is uncertain which companies and industries are most favourably positioned.

A recent report created by Lux Research Company provides insight into what work sectors will be affected by the smart grid industry. According to this report, areas within service, analysis, communications and measurement will all benefit, as well as those segments that are fast paced and quick to initiate action. Areas that focus on service and analysis could expand and see the most profit by 2010. Additionally, by 2015, over $5 billion could be made within the areas of communication and measurement because of smart grid technologies.

However, all industries should hold smart grids in high regard because of the positive outcomes they bring about. Smart grids create greater power stability and make using electricity more effective and reliable. They provide consumers with more of a choice in the utilization of energy and are environmentally conscious. One report done by PNNL, "The Smart Grid: An Estimation of the Energy and CO2 Benefits," mentions that carbon emissions could decrease by as much as 12% come 2030 through the use of the smart grid.

With so much attention currently surrounding the smart grid, it is not surprising that many people and corporations will be competing to benefit from this technology. Those companies and investors who are most likely to value from the smart grid are those who pair up with other businesses that plan to seize opportunity quickly. All investors and corporations can do is weigh the risks and rewards and, essentially, be smart.

 

Authors: Mike Good and Katie Graziano | Climate Action

Image Provided by: weaponofmassinstructions | wikipedia

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