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Cisco Believes China is Big Smart Grid Market

Monday, 18 October 2010 14:06

Known for making network equipment, Cisco Systems Inc believes that China offers immense opportunities for its smart grid products, and it is continuing its search for acquisitions to expand in the growing market. Cisco is presently collaborating with a number of utilities, such as NextEra energy Inc and Duke Energy, and expects the smart grid to reach further than the Internet.

Making a statement at the Reuters Global Climate and Alternative Energy Summit on Wednesday, Laura Ipsen, senior VP of Cisco's smart grid unit, said that the company has identified $15 billion to $20 billion in opportunities worldwide in the coming five to seven years. However, the market opportunity in China is much bigger.

"A lot of us looking at the China market see $60 billion by 2030 just for China alone," stated Ipsen. "A lot of the big companies -- the traditional GEs, IBMs, Siemens and others -- are over there exploring that market."

Cisco is involved in some development work in China concerning home energy management, according to her.

Ispen added, "I am in the process of looking at it and saying, 'What are the investments that are most important? How do we work with the government?'"

The main focus of Cisco is, however, the US and European markets.

The US power grid is considered a system already functioning at its limit. With smart grid, the goal is to create a network that will extract new efficiencies from power lines spread over thousands of miles and help in developing renewable energy, introducing "smart" appliances capable of turning themselves on and off, and supporting a fleet of electric cars.

“Smart Grid” is a term used for describing an electricity supply chain that is more efficient. Development of this concept is attracting heavy investment from industrial conglomerates, technology giants, and telecommunication companies.

Last month, Cisco reached an agreement for buying startup Arch Rock and it is partnering with smart meter maker Itron Inc for development of a smart grid communication platform.

Earlier, Cisco bought GridNet, which designs software for sending electricity usage data from meters to utilities.

"For acquisitions, we have a pretty healthy appetite," stated Ipsen. "So as things come along, we will move pretty quickly."

"I am looking at the whole architecture of the grid," she said when questioned about the particular technologies Cisco was interested in acquiring. "I am not counting myself out on any of those spaces."

http://www.smartmeters.com/the-news/1286-cisco-believes-china-is-big-smart-grid-market.html