Report: Smart grids set for multi-billion dollar growth

Spending on smart grid technology could total $200 billion worldwide by 2015, according to a new report from Pike Research.
The firm noted that cooperation between governments and industry leaders looking to update antiquated electrical grids is set to spark a boom in the smart grid market through the middle of the next decade.
“Smart meters are currently the highest-profile component of the smart grid, but they are really just the tip of the iceberg,” said Pike Research managing director Clint Wheelock. “Our analysis shows that utilities will find the best return on investment, and therefore will devote the majority of their capital budgets, to grid infrastructure projects including transmission upgrades, substation automation, and distribution automation.”
Pike Research predicts that grid automation initiatives will capture 84% of the global smart grid investment through 2015, compared to just 14% for advanced metering infrastructure and 2% for electric vehicle management systems. The firm also expects smart grid revenues will “peak in 2013 after several years of a strong push by key governments, and will thereafter be a smaller, albeit still very substantial, market.”
The Obama administration recently set aside $3.4 billion in grants to help build “smart” electric grids. The grants were part of the government’s $787 billion stimulus package and are expected to generate tens of thousands of jobs in the smart grid space.