A quick question about smart grid…

...What is it?

Now that the subsector of “smart grid” is getting more popular and thus getting talked about more and more, it seems a good time to point out a couple of quick things about the concept:

1.  “Grid automation” would be a better term for the category. Applying IT and communications to the electricity transmission and distribution system, for the purpose of automating functions like notifications, meter reading, and eventually automated demand response, energy efficiency and grid balancing.

2.  It doesn’t end at the meter. Calling it “smart grid” makes it sound like it’s really all about the transmission and distribution system only.  But given the list of applications from above, it’s pretty clear that any full smart grid perspective must include the systems on customer premises that allow for the curtailment of consumption when the utility needs to free up capacity.

3.  It doesn’t have to be capital-intensive. I’ve spoken to a few people recently who have the natural, initial impression that smart grid projects are necessarily massive in terms of scale and capital requirements.  Re-wiring long transmission lines, putting new smart meters on every home in a town, that kind of thing.  But a lot of what falls into the category is more software-related in nature.  Even when it’s a hardware/ software system that’s being deployed, it doesn’t have to be super-expensive, thanks to advancements in computing power and communications technologies.

That’s at least how one investor views “smart grid,” for what it’s worth.

Deals from the past couple of weeks:

• KLD Energy has raised a $1mm Series A from angel investors to develop advanced motor technology for electric vehicles (note: link opens pdf).

• EV charging station developer Columb Technologies has raised a $3.75mm Series A, led by Estag Capital.

• Wind turbine blade developer TPI Composites has raised a $20mm Series B from GE, Landmark Growth Capital Partners, NGP and Angeleno Group.

• Jiangyin Alcom Solar Equipments has taken in CNY78mm in venture capital from Jiangsu High-Tech Investment Group (Govtor).

• Online green guide GoodGuide has taken in a $3.73mm Series A from NEA and DFJ.

• Zinc-air battery developer Revolt Technologies AS has taken in a $13.1 round of funding including $7.35mm from RWE Innogy, as well as undisclosed amounts from NorthZone Ventures (Sweden), SINTEF (Norway), Sofinnova Partners (France), TVM Capital (Germany), Verdane Capital (Norway) and Viking Venture (Norway).  The company had last year reported aiming for a $30mm raise in 2009, so but this appears to just be a second tranche of a Series B that VentureWire reported on last year.

• VentureWire reported that organic farming technology vendor EvoOrganic has raised a $1mm Series A from iVisionary Ventures and angels.

• OLED developer Novaled has raised a EUR8.5mm 3rd round of financing from eCAPITAL,      TechnoStart, KfW, TUDAG, Credit Agricole     Private Equity, TechFund and CDC Innovation.

• Investors in the news:  VentureWire reports that Citi Sustainable Development Investments is looking to spin out from Citigroup…

Other news and notes:  More talk than deals right now, and a lot of that talk is about how investors are getting more conservative and hunkering down in this environment…  Meanwhile, McKinsey concludes that the climate problem isn’t getting any easier...   As promised, here starts the wave of “cleantech bubble has burst” headlines...   An update on Masdar...  An update on GE and cleantech...  An update on cleantech policy...  An update on Eric Wesoff’s list of solar startups...  An update on that canard about carbon emissions and Google searchers...  Finally, hey wait a minute, Martin LaMonica stole my literary reference—but I guess it was a pretty obvious one to begin with.

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