...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:
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.
Rob Day is a Partner with Black Coral Capital, based in Boston. He has been a cleantech private equity investor since 2004, and acts or has served as a Director, Observer and advisory board member to multiple companies in the energy tech and related sectors. Rob was a co-founder of the Renewable Energy Business Network (www.rebn.org), a non-profit organization which was acquired in 2009 by the Clean Economy Network. The views expressed on this blog are those of Rob, not necessarily the views of any of his colleagues and affiliated organizations. Contact Rob at .(JavaScript must be enabled to view this email address).
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