Intel Capital said it invested in five greentech companies today.

Granted, four are follow-on investments, but this could be the prelude to more activity in energy. Intel Capital does not operate like other VC firms. It seeks a return, but financial return is not the primary goal. Instead, the company hopes to seed new markets, which will then help it sell more chips. Back in the '90s, it invested in media companies and online applications which, indirectly, prompted consumers to upgrade their computers. Investments in China helped buy goodwill and spread the word why computers matter.

So by investing in energy, Intel is trying to help build the market for demand response and smart grid equipment that, ideally, will run on Intel chips. Intel already works with the government of China on smart grid initiatives and other smart grid projects. It even sells chips into wind turbines. Embedded chips for these sort of applications don't sell for nearly the same prices as microprocessors for PCs, but once manufacturers decide on a standard, they can buy the same chip for ten years. Besides, with chips getting smaller, it is always a challenge to keep the fabs filled. (Moving into energy also gives CEO Paul Otellini more to talk about at the World Economic Forum.)

Sometimes these investment efforts work and sometimes they don't. Intel Capital created a fund to invest in Russia – oops – and never got many people to build applications for its Itanium processor through its Itanium fund. But many times it does work. Believe me, I've covered these guys so long I have a complete collection of Intel Developer Forum luggage. The investments are:

  • GridNet. The company wants to use WiMax, a broadband technology Intel loves and has promoted for years, to run demand response networks. GridNet will compete against cellular networks and power line networking. (Another potential investment to look for: GainSpan. GainSpan makes WiFi chips for in-home energy networking. Intel loves WiFi and GainSpan is run by a former Intel exec.) Intel invested in GridNet earlier.
  • Powervation. Power control in computers. Intel invested in an earlier round too.
  • Convey Computing. A compiler for scientific computers. A follow-on investment.
  • iControl. In home energy control. Also a follow-on.
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