North Carolina a hotspot for smart grid companies

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A new research report says North Carolina, and Raleigh and surrounding counties in particular, are an up and coming hotspot for smart grid companies that are taking advantage of the multitude of assets the area has to offer. The analysis, conducted by the Center on Globalization, Governance & Competitiveness at Duke University, concentrated on the core smart grid firms in the area and those assets.

The analysis found a "striking concentration" of leading smart grid vendor companies, and that only California had significantly more locations. Raleigh has five headquarter locations for leading firms, second only to San Francisco.

The research area boasts familiar names in power systems (ABB, GE, Siemens), information technology (Cisco, IBM), and energy services (Honeywell, Johnson Controls) and a wide range of smaller specialty companies. Of the 101 firms in the area that develop or manufacture hardware, develop software or provide services, at least 59 are considered core smart grid companies. The analysis also notes that the area includes several companies in each of the eight smart grid categories (as identified by the International Energy Agency), and that many of the companies are involved in the categories anticipated to be the largest for future investment: distribution grid management, transmission enhancement and IT/communications integration.

The assets that are so attractive to those companies include specialized R&D centers, Tier 1 research universities, energy efficiency and renewable energy companies and supportive government and non-profits.

However, the CGGC analysis does make it clear that work needs to be done to ensure continued development, such as creating a policy environment that supports and encourages more smart grid private investment, regulatory reform and, more importantly, changes in traditional utility business models that now provide incentives to sell more energy rather than less. It also notes that it's crucial to educate the public on why the improvements smart grid will bring are so important.

More on this topic ...

Read the complete CGGC Report

Smart grid research: Where the jobs are (and where they will be next)