Internet search king Google announced today that it has entered into partnerships with eight energy companies around the globe to use its PowerMeter energy management software. Six of the new partners, like San Diego Gas & Electric and Wisconsin Public Service, are in the United States, while two others, Toronto Hydro–Electric System Limited and Reliance Energy, are in Canada and India, respectively. In addition, Google lists smart meter maker Itron as an integration partner. 

Google’s PowerMeter product lets users log into their utility’s Web site and use PowerMeter to monitor and manage their energy use, potentially saving money for the customers and reducing demand on the supplier. Because PowerMeter is designed to work with smart meters, it is currently available to a limited number of customers. PowerMeter is a free, opt-in service.

   Quick Take:  Google’s success in attracting partners just goes to show the power of “free.” In classic Google fashion, the company is providing a free service on the assumption that the money will come later.  That revenue could come in either of two ways:  First, Google may be e expecting that yet another Web service will make their core business more valuable, with customers using Google, or a personalized version of it, more often. Second, Google may be hoping to find a way to make money on the product later on after PowerMeter is widely entrenched and the company has access to utilities’ customer data.  In contrast, most of PowerMeter’s competitors expect utilities to pay for the home power-management tools they offer.  Google competitors in this area include Greenbox Technology, Trilliant, Tendril, and Aclara Software (formerly Nexus Energy Software).