Price wars come to smart meters

By Jesse Berst

The announcement today from Glen Canyon, which says its NEXGEN advanced technology delivers smart digital meters for the price of dumb electromechanical versions, may be the first salvo in a long-awaited price war.

As I have explained, U.S. utilities have been overpaying for years compared to Europe and Asia-Pacific. For one thing, they are smaller than their European counterparts and have less buying power. For another, they haven't banded together to form buying consortia.

Large utilities may balk at buying from a relatively small, relatively unknown Silicon Valley company. If Glen Canyon teamed with a major systems integrator, it might assuage those worries. Either way, expect to see smart meters begin a slow, gradual descent towards commodity pricing.

P.S. The press release – which you can read for yourself on the next page - also claims that the company offers the world's first AMI-as-a-service offering. Not true. We've previously told you about SAIC's cloud services for metering as well as GE's AMI-as-a-service -- and there are numerous others in the same space already.

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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