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Cisco, Duke Energy to build Energy Internet

Tony Chan | June 10, 2009 | 0 Comments

Less than a month since Cisco Systems announced its entry into the smart grid space, it has signed its first smart grid customer – Duke Energy Group, a utility supplying electricity in several US states.

“Our goal is to rapidly transform the way electricity is delivered to, and used by, the 11 million people we serve in five states,” said Todd Arnold, senior vice president for smart grid and customer systems at Duke Energy, America’s third-largest electric utility.

The three-year partnership is the latest development in Duke Energy’s effort to rapidly convert its existing electricity delivery infrastructure into an advanced smart grid that uses two-way digital communication to reduce energy usage, improve efficiency, bolster system reliability, detect power outages, and integrate solar and other renewable energy sources into the electric grid, Duke said. The deal will Cisco will fast-track its progress in the area.

According to Duke, Cisco, working closely with Duke Energy, will develop a highly refined, end-to-end, smart grid communications architecture – one that both companies believe will be among the most comprehensive and interoperable in the electric utility industry.

The implementation of the smart grid will use Internet protocol-based open standards, which will future proof the platform for emerging networking technologies, the companies said.

“Internet protocol-based open standards are key to creating a smart, highly-secure backbone for the nation’s modern electrical grid,” said Marthin De Beer, senior vice president and general manager of Cisco’s Emerging Technologies Group.

Little technical or commercial details are provided by the companies, but a release by Duke cites that the two companies will ‘jointly evaluate a variety of smart grid communications hardware and software’ in tests of select equipment inside Duke’s grid. Cisco will also work with Duke Energy to develop and install home energy management solutions.

One of the key initiatives is to test a “new generation of durable, weather-proof communications equipment designed for use at Duke Energy’s electric substations.”

“Replacing our analog electric grid with advanced digital technology to create a 21st century electricity delivery system largely involves data, networks and communications – all of it Cisco’s expertise,” Arnold said. “Partnering with Cisco is central to Duke Energy’s plan to build an ‘energy internet’ that will improve electricity delivery, strengthen grid security, lessen our company’s environmental impact, and help customers reduce their electricity usage.”

As part of the announcement of the deal, Duke Energy revealed its smart grid plans for this year, which included the roll out of more than 700,000 smart meters and 450,000 smart gas meters in Ohio. The company is also seeking approval from the Indiana Utility Regulatory Commission to set up a smart grid and roll out 800,000 smart meters.