IBM puts the smart (grid) money where its mouth is

IBM is to provide up to $2bn (£1.3bn) worth of new financing for smart grid roll outs and other technology projects supported by president Obama's economic stimulus package.

The company, which has long touted smart grid technology as major new potential revenue stream, said last week that it would make the money available for customers and partners working on technology projects related to the American Recovery and Reinvestment Act (ARRA).

These include smart grid and broadband roll outs, as well as healthcare IT projects.

Finance will be accessed through deferred and lower interest payment plans, new lines of credit, and specialised financing packages that will allow customers to pay for IBM technologies using the cost savings delivered by the projects.

"In order to fast track our nation's recovery, there needs to be an increased focus on public and private partnerships," said John Callies, general manager of IBM's Global Financing division. "This financing programme is intended to help seed projects of the future that will improve citizen services and ultimately aid in our nation's economic resurgence."

The new funding is the latest in a series of moves designed to cement IBM's position as one of the leading players in the fast-expanding market for smart grid technologies.

The company provides much of the software needed to track and manage the energy use data that underpins smart grid systems. It is involved in almost 50 different projects worldwide, including a £70m initiative to replace 250,000 electricity and water meters with smart meters on the island of Malta.

Last week, the company also released a study commissioned with the London School of Economics, which predicted that a £15bn UK investment in digital networks such as broadband and smart grids would provide a greater economic boost than investments in traditional infrastructure.