Google and GE ink smart grid alliance

Google and General Electric (GE) have signed a major new alliance designed to develop and promote smart grid technologies capable of providing energy users with real-time information on the energy they use and automatically turning off devices to cut their energy bills.

The two companies said in a joint statement that they would initially work together to lobby the US government for the adoption of a number of policies essential for the development of smart grids.

In particular, they said they would seek to promote policies to manage both the "planning, siting, and cost allocation for the transmission capacity necessary to enable large-scale deployment of renewable electricity generation" and the development and deployment of a "smart" electricity grid.

Writing on the company's blog, Michael Terrell of Google's philanthropic arm Google.org, outlined a vision whereby an electricity grid integrated with automated management and reporting capabilities could slash carbon emissions by delivering numerous benefits to consumers and businesses.

"We all regularly receive an electricity bill that encourages little except prompt payment," he said. "What if, instead, we had access to real-time information about home energy use? What if our flat-screen TVs, electronic equipment, lights and appliances were programmed to automatically adjust to save money and cut energy use? What if we could push a button and switch the source of our homes' electricity from fossil fuels to renewable energy? What if the car sitting in our garage ran on electricity – the equivalent of $1 per gallon gasoline – and was programmed to charge at night when electricity is cheapest?"

Google also gave its clearest indication yet that it is interested in breaking into the potentially huge market for software capable of managing smart grid applications and processing the real-time energy use data that will result from such systems, announcing that as part of the alliance the two firms will work together on the "software, controls, and services to enable utilities to integrate plug-in vehicles into the grid".

In addition, GE will support Google's recently announced advanced geothermal technology programme, which last month saw the search giant invest $10.25m (£5.6m) in three research projects assessing the feasibility of the technology.