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Smart Grid Vendors Embrace Life in the Big City

Neil Strother — December 2, 2013

Smart meter manufacturer Itron and smart grid networking provider Silver Spring Networks (SSN) have both recently embraced new smart city initiatives, becoming the latest vendors to focus attention on a market that is expected to grow to $20.2 billion by 2020, according to Navigant Research’s Smart Cities report.

Itron has joined Microsoft’s CityNext effort, which aims to encourage cities around the world to chart a new future where technology combines with creative ideas to do “new with less.”  The lofty ambitions of CityNext include bringing municipal governments, citizens, and businesses together to build more efficient and sustainable urban areas and do so at lower costs.  Itron’s focus will be on the intersection of energy and water – the nexus, as it’s known – where the company’s technology can be brought to bear to help cities better manage these two vital resources.

City of Light

Silver Spring announced a new network-as-a-service (NaaS) product as part of its smart city solution.  The new service offering aims to help cities avoid upfront capital and deployment costs, and it can become a foundation for adding new smart city applications over time.  The company says its smart city solution helps cities meet some of the key challenges they face in four areas: environmental sustainability, transportation management, health and safety, and economic growth.  The company notes that both Paris, France, and Copenhagen, Denmark, have chosen SSN for projects.  For Paris, the company is providing a new street lighting and traffic control program as the city attempts to cut public lighting consumption by 30% during the next 10 years.  Copenhagen chose the company to deploy a citywide network for connecting 20,000 street lights, which can be leveraged for future smart city services.

Both Itron and SSN join a long list of other smart city technology vendors targeting this market, including Cisco, IBM, Schneider Electric, and Siemens, among others.  (See the Navigant Research Leaderboard Report: Smart City Suppliers for our ranking of this group of companies).

With these initiatives, Itron and SSN are looking to broaden their reach beyond the U.S. market for smart metering and networking, which has peaked for now with the winding down of federal stimulus money.  Different opportunities lie elsewhere, and often the need is for solutions that solve urban problems not often found in the United States.  For instance, Itron is supplying new advanced water meters to areas of New Delhi, India,  in a project aimed at providing a continuous water supply where, before, water was only available for several hours each day.  In China, Itron has supplied smart water, heat, and gas meters, along with networking gear, for the Sino-Singapore Tianjin Eco-City – a city built with efficiency and sustainability squarely in mind.  We can expect to see more of these types of city-centric and integrated solutions in coming years.

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