Duke Energy taps Cisco for 3-year smart grid project

Charlotte, N.C.-based Duke Energy (NYSE: DUK) said it has struck a three-year deal with San Jose, Calif.-based Cisco Systems (Nasdaq: CSCO) to develop smart grid infrastructure based on Internet Protocol technology.

The news comes just three weeks after Cisco announced its plans to sell its intelligent networking infrastructure into the smart grid. A Duke Energy spokesman at the time said the utility planned to work with Cisco to roll out a smart grid to its 11 million customers (see Cisco chases billion-dollar smart grid dreams).

Financial terms of the deal were not disclosed. The companies plan to jointly evaluate software and hardware options before choosing partners. That equipment is likely to include smart meters, distribution automation, and weatherproof communications equipment at the utility's electric substations.

Cisco already has some experience in the sector. In April, Cisco said it was working with Florida Power & Light, General Electric and Silver Spring Networks to build a smart grid for the city of Miami, Fla. (see Silver Spring corrals currents in Australian smart grid). 

Later this year, Duke plans to begin a five-year rollout of smart grid equipment to its Ohio customers, including 700,000 electric smart meters and 450,000 natural gas smart meters. In Indiana, Duke wants to deploy 800,000 smart meters.

Duke Energy said the smart grid push is expected to improve its ability to integrate solar and other renewable energy. In May, Duke received the go-ahead from the North Carolina Public Utilities Commission for a $50 million, 10 megawatt distributed solar project on customers' rooftops and land starting in the fourth quarter of 2009. Duke Energy is seeking suppliers, in addition to engineering, procurement and construction contractors for up to 400 mini solar power plants to be installed during the next two years. The program is half of what the utility originally proposed, but the project faced extensive criticism because of its cost (see Utility commission rejects Duke Energy's funding plan for solar project).

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