Worldwide Smart Grid Spending Set to Skyrocket to $200 Billion by 2015

Paul Lilly

According to a new Pike Research report released this week, governments and industry leaders around the globe will spend some $200 billion on smart grid technologies between 2008 and 2015.

"Smart meters are currently the highest-profile component of the smart grid, but they are really just the tip of the iceberg," says managing director Clint Wheelock. "Our analysis shows that utilities will find the best return on investment, and therefore will devote the majority of their capital budgets, to grid infrastructure projects including transmission upgrades, substation automation, and distribution automation."

While the term 'smart grid' sounds like a single entity, it actually refers to a number of technologies designed to automate and digitize management of electrical power. According to Pike Research, automation is expected to account for 84 percent of the $200 billion being spent, compared to 14 percent for advanced metering infrastructure (AMI) and 2 percent for electric vehicle management systems.

Image Credit: energytechstocks.com

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