Smartgrid News

5 companies that plan to put utilities out of business Jun 6, 2014

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Quick Take:  Bloomberg is out with an article detailing the many tech startups that are casting a "covetous eye on the utility industry's customers and revenue." To siphon off that revenue, they plan to take advantage of the portals they have into tens of millions of homes. Below you will find summaries of five examples, or read the full article at Bloomberg.com.

 

As you read about these five large, well-known examples remember that there are hundreds of smaller examples around the world.  – Jesse Berst

 

“The battleground over the next five years in electricity will be at the house,” said David Crane, CEO of NRG Energy Inc. (NRG) to Bloomberg. NRG is America's largest independent power producer. “When we think of who our competitors or partners will be, it will be the Googles, Comcasts, AT&Ts who are already inside the meter. We aren’t worried about the utilities because they have no clue how to get beyond the meter, to be inside the house."

 

Peter Hebert, co-founder and managing partner of venture capital firm Lux Capital, sees “a proliferation of smaller startups all targeting this market.” In alphabetical order, here are some of the companies mentioned that are stealing away some utility business. And that plan to steal a lot more.

Technology is their secret weapon. These companies are deploying technology to track and aggregate demand response and energy efficiency from millions of homes.

 

AT&T entered the home automation and security business and 15 markets last year. Now it is adding a smart thermostat.

 

Comcast has a pilot project with NRG to sell electricity with cable, phone and Internet packages.

 

Google's $3.2 billion acquisition of smart-home startup Nest “ought to give utility officials a sinking feeling in the pit of their stomachs” said Adrian Tuck, CEO of Tendril Networks. In addition to the nest acquisition, Google last month contributed $100 million to promote rooftop solar in conjunction with SunPower Corp.

 

Joule Assets is financing energy efficiency and demand response projects.

 

Vivint has a home-automation module with automated energy savings that has the ability to control thermostats and appliances. It also offers home security. And it offers to install rooftop solar for free to residential customers who will sign a 20-year contract to buy back the electricity.

 

Jesse Berst is the founder and Chief Analyst of SGN and Chairman of the Smart Cities Council, an industry coalition.