Duke Energy taps Ambient for Smart Grid communications

Duke Energy, one of the largest utilities in the U.S., has selected the Ambient Corporation to provide the wireless communication technology for its smart meter roll out. Based in Newton, Mass., the publicly-traded networking company provides equipment to beam energy consumption data two ways between consumers and utilities, and to integrate various Smart Grid applications and devices.

Specifically, Ambient will be supplying Duke with its X-series communication node, a device that captures energy use data and transmits it wirelessly so utilities can easily keep track of supply and demand, and both residential and commercial consumers can change their behaviors to save energy and money. The node can exchange data with any device with a serial or Ethernet port, making it incredibly versatile. Also, just one node can handle data from multiple meters, cutting down on the amount of equipment needed.

Duke, which services the Carolinas, Kentucky, Ohio and Indiana, has plans to widely deploy Smart Grid technology over the next five years. In Ohio alone, the utility recently got approval to install 700,000 smart meters — a project that will only require about 150,000 of the communication nodes. This is part of a larger Duke plan to roll out 1.5 million smart meters in Ohio and Indiana combined. As one of the largest utilities in the U.S., Duke may influence what other utilities decide to do in this area.

No financial terms of the deal between Duke and Ambient have been disclosed. However, nothing in the contract makes the relationship exclusive. First, it is only slated to run through 2015. And second, the utility could still contract Ambient competitors to cover future smart metering projects. In fact, Duke has already tapped its rival, SmartSynch, to provide communications modules, and has mentioned a possible networking-gear partnership with Cisco Systems.

Duke’s relationship with Ambient extends back about four years. They already collaborate on the ongoing installation of 50,000 smart meters in the Cincinnati-metro area — with the networking firm making about $15 million.

In the meantime, Duke has applied for $200 million in stimulus funds through the Department of Energy. It it receives this money, it will accelerate its project in Indiana and Ohio. In anticipation, the utility has also contracted San Jose, Calif.-based Echelon to supply the actual meters for its projects. Ambient’s nodes, which tap into wireless networks mostly operated by Verizon, will be added to the transformers fed by these meters.

All told, Duke has requested $421 million in government funds for smart meter installation and a Smart Grid demonstration project that could involve Boeing and Columbia University. Ambient, on the other hand, is scouting for more utility partnerships, with its investor Consolidated Edison in New York looking like the ripest prospect.

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