Google teams up with General Electric on grid problems

[kristopher]

San Francisco Business Times - by Lindsay Riddell

Google Inc. will work with General Electric Co. to develop electricity grid technology to better support renewable energy alternatives like wind power and hybrid-electric vehicles.

To make real progress in increasing the amount of alternative energy like solar, geothermal and wind power into the electric system, the grid problem needs to be solved, said Jeff Immelt, Chairman and CEO of GE (NYSE: GE).

“There’s going to have to be more capacity if we really want to drive renewable energy to where it could be in this country we need more transmission and distribution,” Immelt said.

Mountain View-based Google (NASDAQ: GOOG) and GE are aiming to enhance an electricity grid by providing new energy technology from GE and the information technology of Google.

Schmidt also said Google and GE will advocate for policy changes in Washington, D.C., to allow grid solutions to be more easily adopted and implemented. In a fact sheet released with the announcement, Google said it will be looking to work with other companies to advance its policy agenda.

With wind power now about cost competitive with power generated by coal-fired power plants at 6 cents or 7 cents per kilowatt, “We’re now getting to the point where you can choose wind over other terrible terrible choices,” said Eric Schmidt, CEO of Google.

“I want to complement Jeff for not only providing leadership within GE but having the political courage as a business leader to speak up in Washington D.C. — and to join other business leaders – not as many as we should have — to advocate policies,” said former U.S. Vice President Al Gore, in the audience at the announcement.

Gore cited renewable energy tax credits as giving rise to wind power’s cost competitiveness and conveyed bewilderment that efforts to extend them were being blocked by some legislators.

“What can we do to change that Jeff?” he asked Immelt.

Immelt said GE will collect between $7 and $8 billion from its wind power business this year. GE bought its wind business from Enron Corp. when the energy company went bankrupt.


http://www.bizjournals.com/sanfrancisco/stories/2008/09/15/daily49.html

[diane in sf]

1. Thanks Kristopher--great article!