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Accenture: U.S. stimulus may have slowed down smart grid projects

By | April 12, 2010, 3:00 AM PDT

Accenture, a consulting company at the forefront of many IT and infrastructure projects, outlined some of its smart grid efforts at its analyst meeting last week and CEO Bill Green shed some light on the state of the U.S. stimulus funding. In an odd twist, the U.S. government’s effort to prime the economic pump may have actually delayed some smart grid development projects.

Simply put, the stimulus funding, known as the American Recovery and Reinvestment Act of 2009, is still making its way to infrastructure projects but the impact on the health care, public sector and smart grid has been fairly limited.

Here’s a look at Green’s comments as I detailed them on ZDNet:

I think, by and large, anyone who says stimulus is going to save their day is nuts, because in the system, the stuff is held up. And a lot of the stimulus money, quite frankly, has been used just to top up budgets that used to be there, that disappeared because of low revenues and things like that.

But there are things that matter — certainly, the Smart Grid thing. The stimulus thing actually slowed down Smart Grid initiatives as people waited to see if they could get stimulus money to spend that, instead of their own money. And so there’s just some interesting phenomenas. The health thing really hasn’t hit yet. How the money transfers into education hasn’t hit yet — and in other public services.

And then I think the people’s great disappointment in North America was how it transferred into the infrastructure build-out, whereas China, on Friday — they said they were going to stimulate. And, on Monday, they started building bridges. And so if you look at it around the world, it’s impacted in a very different way.

I think what the thing is — maybe what’s more important is — isn’t the stimulus per say. It’s the focus on what we need to be investing in. And one of the things we’ve done is — we believe there is a wave of infrastructure spending across the globe.

Green’s comments raise an interesting question. Is the long-term effect of stimulus efforts really more about the prioritizing of projects or the funding?

Illustration: GE/Ecomagination

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Larry Dignan

About Larry Dignan

Larry Dignan is editor-in-chief of SmartPlanet.

Larry Dignan

Larry Dignan

Editor-in-Chief

Larry Dignan is editor-in-chief of SmartPlanet and ZDNet. He is also editorial director of TechRepublic. Previously, he was an editor at eWeek, Baseline and CNET News. He has written for WallStreetWeek.com, Inter@ctive Week, New York Times and Financial Planning. He holds degrees from the Columbia University Graduate School of Journalism and the University of Delaware. He is based in New York but resides in Pennsylvania.

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Larry Dignan

Larry Dignan
Larry Dignan does not hold any investments in the companies he covers.
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Smart Grid - Not so Smart
Because of the large line loss on the grid. No matter how smart they try and make the 'system' it is not very efficient.

The money would be better spent creating many small power plants: home fuel cell (run off LPG and NG), small wind turbine, and photovolt roof arrays. In addition a national campaign to replace CFL and regular light bulbs with High Quality LED lighting would provide a tremendous drop in the load on the system. Not only could it provide a lot of good paying jobs in the process, but the cost benefit would be better.

Excess generation to be put back into the local grid rather than lost, via line resistance, move the electricity over hundreds of miles of wire.
Posted by MFox1948
12th Apr 2010
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RE: Accenture: U.S. stimulus may have slowed down smart grid projects
U.S. (government)Stimulus = oxymoron
Posted by DJJazzyJeff
12th Apr 2010
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RE: Accenture: U.S. stimulus may have slowed down smart grid projects
Can't comment on Smart Grid, but the healthcare stimulus mentioned in the article is a mixed bag. Yes some customers are either hit by the recession or holding up seeing if they get some free money, but there also is an excitement of invention.

It is possible that the HiTech Law just stimulated us technically and morally that the US should not be ranking so low in electronic patient records in the world, but I am putting it down to what the stimulus was meant to stimulate -- greed and opportunity. There isn't a single system designer doing the new development for touchy-feely reasons -- they want to build a successful business.
Posted by TomMariner
13th Apr 2010
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Smart Grid is held up by standards
While I think government stimulus is a net zero or even a net minus, in the cast of Smart Grid the bigger problem at the moment is the lack of standards.

I live in Boulder, CO, which is the first city in America wired for the Smart Grid. It's a fully funded demonstration project by Xcel and other companies (to the tune of $100 million for the entire city), so money is not a problem. At the moment, we have a special fiber (yes, fiber even though regular internet access is still cable) network wired to all our homes, and we all have smart meters installed.

And yet the fiber is basically dark, and nothing is going on. Why? Mainly because there are only prototype devices for connecting appliances to the Smart Grid. Nobody is currently manufacturing them in quantity, and there are several competing standards on what communication technology they should use (e.g., wireless, powerline) and the communication protocols.

Don't hold your breath waiting for Smart Grid. There are apparently 70 or so NIST standards affecting Smart Grid in one way or another. Companies are sensing a huge market, so they are all jockeying to get their technology adopted as the winner. Anybody who is familiar with the standards process in the computing industry can tell you nothing will get decided for a long, long time.
Posted by zackers
15th Apr 2010
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RE: Accenture: U.S. stimulus may have slowed down smart grid projects
If Accenture (formerly Arthur Anderson) is involved at all, the project may fail. I've been working for Fortune 50's most of my life and watched the "consultants" screw everything from the "facts&data", scope of work, and the "final product". Ask me about Washington Mutuals banking application OPTUS.
Posted by peetersc1
15th Apr 2010
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