How the FCC Will Promote Open Smart Grid Networks & Real Time Energy Data

[Commentary] At the Cleantech Investor Summit, Federal Communications Commission Energy and Environment Director Nick Sinai said that the FCC will make specific recommendations for how to bring broadband to the smart grid through the National Broadband Plan due to the U.S. Congress on March 17.

Those recommendations will include how to promote open standards and commercial networks, how to use policies to encourage utilities to provide their customers with real-time open access to energy data, and potential ways to use federal spectrum bands for utilities' smart grid deployments.

Sounds like the sector of the smart grid industry with roots in the IT world (Cisco, IBM, Silver Spring Networks) just got a close ally. All of the potential recommendations Sinai discussed could help promote innovation that will enable companies and entrepreneurs to build tools and products that interconnect with, and work on top of, smart grid infrastructure. Sinai's business-friendly presentation wasn't a surprise, given his background in the investing world, most recently as a principal at Tenaya Capital (Lehman Brothers Venture Partners) and at Polaris Ventures for three years before that. FCC Chairman Julius Genachowski has taken a similar pro-innovation approach throughout the FCC. Sinai said that the FCC "will look at how to remove impediments and disincentives to using commercial networks." Specifically he said the FCC is "exploring ways to encourage private networks built by utilities to operate in the same band, in order to drive down costs, and to drive open, non-proprietary standards." One of the ways to do that could be working with the National Telecommunications and Information Administration (NTIA) to look at available federal spectrum bands, said Sinai.