Comments on article found at: online.wsj.com/article/SB10001424052748703315004575073650351018606.html

On the surface, Google’s reason for becoming a marketer of electricity makes perfect sense. However, companies like Google are as dumb as a fox.

I cannot believe Google is not thinking beyond its own needs. I think it makes perfect sense for a company like Google to consider marketing power management services. The company offers an on-line tool to help consumers manage their energy use. Google has partnered with utilities to help market this tool.

Now imagine Google selling smart grid services or even Broadband over Power Line (BPL) services. For the last few years there have been documented cases of radio interference from BPL systems. I have seen BPL systems deployed in Maryland and know they work. However, the question has remained is can they be deployed in large-scale systems throughout an entire community without causing radio interference. The loudest complaints of radio interference came from ham radio operators; which is not to say the complaints should be ignored. However, the most significant report to slam BPL was a NATO report issued in 2007, which concluded that widespread deployment of BPL could have detrimental effect on military communications. Now that report did not help. However, the report did state NATO’s Research Task Group (RTG), which had authored the report did not have the expertise to make such a determination.

To date one of the big concerns of BPL providers is return on investment. Subscriber density has to be sufficiently high to generate the ROI most companies and investors are seeking.

I am still a believer in such systems but not in dense urban environments or even dense suburban markets (think Nassau County, Long Island, NY). I still believe that BPL can play a role in rural markets. Interference avoidance systems are being developed but will they work? I have not seen frequency avoidance schemes operate at the low signal levels BPL systems operate, however, never say never.

Smart grid is a no-brainer and it will not take a lot for Google to get into the business. Google already has relationships in the sector. Besides to get into the sensing, analytics, monitoring, and control side of the business may not be that big a leap for Google. In 2005, the company invested in a company called Current Communications Group. I do not know what Google’s status is in Current Communications Group but it is obvious Google is familiar with the smart grid business.

One plus one equals three.