Updated June 9, 2009

Duke Energy, Cisco team up for 'smart grid' projects

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Duke, Cisco team up for grid project Duke, Cisco team up for grid project

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Duke Energy (NYSE: DUK) is teaming up with networking gear maker Cisco Systems (Nasdaq: CSCO) in an attempt to accelerate deployment of so-called “smart grid” technology for its power network.

The partnership is intended to foster design and installation of new technology from the grid to the home.

Smart grids are designed to deliver two-way communications to devices such as “smart” meters as well as to improve electrical grid reliability and efficiency. A smart grid also would integrate traditional sources of power with solar and renewable sources.

"Our goal is to rapidly transform the way electricity is delivered to, and used by, the 11 million people we serve in five states," said Todd Arnold, senior vice president for smart grid and customer systems at Duke Energy, in a statement.

The two firms signed a three-year agreement. Financial details were not disclosed.

Cisco and Duke will collaborate to design and deploy the smart grid infrastructure using Internet Protocol standards.

"Internet protocol-based open standards are key to creating a smart, highly-secure backbone for the nation's modern electrical grid," said Marthin De Beer, senior vice president and general manager of Cisco's Emerging Technologies Group.

Duke plans to install the smart grid in Ohio and in Indiana with nearly 2 million smart meters.

Plans for a smart grid in the Carolinas and Kentucky are under development, Duke added.

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