GE And Google Announce "21st Century" Electricity System

Blaise Zerega says let the energy search begin. In a marriage of old and new economy, Google and GE today announced a partnership to promote sustainable energy. With the ongoing financial turmoil as a backdrop, both companies are coming together to collaborate on new, renewable technologies that could, ultimately, deliver energy independence and help our economy.

Onstage at Google's Zeitgeist conference, Eric Schmidt, the search giant's CEO interviewed Jeff Immelt, GE's chief executive to announce the partnership. "GE and Google are essentially going to be advocating in Washington a new, smarter grid," Schmidt said, criticizing the current electric grid as being based on "an old-style industrial model."

"There has to be more capacity. There has to be more transmission and production," Immelt said.

The deal combines each company's strengths: GE will make the hardware -- from wind turbines to metering switches, and Google will make the software -- applying network technologies to the grid.

Schmidt used plug-in hybrids to illustrate the needs to improve U.S. electric resources. More electric cars will require more capacity, which GE will provide, and the intelligence needed by the grid to tap charged car batteries when they're parked at night would come from Google.

Immelt says GE is betting on multiple sources of energy and several
technologies -- not just wind turbines, but also solar and thermal. Energy is a market "where the second best technology" can win, he said.

Both Schmidt and Immelt emphasized that fixing our energy woes by improving the electric grid is doable and easy compared to other problems faced by the U.S. Immelt said that since World War II R&D spending on energy spending has been "almost nothing."

Seated in the front row at the conference was Vice President Al Gore. "I applaud Jeff for having the politcal courage to speak up and advocate policies," Gore said.

Andy Grove, who has called for electricity to become the basis for U.S. transportation was encouraged by the announcement, but pointed out that improving the infrastructure is only one part of the solution. "It is a good direction, but from an overall standpoint, not the limiting one. The current grid is enough for 70 million [electric] cars."

And in a nod to the mess roiling Wall Street, Schmidt cautioned "that the financial system and funding has to be in place to make this happen."

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