Google And GE In Energy Tie-Up

Blaise Zerega says plug it in.  Google and GE are expected to announce a significant partnership to develop solutions to address America's energy situation. The companies' chief executives, Eric Schmidt and Jeff Immelt, are expected to take the stage at 2:20 EDT at Google's exclusive Zeitgeist conference going on today at the Google campus. 

The partnership is likely to focus on adding network intelligence to the electric grid and improving capacity. The collaboration follows Google's recent forays into energy and GE's renewed focus on energy. In the pages of Portfolio magazine, Andy Grove, Intel's former CEO, called on GE to live up to its name and build an electric car.

Schmidt and Immelt are expected to announce joint efforts to promote and develop what insiders are calling the "21st Century grid"--technology that will computerize electricity transmission in the U.S. so users and generators can optimize energy use. The idea is to combine Google's expertise in computer networks with GE's know-how in electricity generation and transmission.

The companies are expected to come at this in two ways: through a joint lobbying effort in Washington and joint research activities. (Google has previously said it is ramping up its own in-house energy R & D team.) Schmidt, at the recent Corporate Eco Forum in San Francisco, gave an impassioned speech about climate change and the need to go green. He complained about a "fundamental failure of leadership" in Washington and globally, and advocated replacing all U.S. electricity generation with renewable sources in 20 years, as well as half the U.S. auto fleet with plug-in hybrids. He said that would cut greenhouse gas emissions by 50%. He said that transformation would cost $2.7 trillion but would be offset by $2.1 trillion in energy savings.

"There actually is a real possibility to solve this problem, if people could stop arguing about all of the minor differences and start thinking about the fundamental opportunity, which is to re-tool the energy infrastructure of
the United States," Schmidt said.