Interest in smart grids has intensified in recent days. In addition to the $4.5bn of public money the US Government has put behind the infrastructure, the passing of the Waxman Markey bill in the House promises more support, which has at least satisfied some of the demands of the GridWise Alliance. But encouraging smart grid investment remains a challenge. This week we have published a report with the World Economic Forum exploring how to accelerate smart grid investments.

We identify awareness, technology maturity and even cyber security as some of the obstacles. But most important is the need for a shift in regulatory incentives. Today, energy companies are rewarded for producing more electricity in an age where we need to encourage reduced consumption. But they are not rewarded for making long term investments in infrastructures, such as smart grids. In short, we argue that the commercial interests of the industry must be aligned more closely with the needs of governments and society.

Meanwhile, forward looking cities will be the catalyst for smart grids in many markets. Some of the pilots that we are implementing in Amsterdam are now going live, demonstrating the role of cities in bringing together the public and private sectors to deliver innovative applications.