So we have all heard by now that Google is getting into the power management game, Cisco and IBM are coming to play too, but are the mega-stars of the VC and IT worlds going to be creating the new terms of energy management, or will local management solutions be more effective as the method for some markets? The easy answer is that it depends. Local grids can be made up of energy generation near recipient towns, cities or villages, just as energy can travel from another portion of a state or country, but increasingly there will be local power generation which will need to be brought intelligently to local customers on a block by block or building by building scale. ‘Micro-grids’ as they have come to be known, will likely serve most readily and immediately rural populations, who will bypass the need for state-electrification and develop power-management systems on their own because it is easier to implement than waiting for infrastructure build-out.

Many of the major players in the space have been basing their assumptions for growth not upon this notion, but upon a Western model of electrification. While the hardware developed by major California smart grid firms such as Trilliant and Silver Springs Networks will rightfully be applied toward the lucrative state or utility scale projects, these projects will only deal with the needs existing within the existing grid framework. The growth of the space will need innovation in power-management for those who either do not currently have access to an electrical grid or those who can benefit from opting-out of one altogether.

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There was a fantastic article by Peter Asmus in Sunday’s San Francisco Chronicle about a new movement towards alternative energy. It talks about people who are tired of rising oil and natural gas prices and of their effect on our environment. Rather than waiting for utility companies to come around, these folks are opting to generate their own energy using sources like solar power, small wind turbines and electric cars that give back to the grid.

You’ve heard of the locavore. Well, it’s time to meet the “locavolts!”

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