IBM announced on Wed-nesday that it is working with the Bureau of Energy Efficiency (BEE) to create the country’s first smart grid project. Together, they will create a cost-benefit analysis for smart grid activities as part of the National Mission for Enhanced Energy Efficiency.

Smart grid refers to an improved electricity supply chain using digital technology. It enables monitoring, analysis, control and two-way communication between the electrical delivery system and the consumer end. Smart grids use sensors, digital metres and controls and analytical tools to automate, monitor and control flow of energy and hence provide detailed and timely information on energy consumption.

Unlike the standard grids where the control resides with the utility companies, smart grids offer consumers the choice and flexibility to manage their electrical use to minimise costs. As part of the project, IBM will generate a business case for smart grids and develop tools that will help calculate the return on investment for smaller projects being rolled out across the country and within International Smart Grid Action Network of which BEE is a member.

IBM has been commissioned to determine smart grid readiness in India. The company will assess new smart grid technologies for the country and identify alignment with policy and regulatory frameworks to make each solution viable as well as possible.

“There is a huge demand for power grids that are energy efficient, intelligent and secure. Through this collaboration with BEE, our aim is to help overcome inefficiencies in the existing grid and move towards more sustainable energy networks,” said Avinash V Joshi, director – communications sector, IBM India and South Asia.