Climate change and economic stimulus packages are fuelling growth in the smart grid market, which will be worth over EUR30 billion over the coming five years, says Siemens.

The German firm is planning to play a major role in the market for smart grid equipment and is aiming to win more than EUR6 billion worth of orders over the next five years. It plans to expand its smart grid business at a rate of seven per cent per year, allowing it to reach a 20 per cent overall market share within five years.

‘Smart’ grid equipment, which enables electricity consumers as well as the utilities that serve them to control energy flow on a minute by minute basis and to improve energy efficiency, is seen by many governments as being essential in the fight against climate change as well as for the integration of new technologies and large amounts of renewable energy capacity to the grid. The US government alone plans to invest $3 billion in smart grid programmes over the next few years under its economic stimulus package.

“A new age for power supplies is dawning with smart grids,” said Wolfgang Dehen, CEO of the Siemens Energy Sector. “The smart grid market will see increasingly dynamic growth fueled by climate change and economic stimulus programs. We want to grow twice as fast as the overall market.”

Siemens claims already to be the global leader in the grid intelligence sector of the market, and will strengthen its position in the data management sector with the acquisition of a 60 per cent stake in Energy4U in October.

“The world needs intelligent power grids in order to meet the growing demand for energy in a way that is eco-friendly and reliable,” said Dehen. “We estimate that the demand for electricity will double by 2030, due to trends like e-mobility, which is just emerging.”