EnergyAustralia Selects IBM for Smart Grid, Smart City Initiative

ARMONK, N.Y. and SYDNEY,: IBM (NYSE: IBM) today announced its role as the systems integration partner for the $100 million Smart Grid, Smart City initiative led by the EnergyAustralia consortium. IBM will play a pivotal role, as a member of the consortium, in the development of Australia’s first smart grid network, following the formal contract signing of the deal between EnergyAustralia and the Australian Government.

Under the agreement with EnergyAustralia, IBM will build on its existing work on EnergyAustralia’s Smart Grid Program, to deliver distributed generation, smart metering and demand management solutions.

This three-year project will begin immediately across five sites in Sydney and the Hunter (Newcastle, Scone, Sydney CBD, Ku-ring-gai and Newington). It will represent Australia’s first commercial-scale smart grid. The technology will allow residents to see real-time analysis of electricity usage for their households and even for individual appliances, to help them make better decisions about energy efficiency in their homes and minimise their environmental impact.

The smart grid demonstration will also test real-time, complex information about grid performance in order to improve control over the network for Australian energy transmission and distribution companies.

Smart grid infrastructure uses sensors, meters, digital services and analytic tools to automate, monitor and control the two-way flow of energy across operations - from power plant to plug. By combining advanced communication, sensing and metering infrastructure with existing energy networks, smart grids enable the delivery of a more efficient, robust and consumer-friendly electricity network.

Benefits include:

* Energy efficiency: the system will enable sophisticated analysis of consumption patterns enabling a real-time view of energy use to identify opportunities for reduction.
* Analytics: customers will have an internet window to their technical and commercial data, to track current consumption and choose the most appropriate agreements.

“IBM is extremely proud to be a part of the successful consortium, and we’re delighted with the Government’s investment and support to broaden Australia’s smart grid,” said Glen Boreham, IBM Australia & New Zealand Managing Director.

“The Smart Grid, Smart City demonstration is a critical step in developing the necessary infrastructure required to meet the energy demands of Australian citizens into the future.”

“One of IBM’s key priorities is to help utility companies transform energy, environmental and sustainability issues into opportunities that positively impact the world. Being a member of the consortium that will carry out this project is a reflection of IBM’s commitment to the energy industry and our vision for a smarter planet,” said Mr Boreham.

The EnergyAustralia Consortium consists of technology companies including IBM and GE Energy Australia; AGL, Sydney Water, Hunter Water and Newcastle City Council.

About IBM

IBM is involved in more than 150 Smart Grid engagements in mature and emerging markets. More about IBM’s vision to bring a new level of intelligence to how the world works—how every person, business, organisation, government, natural system, and man-made system interacts, can be found at: www.ibm.com/smarterplanet.