Echelon wins $16 million smart grid project for NRGi in Denmark

San Jose, Calif., March 4, 2011 – After completing a rigorous public tender process, Denmark utility NRGi selected Echelon’s Networked Energy Services smart grid control system for use throughout its service territory.

The system includes the Echelon software for sensing, monitoring and control applications for the low voltage grid and smart meters for nearly 150,000 homes and businesses.

With this latest win, Echelon, working with its value-added reseller partner Eltel Networks A/S, has secured nearly 50 percent of the Danish utility awards for advanced metering systems, resulting in clear market leadership for Echelon and Eltel.

Revenue to Echelon over the initial deployment of smart meters and associated infrastructure hardware and software is expected to be about $16 million.

Echelon may also sell software maintenance services and spare parts for growth through 2026. Shipments are targeted to begin in the second quarter of this year, with the initial deployment phase slated for completion within 12 months.

In 2008, NRGi acquired neighboring utility Energi Horsens and awarded a 50,000 customer deployment of the NES system within the Energi Horsens former service territory. Deployment of that initial system was largely completed in 2010.

Echelon’s NES smart grid infrastructure consists of a web services based network operating system that interacts with a family of highly integrated, advanced electronic electricity meters and other smart grid devices over an IP network infrastructure.

Unlike metering systems with a dedicated radio per metering point, the NES system enables multiple devices to share a single IP connection through the use of the Open Smart Grid Protocol and Echelon’s standards-based power line networking technology.

This decreases the per-point connection cost, enabling the system to easily and cost-effectively incorporate new wide area networking technologies over the life of the system.

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