Date: 22nd July 2010

Global investment on smart grids to total over $45 billion by 2015 says ABI

ABI Research forecasts that the cumulative global investment in smart grids will reach a total of over $45 billion by 2015, as both governments and utilities repair, upgrade and transform their aging infrastructure

According to the reports the "lion's share" of this spending will go towards "Transmission and Distribution" investments, which will attract $41 billion through 2015. Smart grids give utilities real-time, two-way communications with each segment of the electrical grid, assessing loads, usage, and efficiency twenty-four hours a day.

Major companies like Cisco (CSCO), Siemens AG (SI), and General Electric (GE) have taken stakes in the smart grid market. Echelon Corporation (ELON) and Itron (ITRI) are dedicated smart-grid and data-systems companies that could benefit from this flood of investment.

In addition, to respond to the demand for smart grid investment opportunities, First Trust has created the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID), which tracks the performance of stocks in the grid and electric energy infrastructure sector.