Echelon, T-Mobile USA form smart meter alliance

By Matt Daily and Ritsuko Ando

NEW YORK, April 23 (Reuters) - Smart power grid company Echelon Corp (ELON.O) and T-Mobile USA DTEG.N said on Thursday they had formed an alliance to use T-Mobile's wireless network to link "smart meters" to utilities.

T-Mobile will provide embedded SIMs inside a cellular radio module in Echelon's smart meters, which collect power usage and other data for the company's network.

Several U.S. utilities have begun testing smart meters in pilot projects that are designed to measure power demand at the consumer level and help the electricity providers generate and distribute power more efficiently.

Smart meters are a key part in the rollout of "smart grid" technology that power companies hope will enable the United States to use electricity far more efficiently.

Experts say upgrading the nation's power grid is essential to help accommodate the growth of green power sources such as wind and solar, as well as enabling the system to eventually supply a fleet of electric cars.

Echelon, which has shipped more than 100,000 of its smart meters to U.S. utility owner Duke Energy (DUK.N) and more than 1.6 million worldwide, said the partnership with T-Mobile would provide a cost-effective communications tool for the meters.

Its meters cost about $100 apiece excluding installation.

Eventually, companies like Echelon hope to link smart meters to "smart appliances" which consumers can program to operate during hours when electricity demand is low.