Because it is inexpensive and available in many places worldwide, the Internet is an ideal network not only for normal telecommunications but also for many industrial applications. However, the Internet standards, which in some cases are 40 years old, are often inadequate from a technological standpoint.

Smart grids are one example of a new area of Internet applications. Here, power networks are to ensure a stable and affordable energy supply. A sustainable, state-of-the-art power grid with many independent, widely distributed producers of renewable energy can only perform such a task if all of the participants are optimally coordinated with one another. When the sun is shining, for example, the system would use solar energy to charge the batteries of electric cars. It’s therefore essential that the communications medium is reliable. In today’s smart grids, the power lines themselves are often used to transmit control data for low- and medium-voltage systems. However, power lines are not suitable for transmitting large amounts of data over long distances.

Communication over the current Internet would not be a satisfactory solution either since some of the existing technology does not guarantee high enough levels of reliability or security. For example, when there is heavy network traffic, control information could be delayed or lost. Another difficulty is that today’s Internet protocols are not capable of providing adequate security against hackers’ attacks on the electricity supply. Other organizations that deal with smart grids and/or smart energy can join the project.