Echelon surpasses 300,000 smart meters with Russian smart metering pilot

San Jose, Calif., March 29, 2011 — Echelon Corp. announced that its NES Energy Control System has been selected as one of five solutions in a 50,000 home smart metering pilot project by PermEnergo, part of the MRSK group, one of Russia's largest utilities.

Echelon value added reseller Engineering Center ENERGOAUDITKONTROL won a contract for networking 10,000 homes in a pilot project that is being monitored by the Russian government as a potential model for the country.

With experience networking over 300,000 smart meter points in smart grid projects using Echelon's Networked Energy Services smart grid infrastructure system, ENERGOAUDITKONTROL is a smart grid services provider in Russia.

PermEnergo expects the pilot project to save its customers up to 20 percent of their electricity usage while lowering its operating costs and improving the overall efficiency of the grid. Installation is expected to begin over the summer and be completed by the end of 2011.

The PermEnergo pilot project falls under a federal program called "Count. Save. Pay." a key part of Russia's plan for infrastructure modernization, and has attracted the personal interest of President Medvedev.

The project is part of a smart grid initiative by Interregional Distributive Grid Company of Urals and Volga (IDGC URAL), the business that manages distribution companies for the Perm, Sverdlovsk, Chelyabinsk and Kurgan regions of Russia. Over 2 million households are serviced by IDGC URAL companies.

The pilot project win follows closely on an early March Russian-American smart grid summit in the Kaluga region of Russia, where ENERGOAUDITKONTROL presented their Echelon-based smart grid solution.

The summit was a follow up to a meeting held in July 2009 between the U.S. President Obama and Russian President Medvedev to open a dialog and establish contacts among smart grid companies from the two countries.

Participants included representatives of city and regional administrations, FSI "Russian Energy Agency," IDGC of Center and Volga Region, the Regional Center for Energy Efficiency (Kaluga), and others.

The U.S. contingent included representatives from the United States Energy Association (USEA), the American Association for the Advancement of International Relations (USAID) and Echelon.

The summit discussed laws and regulations for the development of the smart grid in the U.S. and Russia, as well as continued a dialogue on economic and financial mechanisms to encourage investment in the technology of intelligent networks.

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