San Jose, CA, U.S.A. and São Paulo, Brazil --- (METERING.COM) --- January 18, 2010 - A technology licensing agreement with Brazilian meter manufacturer ELO Sistemas Eletronicos (ELO) has been entered into by Echelon Corporation, under which ELO will develop and market smart electricity meters based on Echelon's Networked Energy Services (NES) smart grid infrastructure solution.
The parties intend to initially focus on the Brazilian and select Latin American smart meter markets, representing over 100 million electricity meters.
Last October Brazil's energy regulator, Aneel, announced tentative plans for a nationwide rollout of smart metering, expecting to replace approximately 63 million electricity meters in the country with smart meters by 2021.
“Today’s announcement is important for many reasons, and it represents a critical step forward in a large, emerging market with a market leading partner,” said Michael Anderson, Echelon’s senior vice president, NES sales and market development. “With nearly 30 years of local experience and the largest meter market share in the country, ELO is an ideal partner for establishing the NES system as a market leader in Brazil and throughout Latin America.”
ELO has an estimated 40 percent share of the Brazilian market.
“The Brazilian market is on the verge of a very exciting transformation,” said Marcos Rizzo, ELO’s vice president of business development. “2010 will be an important year for development, and we plan to work aggressively to have meters approved and in production to support the large-scale rollouts that we see starting in 2011. And, as exciting a market as Brazil is, we believe it represents just the beginning of an opportunity that we see spreading throughout Latin America.”
This new agreement expands on the NES value-added reseller relationship announced in November of last year (see Strategic alliance for smart grid solutions for Latin America).