Echelon Corp. has entered into a long-term agreement with Duke Energy to supply the Networked Energy Services (NES) system as a key part of Duke Energy’s smart grid program. Currently, Duke Energy provides electricity service to approximately 4 million customers in five states – North Carolina, South Carolina, Indiana, Ohio and Kentucky.

Duke Energy has received regulatory approval to deploy smart grid infrastructure in Ohio, and plans to launch a five-year mass deployment of smart grid technology later this year including more than 700,000 electric smart meters in Ohio. In Indiana, Duke Energy is seeking approval from the Indiana Utility Regulatory Commission to install smart grid technology, including approximately 800,000 smart meters. The company is also laying the groundwork to bring large-scale smart grid technology to the remaining three states it serves.

The initial order under this framework agreement totals approximately $15.8 million with deliveries expected to begin at the end of the quarter. Assuming full deployment of the NES system, the states of Ohio and Indiana represent a revenue opportunity to Echelon of over $150 million.

“An essential component of Duke Energy’s smart grid design is a scalable, open, interoperable network that supports not just the initial functions we are deploying today, but allows for additional devices and sensors to be attached to the network in the future,” said Todd Arnold, Duke Energy’s senior vice president for smart grid and customer systems. “Echelon’s metering infrastructure is a key enabler of that vision with a smart grid approach that includes smart meters, smart concentrators working in conjunction with the meters, and network operating system software.”