"Grid" here means Electrical Grid, the system for electricity distribution operated by an electricity power company. (Do not confuse it with "Grid Computing" like I did before!)
Since the grid consists a bunch of metal wires, making use of it to provide "IP network services" at the same time is a straightforward idea. In fact, such technology is already a reality. A quick related example is HomePlug.
Although Electricity Industry has really special expertise in its field, I believe most of us do not expect electrical equipment vendors to come up with good IP network function quick enough on their existing products, such as OSPF routing protocols. And yes, that's how Cisco hops in.
Smart Grid basically is an IP network connected and remotely managed electricity grid
An electricity power company needs remote management functions to lower the costs and add new services. This is what Smart Grid proposed for. All these controlling and monitoring signals will be transported over open IP networks, instead of special purpose protocols.These is one additional benefit for electricity power company. Since the communication technology today on power lines can deliver much more bandwidth than the amount controlling and monitoring signals require, the extra bandwidth can be sold out to generate new incomes!
A Smart Grid is connected with IP network, and that IP network is composed of externally attached routers and Ethernet switches. This is where Cisco good at.
Cisco call their routers and switches solutions for Smart Grid as "Connected Grid".
Challenges for Cisco are only Rugged Hardware and Regulation Compliances
There are 2 major challenges for Cisco to deliver such solutions.First, the physical condition on these outdoor grid stations are very bad, such as temperature, electrostatic discharges, power surges, and radio interferences. So the hardware must be rugged enough.
Second, for public safety, electrical industry is highly regulated. A product must pass several regulations and certification to be considered usable on power grids, such as North American Electric Reliability Corporation/Critical Infrastructure Protection (NERC/CIP) requirements.
Some might wonder why Cisco took so long to come up Connected Grid products. The above 2 are the explanation, in my opinion.
Cisco Connected Grid products: 2000 Series Routers and 2500 Series Switches
Cisco 2010 is basically a rugged version of ISR G2, with different interface modules and power supplies. In addition, it has NO cooling fans!The new interface module is called Rugged WAN Interface Cards (GRWICs).
Datasheets of 2010 router:
Cisco 2010 Connected Grid Router [Cisco 2000 Series Connected Grid Routers] - Cisco Systems
Cisco 2520 Ethernet switch is Layer 3 and quite similar to Cisco 3560, except power supplies.
Datasheets of 2520 Ethernet switch:
Cisco 2520 Connected Grid Switch [Cisco 2500 Series Connected Grid Switches] - Cisco Systems
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