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Google and General Electric are collaborating on technology and policy initiatives to promote the development of additional capacity in the electricity grid and of “smart grid” technologies, cleaner power generation and greener transportation. They will begin by working on enhanced geothermal and plug-in vehicles, specifically electric vehicle-enabling technologies. They will also lobby Washington to encourage investment and innovation in renewable energy sources.

GE CEO Immelt said “There’s fundamentally two things that have to be done, and both of which we’re working with Google on. One is that there’s going to have to be more capacity, and if we really want to drive renewable energy to where it could be in this country, we’re going to have to have more transmission and distribution.”

“The second thing is that there’s got to be a ’smart grid’ which allows it to operate more effectively both in the last mile, but also as you wheel power around the country. That’s fundamentally software and gadgets,” Immelt said.