There is a wide spread skepticism and low awareness about the smart grid, according to a survey by Danfoss.

“Survey responses indicate there is skepticism and still low awareness on what the smart grid is, what it can do and how much it will cost, which underscores the need for communication,” said Robert Wilkins, vice president public affairs at Danfoss, in a statement.

The report highlights the challenges that must be addressed by all stakeholders if the industry is to realize the benefits the smart grid offers, including multiple opportunities for reducing peak load, the research said.

Most respondents expressed confidence about smart grid saying elements of the smart grid will be in place within three to five years.

However, 43 percent of respondents said the smart grid will not be substantially complete in that same time frame. Fifty two percent of the participants are currently engaged in some form of smart grid activities, according to the survey called “Industry Research & Report: Smart Grid.”

The value of the smart grid needs to be communicated to better encourage building owners to act. By increasing communication, utilities will learn about the unique wants, needs and expectations of individual building owners, as each typically has a different set of motivators.

Building owners listed cost as the number one barrier to investment in the smart grid. Because many buildings are not equipped with control systems that interact with the smart grid, that investment may include retro commissioning or retrofits to ensure buildings can take advantage of the benefits the smart grid offers.

Respondents said lower electricity costs followed by better access to information that will help manage energy as the leading reasons to support the smart grid. Power outages were also a concern to building owners.

Danfoss is a manufacturer of electronic and mechanical components and controls for air-conditioning, heating and motion systems.

The Ivanovich Group conducted the research among senior executives in facilities, plant services for industrial, K-12 schools, university campuses, commercial offices, government facilities, engineering firms and HVAC product manufacturers.

Recently, Pike Research (News - Alert) said that the smart grid managed services market is likely to reach $4.3 billion by 2015 from $470 million in annual revenue in 2010 as utilities face new operational challenges.