The idea, they say, is to use cloud computing to monitor and analyze power use at British homes and businesses, as part of an overall plan to reduce the country’s energy use and therefore its carbon footprint.

Several existing wireless players have tossed their hats in the ring to build smart meter systems, including BT, Telefonica and Vodafone. They all want a piece of a big UK government contract that could be worth as much as $14 billion to install smart meters in every home by 2020 as part of a wider plan to reduce its carbon emissions by 80 percent by the year 2050.

IBM and C&W say their plan, which they call the UK Smart Energy Cloud, will gather data many times a day from smart meters around the country and store it in a cloud hosted in the UK. The data would then go to power utilities for analysis, to make sure customers are billed according to their usage.

IBM is also involved in a nationwide smart grid project in Malta and has a hand in a pilot project in Denmark. C&W has more than 1,000 network sites, and many, it says, are located at electrical substations. IBM and C&W would essentially become a middle man, saving UK power retailers from having to make huge investments in computing and communications infrastructure.

One of the more remarked-upon talks at the recent TED conference was by Microsoft co-founder and mega-philanthropist Bill Gates.

Rather than talk about his work around AIDS and other global medical issues like malaria (last year he released a box full of mosquitoes at the conference to make a point), or education reform, he focused, surprisingly, on the future of energy and the need to reach zero carbon emissions by 2050.

In fact, the Microsoft (MSFT) leader said that if he had one planetary wish, this would be it. Well, also someday beating Google (GOOG) in search, but Gates managed to keep that to himself.

All kidding aside, it was a very interesting talk, and here is the video of the speech by Gates:

[Photo Credit: James Duncan Davidson for TED]