Both the companies will also commercialise technical management software in France, which can be used for distributed energy resources.
The agreement, which is in effect for a 5-year period, also focuses on the joint development of new products, mostly software, performed within the framework of research contracts.
Smart Grid with digital technology is expected to transform work of hardware and software solution manufacturers, integrators, and power grid operators.
Alstom Grid president Grégroire Poux-Guillaume said the company offers 33 Smart Grid pioneer models to the management software field for distributed resources.
"Based on the experience we have acquired with our long-time French customer ERDF for new customers, we take one further step in establishing our leadership," Guillaume added.
ERDF board of directors chairman Michèle Bellon said the company has involved in around fifteen research projects in the field of smart grids.