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Analysis of China's smart grid prospects

16 August 2011
Analysis of China's smart grid prospects

BEIJING: The Climate Group China has published a Policy Briefing entitled Smart Grid Development in China's Current Situation and Prospects*.

The report offers a background on China’s surging smart grid industry and reviews opportunities and suggestions for the smart grid development which will accelerate a Clean Revolution in China.

China’s renewable energy industry may be growing rapidly, but it is the smart grid business that is helping lead the low carbon economy. Recent data from Pike Research revealed that global smart meter installations will hit 1 billion by 2020, led by China’s large-scale adoption. 

Smart grids have also become a top priority in the energy reform agenda - and not just in China, but in other major developing countries too.

Emphasis has been put on China’s transition from traditional grids system to smart grids, as well as research and development in new energy, clean tech materials and cutting edge information network technology.

China’s 12th Five Year Plan illustrated an expected US $150 billion public and private investment by 2020**, aiming to push smart grid construction from the planning and pilot projects stage to a full scale construction stage, along with smart grid operation control and service systems and core technology development.

China’s power industry is also focusing on smart grids, as it faces similarly increasing needs from both the supply and demand sides of electricity. 

The report Smart Grid Development in China's Current Situation and Prospects reviews the invention and functionalities of smart grids, and analyzes the opportunities and challenges of future smart grid development.

The report highlights:

  • areas of centralized electricity access to renewable energy
  • electric vehicle-to-grid
  • user-side management
  • China’s relevant policies and standards 

After addressing the opportunities of smart grid development, the report calls for government policy makers and corporations to focus on the market liberalization of the entire value chain of smart grids industry, to swiftly achieve a Clean Revolution in China.

*The report is in Chinese only and can be found at 

**Xu, Weixuan (March 11, 2010). Trillions of investment: the vehicle of smart grid starts (in Chinese). 21st Century Business Herald Retrieved February 15, 2011 from

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