Smart Grids in China
August 10, 2011
Asia’s spending on smart grids is expected to outpace the United States, with China alone investing $7.32 billion in the sector in 2010. China is predicted to be one of the hottest smart grid markets in the coming years given its energy needs are expected to double in 10 years, and the country’s dominant power distribution company, State Grid Corp., has a goal of building out a smart grid by 2020.
In fact, China has been specifically identified as a country that it is pursuing smart grid as aggressively, or more aggressively, than any other country in the world right now, and is expected to follow the United States with a market share of 11.6% ($355 million). In 2015, China is projected to account for 18.2% ($2.76 billion) of the global household smart appliance market. China alone could spend over $100 billion upgrading its power distribution over the next 10 years.
China has been rigorously investing in smart meters and will replace 300 million electricity meters over the next five years. The Chinese government has been increasing investment into smart grid technology to prepare for national energy needs that are expected to double in ten years. So far, only Australia has made it mandatory for utilities to install smart meters, but as the case for smart grids gets stronger, other countries in the region are expected to follow suit
US companies are flocking to China to try to get ready for the funds, much in the same way Korean and Japanese firms are stepping into the US market. General Electric is to partner with the City of Yangzhou, China, to build a smart grid “demonstration centre” in the city of 4 million. IBM has signed an agreement with ENN Group, a Chinese energy provider, to form a joint venture focused on “intelligent energy,” and IBM expects to generate a minimum of $400 million in smart grid revenues in China over the next four years. Hewlett-Packard, Cisco and Accenture, along with meter manufacturer Itron are all also developing smart grid-related business in China.
CMDC China will host The 3rd Annual China Smart Grid Forum 2011 in Shanghai China on 14th & 16th September. Some of the topics the forum will cover are Smart Grid Standardization, Government Policy, Smart Distribution and Smart Interconnection of Renewables, Smart Building and Smart Home and much much more. For more information see: http://www.cdmc.org.cn/smartgrid/eb2011/sg.html
