In 11, smart grid was officially included in the 12th Five Year Plan, it
was stated in the outline “to promote smart grid construction, strength city and
rural electricity grid modification, improve efficiency and reliability of the
This is the second year of the SGCC smart grid construction project and it’s
the year of importance. Under the conduction of the 12th Five Year Plan, SGCC
focused on pilot projects to get great achievements in HVDC, EV station, rural
grid intelligence. China Southern PowerGrid introduced its development strategy
that build an intelligent, efficient and reliable green grid, initiated pilot
projects in several fields like new energy grid connection and control,
distribution automation and intelligence, storage and EV charging, etc.
Why developing smart grid?
1. To transfer economic development mode
Smart grid is the most important and efficient way for energy-conservation
and environment-protection; it’s necessary for developing new energy vehicles,
it’s the base for the integration of information technology and high-end
manufacturing, it’s the engine of China economic development.
2. To reduce fossil energy consumption- for energy-saving
Smart grid could improve efficiency in the use of fossil energy and reduce
energy loss in operation.
3. To reduce fossil energy dependence- for energy safety
Smart grid could develop new energy and improve the energy structure, provide
more energy sources.
4. It is necessary for the development of electricity grid
Smart grid could increase efficiency of the whole grid by improving
electricity safety and reliability, increasing efficiency of resources and
equipments, promoting technology, equipment, operation and management
5. It is necessary for economic development
With the developing of economic, the needs for electricity would be
increasing; smart grid could solve the problem of uneven distribution of energy
The development of China smart grid.
China was standing at the same scratch line with developed countries in the
construction of smart grid, lots of the leading companies and research
institutions have been
1. Put emphasis on the combination of transmission, distribution and the
Compared with the US, the electricity environment in China is so different,
the distribution of energy resources and consumption as well as the monopoly
electricity market decided that China would put more emphasis on the development
of long-distance transmission, which means to give priority to transmission
network, but on the customer side, in the short run, the utilities just need to
develop the collection system.
2. Less distributed generation because of the concentrated distribution of
Energy resources are concentrated distributed in China, 49.25% of the coal is
in the North, and 30.39% is in the Northwest; nearly 80%hydroelectricity is in
the South and the Southwest; wind resource was mostly concentrated in the
Northeast and Northwest. The concentration of resources decides that China have
to develop large scale generation.
3. Electricity consumption is mainly concentrated in the Southeast
43% of the consumption is concentrated in the Southeast, which is far away
from the resources in the Southwest and the Northwest, it means China need to
develop long distance transmission network with higher capacity and lower
4. The monopoly electricity market of China reduce the needs for intelligence
on customer side
China electricity industry is not open to the market, the price was set by
the government, SGCC and China Southern Power Grid monopolized the transmission,
distribution and sale sectors. Customers have no opportunities to select
electricity suppliers but accept the services provided by the 2 companies.
5. Difference in natural environment also decides the development of long
According to the research, in several years, the market would benefit from
ultra high voltage projects, smart transformer substation, distribution
automation, smart meter, storage equipment and EV charging equipment.