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Smart grid investments in China
Smart Grid  
4 August 2016

China to invest $77.6bn in smart grid infrastructure

A new report by global market intelligence firm Northeast Group predicts that China will invest $77.6 billion in smart grid infrastructure over the next decade.

The growth of the Chinese smart grid infrastructure market will primarily be driven by increased investments in automated metering infrastructure (AMI) technologies.

According to the New York based research group, utilities will mainly increase their investments in AMI to ensure a two way communication with their consumers for real time grid management.

Smart grid management

Ben Gardener, president of Northeast Group, said that the increased funding in AMI will allow the utilities to implement demand response programmes and integrate more renewable energy sources with the grid for grid reliability and security.

“For all the talk of China’s booming smart grid market, most investment so far has been in one-way communicating AMR meters, which are not typically considered part of smart grid.

"Furthermore, these metering deployments have been dominated by local vendors,” commented Gardner.

The study predicts that local Chinese vendors of the smart grid infrastructure technologies will continue dominating the market through out to 2021.

However, recently implemented policies will allow international vendors to participate in a number of segments including the commercial and industrial metering, distribution automation and the ultra-high voltage direct current transmission lines sectors. [China and OSIsoft collaborate on smart grid project].

Chinese smart meters market

The release of the report follows news that power utility the State Grid of China will dominate in the country's smart meters deployment through to 2020.

The report stated that the replacements of existing smart electric meters with new versions will drive the Chinese smart meters market at an average pace of 5.75% between 2016 and 2020, says a new report

The study went on to say that the increase in installations to enhance data acquisition for improved grid management will be centrally promoted by two power utilities the State Grid and the China Southern Power Grid. [China’s State Grid plans to build global renewable energy network].

According to the report findings, State Grid Corporation installed over 90 million units in 2014 and 2015.

In 2016 alone, the two utilities have so far issued tenders for the provision of smart meters amounting to 69,12 million units with the number is expected to increase as the year progresses.

In regard to development of the smart meters, the report predicts that more than 100 local developers will concentrate on upgrading core technologies and communication modes which are currently major problems in the Chinese smart meters market.

The sector is currently facing poor core capacity for core parts like chipsets hence rising the need to rely on foreign supplies.

Lack of a unified solid communication mode despite producers conforming to State Grid’s standards has also resulted in various dominant frequencies and failure in the end to end transmission.

 

Image credit: www.dailynews.ik.

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