China is the world's largest consumer of electricity, and its demand is expected to reach nearly 13,000 TWh by 2030. In 2010, 70 percent of the country's electricity generation came from coal-fired power plants, but the Chinese government is investing heavily in renewable energy technologies. As of 2024, renewable energy capacity officially surpassed coal-fired capacity, making up over 50% of China's installed total power capacity. This represents only 9 percent of overall primary energy consumption in the country. China's latest goal is to increase renewable energy to 9.5 percent of overall primary energy use by 2015. To implement China's new clean energy capacity into the national power grid, and to improve the reliability of the country's existing infrastructure, requires significant upgrades and ultimately, a smart grid. According to the U.S. Energy Information Administration, despite China’s rapid growth in renewable energy, fossil fuels such as coal still account for the majority of electricity generation as of 2025.
A smart grid differs from a conventional power grid in that it includes a system of information and communication technologies to bidirectionally transmit and distribute electricity more efficiently and reliably. Additionally, this technology allows consumers to manage their power usage and make choices for economically efficient products and services. China's national utility, the State Grid Corporation of China (SGCC), is responsible for the oversight of these upgrades.
History China's national utility, the State Grid Corporation of China (SGCC), has announced plans to invest $250 billion in electric power infrastructure upgrades over the next five years, of which $45 billion is earmarked for smart grid technologies. Another $240 billion between 2016 and 2020 will be added to complete the smart grid project.
5-year plan
2009–2010 –Phase 1 – Planning and Pilot Projects Phase • Set technical and management standards • Develop technology and equipment • Set development plans and initiate pilot projects • Specifically, in 2010, China has planned to start construction on the "Two Vertical, Two Horizontal" plan and reach interregional transmission capability of 12.9 GW by the end of the year.
2011–2015– Phase 2 – Comprehensive Construction Phase • Construct UHV grid and urban-rural distribution grid • Construct smart grid operation/control and interactive service system • Key technological breakthroughs and their applications • By 2015, UHV and other intra-regional transmission capacity will be 240 GW. Distribution and power provision will reach a reliability rate of 99.915% or higher in the cities and 99.73% or higher in rural areas. Smart meters will be in widespread use and EV charging stations will have been deployed in numbers that will satisfy demand
2016–2020– Phase 3 – Leadership Phase • Complete a strong, smart grid • Establish the country as a global leader in management systems, technological development and the provision of modern equipment • By 2020, UHV and other intra-regional transmission capacity will reach 400 GW, enough to connect all planned coal, hydro, nuclear and wind power to areas with high demand
Technology
Smart meters During 2011 SGCC took bids for 44 million smart meter units. In total, 65 companies received bids for smart meters from SGCC. The total smart meter market in China is estimated to be 330 million smart meter units worth approximately US$7.7 billion. By 2011, SGCC had deployed 45 million smart meter units. All SGCC users are expected to be equipped with smart meters by 2014.
Top 10 smart meter bid winners in the first four biddings of SGCC, 2011 Source:
Jiangsu Linyang Electronics Co., Ltd 6.48% Waision Group Holdings Limited 6.07% Shenzhen Clou Electronics Co., Ltd. 5.95% Nigbo Sanxing Electric Co., Ltd. 5.54% Holley Metering Limited 4.14% Ningxia LGG Instrument Co., Ltd. 3.89% Hangzhou Hexing Electrical Co., Ltd. 3.85% Shenzhen Haoningda Meters Co., Ltd. 3.70% Shenzhen Kaifa Technology Co., Ltd. 3.63% Shenzhen Techrise Electronics Co., Ltd. 3.12%
Battery energy storage station In December 2011 construction on battery energy storage station residing in Zhangbei, Hebei Province was completed by BYD and SGCC. The storage station is capable of storing 36 MWh of energy in a series of lithium iron-phosphate batteries approximately the size of a football field. Designed to be implemented in conjunction with a 140 MW expansion of renewable energy (solar and wind), this project is worth over US$500 million.
Digital substations The first digital substation was built in China in 2006. By 2009 China had implemented more than 70 digital substations. The implementation of digital substations is critical to the smart grid because of it allows for processing of energy generated from conventional and renewable sources, protects the grid from attack, and communicates with the rest of the grid.
Flexible power transmission For flexible power transmission in the grid, substantial infrastructure upgrades must be made to the existing power grid. This is primarily being done by upgrading the existing power grid to a system capable of transmitting ultra high voltage AC and ultra high voltage DC power. Over half of China's investment in flexible power transmission is in the form of static VAR compensators or SVCs. In 2009, SGCC announced its plan to invest approximately 88 billion dollars in ultra high voltage equipment.
Electric vehicle charging equipment In August 2009 SGCC established its first commercially available electric vehicle charging station, the Caoxi Electrical Vehicle Charging Station. As of 2010, 76 electric vehicle charging stations have been built in 41 Chinese cities. Continued investment in electric car infrastructure reflects the country's goal of having 500,000 electric, hybrid and fuel-cell vehicles on the road by 2015 and 5 million by 2020,.
Deployments In September 2011, SGCC announced plans to invest $250 billion in electric power infrastructure upgrades over the next five years, of which $45 billion is earmarked for smart grid technologies. Another $240 billion between 2016 and 2020 will be added to complete the smart grid project.
Pilot Programs
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