China has emerged as the largest smart grid market in the world in recent years, given that the country is in the transition process of rebuilding its grid network to meet its power sector requirement and plans. The market presents strong growth opportunities given the fact that the State Grid Corp., the utility responsible for majority of the country grid network, plans to invest more than US$ 200 Billion in upgradation of existing conventional grid infrastructure to smart grid infrastructure in future. The Chinese government has looked ahead in terms of the needs of the country's grid development, especially the smart grid projects. Their support has been in the form of favorable rules that understood the situation and paved the way for the necessary changes and institutions.
China's smart grid strategic agenda helps it to encourage the use of renewable energy and reduce the country's reliance on the polluting coal power generation. China aims to deliver generated power from developable hydropower sources located in the mountainous southwestern region, as well as wind and solar resources concentrated in the northwest. This indicates a centralized approach of generating and distributing power which needs an efficient transmission and distribution system. Moreover, individuals, households, small business and large enterprises have now caught on to the need and possibility of generating power from renewable sources. While this makes them self sufficient, it also brings the chance to feed back excess power into the system and of regulating usage during situations of low generation.
Given the fact that China is a major solar and hydropower generating nation and that its installed wind power capacity is highest in the world, smart grid technology would help its network to integrate the thermal and renewable energy supplies. This would make for a safe, stable and efficient grid that could transmit renewable energy power. China's focus on renewable energy makes smart grid development a top priority since the renewable energy that it generates cannot be utilized in large scale without smooth grid transmission that comes from using smart grids.
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