Since its first mention in the 2010 Government Work Report, smart-grid construction has appeared for six consecutive years. References in the 2015 Two Sessions—such as the “Belt and Road” initiative, the “going global” strategy, smart-city development, and the launch of major power projects—all herald a coming boom for smart grids. Riding this tailwind, power-equipment manufacturing, IT, new materials and related sectors are poised to surge.

“Integrate the “Belt and Road” initiative with regional development and opening-up, and strengthen the new Eurasian Continental Bridge and key land-sea ports,” and “encourage enterprises to take part in overseas infrastructure and production-capacity cooperation, and promote Chinese equipment—railways, power, telecoms, construction machinery, automobiles, aircraft and electronics—to go global,” the Government Work Report’s blueprint for an all-round opening-up signals vast prospects for smart-grid development.

Grid construction is one of the key industries spurred by the “Belt and Road” and “going global” strategies; the Global Energy Interconnection and ultra-high-voltage (UHV) projects stand out as its brightest highlights. Built upon smart grids, the Global Energy Interconnection uses UHV backbones to transmit clean energy worldwide, forming a robust and ubiquitous smart network. The two strategies will open even broader space for its realization.

“We will vigorously develop wind, solar PV and biomass energy, actively expand hydropower, and pursue safe nuclear power,” states the report. With mounting environmental pollution and intense pressure to save energy and cut emissions, large-scale renewable generation is the solution. As the platform for renewable generation, transmission and consumption, smart grids can effectively link large energy bases with load centers, underpinning a secure, efficient and clean modern energy system.

“Develop smart cities while protecting and inheriting history and local culture; strengthen urban water, gas and power supplies, public transport, and flood-prevention facilities,” the report adds. Smart grids form part of a smart city’s “nervous system” and are its core infrastructure. Future smart cities and grids will need greater and wider-ranging technological innovation and integration.

“Launch a new batch of major projects in information, power, oil and gas,” the report states. State Grid plans to invest over RMB 400 billion in 2015, with further increases expected, pointing to a bright outlook for smart-grid construction.

Smart grids represent the inevitable evolution of grid technology and a necessary choice for socio-economic development. Now a fiercely contested field worldwide, the market is enormous. According to Pike Research, the smart-grid technology market will grow from US$33 billion in 2012 to US$73 billion in 2020, with cumulative investment reaching US$494 billion.

                                                                                             (Cable Network)