China to Include Smart Grid in Five Year Plan

China is drafting a five-year energy plan for 2011 through 2015 which will include smart grid technology as a key industry focus.  An analyst at Essence Securities Ltd has estimated that China may spend up to 68 billion yuan (US$10 billion) annually on implementing a smart grid from 2011 to 2020, or a total of 4 trillion yuan (US$590 billion) on the overall power grid through 2020.  Stimulus spending on smart grid in 2010 in China is expected to exceed that in the US.   State Grid Corp, China’s largest grid operator, has released standards to regulate the smart grid technology and related equipment production.

A major motivation for smart grid is renewable energy generation.  It has just been reported that China attracted more investment in clean-energy technology in the second quarter of 2010 than Europe and the U.S. combined.  Financing of wind turbines, solar panels and renewable technology in China increased 72 % to $11.5 billion year over year.  Last year China installed 14 GW of new wind power.