Greentech Lead Asia: A recent report from Navigant Research finds that annual revenue from smart grid deployments in China will reach $15.4 billion by 2020.
The area of strongest smart grid growth in China will be transmission upgrades, which is anticipated to reach more than $72 billion in revenue by 2020 on a cumulative basis.
Overall smart grid development in China will generate $127 billion in cumulative revenue from 2012 to 2020, the research said.
China is pursuing the 12th Five-Year Guideline, which will continue through 2015. One of the Guideline’s primary goals is strengthening the construction of smart grid. With the support of the government-owned State Grid Corporation of China, as well as many provinces and cities, this effort is rapidly progressing.
One primary objective of smart grid planners in China is to help address the country’s imbalanced energy supply. Coal remains the primary source of power generation, and 76 percent of China’s coal resources are located in Shanxi, Inner Mongolia, Shaanxi, Xinjiang, and other northern and western regions.
However, the country’s energy consumption needs are mainly concentrated in the more industrialized economies in the eastern and southern regions.