China to become No. 1 in smart grid market
China is expected to become the world's leading smart grid components market with a value of US$1.43 trillion.
China's smart grid components market is projected to grow a compound annual growth rate (CAGR) of 6% between 2011 and 2021 reaching US$1.43 trillion, according to industrial market research firm, SBI Energy. It will overtake the USA whose CAGR is placed at 4%.
Renewable energy is driving the growth of the smart grid components market, said SBI. To use RE more effectively, however, requires the development of local microgrids that are integrated via a smart grid.
China's top utility, the State Grid Corporation of China (SGCC) that supplies power to almost 90% of China, unveiled 11 pilot smart grid projects last year. Among these is the construction of 67 smart substations, 19 distribution automation systems and 50 million smart meters. SGCC also intends to invest US$250 billion in upgrades until 2016 and US$45 billion in smart grid technologies.