Shanghai, China — (METERING.COM) — June 4, 2009 – The smart grid will play more and more important roles in the development of China’s national economy in the future, according to growth partnership consultancy Frost & Sullivan.

Pinky Wang, consultant of Energy and Power System practice at Frost & Sullivan China, comments that the smart grid in China focuses more on the transmission side than the distribution side at present. This is based on the fact that coal is the main energy source in China and the coal mines are far away from the main load centers.

China has been constructing a unified national power grid network. The project includes what is known as the “West-East Electricity Transfer Project,” which includes three major west-east transmission corridors. The transmission capacity of each corridor will be 20 GW by 2020. Through these transmission grids, electricity distributors in China will bond regional power grids in different areas of the country, and improve cross-region electricity transmission ability. This will balance the power generation disparities in different regions.

The State Grid Corporation of China (SGCC) has made power grid construction its core business operation for the time being and a strategic objective in the long run. In developing the power grid for the transmission network, the SGCC has been deploying several technologies such as a wide area measurement system (WAMS) and information system integration project, etc.

The WAMS uses the phasor measurement unit (PMU) based on the Global Positioning System (GPS) to develop the stability of power grids. The SGCC is building a WAMS and by 2012 plans to have PMU sensors at all generators of 300 MW and above and all substations of 500 kV and above. The SGCC has also been deploying extensive fiber optic networking throughout China’s high voltage substations. This network amounts to over one million kilometers of fiber optic channels. In recent years, the SGCC has been applying the SG 186 project, an information system integration project.

According to Wang, there will be a lot of business opportunities for smart grid relevant industries, such as smart metering systems, power storage devices, telecommunication devices, and software.

“The development speed of smart grids in China depends on the key decision makers,” says Wang. Citing the example of the partnership approach to the development of the Miami smart grid, she says: “In the future, the best way to occupy the Chinese smart grid market is to form alliances between several relevant companies and provide a bunch of solutions for the implementation of the smart grid in a special area.”