China has already started testing the smart electric grid technology

State Grid Corporation of ChinaChina has started testing the smart electric grid technology for more reliable and efficient delivery of electricity throughout the nation. This can also help in efficient delivery of high-speed internet, TV and telephonic services in the remote places in the country.

This grid has been tested under the supervision of State Grid Corporation of China (SGCC) utilizing optical networking (PON) technology i.e. the network of high-bandwidth data wiring that can transmit data in the form of light pulses that run inside the electric power cables without any disturbance. At this time, nearly 86,000 premises in China are linked to the grid. It has been estimated that if the project would go nationwide, it will cost $2 billion.

Smart grid uses computer networking to control everything from the utilization of electricity to the performance of generators. Moreover, this grid can help in the development of a number of related technologies.

“This is the largest utility company in the world, covering most of China, so it could potentially have a huge influence on the opportunities for equipment and component vendors,” said Julie Kunstler, author of a report, The Merger of China’s Smart Grid and PON—A Potential Perfect Storm, published recently by analyst firm Ovum. “The SGCC has a lot of money.”

According to Ovum, SGCC is spending a huge amount of money of the smart-grid technology. It has 286 million customers and plans to achieve 100 percent smart-meter penetration by the end of 2015.

“China’s smart grid development is on a fast track,” Senior research analyst Andy Bae, said in a statement. “The State Grid Corporation of China (SGCC), the government-owned electric utility that leads the market by a large margin, is the main force behind efforts to construct the country’s smart grid. Moreover, building a smart grid is a key goal for many provinces and cities under the country’s current Five-Year Plan, which continues through 2015.”

According to the Pike report, a part of Navigant’s Energy Practice, cumulative smart grid revenue in China will reach $127 billion by 2020. Moreover, the installed base of smart meters in China will reach 377 million by 2020 increasing from 139 million in 2012.