China's smart grid market to hit USD 1.43trln in 2021- SBI Energy
Sep 12, 2012 - China’s smart grid components market is seen to achieve a compound annual growth rate (CAGR) of 6% between 2011 and 2021 reaching USD 1.43 trillion (EUR 1.11trln), SBI Energy says in a market study.
The country is expected to become number one globally on the smart grid market, surpassing the US whose CAGR is estimated at 4%, according to the SBI Bulletin: Smart Grid Components Markets: 2011-2021 report.
SBI explained that one of the drivers for the market were renewables. As China sources over 70% of its power from coal which makes it the victim of fluctuating prices, the country is installing more and more wind, solar and other green energy facilities. However, to use this renewable energy effectively it is developing local microgrids that are integrated via a smart grid, SBI explained.
In the market report SBI notes that in March 2011 China’s top utility State Grid Corporation of China (SGCC), which caters for 88% of the country, unveiled 11 pilot smart grid projects. Among these is the construction of 67 smart substations, 19 distribution automation systems and 50 million smart meters. In addition, SGCC intends to pour USD 250 billion in upgrades till end-2016 and USD 45 billion in smart grid technologies. The company is planning additional investment from 2016 through 2020, according to SBI.