China Leads Smart Grid Market Through 2021, To Reach $1.43 Trillion: SBI Bulletin
New York, NY--(Marketwire) - Supported by a long-term stimulus plan, China is pursuing more Smart Grid development than any other country in the world. According to "SBI Bulletin: Smart Grid Components Markets: 2011-2021," China will post the fastest compound annual growth rate (CAGR) of 6% through 2021, overtaking the U.S., which will post a 4% CAGR through the same period.
As the utility that serves 88% of the country, the State Grid Corporation of China (SGCC) is chiefly responsible for the deployment of Smart Grids technologies; in March 2011, it announced eleven types of Smart Grid pilot programs, which included sixty-seven smart substations, nineteen distribution automation systems and 50 million smart meters. SGCC also plans to invest $250 billion in upgrades through 2016, $45 billion earmarked for Smart Grid technologies, and an additional investment from 2016-2020.
"As the world's largest electricity consumer, China's need to improve its power grid is real," said Shelley Carr, publisher of SBI. "SGCC is building their own Smart Grid technologies and setting their own standards to become a leader in the market, but is currently challenged by more advanced products being offered by General Electric and IBM."
Since coal accounts for more than 70% of China's main energy source, it faces a danger from fluctuating prices; therefore, China has begun pursuing renewable energy. According to the report however, in order to effectively use renewable energy, China is developing microgrids throughout local areas, and is integrating them via a Smart Grid.
"SBI Bulletin: Smart Grid Components Markets: 2011-2021" projects the size of the Smart Grid market worldwide through 2021, detailing the top ten countries where over 80% of purchasing activity is set to occur. It also breaks out components of the market by smart meters, information technology, communications & transmission systems, substations and microgrids.
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