Smart grids in China

Smart grid is the direction of power system development and it has aroused wide attention. It is also the physical infrastructure to integrate renewable energy into the power system. In China power grid companies are the pioneer in developing smart grids. Propelled by strong demand, China has made encouraging progress in smart grid development, especially in the aspect of ultra-high voltage transmission system. However, in other aspects as distributed generation, microgrid and intelligent demand management etc., the progress is slow and limited. In this paper we analyze the policy, pilot projects, achievements and barriers of developing smart grids in China. We find that lack of a clear national strategy is one main institutional barrier. The current industrial structure of the electric power sector, or the vertical integration of power transmission with distribution and supply, is another institutional barrier. Finally we provide an outlook on smart grid development in China.