Gert Brunekreeft Till Luhmann Tobias Menz Sven-Uwe - Regulatory Pathways For Smart Grid Development in China

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Smart grids an innovative solution for upgrading the conventional power grid infrastructure

Around the world, power grid operators have to cope with several technological challenges ranging from aging grid infrastructures and fluctuating load levels to the integration of intermittent

Challenges to Chinas current electric power system

China faces tremendous challenges with regard to the development of its electric power system. According to Chinas th Five-Year Plan for Energy Development , massive investments in power generation and grid capacities have to be made to cope with the steadily rising power consumption [2].

Government targets for Chinas future electric power system

In light of these challenges, the Chinese government issued specific targets for the physical and technological development of the power system up to 2015: power generation capacities are to increase from 970 gigawatts (GW) in 2010 to 1,490GW in 2015 [2] and they are projected to attain 1,935GW in 2020 [8]. Also, the share of power generation from RES and nuclear energy is planned to be increased significantly, with an official target of 11.4% of total primary energy coming from non-fossil sources by 2015 and 15% by 2020 [9]. In China, power generation from RES is considered a key instrument to reduce the dependency on coal power, stop the deterioration of air quality, and reduce the growth rate of CO2 emissions [9]. The State Council also stipulated that long-distance, inter-regional and inter-provincial transmission of electricity shall be promoted in order to build a nationally integrated backbone grid. In addition, urban and rural distribution grids are planned to be expanded and renovated [2]. Investments in the grid infrastructure are projected to reduce power supply interruptions and to increase power quality. Considering the power consumption side, there are plans to significantly increase the efficiency of power use and to provide access to electric power even in very remote regions of China by 2015 [2], [10].

Barriers to the implementation of smart grids in China

Some aspects of Chinas technological and regulatory framework may present obstacles to an effective and efficient smart grid development:

Idea of the study

The aim of the present study is to analyze and discuss regulatory policies supporting the build-up of smart grids in China. The work is based on experiences gathered in Germany and other countries. In the context of the study, the term regulation is not restricted to purely regulatory issues. Rather, government policies such as the promotion of research and development (R&D) or standardization issues are also included.