China’s smart grid revenue to hit $127bn by 2020

Smart grid development in China will generate $127bn in cumulative revenue from now to 2020, according to a new report.

The Chinese government’s current energy strategy calls for “strengthening the construction of the smart grid” and this is resulting in considerable investment and development in the country’s power infrastructure.

According to new figures from analysts at US firm Navigant Research, smart grid development in China will generate $127bn in cumulative revenue from 2012 to 2020.

“The area of strongest smart grid growth in China will be transmission upgrades, anticipated to reach more than $72 billion in revenue by 2020 on a cumulative basis,” said Bob Lockhart, senior research analyst at Navigant. 

One primary objective of smart grid planners in China, according to the report, is to help address the country’s imbalanced energy supply.  Coal remains the primary source of power generation, and 76 per cent of China’s coal resources are located in Shanxi, Inner Mongolia, Shaanxi, Xinjiang, and other northern and western regions. However, the country’s energy consumption needs are mainly concentrated in the more industrialised economies in the eastern and southern regions.

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