The nation will spell out clear strategies for developing smart grids in its 12th Five Year Plan (2011-15) for the energy industry, as part of its steps to foster use of more clean energy and combat climate change.

The 2011-15 plan will outline the detailed plans for setting up smart grids, said Ouyang Changyu, director of the industry development and planning department under China Electricity Council (CEC). Such projects will constitute an integral part of the nation's energy sector, he said.

The smart grid projects are expected to encompass all aspects of the power industry, including power storage, smart power meters, and electric vehicles, he said.

Detailed plan

The country's leading power grid operator, State Grid Corp of China, has already outlined its plans for smart grid development, a source with the company told China Daily on condition of anonymity.

State Grid started designing and planning such projects in 2009 and expects to complete the design work within this year itself, he said.

Prominent among these are project planning, and the technological and management standards, he said.

State Grid will begin large-scale construction of smart grid projects from 2011 to 2015. A comprehensive system of smart grids, operating with cutting-edge technology, is likely to be set up in the country by 2020, he said.

The smart grid projects are also in line with China's commitment to use more clean energy and combat climate change, said Hu Zhaoguang, deputy director of State Grid's energy research institute.

"Such projects fit well with the country's two main targets in the energy and environment field, which are to increase the proportion of non-fossil energy use to 15 percent of primary energy consumption in 2020, and to reduce carbon intensity by 40 to 45 percent in 2020 from the 2005 level."

China and the US have both charted ambitious plans to develop smart grids. The nation's plan, however, is different from the US one which focuses more on power distribution.

Power transmission

China's smart grid projects will pay equal attention to power transmission and distribution, said Hu.

The nation's power transmission network is not so advanced and efficient compared with its Western counterparts. Hence its smart grid program would also cover construction of power transmission lines, he said.

State Grid is also building several ultra-high-voltage power transmission lines nationwide, seen as part of the smart grid plan to better allocate energy resources, he said.

Ultra-high-voltage lines can send power more efficiently over longer distances compared with conventional lines. With such projects China can better use its rich coal resources in the north, and water resources in the southwest, executives with State Grid said.