China's grid keeps pace with a transforming economy
The need to construct high voltage connections to so many new locations over the past decade means that much of China's grid infrastructure is modern and efficient by global standards. However, the government wants to see further efficiency improvements. The power sector is the single largest user of electricity produced in the country, taking around 14 percent of total electricity generated in 2009, according to China Electricity Council statistics cited by Macquarie Research. Such usage is divided between internal consumption at power plants and transmission losses across the grid.
In the Eleventh Five-Year Plan, the government set the target to reduce internal power consumption at power plants to 4.5 percent and to reduce transmission loss rate to under 7 percent, and to make further efficiency gains over the coming decade through the development of a "smart grid" system with networking to help better allocate supply to demand.
Such a project could be accompanied by major new investments in information technology as well as upgrades to ultra-high voltage transmission systems. It is also closely linked to aims of creating a carbon economy and State Grid Corporation of China has planned to building recharging stations for electric powered cars in 27 cities over the coming year. This development is seen as providing positive encouragement for more auto manufacturers to develop and market more electric and hybrid vehicles in China.1
Chinese Premier Wen Jiabao confirmed the importance of the smart grid when he mentioned it in his annual report to China's legislature in March 2010. Grid access is a critical factor determining the viability, or otherwise, of renewable facilities, particularly as many of these projects are located in more remote parts of the country. The NDRC has acknowledged that many wind farms have reported actual operational capacity factors below their designed capacity factors, because of limitations on grid accessibility.
The government therefore realises that administration and development of the grid can help support development of cleaner or more efficient energy sources. While China is making tremendous progress in the development of its electricity grid, there are signs that further initiatives and policies may be needed to enhance grid efficiency and provide the right conditions for the growth of renewables and other forms of clean energy.
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1. "More plug-instations coming soon," China Daily, 28 January 2010
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