Quick Take: The release of China's latest 5-year plan reinforces what we have long suspected:

1. China truly understands that a smart grid is fundamental to future prosperity
2. China is guided by a thoughtful and cogent overall plan
3. It is much easier to make progress when you don't have a messy democracy to deal with - By Jesse Berst

The 12th Five-Year Plan in Smart Grid Major Science and Technology Industrialization Projects indicates that construction will accelerate even more than it has in the past.

According to a report from SGT Insights, the scope of China's smart grid plan includes large-scale renewable energy and connection technology, the joint operation of large-scale energy storage technology, large-scale grid interconnection, long distance transmission control technology, distribution automation, microgrids, smart meters and demand response technology.

The plan also identifies the six major industries to take part in the accelerated smart grid effort:

·         Clean energy generation manufacturing, such as wind and solar power generation

·         New materials industry, including photoelectric conversion materials, energy storage materials, superconducting materials and nano-materials

·         Infrastructure manufacturing, including new electrical and electronic devices, transformers and more

·         Information and communication, including instrumentation, sensors, software and more

·         Alternative energy automotive industry

·         Home appliances and consumer electronics

Dr. Honghang Song from MOST's high-tech department, commented "Smart grid is not only a key to develop large-scale intermittent renewables but also (has) an important supporting role for developing new energy strategy in emerging industry."

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Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.

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