China eyes nationwide deployment of smart grid technology

Around 86,000 premises in China have so far been connected using smart grid.

The project will eventually be deployed nationwide at a cost of around $2 billion.

The State Grid Corporation of China is running the smart-grid project using passive optical networking technology—a high-bandwidth data wiring that can be run inside electric power cables without interference.

Not only will the technology make the delivery of electricity more reliable and efficient, it might also serve as a way to deliver high-speed Internet, TV, and telephony throughout the country.

China’s nascent smart grid could help spur development of the underlying technology. “This is the largest utility company in the world, covering most of China, so it could potentially have a huge influence on the opportunities for equipment and component vendors,” says Julie Kunstler, author of a report, The Merger of China’s Smart Grid and PON—A Potential Perfect Storm, published recently by analyst firm Ovum. “The SGCC has a lot of money.”

The SGCC has 286 million customers and plans to achieve 100 percent smart-meter penetration by the end of 2015, according to Ovum.

Aside from local players like Huawei, ZTE and FiberHome, U.S. companies like Broadcom, Qualcomm Atheros, and Marvell that manufacture media access controller (MAC) chips for PON systems could benefit from the venture, according to Kunstler.

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