Marius Buchmann

Germany’s way from conventional power grids towards smart grids

The chapter gives an overview of the existing electric power system, the envisaged development of smart grids, and the regulatory environment in China. The main aspects emphasized in this chapter serve as a guideline for the description of the German background in Chap. 4 and the recommendations and regulatory pathways in ▶ Chaps. 5 and 6. Section 3.1 gives an overview of the more recent development of the power sector to lay a solid foundation for identifying the challenges currently facing the sector. Section 3.2 presents an overview of the physical structure of China’s current electric power system and discusses in detail the main technological challenges in this context. Section 3.3 introduces the Chinese smart grid vision resulting from the specific technological challenges. In this respect, the role of the government and the ICT industry in developing the Chinese smart grid vision is especially emphasized. Section 3.4 describes the regulatory framework of the electric power system in China on the basis of the regulatory areas defined in Sect. 2.3. A clear focus is thereby on regulatory circumstances representing a barrier to smart grid development in China.

Conceptual framework and background

The study’s conceptual framework is presented. This chapter illustrates the role of regulation and technological progress for the development of the electric power system and introduces the energy policy triangle covering the three main energy policy goals reliability, affordability, and sustainability. The concept of and the motivation for smart grids are introduced. Fundamental premises highlighting the role of the government and new market actors in the smart grid development process are presented.

Recommended approaches for smart grid development in China

- In the light of the experiences made in Germany and the ambitious government targets for China’s electric power system, seven recommendations to promote smart grid development in China have been developed in the present study. These recommendations are presented in detail in the present chapter.