between the grid, big data, cloud computing, the
Internet of things, mobile Internet and Internet
+ (the Energy Internet) offers huge opportunities
to enrich power services. By innovating new
services and creating win-win business ecosystems, power utilities can smooth load volatility
and reduce grid investment. According to Power
Perspectives 2030,
47 demand response will
account for 10% of daily load in the EU by 2030,
reducing demand for grid and backup capacity by
10% and 35% respectively, thereby saving EUR
7 billion and EUR 25 billion. The International
Energy Agency
48 forecasts that more than 20
million battery electric vehicles and hybrid EVs
will be sold worldwide by 2030. The Japanese
government, through its Japan Revitalisation
Strategy, plans to increase the proportion of new
energy vehicles in Japan to 50–70% by 2030. EV
upstream and downstream industry chains in
China see continuous growth and breakthroughs
in battery manufacturing and battery charging
and swapping in the coming years. EVs will be
faster and easier to charge. High-density and
low-cost energy storage technologies will be
innovated, driving commercial operation of
large-capacity distributed energy storage systems
and contributing to peak shaving and grid
efficiency.
Fifth, the smart grid can conserve energy and
make energy use more efficient, delivering significant economic and environmental benefits.
According to the All-of-the-Above Energy
Strategy as a Path to Sustainable Economic
Growth,
49 if the USA achieves its energy efficiency improvement target of more than 70% it
will reduce CO 2 emissions by 3 billion tonnes in
2013–30 and save hundreds of billions of dollars
in investment. Research by the EU
50 shows that
energy efficiency improvements will reduce its
load demand by 14% by 2030. This will lower
demand for grid and backup capacity by 55%
and 31% respectively, saving about EUR 299
billion in investment. China needs to improve
energy use efficiency. Energy efficiency technologies will become more integrated and intelligent. Industry, buildings and transport will be
priority fields for innovation. Integrated energy
use technologies, including cascading, will
evolve in the future. Energy monitoring and
measurement will be more accurate, substantially
improving energy system use efficiency.
6.1.4 Problems and Suggestions
(1) Problems
First, creating the smart grid is a huge,
wide-ranging project. It involves social, economic, policy, regulation and science and technology aspects, as well as numerous stakeholders
—government, power system users, equipment
and service suppliers, financial institutions,
research institutions and consultancies. The
interests and requirements of these stakeholders
vary greatly. Existing management, pricing,
investment and financing mechanisms need to be
improved, and the various stakeholder interests
taken into consideration and balanced.
Second, breakthroughs need to be made in
core technologies. China has mastered and
locally manufactured some key smart grid technologies and equipment, but it still relies on
imports, especially in the fields of direct current,
power electronics and renewable energy. There is
much room for performance improvement and
cost reductions in key technologies and equipment. Moreover, industry and national standards
for the smart grid have yet to be developed,
putting China behind in terms of international
smart grid standards.
Third, business models need to be improved.
Successful business models can move smart grid
development forward and demonstrate the benefits. Many new and value-added businesses are
starting up in intelligent EV charging, coordinated operation of renewable power and energy
47
European Climate Foundation, Power Perspectives
2030: On the Road to a Decarbonized Power Sector,
2015, p. 11.
48
IEA, Technology Roadmaps: Smart grids, 2011, p. 12.
49
Executive Office of the President of the United Stated,
The All-of-the-Above Energy Strategy as a Path to
Sustainable Economic Growth, 2014, p. 8.
50
European Climate Foundation, Power Perspectives
2030—On the Road to a Decarbonized Power Sector,
2015, p. 53.
338
S. Zifeng and N. Dickens
Internet of things, mobile Internet and Internet
+ (the Energy Internet) offers huge opportunities
to enrich power services. By innovating new
services and creating win-win business ecosystems, power utilities can smooth load volatility
and reduce grid investment. According to Power
Perspectives 2030,
47 demand response will
account for 10% of daily load in the EU by 2030,
reducing demand for grid and backup capacity by
10% and 35% respectively, thereby saving EUR
7 billion and EUR 25 billion. The International
Energy Agency
48 forecasts that more than 20
million battery electric vehicles and hybrid EVs
will be sold worldwide by 2030. The Japanese
government, through its Japan Revitalisation
Strategy, plans to increase the proportion of new
energy vehicles in Japan to 50–70% by 2030. EV
upstream and downstream industry chains in
China see continuous growth and breakthroughs
in battery manufacturing and battery charging
and swapping in the coming years. EVs will be
faster and easier to charge. High-density and
low-cost energy storage technologies will be
innovated, driving commercial operation of
large-capacity distributed energy storage systems
and contributing to peak shaving and grid
efficiency.
Fifth, the smart grid can conserve energy and
make energy use more efficient, delivering significant economic and environmental benefits.
According to the All-of-the-Above Energy
Strategy as a Path to Sustainable Economic
Growth,
49 if the USA achieves its energy efficiency improvement target of more than 70% it
will reduce CO 2 emissions by 3 billion tonnes in
2013–30 and save hundreds of billions of dollars
in investment. Research by the EU
50 shows that
energy efficiency improvements will reduce its
load demand by 14% by 2030. This will lower
demand for grid and backup capacity by 55%
and 31% respectively, saving about EUR 299
billion in investment. China needs to improve
energy use efficiency. Energy efficiency technologies will become more integrated and intelligent. Industry, buildings and transport will be
priority fields for innovation. Integrated energy
use technologies, including cascading, will
evolve in the future. Energy monitoring and
measurement will be more accurate, substantially
improving energy system use efficiency.
6.1.4 Problems and Suggestions
(1) Problems
First, creating the smart grid is a huge,
wide-ranging project. It involves social, economic, policy, regulation and science and technology aspects, as well as numerous stakeholders
—government, power system users, equipment
and service suppliers, financial institutions,
research institutions and consultancies. The
interests and requirements of these stakeholders
vary greatly. Existing management, pricing,
investment and financing mechanisms need to be
improved, and the various stakeholder interests
taken into consideration and balanced.
Second, breakthroughs need to be made in
core technologies. China has mastered and
locally manufactured some key smart grid technologies and equipment, but it still relies on
imports, especially in the fields of direct current,
power electronics and renewable energy. There is
much room for performance improvement and
cost reductions in key technologies and equipment. Moreover, industry and national standards
for the smart grid have yet to be developed,
putting China behind in terms of international
smart grid standards.
Third, business models need to be improved.
Successful business models can move smart grid
development forward and demonstrate the benefits. Many new and value-added businesses are
starting up in intelligent EV charging, coordinated operation of renewable power and energy
47
European Climate Foundation, Power Perspectives
2030: On the Road to a Decarbonized Power Sector,
2015, p. 11.
48
IEA, Technology Roadmaps: Smart grids, 2011, p. 12.
49
Executive Office of the President of the United Stated,
The All-of-the-Above Energy Strategy as a Path to
Sustainable Economic Growth, 2014, p. 8.
50
European Climate Foundation, Power Perspectives
2030—On the Road to a Decarbonized Power Sector,
2015, p. 53.
338
S. Zifeng and N. Dickens