2021-1-6 13:35:09

Smart Grid Boosts Demand for New Meters

As China's smart grid construction progresses steadily, the intelligent construction of grid terminals is also accelerating. With smart meters as the main form of construction,it is planned to install 200 million smart meters during the 12th Five-Year Plan period, with an estimated total investment of around 200 billion yuan.

Smart meters are the primary devices connecting users to the transmission network, recording electricity usage for each household. Compared to traditional meters, they are more accurate in measuring electricity consumption and offer improved safety. With the steady advancement of China's smart grid construction, the demand for smart meters is expected to show significant growth before 2020.

Smart Grid Increases Demand for New Meters

As the user end of the smart grid, the main function of smart meters is to provide users with an interface to the grid, delivering safe and high-quality electricity to users' devices.

Currently, the State Grid Corporation's 2014 work conference mentioned that 2014 will see the efficient implementation of the smart grid plan, starting the construction of 50 new-generation smart substations, completing the intelligent transformation of 100 substations, and installing 60 million new smart meters. Additionally, efforts will be made to enhance rural grid transformation and replacement, solving the "low voltage" problem for 1.6 million rural households within the year, and accelerating power construction in non-electrified areas such as Sichuan and Tibet.

Moreover, the penetration rate of smart meters in China is currently less than 40%. According to the 12th Five-Year Plan, 200 million smart meters will be installed during this period, increasing the national penetration rate to over 90%, ultimately forming a comprehensive market for smart meters.

Outlook for the Smart Meter Landscape in 2014

From the 2012 State Grid bidding results for smart meters, the company with the most bids had a market share of only 6.06%, and the top five companies combined had less than 30% market share. This indicates that the domestic smart meter industry currently has low market concentration and intense competition.

In fact, starting from the second half of 2013, the market share of leading companies in the smart meter microcontroller market began to increase, breaking the existing market structure. At the same time, integrated circuit suppliers are gradually changing the competitive landscape to further consolidate their market positions. Following the reshuffle in the LED industry, the smart meter industry is also undergoing a new round of restructuring.