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China Power Utility. China Smart Grids Rollout Plan Has Been Announced in May 2009 Industry activities is just triggered, it is just in the right time to start now. Smart Grids activities in China before 2009 *SGCC Eastern Region launched the Smart Grids Research Projects in 2007
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China Smart Grids Rollout Plan Has Been Announced in May 2009Industry activities is just triggered, it is just in the right time to start now Smart Grids activities in China before 2009 *SGCC Eastern Region launched the Smart Grids Research Projects in 2007 US advocates are also promoting Smart Grids ideas in China SGCC announced its Smart Grids Plan at the end of May 2009 Detailed Smart Grid Investment Plan is still under discussion and will be released later this year Got high level government attention: according to the latest information, “Smart Grids” would be one of the five biggest national construction projects in the coming “China 12th Five Year Plan” which will be implemented from 2011 China Electronic Power Research Institute leads the specification making of Smart Grids and intended to invite vendors to join in their study (ASB and HW has received their invitation) 2009 - 2010 2011 - 2015 2016 - 2020 Plan and Trial Optimization Start to build • Focus on the *UHV transmission and upgrade distribution • Offer control and interactive service in the grids with key technology and equipments launched • System optimization to meet international standard from technology and equipment point of view • Planning and technical specification making • Trail of key technology and products Smart Grids Plan of SGCC by 2020 * SGCC: State Grid Corp. of China, *UHV: Ultra High Voltage 2
Evaluation of China Utility MarketGreat potential in coming Power Utility Industry especially after Smart Grids opportunity in China • The ratio of Comms part will increase smoothly and reach 10% in 2014 with the size of 56Bn RMB. • 40% of traditional Comms part and 10% of new requirements part investment could be adjacent to ASB’s solutions and the size will reach 10.6Bn in 2014 * 2007/2008 industry investment data source is from SERC (State Electricity Regulatory Commission). 2009 – 2014 data are from internal estimation. * Key assumptions: Communication portion will increase from 3% now to 10% in 2014 and it reaches 15% finally in Smart Grids; ASB Adjacent Market is considered 40% of total communication part in general; ASB market share is based on our estimation in the current growth track without dramatic change. 3