Page 1© 2010 Quanta Technology LLCPage 1 November 2007 BGE January 4, 2008 China’s Strong Smart Grid – An Area China Will Excel Presented at Harvard China Review Conference April 17, 2010 ML Chan, PhD Executive Advisor, Quanta Technology, LLC, USA ( Executive Director of Smart Grid, JUCCCE, China (

Page 2© 2010 Quanta Technology LLCPage 2 Smart Grid is …. Overlay of Information Technology Infrastructure on Power Delivery Infrastructure to achieve: System efficiency Sustainability (green the grid) Optimal utilization Enhanced system reliability Covers G, T, D and customer sectors Not a set of shrink-wrapped solutions; unique to each utility

Page 3© 2010 Quanta Technology LLCPage 3 Smart Grid Business Drivers: New Business Environment SG CARBON FOOTRPINT RELIABILITY & QUALITY OF SUPPLY PRODUCTIVITY IMPROVEMENT Supply Reliability Power Quality Renewable Resources & EVs Greenhouse Gases Demand Response Aging Workforce Aging Infrastructure Operational Efficiency Condition-Based Maintenance

Page 4© 2010 Quanta Technology LLCPage 4 Drivers for China Smart Grid Efficiency Cost efficiency  Capacity credit (e.g., Peak demand management)  Operational efficiency (e.g., MDTs) Energy efficiency  End-users  System Carbon footprint reduction Integration of wind and solar PV farms from remote System reliability & integrity Asset condition monitoring

Page 5© 2010 Quanta Technology LLCPage 5 China also desires to … Bring renewable energy from wind and solar PV farms out in the west (Xinjiang and Inner Mongolia) to load centers; over 3000 km Bring hydro energy far from the south to load centers Bring thermal energy from afar to load centers Implement rural electrification; Net Zero Energy Community is a good solution

Page 6© 2010 Quanta Technology LLCPage 6 China Smart Grid enables … The integration of renewable resources, though utility scale The efficient and reliable delivery of thermal, nuclear and hydro energy Reliable and robust service The integration of customer loads – Distributed Energy Resources (DER) and Dispatchable DSM resources, though may take a long time before customers become true participants of the electricity market

Page 7© 2010 Quanta Technology LLCPage 7 International Conference on UHV Transmission Technology 2009 Building Strong and Smart Grid State Grid Corporation of China May, 2009

Page 8© 2010 Quanta Technology LLCPage 8 Strong Smart Grid Initiative Phase I ( ) – Planning Develop Smart Grid strategy and roadmap for deployment Develop interoperability standards and performance requirements Phase II ( ) – Deployment Deploy transmission system Smart Grid applications Deploy distribution system Smart Grid applications Deploy AMI systems Phase III ( ) – Upgrade & Enhancements Upgrade and enhance installations

Page 9© 2010 Quanta Technology LLCPage 9 Status of China Strong & Smart Grid Smart Grid strongly guided by the SGCC; planning, implementation, time schedule, demonstration sites Initial focus on transmission system and control center systems Will move down to distribution system and perhaps down to customer side; unlikely to go to Real-time Pricing Will be vertically controlled by SGCC, including the vendor market

Page 10© 2010 Quanta Technology LLCPage 10 Status of China Strong & Smart Grid (cont’d) Strictly adhere to SGCC schedule 3 phases 4 demo sites – Beijing, Hangzhou, Xiamen and Yinchuan （北京，杭州，厦门，银川） 10+ demo city sites for about 2,000,000 AMI meters Purchasing vendor companies (e.g., disconnect switches, transformer monitoring systems) Building a reliable and robust transmission backbone infrastructure – UHV DC, Sychrophasors, etc.

Page 11© 2010 Quanta Technology LLCPage 11 Conclusions Smart Grid enables the integration of supply resources and demand side resources Implementation schedule focuses on supply resources and grid operations first, then eventually demand-side resources

Page 12© 2010 Quanta Technology LLCPage 12 Thank you! Discussions!