1. Prepared by Dr. ML Chan, ML Consulting Group, USA (MLConsultingGrp@gmail.com)MLConsultingGrp@gmail.com & Mr. Yimin Wang, State Grid Corporation of China, China (wang-yimin@sgcc.com.cn)wang-yimin@sgcc.com.cn At DistribuTECH 2012 Conference, San Antonio, TX January 24, 2012

2.  May 2009, SGCC issued Strong Smart Grid policy  3 phases  Phase I (2009-2010): Develop standard guidelines & standards, and conduct pilot projects; develop foundational IT infrastructure  Phase II (2011-2015): synchronized with the 12 th 5- year Plan; implement Smart Grid across T, D & Customer sectors  Phase III (2016-2020): enhance and upgrade Smart Grid installations

3.  Early 2010, Strong Smart Grid was deemed to be the enabling infrastructure to launch China into the renewable resource future; part of the green economy, the economic engine to drive China’s future  About USD $60B (RMB ¥384B) over the 12-year period for Smart Grid investment; ARRA funds for DOE about USD $35B  China always adheres to her 5-year Plans historically

4.  Initial transmission grid focus; UHV 1000 kV and HVDC 800 kV lines to deliver power from west to east, the load centers; PMUs, FACTS and WAMS  Transmission first, then distribution, and then customer sectors  Developed the roadmaps for Smart Grid for different sectors; being followed by CSG (China South Grid)  Compiled the industry interoperability standards and has quickly moved to select standards; not necessarily global, but China-centric, and state of the art

5.  Conducted about 200 carefully designed pilot and demo Smart Grid projects throughout the country to help develop roadmaps and standards; Tianjin Eco-City & Shanghai World Expo  Smart substations and EV charging pilots  Far afield in WAMPACS and synchrophasor technology  Developed enterprise IT infrastructure standard (SG-ERP)

6.  58M AMR meters performing AMR functions  7 out of 23 DA demonstration Districts in major cities  Set up 7 Smart Communities, involving IHDs, to home fiber optics and customer portal system  Set up 3 national R&D centers – Smart Grid, wind power integration and solar power generation

7.  Distribution Management System guidelines and roadmaps recently completed; primarily distribution system focus implementation  Advanced System Dispatch –  hierarchical control centers (National, Regional, Province, City)  RT DSA with WAMS; Visualization and Online Security Analyses  Unified Data Model Management using CIM

8.  Transmission grid is “national asset”; considered herself as industry leader  Distribution Smart Grid will be focus in this 5- year plan, with integration to Enterprise IT Systems  Customer Smart Grid market will be a long term potential; a long way from a totally deregulated electricity market,  Will be the first to have an Integrated Interoperable Smart Grid Solution because of the ease of setting standards and market size

9.  Net Zero Energy Communities, using Smart Grid and micro-grid integration at rural areas crucial to China growth and stability

10.  China will attain her Strong Smart Grid policy goals by 2020  China will try to dominate in the Smart Grid market  Requires wisdom to navigate this China market to succeed in the global arena

11. Thanks! Questions?