Hottest China plans to seek a foothold in smart gr

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China plans to upgrade transmission and distribution power plants for smart electricity, which has laid a solid foundation for China's modernization drive. China plans to upgrade electricity, which has aroused fierce competition among Ge, Siemens and other foreign companies. These companies are seeking to gain a foothold in this market that is about to become one of the world's largest advanced transmission and distribution systems

according to ge estimates, China will spend US $60billion in the next 10 years to upgrade its backward power infrastructure, and adopt digital technology and other advanced equipment to create smart electricity in order to avoid the loosening of parts and components in the process of material experiments, so as to carry out transmission and distribution more effectively and flexibly. Other companies estimate that the 10-year electricity project will cost as much as $100billion. This amount is in comparison with the estimated cost of similar electricity renewals in the United States

In March, Chinese Premier Wen Jiabao listed smart power construction as a national priority for the first time in his closely watched annual government report to the National People's Congress. Chinese officials say power upgrades will be completed by 2020

the company behind the project is mainly China State Grid Corporation. Last year, the annual revenue of National Electric Corporation was 185billion dollars. Except for five of the 31 provinces and cities in China, the power distribution business in all other provinces and cities is controlled by the company. The company said it would launch a national power upgrading project by 2011

Yangzhou, with a population of 4million, is self branding itself as an intelligent power development center. On a Monday last month, several foreign power company executives flew to Yangzhou to participate in the opening ceremony of the smart power demonstration plant

on the same day, German giant Siemens and Korean leading enterprise lexing power signed an agreement on matters related to smart power with Yangzhou municipal government

GE has signed an agreement with Yangzhou Beichen Electrical Equipment Co., Ltd., a provincial unit subordinate to state grid, to build a joint venture plant to produce intelligent electrical equipment. Ge believes that the agreement will make it one step ahead in the Chinese market. Gilligan, vice president of the power transmission and Distribution Department of GE Energy Group, said that if we can establish a solid cooperative relationship with Guodian, it will make a substantial difference, which will make GE widely recognized

analysts pointed out that the budget funds for smart power upgrading in China are only a small part of the $60billion to $80billion spent annually on all transmission and distribution facilities in China. However, if foreign companies want to win the contracts for basic power equipment such as transformers in China, they face fierce competition because their Chinese competitors have lower product costs

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