The Chinese government’s net zero plan targets climate neutrality by 2060, emphasizing a shift in power generation from coal to variable renewable energy sources (VRES), reaching 29% in 2020. Integrating VRES necessitates a Smart Grid, managing energy flow bidirectionally and mitigating source variability. This study evaluates Smart Grid investment’s economic gains in China via a cost-benefit analysis. Forecasting from 2020 to 2050, the analysis predicts a 6.1:1 Benefit-to-Cost ratio, akin to EPRI findings. However, data limitations warrant acknowledgment.
This paper seeks to explore the potential financial merits of deploying Smart Grids in China amidst transitioning to sustainable energy sources.
Keywords Smart Grid, Cost-Benefit Analysis, Renewable Energy Resources, Automated Metering Infrastructure, Distribution Automation