Policies are good for IoT-related industries and smart grids benefit

Miao Wei, Minister of Industry and Information Technology, said recently that accelerating the R & D and application of the Internet of Things is of great significance to enhancing China's independent innovation capability and improving the contribution rate of science and technology to economic development.

In the national "Twelfth Five-Year Plan" outline, key technology R & D and industrial demonstration applications are listed as key support objects, and the development of the Internet of Things has been highly valued by the state. Smart grid is an important application field of IoT technology, and applying IoT technology to smart grid has natural advantages. With the progress of Internet of Things technology, the development of smart grid will also benefit from it, and therefore bring more investment opportunities to smart grid related industries.

The Internet of Things becomes a key policy support area

The national “Twelfth Five-Year Plan” outlines that it is necessary to promote the leap-forward development of key areas and vigorously develop strategic emerging industries such as energy conservation and environmental protection, next-generation information technology, new energy, and new materials. The Internet of Things is a highly integrated and comprehensive application of a new generation of information technology, which has been promoted to a national development strategy by the State Council as a strategic emerging industry.

In April this year, the Ministry of Finance, the Ministry of Industry and Information Technology jointly issued the “Interim Measures for the Management of Special Funds for the Development of the Internet of Things”. The person in charge of the Enterprise Department of the Ministry of Finance stated that in order to further accelerate the development of the Internet of Things, the Ministry of Finance reported to the State Council for approval and decided to set up a special fund for the development of the Internet of Things from the central finance since 2011. The establishment of a special fund for the development of the Internet of Things aims to fully support the development of the Internet of Things in China. In order to give full play to the guidance and support role of financial funds, the IoT Development Special Funding Policy clearly identifies five aspects of the IoT technology research and development and industrialization, standard research and formulation, application demonstration and promotion, and public service platforms as support range.

It is understood that the scale of IoT special funds totals 5 billion yuan, which runs through the “12th Five-Year Plan” period and is expected to be released within 5 years. Among them, a special fund of 500 million yuan for the development of the Internet of Things in 2011 has recently been issued, and nearly one hundred Internet of Things companies have received support. Analysts said that this means that the development of the Internet of Things has entered a substantial investment stage.

According to the person in charge of the Enterprise Department of the Ministry of Finance, during the "Twelfth Five-Year Plan" period, the central government will further improve the financial policy system supporting the development of the Internet of Things according to China's Internet of Things development plan and its industrial development status, and strengthen coordination with industrial and scientific policies Cooperate, give full play to the guidance and incentive role of fiscal policy, actively attract social capital to increase investment in the Internet of Things, and create a good institutional environment and policy mechanism for the development of China's Internet of Things. At the same time, we should actively encourage and support qualified localities to establish local fiscal policies to support the development of the Internet of Things.

Ren Haoning, an energy industry researcher at CIC Consulting, said that the future development of the Internet of Things depends on policy support, financial support and industrial applications. From a macro-policy perspective, it is expected that the upcoming "Twelfth Five-Year Plan" for the development of the information technology industry will attach great importance to the development of the Internet of Things industry. The promulgation of a series of guiding documents highlights the determination of the government to vigorously develop the Internet of Things industry and lay a strong policy support for its subsequent development. The support of the central government in fiscal policy will effectively promote the improvement of the domestic IoT research and development level and the widespread application of IoT technologies.

The "Internet of Things White Paper (2011)" released by the Telecommunication Research Institute of the Ministry of Industry and Information Technology in May this year predicts that by the end of the "Twelfth Five-Year Plan" period, China's Internet of Things related industries will exceed 500 billion yuan in the later period of the "Thirteenth Five-Year Plan" It may reach a trillion scale.

Smart grid will benefit from the development of the Internet of Things

Industry insiders predict that in the context of the Internet of Things becoming a key support area for central and local governments, the future development of smart grids will also benefit from it.

Miao Wei said that in view of the stage of development of China's Internet of Things and the existing foundation, it is necessary to strengthen industrial cooperation and develop applications in key areas. Among them, in the field of industry and transportation, we must vigorously build and develop smart grids, smart transportation, smart logistics and smart industries, and accelerate the penetration and integration of the Internet of Things in related industries and fields.

Driven by the central policy, local governments have also issued plans related to the development of the Internet of Things, clarifying the development goals and key application areas of the Internet of Things in the next 3-5 years. Regions including Shanghai, Jiangsu, Guangzhou and other regions with relatively rapid development of the Internet of Things have included smart grids as key development areas. Among them, Jiangsu and Shanghai issued the "Outline of Special Planning for the Development of Smart Grid Industry in Jiangsu Province (2009-2012)", " Shanghai Action Plan for Promoting the Development of the Smart Grid Industry (2010-2012) "has made planning guidelines for the development of the local smart grid.

According to Zhao Yiting, an analyst at Zero2IPO Research Center, according to industry knowledge, smart grids have three major characteristics of informationization, automation, and interaction, and the Internet of Things is an important promoter of these three characteristics. The application of the Internet of Things technology will play an important role in improving the ability of the smart grid to collect information, intelligently process information, and bidirectional information exchange in the five major links of power generation, transmission, substation, power distribution and power consumption, and can better enhance the existing transmission Capacity and utilization of power equipment at all levels, improve the safety and reliability of the power grid and the quality and efficiency of users' electricity, and provide users with more intelligent and personalized services, which will have a positive impact on the construction of smart grids.

Ren Haoning said that the application of the Internet of Things in smart grid, intelligent transportation and other industries is pushing the Internet of Things technology from theory to practice. In the future, the total investment of the State Grid Corporation of China and China Southern Grid Corporation in smart grids is expected to be no less than 200 billion yuan. This will promote the development of animal networking technologies while promoting smart grid construction.

Smart grid prospects attract capital attention

National policy support for the development of the Internet of Things and the development prospects of smart grids have also attracted the attention of venture capital companies related to smart grids. Data from Zero2IPO Research Center shows that from 2010 to the first quarter of 2011, six smart grid-related companies received a total of more than US $ 20 million in venture capital.

It is reported that according to the State Grid ’s investment plan, direct investment in smart grids will reach 4 trillion yuan by 2020, which will be implemented in three stages: the first stage has been completed, mainly for research and pilot; In the second stage, the smart grid construction will be implemented on a large scale; 2016-2020 is the third stage, and the smart grid will be improved and improved overall. Zero2IPO Research Center predicts that this direct investment will greatly drive the entry of other capital. Future investment in smart grids will exceed 10 trillion yuan.


Ren Haoning said that the Internet of Things technology as a basic technology has penetrated into various fields of the smart grid. At present, the development of the Internet of Things industry will bring investment opportunities to smart grid-related industries in the fields of communication chips, sensors, and system integration. Among them, the sensor, which is one of the basic components of the smart grid, currently has a market size of about 44 billion yuan.

And Yiting Zhao predicted that from the perspective of smart grid and informatization construction, the next phase of investment will mainly focus on electricity, substation and power distribution. Judging from the recent private equity investment and the introduction of relevant public companies' initial public offerings, the capital market has favored market segments such as smart meters, carrier communications, and grid automation.

However, Miao Wei pointed out that at present, the core technologies of most fields of the Internet of Things in China are still developing. Most of the core architecture of the Internet of Things to all levels of technology and product interfaces have not yet been standardized. Long-term and gradual process.

According to Ren Haoning's analysis, as far as the current state of the domestic Internet of Things technology is concerned, it may restrict the development of smart grids in the following aspects: First, the gap between the domestic core Internet of Things technology and foreign countries is still large, especially when a large number of high-end sensors need to be imported Increase the construction cost of the smart grid; secondly, the smart grid involves standards such as interfaces, specifications, and agreements. If the IoT standards cannot be unified, it will inevitably restrict the expansion of the construction scale of the smart grid; third, when developing IoT technologies in China Attention is often paid to the collection and transmission of information, while neglecting the analysis and decision-making of information. If the Internet of Things technology cannot make breakthroughs in information analysis and decision-making, it will affect the degree of intelligence of the power grid.

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