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A comparison of innovation policy in the smart grid industry across the pacific: China and the USA

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  • Lin, Chen-Chun
  • Yang, Chia-Han
  • Shyua, Joseph Z.

Abstract

Utilities are increasing their investment in smart grid technologies because of the rising demand for electricity, the aging transmission and distribution infrastructure in developed countries and the need for real-time visibility of energy supply and demand to optimize service reliability and cost. Government policies are contributing to this rising investment in the smart grid in many countries around the globe. Using Rothwell and Zegveld's innovation policy framework as a starting point, this paper compares innovation policy in smart grids across the Pacific; specifically, China and the USA. This research describes the policy tools used by both countries and presents results that indicate national preferences for innovation policy that differ in the ways in which they are linked with the state of the power system. China has preferred to use “supply-side policy,” which focuses on “public enterprise, scientific and technical development and legal regulation.” The USA has preferred to use “environmental-side policy,” which focuses on “scientific and technical development, financial, political and public enterprise.” This paper also describes in detail a number of innovation policies being pursued in the smart grid industry in both China and the USA.

Suggested Citation

  • Lin, Chen-Chun & Yang, Chia-Han & Shyua, Joseph Z., 2013. "A comparison of innovation policy in the smart grid industry across the pacific: China and the USA," Energy Policy, Elsevier, vol. 57(C), pages 119-132.
  • Handle: RePEc:eee:enepol:v:57:y:2013:i:c:p:119-132 DOI: 10.1016/j.enpol.2012.12.028
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    References listed on IDEAS

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    Cited by:

    1. Mah, Daphne Ngar-yin & Wu, Yun-Ying & Ip, Jasper Chi-man & Hills, Peter Ronald, 2013. "The role of the state in sustainable energy transitions: A case study of large smart grid demonstration projects in Japan," Energy Policy, Elsevier, vol. 63(C), pages 726-737.
    2. Lee, Amy H.I. & Chen, Hsing Hung & Chen, Jack, 2017. "Building smart grid to power the next century in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 126-135.
    3. Eid, Cherrelle & Codani, Paul & Perez, Yannick & Reneses, Javier & Hakvoort, Rudi, 2016. "Managing electric flexibility from Distributed Energy Resources: A review of incentives for market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 237-247.
    4. repec:gam:jsusta:v:9:y:2017:i:5:p:786-:d:98024 is not listed on IDEAS
    5. repec:gam:jsusta:v:9:y:2017:i:6:p:1001-:d:101037 is not listed on IDEAS
    6. Munish Manas, 2015. "Development of preferential regulations, transmission tariffs, and critical technological components for the promotion of smart grid globally," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(2), pages 107-130.
    7. Xiaoling Yuan & Jiangyang Zhang, 2014. "An Analysis of Development Mechanism of China’s Smart Grid," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 198-207.
    8. Coelho, Vitor N. & Weiss Cohen, Miri & Coelho, Igor M. & Liu, Nian & Guimarães, Frederico Gadelha, 2017. "Multi-agent systems applied for energy systems integration: State-of-the-art applications and trends in microgrids," Applied Energy, Elsevier, pages 820-832.
    9. Bo, Zeng & Shaojie, Ouyang & Jianhua, Zhang & Hui, Shi & Geng, Wu & Ming, Zeng, 2015. "An analysis of previous blackouts in the world: Lessons for China׳s power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1151-1163.
    10. Fadaeenejad, M. & Saberian, A.M. & Fadaee, Mohd. & Radzi, M.A.M. & Hizam, H. & AbKadir, M.Z.A., 2014. "The present and future of smart power grid in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 828-834.
    11. repec:eee:rensus:v:81:y:2018:i:p1:p:1329-1349 is not listed on IDEAS
    12. Chen, Hsing Hung & Chen, Silu & Lan, Yong, 2016. "Attaining a sustainable competitive advantage in the smart grid industry of China using suitable open innovation intermediaries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1083-1091.
    13. Chou, Jui-Sheng & Kim, Changwan & Ung, Thanh-Khiet & Yutami, I Gusti Ayu Novi & Lin, Guo-Tai & Son, Hyojoo, 2015. "Cross-country review of smart grid adoption in residential buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 192-213.

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