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China Takes the Initiative as World Smart Grid Sales Climbed 30% in 2012

February 27, 2013

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World smart grid sales at installed prices climbed to $36.5 billion in 2012, a growth of 30% on 2011 as China took the lead, according to Memoori's latest report. However, the market is rather unbalanced because the share taken by AMI was around 40%; whilst its potential market value over the full 20 year program to deliver a complete smart grid, will be no more than 9%.

According to the report, M&A activity reached $19.5 billion in 2012, almost doubling the value of deals in the previous year. Both the growth and now scale of M&A activity show the supply side is gearing up to meet the requirements for new technology, and the forecast demand for pure smart grid products and systems will be worth approximately $2,000 billion over the next 20 years.

Total new VC investment in smart grid for 2012 was $779 million based on 41 transactions, which is a fall of 37% on 2011. So along with Clean Tech VC investment, smart grid suffered a general decline which Memoori expects to be reversed in 2013.

Solid progress in the smart grid industry has been made in the last three years but there is still much work to be done. According to the report, regulators and policy makers in the developed markets of the world are struggling to find the framework on which smart grid can be effectively built. In some cases they are losing sight of the most important reason for developing a smart grid: to build a system that will accept as much variable renewable energy (VRE) as is practical to meet the needs of a low carbon economy in the 21st century.


Source: Memoori Research


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