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Pilot Programs
Currently China has an agreement with the US to deploy its first smart grid pilot project. Honeywell corporation was selected in 2011 to develop and implement the technology and expertise to improve energy use in commercial buildings. The project is part of a grant agreement between the State Grid Electric Power Research Institute (SGEPRI), a subsidiary of State Grid Corporation of China, and the US Trade and Development Agency. According to a Honeywell press release, "China's goals for a smarter electrical grid is to manage the growing electricity demand side and to enhance electrical infrastructure's reliability and efficiency by giving utility customers ways to better manage their electricity use and cost, increasing their energy efficiency and supporting the integration of renewable energy sources". A better connection between residential and industrial electricity customers and grid operators needs technologies to measure day-to-day energy use and to broadcast when the energy use spikes and outpaces the ability to generate power. Implementation of this pilot project will give State Grid Corporation of China exposure to the latest technologies and perspective on how to realize the benefits of the smart grid. China is the World's largest Transmission and Distribution market with capital expenditures on power lines growing at an annual rate of 15 to 20 percent until 2018. With this level of investment, US companies can test and commercialize technology in China at a faster and larger scale than in other parts of the World, including developed countries.

Upcoming Deployments
According to the Chinese authorities, a strong and robust smart grid market would total $20 billion annually by 2015. Rolling out Ultra-High Voltage (UHV) transmission systems would account for more than 60% of that market, while smart meters and wind power connectivity could reach $2 billion and $800 million annually respectively. According to State Grid Corporation of China, the period 2011-15 is going to be dedicated to the promotion of smart grid construction. 2011 has been devoted to pilot implementation, and in 2012 equipment market will raise.