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Power distribution systems are responsible for over 95% of power outages experienced by end-users. This highlights the critical need to enhance the operational efficiency of the distribution network and develop intelligent distribution systems, which have become key priorities in the future of the power industry. The State Grid Corporation has set specific targets for the 12th Five-Year Plan period, including a power supply reliability of 99.93% for urban areas, a comprehensive voltage pass rate of 99.30%, and a line loss rate reduced to 6%. In rural areas, the line loss rate should remain below 6.2%, with a power supply reliability exceeding 99.72% and a voltage pass rate above 97.80%. These goals also include reducing the average outage time for users in key urban areas to within 5 minutes and limiting it to 50 minutes in the broader urban area. These targets clearly demonstrate the importance the State Grid places on power supply reliability.
To meet these requirements, increasing the automation level of the distribution network and accelerating the construction of smart distribution networks are essential. The development of distribution technologies marks the beginning of significant investment, and understanding current trends helps identify where to focus efforts. The main objectives of a smart distribution network are to reduce losses, ensure power quality, and improve reliability. Since power quality and energy loss are closely linked—losses often lead to voltage degradation—the real goal is to enhance both power quality and supply reliability.
Energy efficiency and intelligence are ongoing challenges in the power grid. While grid companies prioritize reliability, energy-saving measures are more user-focused. However, many energy-saving initiatives depend on improved power quality, so it’s important to address both aspects. Smart terminals like FTUs, TTUs, and DTUs are expected to see substantial growth, reaching RMB 1.6 billion in 2013, rising to 2.2 billion in 2014, and hitting 3 billion in 2015. Similarly, the distribution network management system is projected to grow from 1.2 billion in 2013 to 1.5 billion in 2014, and reach 2 billion by 2015. Additional equipment such as RMUs, outdoor column vacuum switches, and smart transformers are expected to total 27.2 billion in 2013, 30.3 billion in 2014, and 33 billion in 2015.
Overall, the distribution automation market is expected to grow significantly, reaching 30 billion yuan in 2013, 34 billion in 2014, and 38 billion in 2015. Online monitoring systems play a crucial role in maintaining grid stability. These systems cover transmission lines, substation equipment, distribution equipment, lightning protection, and power generation. Although we focus on distribution network monitoring, it overlaps with other systems, such as substation and lightning protection monitoring. For example, a large city's 110kV substation falls under this category, and distribution equipment also requires lightning protection monitoring.
Online monitoring of distribution equipment includes systems for monitoring cables, switches, switchgear, transformers, and overall power quality. Typical applications involve video surveillance and temperature monitoring in distribution rooms, humidity and water level control in ring network cabinets, power quality monitoring, and online monitoring of transformers and switches in major cities. The market for distribution network monitoring is currently around 1 billion yuan and is expected to grow at an annual rate of about 10%.