I have said here before that we need to see two things before taking China's efforts to build a domestic solar market seriously: 1) A nation-wide, well-implemented feed-in tariff; 2) A serious effort to address transmission issues.
Last week there was another indication that China is addressing its lack of grids which can accomodate utility-level solar projects. On 29 March 2012, China's State Grid Corporation announced it will invest $473.1 billion in power grid construction over five years, about $100 billion of which will be directed toward smart grid technology.
This investment could make China the world's largest smart grid market, according to a company profile published by Zpryme Research and Consulting. The report says China is planning to install over 300 million smart meters by the end of 2015, from having only 36 million in 2011.
State Grid's sales have increased by an average of 12.6 percent a year from 2006 to 2011, with electricity sales growing from 1,710 terawatt-hours (TWh) to 3,093 TWh within the period.