| Energy, as fundamental resource of human survival and social development, is the basic material guarantee for economic and social development. It's not only economic resource, but also strategic resource and political resource. Since the 21st century, development mode of traditional energy has been facing the dual challenges of energy depletion and gas emissions from greenhouse, therefore, major and profound changes have taken place in development mode of global energy, and the new round of energy revolution has started. With economic development, social progress, enhancement of technology and information, increasingly prominent problems of global resource and environment, reasonable exploitation and utilization of energy as well as coordination and development of power system will face new problems and challenges. It's a common choice of actively meeting future challenges for power industry all over the world to improve power grid intellectualization to adapt to economic sustainable development in the future and construct Strong Smart Grid by using modern information, communication and control technologies.Based on our national condition and science & technology, industry base, around major demands of national economic and social development, during the twelfth Five-Year Plan, China make it clear to vigorously cultivate and develop such 7 emerging industries as energy conservation and environmental protection, new generation IT, biology, high-end equipment manufacture, new energy, new materials and the new energy vehicles, which points out development target and direction of Smart Grid.China has the reverse distribution of resources and demands. Energy resources are relatively scarce with an unbalanced structure. Supply capacity of energy and safety level of power both need to be improved. To construct Smart Grid is an urgent demand to develop and utilize clean energy and build scientific and rational energy system; is major choice to meet the demand of economic and social sustainable development; is even the historic mission that the times has given to China's power industry, which concerns economic and social development as well as national economy and people's livelihood. To vigorously boost construction of smart grid will involve many strategic emerging industries such as new energy, high-end equipment manufacture and new energy vehicles, etc. In the government's Report of the NPC and CPPCC of the year 2011, "boost the traditional energy's clean utilization, strengthen the construction of Smart Grid, vigorously develop clean energy" are definitely put forward. Vigorously develop clean energy is written again into the government's Report after the year 2010. In this year's government Report, general requirements for transformation and upgrade of energy industry are put forward—to strengthen modern energy industry and construction of integrated transport system. In outline for national development plan of the twelfth five-year plan, Smart Grid has been included among industries which are going to be the cultivated and developed preferentially, based on Outline, the twelfth five-year plan --National Energy Development Plan Compiled by National Energy Administration is expected to be open to the public recently, China's Smart Grid will meet major opportunities for development.Currently, with flourishing Smart Grid in the world, major countries all regard the study and construction of Smart Grid as an important opportunity to promote economic development, adjust energy structure and occupy commanding heights in relevant technical fields and industries. To Strengthen the building of Smart Grid is undoubtedly an important part of transformation and upgrading of the energy industry. China's national conditions, including economic structure, energy structure, the current status of power industry and so forth, have determined important function of Smart Grid development to economic structure, industrial structure adjustment, energy restructuring, transformation of economic development mode.Development of smart grid is of strategic significance to China's overall social development and construction of harmonious society. China's economic and social development is encountering a shortage of energy resources, climate change, environmental pollution and other challenges. It is very urgent to achieve our economic sustainable development by changing the mode of economic growth, economic restructuring as well as industrial and energy structural adjustment. Building Smart Grid can speed up the development and utilization of clean energy, improve energy efficiency, deal with global climate change and promote green low-carbon economy and its development. Meanwhile, that will play a leading and radiation role for the development of Smart Grid. To promote Smart Grid's development is an important measure to seize the new round of innovation of energy and IT, and cultivate strategic emerging industries. Smart Grid also provides a good opportunity for change of the way power industry develops.Smart Grid has a major role in promoting our economic and technological development, and its construction and development involve many aspects of the national economy. It is a complex system engineering, facing many challenges in China's economic development level, technical level of the power industry, investment and financing system, etc., which need to gather human and material resources of governments, research institutions, enterprises, the public, etc. to jointly push ahead its sound and rapid development. Among them, the government plays the most critical leading role.On one hand, because of many industries involved and high requirements for advanced technology, development of smart grid faces many challenges for China, considering China's development level of economy and technology, together with the status of the power industry,studying and summarizing key points and constraints in development of smart grid, selling up national unified strategic plans, with overall coordination, careful deployment and implement, meanwhile, government can be target-oriented to guide and coordinate to promote faster and better construction of smart grid.On the other hand, for the overall and strategic important issues in the construction and implementation of Smart Grid, the government needs to play its decisive leading role, through the investment and financing policies, fiscal and tax policies, pricing policy and incentive policy, to lead the market to build complete mechanism towards thriving and healthy development of Smart Grid in China.Therefore. It is necessary to make a through research on the government's responsibilities and functions in promoting the development of Smart Grid.Starting from the way to transform future Smart Grid, this article puts forward the development goals, missions and social attributes of Smart Grid, analyzes its economic attribute and explains government's main responsibilities and way to play a role as well as the principles to follow in the process of development of Smart Grid, summarizes important experience of development of Smart Grid all over the world, explains systematically the importance and significance to build a strong Smart Grid for the development of low-carbon economy in China, construction of ecological civilization, and realization of sustainable development.The article proposes that since its decisive role in the development of Smart Grid, government should be guided by scientific outlook of development to promote the transformation of economic development mode, including Smart Grid into national development strategy and major planning of national science and technology project, plan-oriented, based on scientific and technical innovation to play government's leading role and key role of Smart Grid enterprises, taking advantages of enterprises, schools and scientific research institutions to tackle problems in key technologies to actively promote the construction of Smart Grid. In strategy, focus on its coordination with new energy strategy and circular economy; in economy, build a scientific and sound income assessment system of smart grid and deepen the reform of pricing mechanism; in fiscal and tax policies, based on central government and local government's reasonable division of finance power. management power, enlarge the support of fiscal and tax policies to Smart Grid; in the financial system, expand direct financing channels to optimize indirect financing services, smart grid to solve problems of market failure.Main content and structure of this paper are as follows:(1) Based on the analysis of Smart Grid's technical features, economic features and social features, attributes of quasi-public goods are put forward. " competition mode between public and public" under Public Choice Theory is considered as a more reasonable way for smart grid development.(2) This paper analyzes necessity and urgency of the economic restructuring, studying the relationship between the industrial restructuring & adjustment of energy structure as well as sustainable development in China, still analyzing the promoting role of Smart Grid to China's economic restructuring.(3) From the viewpoint of power industry itself and the related upstream and downstream industries, the paper analyzes the promoting role of Smart Grid to China's economic restructuring.(4) From China's economic development level, equipment manufacturing in the power industry along with operation, construction, management and technical status of Smart Grid, etc., this paper summarizes the basis of the Smart Grid development; from the power industry, investment and financing system and technology development trends, analyzing challenges China will be faced with in the development of Smart Grid.(5) From motivation, strategic research & planning, promoting measures, developing methods, division of powers and duties of Smart Grid, this paper makes a comparative analysis of the United States, Europe, Japan, South Korea and China's Smart Grid development, summarizing the useful experience of Smart Grid development.(6) Lastly, this paper analyzes the important role of government in the development of Smart Grid, from incentive policy, the investment and financing system, tax policy, sound pricing mechanism, speeding up power industry reform, discussing the responsibility of the government in promoting the development of smart grid and giving some specific suggestions and measures.
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