【正文】 tems and users and among the dispatching centers at various levels.3）Importance will be attached to the harmonized development between smart grid planning and planning of the backbone networks of bulk systems, and the mergence of the planning for various electricity sources.4）Smart grid’s fusion with information construction and its leading function will be highlighted.5）Mutual connection, unification and harmonization are stressed in managerial sectors such as planning, designing, construction and operation, and in production sectors such as electricity generation, Tamp。D and consumptions as well.6）Emphasis will be laid on lifecycle asset management, the coordinated planning of electricity sources and grids, and the standardization and normalization for the construction of electricity sources and grids as well.2 Necessities and basic conditions of China’s smart grids The option of smart grids is determined by China’s basic conditions and the interior driving forcesDue to the fact that China’s energy resources are located far from load centers, the energy has to be transferred across long distances, in large capacity and with lower losses. Hopefully, the emergence of UHV transmission will provide opportunities to optimally allocate resources in a wide range and enable electricity delivery from large energy bases. But, the upgrading of voltage level is only the exterior appearance for grid development. Its interior driving forces include the flexibility of control, the high efficiency of management and the interactivity with consumers, which contribute to the formation of smart grids.Firstly, in the process of building smart grids the employment of advanced technologies and equipment will contribute to forming a substantial platform for the stable and secure operation of grids and enhancing the strength of grids’ primary systems.Secondly, in the process of building smart grids, the optimal operation of the system, the optimization of resources and lifecycle asset management can be materialized via utilization of advanced philosophy, enhancing professional qualities of the staff, integrating the internal resources of the enterprises and excavating the internal potentials of the enterprises.Thirdly, the interactive actions between utilities and consumers and the effective DSM approaches can contribute positively to shifting peak loads to filling valley loads, lowering system reserves and reducing operation costs, lifting the load ability of the grids and improving the utilization of grid investment. Bases of constructing China’s smart gridsSome work in the fields of smart grids has been conducted in China. More specifically, the work can be categorized into three groups, namely, power generation, Tamp。D and consumptions. The power generation group includes distributed generation, renewable energy generation, and energysaving oriented dispatch technology and autogeneration control. The Tamp。D group consists of UHV AC and UHV DC transmission, FACTS, digital substation technology, PMUbased WAMS, DMS, stateoriented maintenance and lifecycle asset management and so on. The power consumptions group contains custom power, autometering and autotranscription and so on. Besides, most electricity panies are making themselves more digital and informationwise, which establishes a foundation for smart grid construction.Objectively, the base of China’s smart grid is being formed, which can be proved by the following:1）The strong grids with UHV grids as their backbones and the coordinated development of the grids at different levels are still under construction. The widearea allocating capability of the grids needs further improvement.2）The nationwide unified electricity market is in its primary stage and the transaction mechanism and pricing policies are far from mature. Therefore, the basic conditions for clean energy sources, and distributed generation to participate market petition haven’t been made. The efficiency and benefits of electricity market haven’t been fully revealed.3）Electricity users haven’t enjoyed the benefits arising from the interaction with the grids as yet. What they can receive is the oneway passive services. The meters can only be read automatically. A lot of work needs to be done to guide electricity users’ consuming habits and their consuming demands.4）The relevant policies or laws related to smart grids haven’t been made or issued by the government. The government is supposed to be a leading role in constructing smart grids with great support because the work is a systematic project covering all walks of life and needs an overall arrangement in planning and development. Especially, policies encouraging users to join the effort of saving energy and mitigating greenhouse gases emission should be promulgated.3 Constructing the smart grids with Chinese characteristics The significance of constructing the smart grids with Chinese characteristicsAs is shown in the former chapter, China’s smart grids are different with those in the US and Europe in terms of backgrounds, goals and main characteristics. It is the chosen road for China to construct the smart grids with Chinese characteristics that are suitable for the developing level of China’s electricity industry, technology and economy. The Chinese characteristics are displayed in two aspects : Aspect One: China’s grids are still rapidly developing. In order to make the country more wealthy, its economy will expand rapidly for a long period of time in the future and so will its electricity demands. According to predictions, by the year 2010, the total installed capacity of electricity generation and the electricity consumption are expected to reach 900 GW and 4000 TWh. By the year 2020, these figures will be 1600 GW and 7700 TWh, which are twofold of those of the year Two: China’s grids must take the road of constructing strong grids with UHV grids as their backbones and the coordi