The Chinese government has committed $7.3 billion to create a more efficient Smart Grid. The investment, $200 million more than that being spend by the United States in 2010, makes China one of the global leaders in smart energy development. The key areas of development include distributed energy generation, renewable energies and improving transmission inefficiencies.

Despite all the money being spent, more may be needed to lay the smart grid infrastructure. In 2009 a Bloomberg report indicated China needed to invest $100 billion over the next decade in order to successfully deploy smart meters, demand response programs, and home energy management systems. Even though the United States is spending hundreds of millions less, experts point out that per capita America’s investment stands to prove more impactful and effective.

China’s smart grid initiatives have attracted international interested, including U.S. energy giants such as General Electric, Cisco Systems, Oracle, ABB and Accenture. IBM estimated its potential revenue from Chinese Smart Grid development at $100 million a year.

Japan and South Korea are also investing heavily into smart grid development making Asian an emerging leader in green energy. Conversely, Spain and German, which rank in fifth and sixth place in energy investment money, are focusing more on solar development.

Led by the U.S and Chinese deployments, ABI Research estimates that the number of smart meters in the world will jump from 76 million in 2009 to 212 million in 2014. This figure includes Europe’s “Energy Package” initiative which calls for the replacement of all traditional electric meters with smart replacements by 2022.

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