In 2011, the third batch of smart meters was launched by centralized bidding

On June 7, the State Grid Corporation of China initiated the third batch of smart metering centralized bidding, totaling 13.8787 million electric energy meters, of which 118.081 million were smart meters, which was equivalent to the previous two times. We forecast that 5 batches of smart meters will be tendered in 2011, and the cumulative tendering scale will be approximately 55-60 million.

From the results of the two previous tenders in 2011, the market concentration of smart meters has increased, but the competition is still fierce; the degree of market equilibrium has also been improved. We think this is a sign that market competition tends to be benign. After the announcement of the third batch of tender results, the trend will be further stabilized.

Under the "sub-average bid price" model, there is room for further increase in the prices of smart meters, especially for leading companies that will gain greater room for price increase; the industry gross margin will continue to improve. It is predicted that the bid prices for the third batch of smart meters in 2011 will continue to increase.

As the number of smart meter promotion bases is increased in 2010, the market in 2011 will grow explosively into a fast-growing stage; the strong position of the State Grid and China Southern Power Grid will also determine the price increase.

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