The electric power industry has been one of the earliest and most deeply integrated sectors in the application of information technology. From planning and infrastructure to power generation, transmission, and distribution, IT plays a crucial role in every stage of the power system. The informatization of power companies involves both the automation of production processes and the implementation of efficient information management systems. The first step in achieving enterprise informatization is to automate the production process, allowing real-time data collection through computerized control systems on the production line—such as power plant control and substation monitoring. These systems are typically built alongside power plants and substations, with funds allocated directly from the construction budget.
As an industry focused on electricity production and operation, the power sector relies on various energy sources, including coal, oil, wind, water, and nuclear power, to generate high-quality secondary energy for widespread consumption. Since energy is essential to all human activities, the power industry functions as a fundamental sector, supplying critical energy resources that support the national economy and society.
Automating the production process significantly boosts efficiency, reduces errors, lowers labor costs, and improves product quality and output, ultimately enhancing economic performance. The next phase involves managing and informatizing the company’s operations. This usually occurs once the production automation system becomes stable and the management structure is well-established. Management informatization refers to an internal information system that collects data directly from online production systems and transmits it from grassroots units. It includes features such as office automation, business data processing, shared information access, email, and internet usage. Specialized software tailored for the power industry supports these operations.
Since the introduction of the first computer, power company informatization has evolved over nearly five decades. As the power sector continues to reform, the demand for advanced information systems has grown. The development of power informatization has gone through three major stages and is now transitioning into the fourth. In the early stage, the focus was on building foundational IT infrastructure, such as local area networks, widespread computer use, and initial software applications. During the intermediate stage, each department established its own information center, and the core network was completed, supported by specialized systems for dispatching and marketing. At this point, the basic needs of power companies were met.
With ongoing reforms, power companies now require faster and more comprehensive information to support decision-making and streamline information flow to drive innovation. Integration platforms have become increasingly important, pushing power informatization toward a more advanced stage. The adoption of emerging technologies like cloud computing, big data, and the Internet of Things has made intelligence a key trend, marking the shift from centralized platforms to intelligent systems. This transitional period emphasizes the use of new technologies to enhance system efficiency across the board.
In terms of investment, China's power informatization spending reached 18.797 billion yuan in 2009, up 15.51% from the previous year, with 27.7% allocated to information application systems. From 2010, projects like the State Grid Corporation’s "SG186" initiative drove significant demand for grid-side information systems, becoming a major driver of investment. In 2009, grid companies accounted for 57% of the investment, while power generation companies represented 43%. Both sectors showed strong demand, especially as thermal power companies benefited from falling coal prices, leading to increased IT investments. With the rise of big data and the Industrial Internet, both grid and generation sides continue to expand their informatization efforts, driven by smart grid projects and ERP systems. From 2011 to 2015, the "Strong Smart Grid" plan further accelerated investment growth, fueled by new applications and the need for modernization.
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