Distribution network automation smart grid investment top priority: Distribution network as the last link of the transmission and distribution system, its degree of automation and supply and use of electricity is closely related to the quality and reliability. Distribution automation is one of the important foundations of smart grids . From the investment constitution, we expect that the smart grid investment will constitute about 40% of the distribution automation, which is the top priority for smart grid investment. China's distribution network automation is in its infancy: Distribution network automation is in its infancy in China, and the domestic city distribution network feeder automation rate is less than 10% . At present, the proportion of foreign distribution network automation has reached 60%-70% , and the domestic market is still just starting pilot projects. The market is vast. The scale of the pilot program has been further expanded: At present, the State Grid has started pilot projects in four cities. The first batch of State Grid Corporation pilot cities for smart distribution networks include Beijing, Hangzhou, Xiamen and Yinchuan. The first batch of tenders has not yet begun; the second batch is expected; State Grid will conduct pilot projects in provincial capital cities and cities in separate cities. It is estimated that about 50 cities will conduct pilot projects. After the pilot trials in Guangdong and Shenzhen, China Southern Power Grid will further expand the scope of pilot projects and it is expected that pilot projects will be conducted in cities such as Guiyang, Nanning, Haikou and Kunming in 2010 . From the current perspective, the distribution network automation construction has entered a peak period from 2010 to 2011. It is estimated that nearly 10 cities will enter the pilot, and the entire market capacity will be around 10-20 billion. In the long run, once successful pilots of large cities are bound to be promoted to second- and third-tier cities, and they may further penetrate into the county level in the future. The market is vast: according to the average investment in each city master 50 million, acquisition terminal covering 20,000 each 20,000 yuan collection terminal is estimated that each urban distribution network automation in a total investment of between 450 million conservatively in accordance with the annual 10 The transformation of the cities is expected to have an annual average market capacity of around 4.5 billion yuan. In the initial stage of grid advancement, the investment rate is expected to be faster. It is expected that the next five years will be the peak period of investment in distribution automation.