The Xiamen electric power bureau has said that construction work on a smart electric grid, which will cover Xiamen, a coastal city in Fujian province, will start in 2013.
The bureau said the project will increase supply reliability to 99.99%, reported China Daily.
State Grid Corporation of China and Fujian Electric Power will carry out the project at an investment of CNY586m ($94.3m).
The scope of the project will include 102 items in 13 categories, including basic grid structures, a communication network and a full-view monitoring system for the grid.
It will also consist smart substations, a comprehensive disaster prevention and mitigation system, a quick response centre, a smart business hall, and a smart demand response system and charging and changing network for e-vehicles.
So far 23 items have been completed, and 20 others are under construction at a total expenditure estimated at CNY352m ($56m).
The project is expected to completed before the end 2013.