Under the deal, a smart grid automation solution and system will be developed based on Locamation’s SASensor solution for high and medium voltage grids.

Locamation said the partnership will focus on flexible systems and easy configuration tools to allow Chinese power firms to meet their goals of building and refurbishing primary and secondary substations.

The first smart grid solution is expected to be operational in the summer of 2013.

Locamation CEO Ton Jansen said that Shuangdian has a 40% market share in the Beijing area in high voltage substation automation.

"Like Locamation, Shuangdian moved into the medium and low voltage segment of the market, delivering large roll outs as well as running innovative and comprehensive pilots like the Weizhou Island Smart Microgrid Simulation System which includes PV, EV, wind and storage," Jansen added.

Locamation director of sales and marketing Alexander Schoenfeldt said, "We have already begun working together to explore the wide range of advantages and flexibility our solution provides and to analyze the best means of applying SASensor based services to tackle the challenges faced by our prospective Chinese clients."