The smart grid is an advanced system that integrates generation, transmission, distribution and customers. It has the advantage of automation and data-base tracking; it has the functions of self-monitoring, diagnosis and repair; it can provide high-quality, high-efficiency and clean electricity. The company set up a Smart Grid Project Task Force in 2007, planning to construct the power grid in three phases with four goals: power grid safety and reliability, energy efficiency, customer service quality, and integration of distributed power sources.

This milestone project can cooperate with our national energy plan to reach the government's goal of energy conservation and carbon reduction. The initial stage of the roadmap was focused on constructing AMI and Micro Grid, which can provide the gateway of two-way communications between consumers and service providers, and allow renewable energy to be integrated into the distribution grid.

AMI is the basic infrastructure for a smart grid. The construction was started from 23,000 high-voltage customers (about 58% of total power consumption). It is estimated that the construction will be completed for all high-voltage customers in 2012. For low voltage customers, the AMI implementation plan was approved by the Executive Yuan in 2010, and pilot systems were constructed for 308 customers in 2010. This will serve as a reference for the construction for 10,000 customers in 2012.

It is estimated that the AMI system will be finished in 2012. This system has the following functions: remote meter reading, equipment management, power outage detection, meter box tampering detection (anti-theft), etc.