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imperative for developing countries to meet SC objectives, as is being
undertaken in developed countries.
6.7.2 Towards Leapfrogging to SCsFigure 6.4 shows the four types of SCs in view of electricity T&D pat-
terns. The power network of currently developed countries is shown in
zone A: concentrated supplies in which the supplier (major electric power
companies) has mainly participated in electricity supply. Current US poli-
cies are represented by zone B: large demander (manufacturing industry)
and restricted supplier participation. Although small suppliers participate in
solar and wind power generation in Europe and Asia, zone C remains advan-
tageous only to large suppliers in terms of regulations and technologies.
However, zones B and C are insuffi cient. To develop new-generation
smart grids and support initiatives as distinctive as those employed in
Japan, large and small suppliers must be able to take full advantage of ICT
technologies and legal systems (to freely buy and sell electricity). Zone D
should be focused upon before any other country (Kato 2010 ).
In relation to SCs at large, a development model as shown in Fig. 6.5
is proposed using the smart grid model presented above. In this model,
the x -axis denotes concentration versus distribution and the y -axis denotes
demand levels per person, with a supplier scrutinizing a plane model ( x – y
coordinates) of separation versus one (one-way versus both directions).
Concentration versus distribution, a service supplier, and a city resident
Fig. 6.4 The four smart grid conditions. Source: Drawn from Kato ( 2010 )