Achieving a low carbon economy has been the focus of Hong Kong in recent years. Strategies are put forth to support sustainable energy, because Hong Kong has inadequate local and renewable energy reserves. Smart grid technologies have benefited many countries in the world, and countries such as the United States, the United Kingdom, China, and South Korea are exploring this new green energy strategy. Hong Kong’s power companies have considered smart grid technologies, conducting pilot projects to test their local feasibility. In this research, stakeholders’ perspectives of the current status of smart grids are overviewed in Hong Kong from the angle of policy aspect. Stakeholder theory is utilized as the framework for understanding and analyzing the perceptions of stakeholder groups. An integrated and modified stakeholder power-interest matrix was developed for analyzing level of power and interest of stakeholder groups on smart grid from policy dimension. Through the course of this research project, qualitative interviews were conducted for 11 interviewees with subjectsfrom1six stakeholder groups, including: academics, advisory bodies, business, government, non-governmental organizations, and power companies. Follow-up quantitative questionnaires were distributed to the same target group for stakeholder analysis and to map the level of power and interest of stakeholder groups regarding smart grid policy development in Hong Kong. The data collected from interviews were compared with and contrasted against each stakeholder groups and other countries, with a view to identifying common motivations, barriers, and policy suggestions. The findings reveal that the six stakeholder groups hold medium to high power and interest in smart grid policy development in Hong Kong. Common motivations identified by local stakeholder groups include: the right to choose their own energy mix for power generation, potential behavioural change via smart meter and tariff restructuring, possible energy savings and emissions reductions for the environment, and corporate social responsibility. The most significant motivation for smart grid development shared with other countries is the goal of achieving low carbon economy and energy efficiency. Shared barriers perceived by the six stakeholder groups are: unreliable renewable power supplies, significant capital investments required, impracticalities of supplying electricity back to the grid, transfers of additional power generation costs to consumers, and limited smart grid knowledge by the public. The most significant barrier shared with international countries is funding mechanism, yet it may be difficult for Hong Kong to secure funding from the government because of problems of trust. Three stages of recommendations are suggested. Short-term recommendations centre on the policy development direction of smart grid in Hong Kong, and include implementing dynamic pricing, undertaking a large-scale pilot program and establishing an awareness campaign (funded by the government)for educating the general public. Medium-term recommendation is to establish a joint green fund with the contributions of companies with large carbon footprints. Long-term recommendations include market liberalization and increases in market competition. / published_or_final_version / Environmental Management / Master / Master of Science in Environmental Management