Abstract: Environmental regulation serves as a crucial driver compelling electric power enterprises to innovate in smart grid technology.This study explores the impact of innovation in the smart grid technology on the green transformation of China’s power industry and investigates the role of the environmental regulation. Utilizing a non-expected output SBM model,the green total factor productivity of China’s provincial power industry is quantified spanning from 2007 to 2021. The panel regression and threshold regression models are employed to analyze the relationship between the innovation in the smart grid technology and the green transformation. The findings reveal a U-shaped relationship between the innovation in the smart grid technology and the power industry’s green transformation,becoming most pronounced from 2016 to 2021 and concentrated in the eastern and central regions. Moreover,the environmental regulation introduces a threshold effect within the U-shaped relationship.