Ge Long Hui·2025-06-09 01:47Core Insights - The decline in electricity prices is significantly impacting the investment value of photovoltaic (PV) power stations, leading to a situation where these assets are becoming undesirable and are being sold off at low prices [1][8][9] - The value of the PV manufacturing industry is closely tied to the asset value of PV power stations, which is primarily determined by electricity prices rather than hardware costs [1][5] - Recent market trends indicate a drastic drop in electricity prices across various regions, with some areas experiencing prices as low as 0.03 yuan/kWh, which undermines the profitability of PV investments [2][3][5] Summary by Sections Investment Value of PV Power Stations - The investment value of PV power stations is deteriorating due to falling electricity prices, leading to many stations being viewed as low-efficiency or "garbage" assets [1][9] - The market is witnessing a trend where private enterprises are selling off their PV power stations, not due to strategic business models but because of increasing uncertainty in investment returns [1][8] Electricity Price Trends - In November 2024, the average electricity price for PV in Shandong dropped to 0.03 yuan/kWh, while in Shanxi, it was 0.18 yuan/kWh, indicating a downward trend compared to previous years [2][3] - Gansu province's new pricing policies have led to a significant reduction in the comprehensive electricity price for PV projects, dropping from around 0.25-0.28 yuan/kWh in 2023 to an expected 0.2 yuan/kWh in 2024 [5][6] Market Dynamics and Policy Implications - The current market dynamics are characterized by intense competition and a lack of stable policy frameworks, which are contributing to the low electricity prices [7][9] - The introduction of market-oriented trading and pricing policies is creating uncertainty for investors, as seen in the case of Jinko Energy's decision to sell its PV assets to mitigate risks associated with price fluctuations [8][9] Future Outlook - The industry is calling for more stable and predictable policies to enhance investor confidence and ensure the sustainable development of the PV sector [7][10] - The relationship between production capacity and market mechanisms needs to be improved to foster innovation and efficiency in the renewable energy sector [10]