Xin Lang Cai Jing·2025-09-19 05:01Core Viewpoint - The decline in on-grid electricity prices has significantly impacted the performance of major power generation companies, exceeding expectations [1] Group 1: Financial Performance of Major Power Companies - All five major power generation companies reported a year-on-year decline in revenue for the first half of the year, compared to only three companies experiencing a decline in the same period last year [1] - Huaneng International (600011.SH) reported revenue of 112.032 billion yuan, a decrease of 5.7% year-on-year, primarily due to a drop in both electricity volume and price, with an average on-grid price of 485.27 yuan/MWh, down 2.69% [2] - Guodian Power (600795.SH) saw revenue of 77.655 billion yuan, down 9.52% year-on-year, attributed to a decrease in the selling price of electricity, with an average on-grid price of 409.7 yuan/MWh, down 6.72% [2] - Huadian International (600027.SH) reported revenue of 59.953 billion yuan, a decrease of 8.98%, mainly due to reduced power generation and lower electricity prices, with an average on-grid price of 516.8 yuan/MWh, down approximately 1.44% [2] - Datang Power (601991.SH) had operating revenue of 57.193 billion yuan, down 1.93%, with an average on-grid settlement price of 444.48 yuan/MWh, a decrease of about 3.95% [2] - China Power (02380.HK) reported main business revenue of 23.858 billion yuan, down 9.87%, with wind power average price at 410.66 yuan/MWh, down 8.05%, and solar power at 376.80 yuan/MWh, down 5.97% [3] Group 2: Market Dynamics and Price Trends - The decline in on-grid electricity prices is attributed to the accelerated construction of a unified national electricity market, increasing market-based trading volumes, and the entry of renewable energy sources, which have led to intensified competition and lower prices [4][8] - During peak output periods for renewable energy, aggressive pricing strategies are employed to ensure power clearance, with some regions reporting prices as low as 0.04 yuan/kWh, and instances of negative pricing [4][5] - The current market environment has resulted in a competitive landscape where renewable energy sources are prioritized for dispatch due to their lower marginal costs, leading to a homogenized competition pattern across different power sources [5] - The performance of nuclear power companies has also been affected, with China General Nuclear Power (003816.SZ) reporting revenue of 39.167 billion yuan, down 0.53%, and China Nuclear Power (601985.SH) seeing a decline in net profit margins due to falling electricity prices [6] - The overall electricity supply has outpaced demand growth, contributing to the downward pressure on prices, with total installed capacity reaching 3.65 billion kW, a year-on-year increase of 18.7% [7] Group 3: Regulatory Changes and Future Outlook - Recent regulatory changes, including the issuance of documents promoting market-oriented pricing for renewable energy, are expected to further influence electricity pricing dynamics [8] - The transition to a spot market for electricity trading is anticipated to enhance price discovery and reflect supply-demand relationships more accurately, potentially leading to continued price declines [8][9] - The current trend of declining electricity prices may persist unless new supportive policies are introduced to stabilize the market [9]