TYN(SZ:000591) Mei Ri Jing Ji Xin Wen·2026-01-11 12:46Core Viewpoint - The introduction of the mechanism electricity price system for renewable energy projects in China, effective from June 1, 2025, is leading to significant changes in investment strategies and project profitability in the solar and wind energy sectors. The disparity in electricity prices across different regions is causing companies to reassess their investment plans and focus on more profitable projects [1][3][4]. Group 1: Mechanism Electricity Price Implementation - The "136 Document" mandates that all new renewable energy projects must participate in market trading, replacing the previous guaranteed purchase system, which has extended the payback period for existing solar projects from 6.5 years to 8 years [1][3]. - The mechanism electricity prices for renewable energy projects vary significantly across regions, with prices for wind and solar projects showing a disparity of over 100% between the highest and lowest [2][5]. - The mechanism electricity prices for existing projects range from 0.26 to 0.45 yuan/kWh, while new projects must enter market trading with prices determined through competitive bidding [3][4]. Group 2: Regional Price Disparities - In economically developed provinces like Shanghai and Beijing, mechanism electricity prices are close to coal benchmark prices, with Shanghai at 0.4155 yuan/kWh and Beijing at 0.3598 yuan/kWh [4][5]. - In contrast, regions with abundant renewable resources, such as Gansu and Xinjiang, have significantly lower mechanism electricity prices, with Gansu's wind and solar prices as low as 0.1954 yuan/kWh and 0.1500 yuan/kWh, respectively [4][5]. - The differences in mechanism electricity prices are attributed to local resource endowments, consumption capacity, and specific policy preferences [7][8]. Group 3: Impact on Investment Strategies - The extended payback periods and reduced profitability are causing many companies to adopt a cautious approach towards new investments in renewable energy projects, particularly in the solar sector [13][14]. - Companies are now prioritizing projects that ensure stable consumption, such as those close to load centers, rather than focusing solely on the area of rooftops for solar installations [19]. - The shift in focus is also influenced by the need to secure mechanism electricity volume, leading companies to adopt low pricing strategies to ensure qualification for bidding [15][19]. Group 4: Market Dynamics and Future Outlook - The competitive bidding process for mechanism electricity prices is expected to reflect the true costs of renewable energy generation, potentially leading to lower prices in the long term [12][17]. - The transition to a market-driven pricing mechanism may initially exacerbate issues like negative electricity prices, but it is anticipated to promote more rational market behavior over time [22][23]. - The overall trend indicates that while the mechanism electricity price system poses challenges, it also opens avenues for companies to enhance their operational efficiency and adapt to market demands [20][21].