Hua Yuan Zheng Quan·2025-06-02 23:30Investment Rating - The report maintains a "Positive" investment rating for the utility sector [4] Core Insights - The introduction of the green electricity direct connection policy is expected to enhance the economic viability and environmental value of green electricity [5][12] - The policy allows for the direct supply of green electricity to single users, which can significantly reduce electricity costs for enterprises and assist in carbon emission recognition, particularly for export-oriented companies [13][18] - The report highlights the potential for rapid development in offshore wind power as the direct supply model is promoted in coastal regions [13][18] Summary by Sections Policy Interpretation - The National Development and Reform Commission and the Energy Administration have issued a notification to promote the orderly development of green electricity direct connections, specifying project types, methods, and fee payments [8] - The policy supports four types of projects eligible for green electricity direct supply, including new loads and existing loads from export-oriented enterprises [8][9] Economic and Environmental Benefits - The policy is expected to lower electricity costs due to reduced transmission costs associated with direct supply, as the dedicated lines are typically closer to the load [13][15] - The clear traceability of electricity sources will help in recognizing the carbon neutrality of direct-supplied green electricity, benefiting companies with stringent carbon emission requirements [13][18] Investment Analysis - For green electricity operators, the direct supply model offers stable long-term demand, allowing for fixed-price contracts that enhance profitability [18] - In the waste incineration power sector, transitioning to a direct supply model can improve cash flow and reduce risks associated with accounts receivable [20] - The report recommends specific companies for investment, including Shaoneng Co., Yinxing Energy, and Yongxing Co. in the green electricity sector, and Huanlan Environment and Junxin Co. in the waste incineration sector [18][20] Equipment Sector - The direct supply business model is expected to accelerate the development of integrated source-grid-load-storage projects, enriching commercial models in the electricity market [20] - Companies such as Goldwind Technology and Guoneng Rixin are recommended for investment in the power equipment sector [20]