Core Viewpoint - The article discusses the approval of a new cross-grid electricity trading mechanism in China, which aims to enhance the efficiency of electricity distribution from renewable sources across different regions, particularly from the northwest to the eastern load centers [2][3]. Summary by Sections Cross-Grid Electricity Trading Mechanism - The National Development and Reform Commission and the National Energy Administration have approved a new trading mechanism that allows for long-term, green, and spot electricity trading across different grid operating areas [2][3]. - This mechanism is a significant step towards breaking down barriers between the State Grid and Southern Grid, facilitating better resource allocation nationwide [3]. Current Infrastructure and Transactions - Currently, there are two established interconnection channels between the State Grid and Southern Grid, with ongoing construction of additional channels [5]. - In 2023, pilot cross-regional electricity transactions have already taken place, including significant transfers of green electricity to major cities [6]. Trading Rules and Structure - The new mechanism outlines various trading rules for different types of electricity transactions, including long-term, green, and spot trading [7][8]. - It introduces a "two trading, two scheduling" model, which involves collaboration between multiple trading centers to ensure technical feasibility under physical constraints of the grid [7]. Green Electricity Trading - The mechanism emphasizes green electricity trading, allowing companies to purchase renewable energy more easily and market-driven [11][12]. - Specific rules for green electricity transactions include entry conditions, trading methods, and the transfer of green certificates [11][13]. Future Goals and Developments - The plan sets short-term, medium-term, and long-term goals, including pilot projects for electricity trading and green electricity transactions by 2025 [9]. - It aims to enhance the utilization of transmission channels and balance demand across the grid, addressing the needs of high-energy-consuming industries [9][14]. Market Dynamics and Challenges - The article highlights the increasing demand for green electricity driven by national policies and global trends towards decarbonization [11][12]. - Challenges include price formation mechanisms and the need for a transparent green certificate market to facilitate trading [14].

Core Viewpoint - The release of the "Cross-Grid Operating Area Normalized Electricity Trading Mechanism Plan" is a significant step towards breaking the segmentation of the electricity market and optimizing resource allocation nationwide, aiming for the establishment of a unified national electricity market by 2025 [1][8]. Group 1: Electricity Supply and Demand - During the peak summer period, Guangdong is expected to experience a maximum load of 167 million kilowatts, a year-on-year increase of 6.6%, with a system electricity consumption of 2,920 billion kilowatt-hours, up 7.9% year-on-year [2]. - The plan allows for inter-provincial resource sharing, which is expected to balance electricity supply and demand in Guangdong [2]. Group 2: Market Integration and Efficiency - The plan aims to establish a normalized electricity trading mechanism across grid operating areas, promoting market interconnectivity, reducing transaction costs, and enhancing the efficiency of electricity resource allocation [2][3]. - The mechanism will enable the sharing of surplus clean energy and load adjustment capabilities across a broader range, beyond the individual operating areas of the State Grid and Southern Grid [3]. Group 3: Green Electricity Trading - Green electricity trading is a key component of the plan, with clear regulations on entry conditions, trading methods, and green certificate transfer rules [5][7]. - Currently, one-third of the electricity generated in the country is green electricity, which includes renewable sources such as wind and solar power [6]. Group 4: Impact on Industry and Foreign Investment - There is a strong demand for green electricity from foreign enterprises in the Pearl River Delta and Yangtze River Delta regions, driven by the need to enhance their green development image and comply with international carbon reduction policies [7]. - The plan is expected to facilitate the green transformation of the manufacturing industry and enhance the competitive advantage of foreign enterprises in exports [7]. Group 5: Future Outlook - The establishment of a unified national electricity market is projected to be initially completed by 2025, with the plan serving as a crucial institutional breakthrough for promoting the smooth flow of electricity resources across a larger area [8][9]. - The plan introduces a collaborative trading model involving multiple parties, ensuring the technical feasibility of transactions under the constraints of the electricity grid [8].

Core Viewpoint - The newly approved cross-grid electricity trading mechanism aims to enhance the efficiency of electricity distribution from renewable sources in Xinjiang and other regions to major consumption centers like Guangdong and Shanghai, marking a significant step towards a unified national electricity market system [1][2]. Group 1: Mechanism Overview - The State Development and Reform Commission and the National Energy Administration have jointly approved a plan for cross-grid electricity trading, which includes rules for medium- and long-term electricity transactions, green electricity trading, and spot trading [1][4]. - The plan addresses the historical barriers between the State Grid and Southern Grid, allowing for more flexible and larger-scale electricity transactions across regions [2][3]. Group 2: Trading Capacity and Infrastructure - Currently, there are two established interconnection channels between the State Grid and Southern Grid, with ongoing construction of additional channels to enhance trading capacity [3]. - A significant cross-regional electricity transaction has been initiated, involving over 2 billion kilowatt-hours of electricity from Guangdong, Guangxi, and Yunnan to be delivered to Shanghai, Zhejiang, Anhui, and Fujian [3]. Group 3: Trading Rules and Structure - The trading structure will be organized by multiple entities, including the Beijing Power Trading Center and the Guangzhou Power Trading Center, ensuring collaborative transaction results and settlements [4]. - The plan specifies different trading scenarios, such as large-scale direct current projects and flexible power supply between adjacent provinces, to ensure market integrity and balance [5][6]. Group 4: Green Electricity Trading - The plan emphasizes green electricity trading, allowing renewable energy projects to participate as individual trading units, thus facilitating easier access for power users to purchase green electricity [7][8]. - Various trading methods, including centralized bidding and bilateral trading, are outlined, along with a clear process for green certificate transfer to ensure traceability and market integrity [7][9]. Group 5: Future Goals and Implementation - The plan sets short-term, medium-term, and long-term goals, including pilot projects for demand-based trading and green electricity transactions by the end of 2025 [6][10]. - Continuous improvements in channel construction, transaction processes, and market coordination are planned to transition from sporadic trading to a fully normalized trading environment [10].

Core Insights - The rapid growth of green electricity trading in Guizhou is highlighted by a 282% year-on-year increase in contracted green electricity volume in the first five months of this year, reaching 107 billion kilowatt-hours [1] - Guizhou's green electricity trading volume surged from 0.8 billion kilowatt-hours in 2022 to 7.9 billion kilowatt-hours in 2023, with projections of 33.64 billion kilowatt-hours for 2024, reflecting a 326% year-on-year increase [2] - The expansion of renewable energy capacity and the enhanced role of the electricity trading center are key drivers of this growth, with total installed capacity in Guizhou expected to exceed 30 million kilowatts by 2025 [2] Green Electricity Market Growth - The number of green electricity consumers in Guizhou has reached 551, with the majority concentrated in industries such as electrolytic aluminum and chemicals, where electrolytic aluminum accounts for over half of the total transaction volume [3] - Guizhou Moutai has emerged as a leader in green electricity consumption, purchasing over 100 million kilowatt-hours of green electricity, equivalent to creating 70,000 acres of carbon sink forest [4] Economic and Environmental Impact - The increase in green electricity consumption reflects a growing awareness among companies of their social responsibilities and the economic benefits of green energy [5] - The establishment of a green certificate trading mechanism complements green electricity trading, providing a way for market participants to fulfill renewable energy consumption obligations [6] Future Developments - The Guizhou Electricity Trading Center is focused on expanding the green electricity and green certificate market, optimizing the trading process, and enhancing resource allocation to support the green low-carbon transition [7] - Efforts will continue to promote the use of green electricity across various sectors, encouraging long-term trading agreements to mitigate market price volatility [7]

Investment Rating - The industry investment rating is "Increase" indicating an expected outperformance of the industry index relative to the benchmark by more than 5% over the next six months [36]. Core Insights - The People's Bank of China emphasizes accelerating the digital and intelligent transformation of finance, aiming for a secure and efficient financial infrastructure and the application of AI in the financial sector [12]. - The State-owned Assets Supervision and Administration Commission (SASAC) has reiterated the importance of developing strategic emerging industries and increasing their revenue share within state-owned enterprises [12]. - The report highlights the promotion of distributed renewable energy participation in green electricity trading, with a goal to enhance the green certificate market by 2027 and further improve its operational efficiency by 2030 [13]. - Policies supporting grain and soybean production are being strengthened, including the implementation of special loan interest subsidies for grain and oil planting [16]. Market Performance North Exchange Market Performance - As of March 18, 2025, the Shanghai Composite Index rose by 0.11%, the North Exchange 50 Index increased by 0.42%, the CSI 300 Index went up by 0.27%, the ChiNext Index rose by 0.61%, and the Sci-Tech Innovation 50 Index also increased by 0.61% [17]. - The North Exchange A-share sector consists of 264 companies with an average market capitalization of 3.102 billion. The trading volume for the day reached 44.782 billion, a decrease of 7.10% compared to the previous trading day [17]. North Exchange Individual Stock Performance - The total trading volume on the North Exchange decreased, with 140 companies experiencing stock price increases. The top gainers included Leite Technology (up 29.99%), Fangzheng Valve (up 24.29%), and Wantong Hydraulic (up 19.28%) [18]. - Conversely, the top decliners included Meibang Technology (down 13.47%), Hengtai Lighting (down 11.48%), and Jinsai Technology (down 11.45%) [18].