Core Viewpoint - The introduction of the "Basic Rules for the Electricity Auxiliary Service Market" marks a significant step in China's electricity market reform, transitioning from a planned compensation model to a market-driven approach, thereby enhancing the stability and reliability of the power supply system [1][4][5]. Group 1: Importance of Auxiliary Services - Electricity auxiliary services are crucial for maintaining the stability and safety of the power system, providing essential functions such as peak shaving, frequency regulation, and backup services [2][3]. - The increasing share of renewable energy sources necessitates a robust auxiliary service framework to manage fluctuations and ensure reliable electricity supply [3][4]. Group 2: Market Development and Structure - The auxiliary service market in China has evolved through three stages: free service before 2006, planned compensation from 2006 to 2014, and partial marketization since 2014 [5]. - As of May 2, 2023, 16 provinces have established peak shaving markets, 15 have set up frequency regulation markets, and 2 have initiated ramping markets, although there is a lack of uniform pricing mechanisms across regions [5][6]. Group 3: New Market Participants - The new rules incorporate various entities such as energy storage companies, virtual power plants, and smart microgrids as market participants, promoting a more diverse and competitive market landscape [6][7]. - The rules aim to unify provincial regulations, facilitating better resource allocation and market participation across different regions [6][7]. Group 4: Market Opportunities and Economic Impact - The new regulations are expected to unlock significant market potential, with estimates suggesting that the scale of new participants in the auxiliary service market could exceed 30 billion yuan this year [7][9]. - Traditional thermal power plants are shifting their roles from mere electricity suppliers to system regulators, enhancing their revenue streams through participation in auxiliary services [7][8]. Group 5: Integration with Electric Vehicles - The rise of electric vehicles presents new opportunities for the auxiliary service market, as demonstrated by large-scale vehicle-grid interactions that help reduce peak load differences and enhance grid stability [9]. - The integration of auxiliary services with the electricity spot market is anticipated to create a comprehensive electricity market system, further optimizing resource allocation and reducing costs [9].

Investment Rating - The investment rating for the utility sector is "Positive" [2] Core Insights - In April, the total electricity consumption increased by 4.7% year-on-year, reaching 772.1 billion kWh. The industrial natural gas output for large-scale industries grew by 8.1% year-on-year, totaling 21.5 billion cubic meters [4][3] - The utility sector outperformed the market, with a 0.2% increase as of May 23, while the broader market (CSI 300) decreased by 0.2% [3][11] - The report highlights a potential improvement in profitability and value reassessment for the electricity sector due to previous supply-demand tensions [4] Electricity Industry Data Tracking - The price of thermal coal at Qinhuangdao Port (Q5500) was 613 CNY/ton, down 5 CNY/ton week-on-week. The inventory at Qinhuangdao Port was 7.48 million tons, a decrease of 130,000 tons week-on-week [3][21][28] - The daily coal consumption for inland provinces was 3.163 million tons, an increase of 60,000 tons/day week-on-week [30] - The average price in the Guangdong electricity market was 307.94 CNY/MWh, down 16.03% week-on-week [48] Natural Gas Industry Data Tracking - The LNG ex-factory price index in Shanghai was 4,469 CNY/ton, a year-on-year increase of 3.09% but a week-on-week decrease of 0.67% [54] - The average price of LNG imports was 12.54 USD/MMBtu, a year-on-year increase of 9.23% [54] - The EU natural gas supply for week 20 of 2025 was 6.13 billion cubic meters, a year-on-year increase of 3.5% [4] Investment Recommendations - For the electricity sector, it is suggested to focus on leading coal-fired power companies such as Guodian Power, Huaneng International, and Huadian International, as well as regional leaders in tight supply areas [4] - In the natural gas sector, companies with low-cost long-term gas sources and receiving station assets are recommended, such as Xin'ao Co. and Guanghui Energy [4]

4 月全社会用电量同比增长 4.7%，规上工业天然气产量同比增长 8.1% 【】【】[Table_Industry] 公用事业—电力天然气周报 [Table_ReportDate] 2025 年 5 月 24 日 15666646523.tcy 证券研究报告 行业研究——周报 [Table_ReportType] 行业周报 [Table_StockAndRank] 公用事业 投资评级 看好 上次评级 看好 [Table_Author] 左前明 能源行业首席分析师 执业编号：S1500518070001 联系电话：010-83326712 邮 箱：zuoqianming@cindasc.com 李春驰 电力公用联席首席分析师 执业编号：S1500522070001 联系电话：010-83326723 邮 箱：lichunchi@cindasc.com 邢秦浩 电力公用分析师 执业编号：S1500524080001 联系电话：010-83326712 邮 箱：xingqinhao@cindasc.com 化工行业： 唐婵玉 电力公用分析师 执业编号：S1500525050001 邮 箱：tangchanyu@ci ...

Group 1 - The A-share market has shown a fluctuating upward trend recently, with accelerated sector rotation, making it a focal point for investors to identify investment opportunities [1] - The electricity sector has performed well since May, with several electricity-themed ETFs experiencing a net asset value growth rate exceeding 3% within the month [2] - Analysts believe that the advancement of electricity market reform and other factors support the investment value of the electricity sector, particularly in green electricity [1][3] Group 2 - In May, the electricity sector rebounded significantly after a lackluster first quarter, with indices such as the National Green Electricity Index and the China Securities All Share Electric Utility Index rising by 2.57% and 2.04% respectively [2] - The demand for electricity is supported by the development of new high-energy-consuming industries and the promotion of electricity substitution, while supply remains tight due to limited new power generation capacity expected by Q1 2025 [2] - May is considered a favorable time for allocating investments in the electricity sector, with historical data showing an average return of 4.18% for the China Securities All Share Electric Utility Index in May over the past five years [2] Group 3 - The ongoing electricity market reform is expected to enhance the long-term investment value of the green electricity sector, which includes renewable energy sources such as hydropower, nuclear, wind, and solar power [3] - The transition towards clean energy generation is anticipated to create significant market opportunities, with the overall electricity consumption expanding and the share of wind and solar power increasing [3] - The shift in business models towards renewable energy generation and the deepening of domestic electricity market reforms are likely to enhance the long-term investment and allocation value of the green electricity sector [3]

Core Viewpoint - The article discusses the upcoming "2025 Global User-Side Energy Storage Industry Value Summit and Application Demonstration Exhibition," emphasizing the importance of energy storage in optimizing electricity costs and enhancing energy security in the context of China's dual carbon strategy and electricity market reforms [1][3]. Group 1: Event Overview - The summit will take place from June 9 to June 12, 2025, in Guangzhou, gathering industry leaders and innovators to explore the future of commercial energy storage [1]. - The event aims to address the current state and future direction of the commercial energy storage market, featuring discussions led by industry experts [2]. Group 2: Key Speakers and Topics - Notable speakers include industry leaders such as Zhang Zhengchuan from China Energy Construction Group and Zeng Yunfan from Liansheng New Energy Group, who will provide insights on energy storage design and investment strategies [3][4]. - Topics will cover the transition from "assembly" to "operation" in commercial energy storage, focusing on lifecycle operation and maintenance as critical factors for project economics and safety [9]. Group 3: Market Trends and Innovations - The article highlights the shift in commercial energy storage towards digitalization and AI integration, which enhances operational efficiency and addresses price volatility concerns [13]. - The implementation of new policies, such as the cancellation of mandatory storage requirements, is expected to significantly impact the energy storage landscape, driving a transition from policy-driven to market-driven development [26][27]. Group 4: Technical Insights - The summit will explore the role of distributed energy storage in overcoming bottlenecks in the power distribution network, with a focus on case studies demonstrating the effectiveness of these technologies [17]. - Innovations in sodium-ion battery technology and its application in energy storage projects are also discussed, showcasing the potential for significant deployment and revenue generation [18]. Group 5: Future Outlook - The article emphasizes the importance of addressing safety and economic viability in energy storage projects as the industry evolves towards a more competitive landscape [27]. - The summit is positioned as a platform for stakeholders to share insights and strategies for navigating the challenges and opportunities in the commercial energy storage sector [30].

Investment Rating - The report rates the thermal power sector as the most promising area for investment, indicating a positive outlook for the sector [2][4]. Core Insights - Thermal power remains the most favored sector, with recent performance showing Huaneng up by 0.4%, Huadian by 0.5%, Changjiang Power by 1.9%, and Longyuan H by 3% during the week of May 12-16, while the Shanghai Composite increased by 0.8% and ChiNext Index by 1.4%. Despite thermal power underperforming compared to wind and solar, northern thermal power prices are expected to be favorable, and weak coal prices suggest promising profit growth for Q2 [3][4]. - The Henan spot market trial in May allows for 10% new energy in the spot market, with a cost structure where 90% is still based on auxiliary service fees. The energy market price range is set between RMB 50-1200/MWh [5]. - In Guizhou, peak shaving compensation is set at RMB 2/kWh, with valley filling prices ranging from RMB 0-2/kWh. The demand for peak shaving is stronger than for valley filling, indicating a potential upward adjustment in pricing structures that could favor thermal power [6]. - The Shandong 2025 New Energy High-Level Consumption Plan includes the construction of large coal units and flexibility retrofits, aiming to enhance the regulation capacity of coal power [7]. - The Hebei 2025 Power Load Management Plan anticipates summer peak loads of 55 million kW and 51.5 million kW for the South Grid, indicating a supply shortfall during peak times [8]. - Key data from Q1 2025 shows that Inner Mongolia's multi-party trading volume reached 71.9 billion kWh, with a year-on-year price decrease of 2%, saving users RMB 450 million. Xinjiang's power capacity stands at 201 million kW, with 112 million kW from new energy sources [9].

Core Insights - The energy sector shows strong fundamentals, resilience, and potential for growth as indicated by the 2024 annual reports and Q1 2025 disclosures [1] Industry Overview - The overall revenue for the electricity sector in 2024 reached 1.8256 trillion yuan, with a net profit of 166.23 billion yuan, reflecting significant improvement in profitability [1] - The electricity index increased by 13.80% from the beginning of the year, with hydropower showing relatively strong performance compared to other sub-sectors [3] - The demand for electricity is expected to grow by approximately 6% in 2025, driven by factors such as AI computing power and electric vehicle adoption [9] Company Performance - Huaneng International topped the revenue rankings in the electricity sector with total revenue of 245.55 billion yuan, despite a slight decrease of 3.48% year-on-year [3][4] - Longjiang Electric, a leading hydropower company, reported a revenue of 84.49 billion yuan in 2024, up 8.12%, and a net profit of 32.50 billion yuan, up 19.28% [5] - China General Nuclear Power achieved total revenue of 86.80 billion yuan, a year-on-year increase of 5.16%, with net profit growth of 0.83% [6][7] Market Trends - The electricity sector is expected to maintain a steady growth trajectory, supported by ongoing energy structure transformation and market reforms [9][10] - The construction of a unified national electricity market is progressing, with a significant increase in market participants, enhancing resource allocation efficiency [9] - The fire power sector is anticipated to continue its strong recovery due to low coal prices, while hydropower may face challenges from reduced rainfall [10][11] Strategic Outlook - The ongoing market reforms and the push for carbon neutrality are expected to reshape the valuation of electricity operators, with potential for improved operating environments for thermal power [11] - Mergers and acquisitions within the electricity sector are anticipated to enhance the resilience and valuation of state-owned enterprises [11]

Core Viewpoint - The article discusses the transformation and value awakening in the commercial energy storage sector, driven by new policies and market changes, emphasizing the need for companies to adapt and innovate in response to evolving market conditions [1][5]. Group 1: Market Dynamics - The current project measurement models are becoming ineffective, leading to concerns about project profitability and the survival of storage developers [1]. - The introduction of time-of-use pricing policies in regions like Jiangsu is creating fluctuations in pricing, prompting storage companies to focus on enhancing their core capabilities such as policy analysis, technology integration, and financial innovation [1][3]. Group 2: Opportunities and Strategies - Despite a slowdown in growth in saturated regions like Jiangsu, Zhejiang, and Guangdong, there are opportunities in other areas such as Anhui, Sichuan, and Shandong, as well as in new applications like zero-carbon parks and integrated solar-storage solutions [3]. - Companies are encouraged to explore overseas markets, with recent orders in Europe demonstrating that demand exists globally, indicating that where there is demand, there is opportunity [3][6]. Group 3: Summit Insights - The "2025 Global User-Side Energy Storage Industry Value Summit and Application Demonstration Exhibition" aims to help companies reduce reliance on single markets and profit models, promoting diversified growth strategies [5][6]. - The summit will feature discussions on various topics, including the future of commercial energy storage, virtual power plants, and integrated solar-storage operations, targeting over 3,000 solar and construction enterprises [5][6]. Group 4: Key Highlights of the Summit - The summit will provide a platform for top companies to brainstorm, connect resources, and offer practical toolkits for navigating the energy storage landscape [5]. - A guide specifically for commercial energy storage users, investors, and operators will be released, aimed at empowering various industries [5][6]. - The summit will also announce the top 10 user-side energy storage projects, highlighting best practices and setting industry benchmarks [6][7].

Group 1 - The private economy in Shanxi Province is a significant force driving economic and social development, with 3.932 million private business entities accounting for 97.6% of the total business entities in the province by the end of 2024 [1] - The threshold for entering the top 100 private enterprises in Shanxi reached 3.328 billion yuan, marking eight consecutive years of stable growth [1] - Shanxi has nine companies listed among the top 500 private enterprises in the country and twelve in the top 500 private manufacturing enterprises, achieving a historical high in the number of entries [1] Group 2 - The State Grid Shanxi Electric Power Company has introduced six measures to support the development of the private economy, including building a robust smart grid and enhancing digital services [3] - The company has improved power supply service levels, conducting special service meetings for key projects and achieving record connection speeds for projects like the 56GW integrated base project by JinkoSolar [3][4] - Shanxi's cross-province power service has facilitated projects like the photovoltaic project in Jiaozuo, with the company handling five cross-province power business transactions [3] Group 3 - Companies in Shanxi are increasingly demanding high-quality electricity, with specific measures implemented to ensure stable power supply, such as dedicated customer managers and flexible service teams [5] - The State Grid Shanxi Electric Power Company has helped reduce electricity costs for private enterprises, saving approximately 61.4 million yuan for 30,200 low-voltage private enterprise customers in the first quarter [5][6] - The company has also promoted financing services through platforms like "Electric e-Finance," easing the financial burden on private enterprises [8] Group 4 - Shanxi's market-oriented electricity reform has opened new avenues for local private enterprises, with companies like Shanxi Wind Control Technology Co., Ltd. participating in both long-term and spot electricity trading [6] - The virtual power plant model has allowed the company to aggregate resources and generate revenue, achieving a scale of 1.3455 million kilowatts and earning 2.01 million yuan since entering the market [6] - The State Grid Shanxi Electric Power Company has enhanced the efficiency of market entry for private enterprises through digital and intelligent methods [6] Group 5 - The State Grid Shanxi Electric Power Company has facilitated over 40 bidding procurement batches in 2024, attracting more than 4,000 bidding private enterprises and releasing a total of 110 million yuan in bid guarantee amounts [8] - The company has implemented a bidding guarantee insurance system, significantly reducing the financial pressure on private enterprises [8] - The innovative power supply services are contributing to the high-quality development of private enterprises in Shanxi, marking a new chapter in the story of Shanxi merchants [8]

丨证券研究报告丨 行业研究丨行业周报丨公用事业 [Table_Title] 国际认可加速绿证消费扩容，价改推进重视绿电 长期价值 报告要点 [Table_Summary] 国际绿色电力消费倡议组织（RE100）宣布无条件认可中国绿证，明确企业使用中国绿证不需 要再提供额外证明。标志着我国绿证体系的制度完善与国际互认取得里程碑式突破，助推我国 绿证需求侧加速扩容。长期低位运行的市场需求和绿证价格将得到显著催化，为新能源项目实 现合理收益提供重要支撑。在新能源价格改革持续持续推进的背景下，我们认为各省配套细则 也将承接 136 号文保护存量项目、稳定增量项目收益预期的原则，有助于长远角度新能源发电 的合理健康发展，同时随着绿电消费的加速扩容，绿电公司有望迎来价值重估。 分析师及联系人 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 [Table_Author] SFC：BQT627 SAC：S0490517080003 SAC：S0490520120001 SAC：S0490520110001 SAC：S0490523080003 张韦华 司旗 宋尚骞 刘亚辉 [T ...