Core Viewpoint - The recent issuance of four revised pricing methods for transmission and distribution by the National Development and Reform Commission marks a new phase in China's transmission and distribution pricing reform, aimed at establishing a scientific pricing mechanism to support the construction of a unified national electricity market and promote green and low-carbon energy transformation [1] Group 1: Enhancing Grid Infrastructure - The revised methods introduce an innovative capacity mechanism that allows for the exploration of two-part or single capacity pricing for cross-provincial and cross-regional projects primarily transmitting clean energy, ensuring fixed cost recovery and improving channel utilization efficiency [2] - The methods clarify the cost boundaries for pricing, excluding costs from pumped storage and new energy storage stations, while including environmental protection and water resource taxes, thereby optimizing the cost structure and highlighting the ecological value of the grid [2] Group 2: Incentivizing Grid Efficiency - The methods continue the incentive mechanism where 30% of the revenue from actual utilization hours exceeding the approved hours is shared with grid companies, promoting efficiency and supporting key areas like peak-shaving capacity and transmission channel optimization [3] Group 3: Supporting National Electricity Market Development - The methods establish a unified pricing system that ensures transparency and rationality from the cost source, clarifies the functions and pricing of various grid levels, and synchronizes adjustments over time, which is crucial for advancing the national unified electricity market [4] - The methods address rigid pricing mechanisms for cross-provincial transmission by enhancing flexibility in pricing for clean energy projects, thereby improving regional power regulation and resource allocation [4] Group 4: Promoting Clean Energy Utilization - The proposed two-part or single capacity pricing for clean energy transmission aims to reduce costs and enhance competitiveness in the unified electricity market, supporting large-scale renewable energy base power delivery [5] - The methods encourage the establishment of a nearby consumption mechanism and explore single capacity pricing for new energy consumption scenarios, fostering innovation in service models and promoting the maturity of distributed energy markets [6] - The continuation and enhancement of the excess revenue sharing mechanism, where 70% of excess revenue from cross-provincial transmission is allocated to support clean energy delivery, incentivizes renewable energy companies to improve efficiency and mitigate curtailment issues [6]

Group 1 - The core viewpoint of the article is that the recent revisions to the pricing methods for electricity transmission and distribution mark a new phase in China's electricity pricing reform, aimed at establishing a scientific pricing mechanism and supporting the transition to a unified national electricity market and a low-carbon energy system [1] Group 2 - The revised methods introduce an innovative capacity mechanism to ensure returns on grid investments, allowing for a two-part or single capacity pricing model for cross-regional projects focused on clean energy transmission, which enhances infrastructure cost recovery and promotes efficient use of transmission channels [1][2] - The methods clarify cost boundaries by excluding certain costs from pricing, such as those from pumped storage and new energy storage stations, while including environmental taxes, thereby highlighting the ecological value of the grid [2] - The continuation of incentive mechanisms allows grid companies to share 30% of the revenue from actual utilization hours exceeding the approved hours, which can be reinvested into key areas like peak-shaving capacity and transmission optimization [2] Group 3 - The methods establish a unified pricing system that supports the development of a national electricity market by ensuring transparency and reasonable pricing, clearly defining the functions and pricing of different grid levels [3] - By enhancing the flexibility of pricing for cross-regional transmission projects, the methods aim to break down inter-provincial barriers and optimize resource allocation, facilitating the consumption of clean energy across larger areas [3][4] - The methods emphasize the importance of fair cost-sharing between in-province and out-of-province users to prevent additional charges that could hinder electricity imports, thus promoting efficient energy flow from resource-rich areas to load centers [4] Group 4 - The innovative pricing mechanisms proposed are expected to lower the costs of cross-regional transmission of clean energy, enhancing its competitiveness in the unified electricity market and supporting the transition of the energy structure [5] - The methods encourage the development of distributed energy systems by exploring single capacity pricing for local consumption scenarios, which aligns with new business models in the energy sector [5] - The continuation and enhancement of the revenue-sharing mechanism, where 70% of excess revenue from cross-regional projects is allocated to support clean energy transmission, incentivizes renewable energy companies to improve efficiency and address issues of energy wastage [6]

在电力市场上，用电高峰时电价高，用电低谷时电价低。抽水蓄能电站"入市"，能够通过在低价时买电 抽水，高价时放水发电，获得调节电力系统负荷和消纳新能源的市场收益。2024年10月，梅州抽水蓄能 电站率先在国内以"报量报价"方式整站参与电力现货交易。截至目前，已累计交易市场电量17.4亿千瓦 时，响应市场需求启动4200余次。随着新机组"入市"，梅州抽水蓄能电站在电力市场交易规模达到150 万千瓦，相当于每小时可交易电量150万千瓦时。 本报电(记者程远州)8月26日，广东省梅州抽水蓄能电站二期工程首台机组投产，同步进入电力市场交 易全部电量。这是我国抽水蓄能电站首次实现"投产即入市"，对促进全国统一电力市场建设具有重要意 义。 ...

Summary of Key Points from the Conference Call Company Overview - The conference call pertains to China General Nuclear Power Corporation (CGN) and its operations in the nuclear power sector. Core Developments - **Project Updates**: - Huizhou Unit 3 achieved First Concrete Date (FCD) on June 10, 2025, marking the start of full construction [2] - Lufeng Unit 6 completed dome lifting on July 14, 2025, and entered equipment installation [2] - Huizhou Unit 2 completed its hot functional test on July 30, 2025, preparing for commercial operations [2] - A-share convertible bonds were issued on July 25, 2025, to support nuclear projects and optimize capital structure [2] - **Financial Performance**: - On-grid power generation reached 1,133.6 billion kWh in H1 2025, up 6.93% YoY [5] - Revenue was RMB 39.167 billion, down 0.5% YoY, with net attributable profit at RMB 5.952 billion, down 16.3% YoY [5] - Electricity sales revenue increased by 0.9% YoY to RMB 306.58 billion, but overall growth was hindered by declining market-based tariffs [21] Industry Context - **Electricity Consumption**: - China's electricity consumption rose by 3.7% YoY in H1 2025, totaling approximately 4.84 trillion kWh, driven by high summer temperatures [6] - Non-fossil energy sources accounted for over 60% of installed capacity and contributed 43.1% to total power generation, up 3.7 percentage points YoY [6] - **Nuclear Power's Role**: - Nuclear power represented about 1.7% of China's total installed capacity but contributed around 5.2% of total power generation as of June 2025 [7] - The average utilization hours for nuclear facilities increased by 167 hours YoY, indicating high stability [7] Safety and Operational Management - The company maintained zero incidents classified as Level 2 or above on the International Nuclear Event Scale in H1 2025 [9] - 91.07% of managed nuclear power units reached the world's top quartile advanced level based on WANO key performance indicators [10] Financial Strategy and Market Dynamics - **Market-Based Tariffs**: - The average market-based tariff in Guangdong was approximately 0.33 RMB per kWh, down by 6.5 RMB cents YoY [32] - The company is actively negotiating with provincial authorities regarding tariff adjustments to mitigate revenue impacts [33] - **Acquisitions and Capital Expenditures**: - The company approved a cash acquisition of equity interests in four companies, including Huizhou Nuclear Power, expected to complete by year-end [4] - Future capital expenditures will primarily be funded through bank loans, with minimal additional capital anticipated for completed projects [34] Environmental Impact - The company's operations contributed to a reduction of approximately 34.09 million tons of standard coal consumption and about 107 million tons of CO2 emissions, supporting national carbon neutrality goals [14] Future Outlook - The company plans to enhance research on strategic issues and improve operational management to ensure safe production during peak demand seasons [25] - Anticipated stable macroeconomic growth is expected to drive higher electricity consumption demand in H2 2025, benefiting nuclear unit generation [26] Conclusion - The company is positioned to leverage ongoing projects and market dynamics while focusing on safety, operational efficiency, and environmental sustainability to navigate the challenges and opportunities in the nuclear power sector.

Core Insights - In July, the national electricity market transaction volume reached 624.6 billion kilowatt-hours, a year-on-year increase of 7.4% [1] - From January to July, the cumulative electricity market transaction volume was 3.59 trillion kilowatt-hours, up 3.2% year-on-year, accounting for 61.2% of total electricity consumption, a decrease of 0.9 percentage points year-on-year [1] - The green electricity transaction volume in July was 25.6 billion kilowatt-hours, showing a significant year-on-year growth of 43.2% [1] Electricity Market Developments - The provincial transaction volume in July was 461.4 billion kilowatt-hours, increasing by 7.3% year-on-year, while the inter-provincial and inter-regional transaction volume was 163.2 billion kilowatt-hours, up 7.9% year-on-year [1] - Cumulatively, from January to July, the provincial transaction volume was 2.73 trillion kilowatt-hours, a 1.6% increase year-on-year, and the inter-provincial and inter-regional transaction volume was 855.8 billion kilowatt-hours, up 9% year-on-year [1] - The cumulative green electricity transaction volume from January to July reached 181.7 billion kilowatt-hours, reflecting a year-on-year increase of 42.1% [1] Future Outlook - The year 2025 marks a critical point for the new round of electricity system reform, coinciding with the preliminary establishment of a national unified electricity market [1] - Significant progress has been made in the construction of a unified national electricity market, including the establishment of a normalized trading mechanism across power grid operating areas and the successful transition of the southern regional electricity market to continuous settlement trial operation [1] - The southern regional electricity market has achieved the largest scale of centralized unified clearing of electricity in the world, which is crucial for building a national unified market and breaking down inter-provincial barriers [1]

Core Insights - In July, the total electricity market transaction volume reached 624.6 billion kilowatt-hours, representing a year-on-year growth of 7.4% [1] - From January to July, the cumulative electricity market transaction volume was 3.59 trillion kilowatt-hours, a year-on-year increase of 3.2%, accounting for 61.2% of the total electricity consumption, which is a decrease of 0.9 percentage points year-on-year [1] - The green electricity transaction volume in July was 25.6 billion kilowatt-hours, showing a significant year-on-year increase of 43.2% [1] Provincial and Cross-Regional Transactions - In July, provincial electricity transaction volume was 461.4 billion kilowatt-hours, with a year-on-year growth of 7.3%, while cross-provincial and cross-regional transaction volume was 163.2 billion kilowatt-hours, increasing by 7.9% year-on-year [1] - From January to July, provincial transaction volume totaled 2.73 trillion kilowatt-hours, up by 1.6% year-on-year, and cross-provincial and cross-regional transaction volume reached 855.8 billion kilowatt-hours, reflecting a year-on-year growth of 9% [1] Market Development and Reforms - The year 2025 marks the 10th anniversary of the new round of electricity system reform and the preliminary establishment of a national unified electricity market [1] - Significant progress has been made in the construction of a unified national electricity market, including the establishment of a normalized trading mechanism across power grid operating areas by State Grid and Southern Grid [1] - The Southern regional electricity market successfully transitioned to continuous settlement trial operation on June 28, becoming the largest centralized and unified electricity market globally, which is crucial for building a unified national market and breaking down inter-provincial barriers [1]

Core Viewpoint - The "14th Five-Year Plan" period marks a significant advancement in energy reform and development, with a focus on high-quality growth and the establishment of a unified national energy market [1] Group 1: Energy Reform and Development - The "14th Five-Year Plan" is characterized by deepening energy reforms and enhancing development momentum [1] - The restructuring of the system and policy framework is accelerating, with the construction of a national unified electricity market being expedited [1] - The coal and new energy sectors are fully entering the market, and all industrial and commercial users are now part of the market [1] Group 2: Market Dynamics and Participation - The oil and gas sector is beginning to form a "national network," and the Energy Law has been implemented [1] - Macro-control and industry governance mechanisms for energy are being further improved [1] - The vitality of the market is being rapidly released, with the number of registered electricity market operators reaching 970,000, which is five times that of 2020 [1] Group 3: Role of Private Enterprises - Ten measures have been introduced to promote the development of the private economy in the energy sector [1] - The majority of photovoltaic equipment manufacturing companies and over 60% of wind turbine manufacturers are private enterprises [1] - In some nuclear power projects, private enterprises hold up to 20% of the shares, indicating their significant role in driving energy transition and reform [1]

Core Viewpoint - The press conference highlighted the significant achievements in high-quality energy development during the "14th Five-Year Plan" period, emphasizing the establishment of a national unified electricity market as a key initiative in China's energy sector reform [1][2][3]. Group 1: National Unified Electricity Market Construction - The construction of the national unified electricity market system is accelerating, with a diverse and comprehensive market being established, including intra-provincial and inter-provincial trading, as well as various trading timeframes and types of services [1][2]. - The implementation of normalized cross-grid trading has been achieved, enhancing the integration of electricity supply across regions [1]. Group 2: Market Rules and Framework - The national unified electricity market rules have been largely completed, with a foundational "1+6" rule system established to address previous fragmentation and regional barriers, ensuring transparency and fair competition [2]. - The new framework allows electricity sales companies to operate nationwide with reduced operational costs through a single registration process [2]. Group 3: Market Scale and Participation - The scale of the electricity market has seen significant growth, with transaction volumes increasing from 10.7 trillion kWh during the "13th Five-Year Plan" to 23.8 trillion kWh, representing more than a doubling of market activity [3]. - The proportion of electricity traded through the market has risen from 40% in 2020 to over 60% for four consecutive years, indicating a robust market participation [3]. - A diverse range of market participants has emerged, including various types of power generation and commercial users, contributing to a well-structured market landscape [3].

央视网消息：国务院新闻办公室于8月26日举行"高质量完成'十四五'规划"系列主题新闻发布会， 介绍"十四五"时期能源高质量发展成就。 国家能源局新能源和可再生能源司司长李创军介绍，新一轮电力体制改革走过了十年，在各方的共同努 力下，中国电力市场正在经历一场前所未有的深刻变革。变革的核心任务，就是建设全国统一电力市 场，这是全国统一大市场建设在能源领域的关键落子和生动实践。"十四五"以来，全国统一电力市场建 设取得了实质性跨越和突破性进展，主要体现在以下三个方面： 一是全国统一电力市场体系加快构建。国家能源局逐步有序建立起一个品类多元、功能完善的电力市 场。从空间上来看，有省内交易、也有省间交易；从时间上来看，有年度、月度交易，也有日内、实时 交易；从交易品种来看，除了基本的电能量，还有调峰、调频、备用这些辅助服务品种。特别值得一提 的是，今年还实现了跨电网经营区的常态化交易，真正让"塞北的风点亮湾区的灯"。 李创军表示，下一步，国家能源局将继续用好市场"看不见的手"和政府"看得见的手"，用更优配置、更 高水平的电力供应，促进实体经济和新兴产业发展，努力将全国统一电力市场建设成全国统一大市场的 排头兵，助力我国 ...

Investment Rating - The industry investment rating is maintained at "Overweight" [1] Core Viewpoints - The report highlights that from January to July, the new installed capacity for wind and solar energy has accelerated, with the total installed power generation capacity reaching 3.67 billion kilowatts, a year-on-year increase of 18.2% [6] - The report emphasizes the ongoing construction of a unified national electricity market, which is expected to accelerate the revaluation of electricity asset values [8] Summary by Sections Industry Performance - The public utility sector (Shenwan) rose by 1.89% this week, underperforming the market by 2.29 percentage points, ranking 23rd among Shenwan's primary industries [3] - The sub-sectors showed varied performance, with heating services up by 5.46%, photovoltaic power up by 4.84%, and thermal power up by 3.38% [3] Key Data Tracking - The report notes a continued rise in spot coal prices week-on-week, with inventory levels increasing [4][7] - Domestic natural gas prices fell week-on-week, with the national LNG ex-factory price at 4099 RMB/ton, a decrease of 73 RMB/ton [5] Industry Dynamics - The report states that the total installed capacity for solar power reached 1.11 billion kilowatts, a year-on-year increase of 50.8%, while wind power capacity reached 570 million kilowatts, up 22.1% [6] Investment Recommendations - The report recommends focusing on three main lines: hydropower stocks with stable fundamentals benefiting from the unified electricity market, thermal power stocks with improving performance due to cost reductions, and green energy projects with stable profitability [8] - Specific stock recommendations include Changjiang Electric Power, Huaneng Hydropower, Huaneng International, Jingneng Electric Power, and Funiu Co., Ltd. [8]