Core Viewpoint - The introduction of the "531" policy marks a significant shift in China's renewable energy market, transitioning to a fully market-oriented pricing mechanism for new energy projects, with a clear distinction between existing and new projects based on their commissioning dates [1][4]. Group 1: Policy Changes - The National Development and Reform Commission and the Energy Administration have issued a notice promoting the market-oriented reform of renewable energy pricing, requiring all renewable energy projects to enter the electricity market [1]. - The "531" policy establishes June 1, 2025, as a critical date for differentiating between existing (stock) and new (incremental) projects, with existing projects maintaining stable revenue under current pricing policies [1][4]. - New projects after June 1, 2025, will not benefit from fixed pricing protections and will face potential revenue declines due to market-based pricing [1]. Group 2: Industry Response - Companies like Huaneng New Energy are accelerating project completions to qualify for the existing project category before the deadline [2]. - The distributed photovoltaic sector is experiencing heightened demand as projects that connect to the grid before May 1 can still receive full subsidies [2]. - In Guangdong, distributed photovoltaic installations have surged, with a record increase of 4.46 million kilowatts in April alone, reflecting a 94% year-on-year growth [2]. Group 3: Capacity and Growth Statistics - From January to April, China added 10,493 megawatts of photovoltaic capacity, a year-on-year increase of 74.56%, with April alone seeing a 214.68% increase compared to the previous year [3]. - Wind power installations also grew, with 1,996 megawatts added from January to April, representing an 18.53% year-on-year increase [4]. Group 4: Market Mechanisms and Future Outlook - The "136" document outlines the establishment of a sustainable pricing settlement mechanism for renewable energy, with local governments required to implement specific plans by the end of 2025 [4]. - The pricing mechanism for new projects will have defined upper and lower limits, providing a stable revenue expectation for approximately 12 years, despite uncertainties in pricing and volume [5]. - There are concerns regarding the exclusion of green certificate benefits for energy included in the sustainable pricing mechanism, which may impact the overall revenue for renewable energy projects [5][6].