Investment Rating - The report assigns an "Overweight" rating for the industry [5]. Core Insights - The report highlights that in provinces with less renewable energy, there is a need for more long-term contracts, while provinces with more renewable energy may benefit from fewer long-term contracts and more spot market sales. The signing of contracts is expected to be concentrated in the last week, similar to the previous year [5]. - The electricity export plan for Yunnan in 2026 is projected to be 153.3 billion kWh, an increase from 145.2 billion kWh in 2025. The report notes a significant drop in coal prices, which may negatively impact long-term contract negotiations [5]. - The report indicates that electricity consumption driven by AI has surged, with a 43% year-on-year increase in electricity usage for internet data services from January to October this year. The total computing power scale is growing at an annual rate of approximately 30% [5]. - The latest incremental mechanism electricity prices are detailed, with Zhejiang's 2026 mechanism price at 0.3929 yuan/kWh, Chongqing's wind/solar prices at 0.3961/0.3963 yuan/kWh, and Qinghai's wind price at 0.24 yuan/kWh [5]. - The report discusses the integration of transportation and energy in Anhui, aiming for a non-fossil energy generation capacity of around 300,000 kW by 2027 along highways, and 500,000 kW by 2030 [5]. - In Qinghai, the proportion of long-term coal contracts is expected to decrease to 60% in 2026, with the average clearing price for various energy sources provided [5]. Summary by Sections - **Long-term Contracts**: The report emphasizes the need for long-term contracts in provinces with limited renewable energy and suggests that provinces with abundant renewable energy may achieve better returns by focusing on spot market sales [5]. - **Electricity Export Plans**: Yunnan's electricity export plan for 2026 is set at 153.3 billion kWh, indicating growth in external electricity supply [5]. - **AI and Electricity Consumption**: There is a notable increase in electricity consumption driven by AI, with a 43% rise in internet data service electricity usage [5]. - **Incremental Mechanism Prices**: The report provides specific mechanism electricity prices for various provinces, indicating a structured pricing approach for renewable energy [5]. - **Transportation and Energy Integration**: The integration plan in Anhui aims to enhance energy generation capacity along transportation routes, promoting the use of renewable energy [5]. - **Coal Contract Proportions**: The report notes a decrease in long-term coal contract proportions in Qinghai, reflecting a shift in energy market dynamics [5].

——《关于优化集中式新能源发电企业市场报价的通知（试行）》解读 以制度革新护航能源转型 龙源电力集团股份有限公司市场营销部副主任 张念武 国家能源集团江苏公司运营中心主任 高丛珊 在新能源装机规模持续扩容、电力市场改革向纵深推进的关键节点，国家能源局印发的《关于优化集中式新能源发电企业市场报价的通 知（试行）》，以精准的制度设计破解市场难题，以系统的治理思维筑牢发展根基，既回应了新能源全面入市的现实挑战，更彰显了推 动能源高质量发展的战略远见，其制度价值与战略高度在能源转型进程中具有里程碑意义。 一、守序立规：构筑公平竞争的市场 "防护网"，彰显制度保障高度 电力市场的高效运行，离不开公平有序的竞争环境作为基石。随着新能源逐步从政策扶持转向市场主导，市场经营主体增多、交易行为 复杂等新问题随之显现，部分地区已出现串通报价、价格操纵等扰乱市场秩序的现象，既扭曲了价格信号，又损害了市场公平性。《通 知》立足这一现实，以法治思维构建市场秩序防控体系，展现了对市场规律的深刻把握与精准施策能力。 在反垄断规制上，政策实现了事前防范 与源头管控的双重突破。针对跨主体协同报价可能形成的垄断风险，明确划定集中报价的边界红 线 ...

Core Viewpoint - The public utility sector is expected to maintain a stable fundamental outlook through 2026, with a focus on the rebound opportunities in undervalued sectors following style shifts [1][2] Group 1: Industry Outlook - The electricity sector is entering the second half of reforms, with spot market expansion and power source market entry as key themes [2] - The implementation of the "136" document marks the full market entry of China's renewable energy generation, leading to a surge in new energy projects [2] - The current electricity supply-demand structure is transitioning to a more relaxed phase, influenced by weak electricity demand and a significant increase in coal power generation [3] Group 2: Investment Opportunities - The peak of the power source investment cycle may have passed, with asset consolidation presenting potential investment opportunities [4] - The energy sector is witnessing a trend of asset restructuring focused on core business optimization and energy transition [4] - The investment in traditional coal power remains robust, while new energy investments are showing signs of decline [5] Group 3: Power Source Categories - In a context of sufficient electricity supply, energy prices are expected to continue to decline, while auxiliary service prices may rise [5] - Coal power is projected to experience a bottoming out of profit cycles, with high dividend potential [5] - Nuclear power is anticipated to grow rapidly, with an increasing market share, despite facing downward price pressures [6] Group 4: Policy and Market Dynamics - The recent policies from the National Development and Reform Commission aim to enhance the commercial model for green electricity and integrate consumption policies [6] - The remaining capacity for hydropower development is limited, while nuclear power is expected to see a significant increase in installed capacity post-2027 [6]

Core Insights - The seventh "Southeast Power Economic Forum" was held in Nanjing, focusing on the construction and operation of electricity market mechanisms to adapt to a high proportion of new energy sources [1][2] - Over 300 representatives from government, energy companies, research institutions, and universities participated, discussing key topics such as electricity market design and trading strategies [1] Group 1: Main Forum Highlights - Key reports were presented by Pan Yuelong, Chairman of the Supervisory Board of the China Electricity Council, and officials from the National Energy Administration, covering topics like energy green transition and the construction of a unified national electricity market [1] - Experts from various electricity trading centers shared experiences on the operation of a unified national electricity market and the support for new energy development in the southern region [1] Group 2: Sub-Forum Discussions - Three specialized sub-forums were held, focusing on electricity market mechanisms, the construction and operation of new business entities (virtual power plants), and energy security under new energy market conditions [2] - Scholars and representatives from institutions like Tsinghua University and State Grid Electric Power Research Institute discussed cutting-edge topics such as green electricity trading and the application of artificial intelligence in electricity markets [2] Group 3: Local Government Support and Competitions - The forum received strong support from the Gulou District People's Government in Nanjing, which is actively developing a core cluster for the green energy industry [2] - The third "Zhenshan Cup" electricity trading simulation competition was held concurrently, aimed at promoting electricity trading knowledge and cultivating professional talent [2]

Core Insights - The seventh "Southeast Power Economic Forum" was held in Nanjing, focusing on the construction and operation of electricity market mechanisms to adapt to a high proportion of new energy sources [1] - Over 300 representatives from government, energy enterprises, research institutions, and universities participated, discussing key topics such as electricity market design and trading strategies [1] - The forum featured keynote speeches on energy green transition and the construction of a unified national electricity market [1][3] Group 1 - The forum included main sessions where leaders from the China Electricity Council and the National Energy Administration presented on electricity market construction under green energy transitions [1] - Experts from various electricity trading centers shared experiences on the operation of a unified national electricity market and support for new energy development in southern regions [1][3] - The event highlighted advancements in the evaluation of electricity trader vocational skills in Jiangsu province [1] Group 2 - Three specialized sub-forums were organized, focusing on electricity market mechanisms, the construction and operation of new business entities like virtual power plants, and energy security under new energy market conditions [3] - Scholars and representatives from universities and companies discussed cutting-edge topics such as green electricity trading in the Yangtze River Delta and the application of artificial intelligence in electricity markets [3] Group 3 - The forum received strong support from the Gulou District People's Government in Nanjing, which is actively developing a core cluster for the green energy industry [5] - The district aims to attract upstream and downstream enterprises by leveraging the presence of major state-owned enterprises in the region [5] Group 4 - The third "Zhen Shan Cup" electricity trading simulation competition was held concurrently, aimed at promoting electricity trading knowledge and cultivating professional talent [7] - The competition involved teams of university students and industry professionals, contributing to the sustainable development of the electricity market [7]

Core Insights - Shandong Province has officially announced the results of its 2025 renewable energy mechanism electricity price bidding, marking the first such auction since the issuance of the "136 Document" aimed at promoting high-quality development of renewable energy [2][4] - The total scale of the mechanism electricity volume is 9.467 billion kWh, with wind power selected at 5.967 billion kWh at a bid price of 0.319 yuan/kWh, and photovoltaic (PV) power at 1.248 billion kWh at a bid price of 0.225 yuan/kWh [2] Renewable Energy Bidding Results - The bidding results indicate a lower bid price for PV due to limited allocated mechanism electricity volume, leading to "panic" pricing in the market, while wind power had a larger allocation, resulting in higher prices [3] - Shandong is a leading province in renewable energy installations, with a total of 119 million kW of wind and solar capacity as of July 2023, including 91.3 million kW of PV and 27.49 million kW of wind power [3] Policy and Market Context - The "136 Document" requires a clear distinction between new and old renewable energy projects, mandating that projects starting after June 1, 2025, must form their mechanism electricity prices through market competition [2][13] - The implementation of the "136 Document" provides a framework for renewable energy projects to enter the electricity market, with the aim of establishing a market-driven pricing mechanism [13] Development Models and Economic Impact - Shandong has developed a "distributed photovoltaic" model, primarily focusing on household installations, which has significantly increased rural income through rooftop leasing [5][7] - By 2025, distributed PV installations are expected to account for over 50% of total PV capacity, with a current share of approximately two-thirds [6] Challenges and Future Directions - The rapid growth of distributed PV has created challenges in electricity consumption, particularly due to the intermittent nature of solar power, leading to periods of "abandoned electricity" and "electricity shortages" [9][11] - The province aims to enhance the balance between electricity supply and demand by increasing wind power and energy storage capacity, with plans to optimize the ratio of wind to solar installations from 3.2:1 to 2.6:1 by the end of 2024 [14] Strategic Initiatives - Shandong's energy strategy includes the development of 3 million kW of new energy storage by 2025, alongside improvements in market trading mechanisms for energy storage [17] - The province is also exploring direct connections between renewable energy plants and industrial customers to enhance profitability and efficiency in energy consumption [19]

Investment Rating - The report maintains a "Positive" investment rating for the utility industry [1] Core Insights - The first mechanism electricity price bidding results for renewable energy in Shandong have been released, indicating a significant market-oriented shift in policy [3][17] - Wind power mechanism electricity price is set at 319 CNY/MWh, which is a 20% premium over the 2024 average spot trading price, while solar power is at 225 CNY/MWh, a 33% premium [3][24] - The report emphasizes the importance of management and operational capabilities for renewable energy operators in a market-driven environment [4][30] Summary by Sections Electricity Sector - The Shandong province has become the first to implement a market-oriented mechanism for renewable energy pricing, with significant participation from over 3000 projects [18][21] - The mechanism electricity volume for wind power is 59.67 billion kWh, while for solar power it is only 12.48 billion kWh, reflecting a stronger policy support for wind energy [3][23] - The report suggests that the future of solar power installations in Shandong may see reduced investment enthusiasm due to current pricing pressures and non-technical cost reductions [4][29] Grid Sector - New pricing mechanisms for nearby consumption of green electricity have been established, which will protect grid interests and promote cost reductions for users [6][35] - The system operation costs will be charged based on the electricity delivered, allowing for potential savings in electricity costs for high-load enterprises [7][37] - The report highlights that the new pricing structure will benefit wind power and energy storage development, making them key components in the green electricity landscape [8][42] Renewable Energy Assets - The report discusses the acceleration of Real World Assets (RWA) in the distributed solar sector, with significant investments from companies like JinkoSolar and GCL-Poly [10][44] - The RWA framework is expected to enhance liquidity and value reassessment of quality distributed solar assets, benefiting original equity holders [11][47] - The collaboration between LinYuan Energy and Ant Group aims to digitize energy assets, further supporting the RWA initiative [12][48] Green Methanol - A major project for green methanol production has been announced by Goldwind, with a total investment of approximately 18.92 billion CNY, aiming to produce 600,000 tons of green methanol annually [13][49] - The report anticipates a surge in demand for green methanol as multiple projects are set to commence production in the coming years [13][49] - Key suppliers and equipment manufacturers in the green methanol sector are expected to see performance improvements as the market expands [13][49]

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The report highlights the cancellation of Mingyang Smart's offshore wind order in Germany, indicating challenges for Chinese wind turbine manufacturers in entering the German market, while still suggesting potential opportunities in other European countries like the UK [5][10][35] - The profitability of leading solar module companies in overseas markets has significantly declined, with JinkoSolar's overseas gross margin dropping from 13.46% to -2.42%, Trina Solar from 17.65% to 3.32%, and LONGi Green Energy from 14.43% to 4.77% [5][38] - The report discusses the competitive landscape in the energy storage sector, noting a recent tender for a large-scale storage system in Inner Mongolia with a bid price range of 0.393 to 0.399 RMB/Wh, indicating a downward trend in pricing [6] Summary by Sections Wind Power - Mingyang Smart has canceled its participation in the Waterkant offshore wind project in Germany, which reflects the difficulties faced by Chinese companies in the German offshore wind market [5][10] - The wind power index increased by 2.06% during the week, underperforming the CSI 300 index by 0.65 percentage points, with a current overall PE ratio of 22.28 [12][18] - The report notes that domestic demand for wind power remains strong, which is expected to improve the overall supply-demand situation and restore profitability for companies in the sector [5][6] Solar Power - Leading solar module companies have reported a significant decline in overseas business profitability, primarily due to trade barriers imposed by the U.S. on Southeast Asian countries [5][38] - The report suggests that the profitability of these companies may have reached a bottom, with potential for recovery as excess capacity is gradually eliminated [5] Energy Storage & Hydrogen - A recent tender for a 5.2GWh energy storage system in Inner Mongolia saw competitive bidding, with prices further declining, indicating a shift towards market-driven pricing in the energy storage sector [6] - The report emphasizes the importance of integrated system solutions for energy storage projects, highlighting the need for a focus on lifecycle costs rather than just initial purchase prices [6] Investment Recommendations - For wind power, the report recommends focusing on domestic demand growth, profitability recovery, and opportunities in offshore wind exports, suggesting companies like Mingyang Smart and Goldwind [5][6] - In solar power, it advises monitoring structural opportunities within the industry, with recommended stocks including Dier Laser and LONGi Green Energy [5] - In energy storage, it highlights opportunities in non-U.S. markets and suggests companies like Sungrow Power and Deye Technology [6]

Core Viewpoint - The State Grid Inner Mongolia Electric Power Company is actively implementing the "three rapid, three innovations, and three comprehensives" approach to facilitate the entry of renewable energy into the market, being the first in the nation to implement the 136 document's guidelines [1][3]. Group 1: Implementation of Policies - In January, the National Development and Reform Commission and the National Energy Administration issued the 136 document aimed at promoting the market-oriented reform of renewable energy pricing [1]. - The Inner Mongolia Development and Reform Commission and Energy Administration released the implementation plan for the market-oriented reform of renewable energy pricing on May 29, which officially took effect on July 1, marking it as the first provincial-level implementation in the country [1]. Group 2: Market Mechanism Development - The company has developed market rules and prepared the "Guidelines for Full Market Entry of Renewable Energy in the Inner Mongolia Region" to facilitate trading and settlement [3]. - In late June, the company organized a trading session that resulted in contracts for 8.08 billion kilowatt-hours, achieving 97.4% of the annual target [3]. Group 3: Innovations in Market Participation - The company has introduced innovative mechanisms for integrating existing projects with the spot market and for new projects to follow a "market-first, bidding-later" approach [6]. - A differentiated trading model and settlement mechanism for distributed solar power have been established, allowing household and commercial distributed solar users to participate in the market [6]. Group 4: Comprehensive Support and Services - The company is optimizing the market entry process and conducting extensive outreach and training to ensure all renewable energy enterprises are informed about policy changes [6]. - As of August 1, the company completed the first month's settlement of price difference electricity fees for distributed solar users, involving 34,400 households [6]. Group 5: Future Plans - The company plans to continue supporting the full market entry of renewable energy by establishing a "green registration" channel and facilitating high-frequency trading needs [9]. - It encourages long-term power purchase agreements between renewable energy producers and electricity users to create stable supply-demand relationships [9].

Group 1 - The core viewpoint of the report is optimistic about the public utility sector, maintaining a positive outlook for the industry [1][2] - The report highlights the increasing pressure on electricity consumption and supply differentiation, indicating a shift from tight supply to a balanced state during the 14th Five-Year Plan [6][12] - The report emphasizes the need to focus on high-quality wind power assets due to significant yield differentiation in green electricity [5][42] Group 2 - The report projects that during the 15th Five-Year Plan, the national electricity supply will transition from tight to balanced, with coal power utilization hours expected to decline [7][13] - It forecasts that the total electricity generation will reach 131,399 billion kilowatt-hours by 2030, with an average annual growth rate of 5% [10][14] - The report notes that the new energy sector has seen a historic increase in installed capacity, with wind and solar power installations reaching 52GW and 213GW respectively in the first half of 2025, both up 105% year-on-year [22][15] Group 3 - The report discusses the severe pressure on the consumption of new energy, indicating that the utilization hours may be a more accurate indicator than utilization rates [23][28] - It highlights that the utilization rates for wind and solar power have been declining, with some regions falling below the 90% target [27][33] - The report indicates that the construction of the electricity spot market is accelerating, aiming to reflect real-time supply and demand through price signals [39][34] Group 4 - The report outlines the impact of the 136 document, which promotes the full market entry of new energy, marking a new cycle and starting point for the industry [43][44] - It emphasizes the importance of traditional power sources in ensuring energy security amidst the growing demand from new electricity consumers [13][41] - The report suggests that investment strategies should focus on stability and innovation, balancing traditional and new energy investments [5][42]