Investment Rating - The report maintains a positive outlook on the Guangdong electricity market, indicating an "Overweight" rating for the industry [2]. Core Insights - The Guangdong Electricity Trading Center has released the key mechanisms and parameters for the 2026 trading year, which includes all new energy generation entering the market and a defined annual trading arrangement [2]. - The initial trading cap for coal, gas, and nuclear power plants is set at 70%, with potential adjustments based on market conditions [2]. - The benchmark electricity price for 2026 is set at 0.463 yuan/kWh, with upper and lower limits of 0.554 yuan/kWh and 0.372 yuan/kWh, respectively [2]. - Nuclear power's market transaction volume is expected to increase, with a planned volume of 312 billion kWh for 2026, up from 273 billion kWh in 2025 [2]. - The removal of the variable cost compensation mechanism for nuclear power is anticipated to enhance revenue, with projections indicating an increase of approximately 4 billion yuan to 10 billion yuan based on market conditions [2]. Summary by Sections Annual Trading Mechanism - The annual trading mechanism for 2026 has been established, allowing all new energy sources to enter the market, with trading limits based on historical performance [2]. Pricing Structure - The pricing structure remains unchanged, with a floating range based on a benchmark price of 0.453 yuan/kWh for coal, leading to a market reference price of 0.463 yuan/kWh for 2026 [2]. Nuclear Power Revenue - The nuclear power sector is expected to see revenue growth due to the elimination of the variable cost compensation mechanism, with significant increases in market transaction volumes planned for 2026 [2].