Core Viewpoint - The introduction of the "430" and "531" policies will lead to a decrease in the profitability of new energy projects, resulting in a slowdown in new energy development after the initial rush in early 2025. The marginal impact on coal consumption is expected to diminish, with a potential turning point for coal consumption around 2027 [1]. Group 1: New Energy Development - Over the past decade, new energy has experienced rapid growth, significantly impacting thermal power demand. By the end of 2024, the total installed capacity of wind and solar energy in China is projected to reach 1.4 billion kilowatts, achieving the 2030 target six years ahead of schedule. The share of thermal power generation capacity has decreased from 66.75% in 2015 to 43.88% in 2024 [2]. - The rapid growth of new energy has led to a notable decline in the growth rate of thermal power generation, which is now lagging behind the overall electricity consumption growth rate [2]. Group 2: Policy Impact - The "430" policy highlights the increasing pressure on distributed solar energy consumption, with some provinces halting new registrations for distributed solar projects. The profitability of these projects has become highly uncertain, ending the previous model of easy profits from simply installing power stations [3]. - The "531" policy, effective from January 2025, will push new energy into market trading, with settlement prices expected to decrease significantly compared to coal-based benchmark prices. This is likely to result in a substantial decline in new installations of distributed solar energy starting in the second half of 2025 [3]. Group 3: Future Outlook - The new energy sector is entering a new phase, with the peak of new energy installations likely occurring in 2024. The pressure on thermal power is expected to be greatest in 2025, but with steady growth in electricity demand driven by sectors such as electric vehicles and AI, the pressure on coal consumption is anticipated to ease in 2026, with a potential upward turning point in 2027 [4].

Group 1 - The rapid development of renewable energy in China has significantly impacted thermal power demand, with thermal power generation capacity decreasing from 66.75% in 2015 to 43.88% in 2024, and thermal power generation share dropping from 75.39% to 64.51% during the same period [1][5][15] - By the end of 2024, China's total installed capacity for wind and solar energy is expected to reach 1.4 billion kilowatts, achieving the 2030 target six years ahead of schedule [1][6][10] - The growth rate of thermal power generation has been notably lower than the overall electricity consumption growth rate since 2024, indicating a shift in energy consumption patterns [1][17] Group 2 - The introduction of the "430" and "531" policies has increased pressure on renewable energy consumption, particularly for distributed solar power, leading to a significant decline in profitability and uncertainty in revenue [2][32][44] - The "430" policy emphasizes local consumption and safety management for distributed solar projects, marking a transition from rapid growth to regulated, high-quality development [33][39] - The "531" policy aims to fully integrate renewable energy into market transactions, which may lead to further declines in settlement prices for renewable energy [2][32][44] Group 3 - The rapid expansion of renewable energy has created significant challenges in energy consumption, particularly in regions rich in wind and solar resources, where curtailment rates have increased [21][24][25] - The utilization rates for wind and solar energy have decreased significantly, with wind utilization dropping from approximately 97% to 93.4% and solar utilization from 98% to 93.8% [24][28] - The mismatch between high renewable energy generation and low electricity demand in certain regions has exacerbated the consumption pressure [25][36] Group 4 - The overall electricity demand is expected to grow steadily, driven by sectors such as electric vehicles, AI, and energy storage, which will help alleviate pressure on coal consumption by 2026 [3][10] - The anticipated decline in renewable energy installations starting in mid-2025 may lead to a turning point for coal consumption in 2027 [3][10]

Group 1 - The core viewpoint is that the rapid development of renewable energy has significantly impacted coal power demand, leading to concerns about a potential decline in coal consumption in the future. However, the company believes that the era of rapid growth for renewables is over, and the marginal impact on coal power will weaken, with a demand turning point for coal expected around 2027 [1][3]. - Over the past decade, driven by favorable policies, China's renewable energy generation capacity and output have grown rapidly, with total wind and solar capacity reaching 1.4 billion kilowatts by the end of 2024, six years ahead of the 2030 target. Consequently, the share of coal power generation capacity has decreased from 66.75% in 2015 to 43.88% in 2024 [1]. - The share of coal power generation has also declined from 75.39% in 2015 to 64.51% in 2024, with coal power generation growth significantly lagging behind overall electricity consumption growth since 2024 [1]. Group 2 - The pressure for renewable energy consumption is increasing, with the "430" and "531" policies set to be implemented. The "430" policy, effective January 2025, will significantly reduce the profitability of distributed solar projects, ending the previous model of easy profits from installed capacity. The "531" policy will push renewables into market trading, likely leading to further declines in settlement prices compared to coal benchmarks [2]. - The company anticipates that the new policies will lead to a decline in renewable energy installations, with 2024 potentially marking a peak in renewable capacity. The greatest pressure on coal power is expected in 2025, but with steady growth in electricity demand driven by sectors like electric vehicles and AI, coal consumption may see a turning point upwards by 2027 [3].