Core Viewpoint - The article discusses the guidelines issued by the National Development and Reform Commission and the National Energy Administration for the signing and performance of medium- and long-term electricity contracts for 2026, emphasizing the importance of high-quality contract signing and flexible pricing mechanisms to ensure stable electricity supply and pricing. Group 1: Contract Signing Mechanisms - The document emphasizes the need to improve the quality of long-term electricity contract signing by implementing time-segmented and curve-based signing mechanisms, allowing for more accurate reflection of price signals across different time periods [1][9] - It encourages the signing of flexible pricing mechanisms that adjust according to market supply and demand and generation costs, rather than mandating fixed prices [2][10] Group 2: Cross-Province and Cross-Region Contracts - The notification requires that for cross-province and cross-region electricity delivery with clear priority generation plans, both sending and receiving parties must collaborate to fully sign annual medium- and long-term contracts, specifying monthly plans and delivery curves [4][8] - It also highlights the need for coordination among electricity trading centers to complete the signing of national contracts by December 25, 2025 [4][15] Group 3: Market Structure and Pricing - The document outlines that regions with operational electricity spot markets should have at least 24 trading time slots, while other provinces should optimize their medium- and long-term trading time slots based on actual electricity load curves [5][9] - It specifies that market participants directly involved in the market will not be subject to government-mandated time-of-use pricing [10] Group 4: Quality and Compliance in Contract Performance - The guidelines stress the importance of continuous and flexible trading within provinces, taking into account the characteristics of renewable energy generation and load [11] - It calls for the establishment of a robust mechanism to ensure high-quality signing and performance of medium- and long-term contracts, including a credit evaluation system for market participants [12][13]

Core Viewpoint - The National Development and Reform Commission and the National Energy Administration have issued a notice to enhance the signing and performance of medium- and long-term electricity contracts for 2026 through four key measures, aiming to ensure effective implementation and quality of these contracts [22][25]. Group 1: Contract Signing Requirements - The total signed electricity volume for medium- and long-term contracts by coal-fired power enterprises in each province should not be less than 70% of the actual online electricity volume from the previous year, with monthly contract signing volumes not less than 80% of the expected market-based online electricity volume [10][26]. - The electricity consumption side must ensure that the monthly contract signing volume is not less than 80% of the expected electricity consumption [2][27]. - For cross-provincial and cross-regional contracts, there should be clear arrangements for supporting renewable energy in transmission projects, encouraging green electricity trading to fulfill priority generation plans [3][28]. Group 2: Quality Improvement Measures - There should be a mechanism for time-segmented and curve-based signing in annual electricity medium- and long-term transactions, with at least 24 trading periods in regions where the electricity spot market is operational [5][28]. - The pricing mechanism for medium- and long-term electricity contracts should be flexible, allowing for adjustments based on market supply and demand, and not mandating fixed prices [6][29]. - A balance management system for electricity supply and demand should be established to avoid significant discrepancies in electricity volume across trading periods [12][29]. Group 3: Efficient Contract Performance - Continuous and flexible trading of medium- and long-term contracts within provinces should be promoted, considering the characteristics of renewable energy generation and load [8][30]. - The quality of cross-provincial and cross-regional medium- and long-term transactions should be improved by enhancing trading frequency and optimizing transaction organization [14][30]. - Monitoring of medium- and long-term trading behaviors should be strengthened to prevent market manipulation and ensure compliance with regulations [15][31]. Group 4: Contract Assurance Mechanism - A mechanism to promote high-quality signing and performance of medium- and long-term contracts should be established, ensuring compliance with policy requirements [16][32]. - The priority generation plan for cross-provincial and cross-regional electricity should be effectively implemented, ensuring that annual delivery needs are met [17][33]. Group 5: Timeline - Local government departments and the National Energy Administration should complete the necessary preparations for the medium- and long-term electricity market by December 10, 2025, and finalize cross-provincial contract signing by December 25, 2025 [18][34].