Core Viewpoint - The investment in ultra-high voltage (UHV) new energy base projects primarily consists of three components: UHV transmission lines, peak-shaving power sources, and new energy sources. The profitability of these projects is heavily influenced by electricity price differentials and the capacity utilization of the transmission lines [2][3][4]. Group 1: UHV Transmission Lines - UHV transmission lines are typically funded by the power grid, with some contributions from receiving provinces. The return on investment is mainly derived from transmission fees, which are fixed per kilowatt-hour. The project must achieve at least 80% of its designed capacity to avoid losses, and to meet expected returns, it should exceed 90% [2]. - The transmission fee cannot exceed the regional electricity price differential; for instance, the price difference between Shaanxi (0.34) and Anhui (0.4) is 0.06. If the transmission fee exceeds this differential, the project loses economic viability [2]. Group 2: Peak-Shaving Power Sources - Peak-shaving power sources are primarily coal-fired power plants, typically configured to 50% of the full transmission capacity, with an annual utilization of 5000 hours [3]. Group 3: New Energy Sources - New energy sources, such as wind and solar, are configured based on their annual utilization hours. For example, if the average annual utilization is 2500 hours, the installed capacity should be double that of the peak-shaving coal power [3]. Group 4: Current Issues - The uneven output of new energy sources and the inadequacy of the current pricing mechanism make it challenging for new energy base projects to be profitable. To ensure the design return of new energy projects, it is necessary to reduce the curtailment of wind and solar energy, which in turn affects the utilization hours of peak-shaving coal power and the transmission volume of UHV lines [4]. - If the profitability of peak-shaving coal power and UHV lines is to be maintained, a significant increase in wind and solar capacity is required. This would lead to higher curtailment rates for wind and solar projects, and under the current pricing mechanism, electricity prices are likely to decline, making it difficult for new energy projects to be profitable [4]. Group 5: Energy Storage Consideration - While energy storage could theoretically smooth out the output of wind and solar energy, the question remains: who will bear the costs? [5]