According to the "Notice on Establishing and Improving the New Energy Electricity Pricing Mechanism" jointly issued by the National Development and Reform Commission and the Energy Administration (also known as "Document No. 136"), localities need to formulate specific implementation rules based on local renewable energy resource conditions and consumption capacity. Under this policy background, various investors generally adopt a wait-and-see attitude towards new photovoltaic projects. In order to accelerate the implementation of policies, the National Energy Administration held a nationwide video conference on renewable energy power development and construction scheduling in August, clearly requiring all regions to quickly introduce implementation plans, organize electricity price bidding, stabilize market expectations, and optimize the investment environment.

According to statistics from Sobi Photovoltaic Network, as of the end of August 2025, 21 provinces and cities across the country have issued implementation rules. Currently, what investors are most concerned about is: which provinces have more friendly electricity pricing policies? Which regions still have significant investment value?

In terms of the proportion of mechanism electricity, policies in many regions continue to adhere to previous requirements, but there are significant regional differences. In distributed photovoltaic projects, provinces such as Guangxi, Ningxia, Yunnan, western Inner Mongolia, eastern Inner Mongolia, Shanghai, and Gansu allow 100% of electricity to be included in the mechanism electricity; Hunan sets the upper limit of the proportion at 80%; The policy of Shandong in 2025 specifies that the proportion of mechanism electricity for newly added distributed photovoltaic and decentralized wind power will be 85% and 70% respectively. The proportion of centralized photovoltaic protection has generally tightened. Hubei has proposed a limit of 12.5% for the proportion of centralized new energy mechanism electricity, which means that more than 70% of the generated electricity needs to participate in market-oriented transactions, even higher than some northwest provinces. Analysis has pointed out that although participating in medium - and long-term transactions can enjoy some guaranteed acquisitions and policy rewards, with an actual guarantee ratio of nearly 80%, there are essential differences in the stability of electricity prices and market risks compared to distribution. The guarantee ratio in Hainan has been decreasing year by year to 80%, while in Yunnan it is 55%. Various regions also emphasized that the annual mechanism electricity proportion of specific projects shall not be higher than the previous year.

According to the published electricity price regulations of 21 provinces and cities, the overall range of mechanism electricity price is 0.26-0.45 yuan/kWh, with an average level of about 0.36 yuan/kWh. The electricity prices in six provinces and cities including Hunan, Hainan, Guangxi, Hubei, Shanghai, and Zhejiang have shown outstanding performance, generally exceeding 0.40 yuan/kWh. Among them, the surrounding areas of the Yangtze River Delta and Pearl River Delta with strong electricity demand can reach up to 0.42 yuan/kWh. The electricity prices in Mengxi, Xinjiang, and Ningxia are at a low level, generally below 0.30 yuan/kWh, with the lowest being 0.26 yuan/kWh. The execution period is usually taken as the smaller of the remaining reasonable utilization hours of the project and the remaining period after 20 years of production.

For incremental projects that will be fully connected to the grid after June 1, 2025, except for those in eastern and western Mongolia that are temporarily unstable, the mechanism electricity consumption in other regions will be determined based on factors such as the weight of non water renewable energy consumption responsibility and user capacity. Xinjiang, Shandong, Hunan, Guangdong, Hainan, Ningxia, Liaoning, and Guizhou provinces have clearly defined the initial declaration ratio, with a maximum upper limit of 90% (Xinjiang) and a minimum of 10% (Ningxia). Many regions have also introduced dynamic adjustment mechanisms, directly linking electricity prices to generation hours and consumption capacity. Guangdong and Guizhou have specially set rules for reducing electricity consumption to prevent "double benefits".

The incremental project mechanism electricity price is strictly determined by bidding, based on the highest bid of the selected project, and does not exceed the bidding upper limit. At present, 9 provinces including Xinjiang have announced the upper and lower limits of bidding, among which the upper limits of bidding in Xinjiang, Ningxia, Shanxi, and Guizhou are the same as the local coal electricity benchmark price. The minimum bidding limit for photovoltaic projects is 0.123 yuan/kWh in Shandong, and the maximum bidding limit is 0.3998 yuan/kWh in Hainan. In terms of implementation period, Xinjiang, Hunan, Ningxia, and Shandong (except for Far East Wind Power) have a duration of 10 years, while most others have a duration of 12 years.

Based on the comprehensive policy content and electricity pricing mechanism, the investment value of each region can be preliminarily divided into four categories:

High electricity price+high security areas: such as Zhejiang, Shanghai, and Hainan, where the electricity price exceeds 0.40 yuan/kWh, the security ratio is high, the execution period is long, the income stability is strong, and it is suitable for central and state-owned enterprises that pursue long-term stable returns.

Low electricity price+high guarantee areas: such as Gansu, Guizhou, and Yunnan, although the electricity price is low, the guarantee ratio is clear and high, and the implementation period is mostly 20 years. The predictable income is strong, suitable for investment enterprises that focus on long-term cash flow, have economies of scale or refined operation capabilities.

High electricity prices+low guarantee areas: such as Hunan, Guangdong, and Hubei, where electricity prices are high but the guarantee ratio is limited, and there is a high risk of income fluctuations. They are suitable for investors with strong market-oriented operation capabilities who can use regional electricity premiums to increase their income.

Low electricity price+low guarantee areas: such as Xinjiang, Ningxia, and Mengxi, where the electricity price is below 0.30 yuan/kWh, the guarantee ratio is low, the implementation period is short, and the investment risk is high. However, with abundant light resources and low land costs, it is suitable for projects with strong cost control capabilities or local consumption conditions.

In summary, the recommended investment priority is: high electricity price and high guarantee>high guarantee>high electricity price>low guarantee and low electricity price areas. With the continuous clarification of local regulations, photovoltaic investors need to combine regional policies with their own advantages, carefully layout, and seize structural opportunities. Editor/Xu Shengpeng