Recent Industry Developments
The National Development and Reform Commission (NDRC) has introduced a new policy supporting green electricity. On January 21, the NDRC and other departments released the 'Implementation Plan for Promoting Green Consumption,' further emphasizing support for green power consumption by utilizing market mechanisms to promote green electricity absorption. The plan highlights: 1) Further stimulating the potential of green power consumption across society and implementing requirements that newly added renewable energy and raw material energy are not included in total energy consumption control. 2) Coordinating the promotion of green power trading and green certificate trading, strengthening the mandatory requirement for high-energy-consuming enterprises to use green power, allowing regions to set a minimum percentage of green power in high-energy-consuming enterprises' power consumption based on actual conditions.
Datang Power announced its annual power generation and 2025 new energy installation plans. On January 21, Datang Power announced that as of the end of 2021, it had completed approximately 257.715 billion kilowatt-hours of power generation, representing a year-on-year increase of 1.54%, with an average online electricity price of RMB 389.1 per megawatt-hour. Zou Lei, Party Secretary and Chairman of China Datang, emphasized at the work conference that they aim to transition from a traditional power company to a green, low-carbon energy enterprise, with non-fossil energy installations exceeding 50% by 2025.
Key Insights
The new policy promotes the sustained growth of green electricity on both the supply and demand sides. We believe that the 'Implementation Plan for Promoting Green Consumption' has relaxed controls over energy consumption in green power construction, addressing the tight supply-side constraints in green power construction. As technology continues to advance and production scales up, upstream raw material and midstream component costs are expected to decline further...