New Energy Market “531” Policy Implementation: What’s Next?
On June 1, 2025, the new energy market will see the implementation of the “531” policy, marking a significant shift in China’s new energy landscape.
On February 9, the National Development and Reform Commission and the National Energy Administration jointly issued a document titled “Guidance on Reforming the Pricing Mechanism for New Energy Power Generation”. This document highlights the need to optimize the pricing mechanism for new energy electricity to promote high-quality development.
Key points of the reform include:
- The introduction of a tiered pricing system based on the value of electricity generated from new energy sources.
- Ensuring that electricity prices remain competitive while facilitating the integration of new energy into the grid.
- Encouraging investments in new energy projects to improve efficiency and reduce costs.
According to Document 136, the new energy market will set a target date of June 1, 2025 for the implementation of pricing adjustments and capacity expansion projects, referred to collectively as the “531” policy.
Under this framework, existing capacity projects will undergo price calculations based on market conditions, ensuring that electricity prices do not exceed local grid prices. After June 1, electricity prices for newly added capacity will be determined through market mechanisms.
This means that capacity project prices will stabilize relatively, while the pricing for new capacity will face more flexible adjustments based on market demand. This change is expected to address the current challenges in the new energy sector, including fluctuating prices and supply stability.
In April, the State Grid Corporation announced plans to accelerate the construction of new energy projects, aiming to increase the installed capacity of photovoltaic power generation to 990 billion watts by 2024, which is a 47.7% increase compared to last year.
As of April 22, the National Energy Administration reported that from January to April, the installed capacity of new energy in China reached 10,493 million watts, marking a 74.56% increase compared to the previous year.
Wind energy capacity also reached 5.4 billion watts, reflecting an increase of 18.2%.
Looking ahead, the new energy market will need to adapt to various challenges, including regulatory complexities and the need for consistent price structures. Therefore, the pricing strategies for new energy will require careful monitoring and adjustments to ensure stability and growth in the sector.
In summary, the implementation of the “531” policy is expected to transform the new energy market in China significantly, paving the way for sustainable development and enhanced market integration.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/new-energy-market-531-implements-significant-changes-what-lies-ahead/
