New Energy Market: What Are the Implications of Project Suspension?
Date: May 24, 2025, 03:45 AM
Starting June 1, new energy projects will have their online electricity trading prices regulated on the market. This means that electricity prices will likely increase due to market trading conditions. This change is the result of the “Document No. 136,” issued in February of this year, which aims to adjust the electricity price mechanism and promote the high-quality development of the new energy sector.
Since the release of the policy, numerous projects have already announced suspensions. These projects vary in scale from several megawatts (MW) to hundreds of gigawatts (GW) and include both distributed and centralized types. Industry insiders note that the new energy electricity price policy will drive the adjustment of new energy resource allocation, thus significantly affecting the development timeline of these projects.
Under this backdrop, several projects have publicly declared their suspension. The reasons for these suspensions include changes in electricity prices, government policy adjustments, and a multitude of other influencing factors. For instance, on March 27, the policy regarding electricity pricing and regulation affected State Grid’s project approvals, leading to a significant reduction in projects under development.
Moreover, on April 9, the new energy electricity price policy was recognized as the largest in Chinese history, resulting in the suspension of 51 GW of projects. This new pricing mechanism directly impacts the profitability of new energy projects, making it increasingly difficult for companies to achieve their return on investment goals.
In the wake of these developments, the State Grid Corporation has adapted its electricity pricing policy to align with the current market conditions, estimating a substantial reduction in revenue from new energy projects. The ongoing review of project approvals indicates that the impact of the new pricing mechanism is ongoing and far-reaching.
Industry experts emphasize that the construction of distributed energy projects will require careful planning to navigate the complexities of the new pricing structure. As the situation evolves, companies are urged to remain vigilant and flexible in their strategies, ensuring they can adapt to the changing landscape of the new energy market.
Overall, the recent changes in the new energy pricing policy signal a critical turning point for the industry. Stakeholders are encouraged to reassess their project strategies and consider the implications of these shifts on future developments.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/new-energy-market-trends-what-factors-are-driving-project-suspension/
