The National Development and Reform Commission and the National Energy Administration issued the "Notice on Deepening the Market-oriented Reform of New Energy on-grid Electricity Prices to Promote the High-Quality Development of New Energy", clarifying the electricity scale, mechanism electricity price and implementation period of the price settlement mechanism for the sustainable development of new energy.

New energy stock projects put into production before June 1, 2025:

(1) The power scale shall be properly connected by local governments to the current relevant power scale policies with guaranteed nature. The power ratio of the new energy project shall be independently determined within the scope of the scale of the implementation mechanism every year, but shall not be higher than the previous year. New energy projects are encouraged to improve their competitiveness through equipment renewal, transformation and upgrading, and actively participate in market competition.

(2) The mechanism electricity price shall be implemented according to the current price policy and shall not be higher than the local coal-fired power benchmark price.

(3) The implementation period shall be determined in accordance with the current relevant policies and guarantee period. Photothermal power generation projects and offshore wind power projects that have been competitively allocated will be implemented in accordance with the current policies of various places.

New energy incremental projects to be put into production from June 1, 2025:

(1) The amount of electricity added to the mechanism will be determined by local governments based on the completion of the annual non-hydrogen renewable energy power consumption responsibility weight issued by the state, as well as user affordability and other factors. If the power exceeds the weight of consumption responsibility, the power scale included in the mechanism in the following year can be appropriately reduced; if it is not completed, the power scale included in the mechanism in the following year can be appropriately increased. The proportion of the electricity added to the mechanism in the first year after the implementation of the notice shall be appropriately connected to the non-market-oriented proportion of the existing new energy prices to avoid excessive fluctuations. The electricity volume applied to the inclusion mechanism by a single project may be appropriately lower than its total power generation.

(2) Mechanical electricity prices are formed by voluntarily participating in bidding by projects that have been put into production every year and have been put into production within the next 12 months and have not been included in the scope of mechanism implementation. In the initial stage, those with large cost differences can be classified and organized according to the technical type. During bidding, the selected items are determined from low to high according to the quotation. In principle, the mechanism electricity price is determined based on the highest quotation for the selected items, but it shall not be higher than the bidding upper limit. The bidding upper limit is determined by the provincial price authorities considering reasonable cost benefits, green value, supply and demand situation in the power market, user affordability and other factors. In the initial stage, cost factors can be considered and disorderly competition can be avoided.

(3) The execution period shall be determined according to the average period for the recovery of the initial investment of similar projects. The starting time shall be determined according to the production time declared by the project, and the projects that have been put into production at the time of selection shall be determined according to the selection time.