Rules for the entry of wind and solar projects into the market in 20 provinces by 2025

As early as January 2022, the National Development and Reform Commission and the National Energy Administration issued the "Guiding Opinions on Accelerating the Construction of a Unified National Electricity Market System", proposing to achieve full participation of new energy in market transactions by 2030. With this as the established goal, the pace of new energy entering the market has significantly accelerated.

According to data from the National Energy Administration, in 2022, the market-oriented trading of new energy reached 346.5 billion kilowatt hours, accounting for 38.4% of the total new energy generation, an increase of 14 percentage points from 2020; In 2023, the market-oriented trading capacity of new energy will reach 684.5 billion kilowatt hours, accounting for 47.3% of the total new energy generation.

At the beginning of this year, in order to vigorously promote the high-quality development of new energy, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Deepening the Marketization Reform of New Energy Grid Electricity Prices to Promote the High Quality Development of New Energy" (NDRC Price [2025] No. 136), which can be described as throwing a "deep water bomb" ahead of schedule. It is required that all wind and solar power generation grid electricity should enter the electricity market in principle, and specific plans should be formulated and implemented by the end of 2025 in various regions.

However, before the detailed regulations of Document No. 136 are issued in various regions, the entry of new energy into the market will still comply with the 2025 plans already issued in various regions, and Document No. 136 also points out that the scale of electricity included in the mechanism for existing projects (put into operation before June 1, 2025) should be in line with current policies. For this purpose, Polaris has compiled the 2025 new energy market entry policies for 20 provinces, autonomous regions, and municipalities for industry reference.

From the perspective of new energy market entry plans in various regions by 2025, compared to 2024, the proportion of new energy entering the market has generally increased. For example, Liaoning, Qinghai, Hunan and other regions require all electricity from centralized new energy projects to enter the electricity market for trading; The priority hours for wind and photovoltaic power generation have significantly decreased in Xinjiang, Shaanxi, Sichuan, and other regions; In addition, Hebei, Jiangsu, Shandong, Hunan, and Anhui require distributed photovoltaic projects with partial grid connected electricity or certain categories to enter the electricity market for trading.

List of regulations for the entry of new energy into the market in 20 regions:

1. Ningxia

In 2025, the priority power generation of centralized wind and photovoltaic projects, as well as poverty alleviation and distributed photovoltaic projects in Ningxia, will increase compared to 2024, but decentralized wind power will decrease. According to specific project calculations, the priority power generation hours for ordinary wind power and photovoltaic projects in Ningxia in 2025 will be 233.8 hours and 155.8 hours, respectively, which is basically equivalent to 2024.

2. Hubei Province

Compared to 2024, when only a portion of the on grid electricity prices for new energy were quoted and included in the spot market, in 2025, Hubei requires new energy stations of 110kV and above to directly participate in medium - and long-term as well as spot trading. New energy stations below 110kV can directly participate in market trading or act as price recipients, and must quote and participate in electricity spot trading after directly participating in medium - and long-term trading. Wind power and photovoltaic power generation enterprises shall not exceed 35 and 60 hours of net contracted electricity (including green power trading) converted into utilization hours for medium and long-term transactions in each month, respectively, that is, the annual medium and long-term hours shall not exceed 420 and 720 hours.

According to data statistics from Fengfeng Technology, in 2024, the total amount of green electricity traded in Hubei was 1.714 billion kilowatt hours, with an average settlement price of 475.59 yuan/megawatt hour; In the first quarter, Hubei Province did not conduct spot market trading. Since the implementation of spot trading in the second quarter, the settlement of grid connected electricity for new energy reached 38.251 billion kilowatt hours, with an average settlement price of 386.60 yuan/megawatt hour.

3. Hebei Province

(1) Hebei North Power Grid

The requirements for centralized new energy entering the market in Hebei North Power Grid in 2025 will be consistent with those in 2024. But the change in 2025 is that Hebei North Power Grid has introduced the "Work Plan for Distributed Photovoltaic Participation in the Electricity Market". The plan states that the participation of distributed photovoltaics in the market will be promoted in stages according to the principle of "pilot first, phased promotion, and comprehensive market entry". During the first stage of the pilot, distributed photovoltaics with voltage levels of 10 kV and above will be connected and temporarily participate in the green electricity market at 20% of the on grid electricity.

There are two modes to choose from in terms of market entry. Firstly, direct participation in the market. After registering as the operating entity on the power trading platform, distributed photovoltaics participate in market transactions directly as power generation entities according to the trading rules and plans formulated by the government regulatory department; Secondly, aggregators act as agents to participate in the market. Aggregators with corresponding qualifications register as operating entities on the electricity trading platform and form agency relationships with distributed photovoltaic entities on the trading platform, acting as agents for distributed photovoltaic entities to participate in market transactions.

(2) Hebei Southern Network

Compared to the market entry ratio of 40% to 60% for photovoltaics and 20% to 30% for wind power in 2024, the market entry ratio of photovoltaics in Hebei Southern Power Grid will be uniformly increased to 60% and 30% for wind power in 2025.

In addition, distributed photovoltaics will be encouraged in 2024 and become mandatory in 2025. Industrial and commercial distributed photovoltaics of 10kV and above will be introduced in stages, with incremental entry after January 1st. Starting from July 1st, the stock will enter the market, and the proportion of on grid electricity entering the market will be 20%.

4. Jiangsu

In 2024, Jiangsu's abandoned and affordable new energy projects can participate in green power trading. The annual green power trading volume for centralized photovoltaics is ≤ 900 hours, and the annual green power trading volume for centralized wind power is ≤ 1800 hours. Electricity outside of green power trading will be fully guaranteed for purchase at the benchmark price of coal-fired power.

In 2025, priority will still be given to organizing unsubsidized projects to participate in green power trading. However, centralized photovoltaic and wind power that do not participate in green power trading will have their monthly on grid electricity deducted from the guaranteed quantity and price as guaranteed bidding electricity, and will participate in medium and long-term regular trading within the province. The annual guaranteed quantity and price electricity generation hours for centralized photovoltaic and wind power that do not participate in green power trading are 400 and 800 hours, respectively.

The entry of distributed photovoltaics into the market has also changed from an "optional" option in 2024 to a "mandatory" option in 2025. After issuing a green certificate, participants will participate in green electricity trading, mainly monthly and intra month trading.

5. Guangdong

The scope of Guangdong's new energy entering the market has expanded from 220kV and above voltage levels in 2024 to 110kV and above voltage levels in 2025. Distributed energy is primarily encouraged.

The "2024 Annual Report on Guangdong Power Market" released by Guangdong Electric Power Trading Center shows that a total of 45 new energy power generation enterprises participated in spot trading in 2024, with a total transaction volume of 27.96 billion kilowatt hours and an average price of 292.9 cents per kilowatt hour; The real-time total transaction electricity was 29.77 billion kilowatt hours, with an average price of 279.1 cents per kilowatt hour. The cumulative transaction volume of green electricity in 2024 is 7.26 billion kilowatt hours, with an average electricity price of 464.2 cents per kilowatt hour and an average green environmental value of 8.8 cents per kilowatt hour.

6. Liaoning

In 2024, all on grid electricity generated by Liaoning's new energy sector, except for priority power generation, will participate in intra provincial electricity market transactions and inter provincial transmission transactions. By 2025, except for distributed new energy, wind turbines with settlement prices (excluding financial subsidies) higher than the benchmark price for coal-fired power generation, and 10kV grid connected new energy units whose power generation has been fully prioritized as a guarantee, the on grid electricity of other generator units will generally participate in market transactions.

7. Zhejiang

In 2024, Zhejiang's new energy projects will mainly focus on green power trading, and in 2025, wind and photovoltaic power will be integrated and voluntarily participate in green power trading; In the spot market, only 10% of electricity is required to participate, and 90% of electricity is allocated through government authorized contracts, with government pricing implemented. Distributed new energy can voluntarily participate in green power trading by 2024.

8. Xinjiang

In 2025, the priority hours for ensuring quantity and price of ordinary wind and photovoltaic projects in Xinjiang will be further reduced.

9. Shaanxi

The priority hours for wind and photovoltaic power generation in Shaanxi in 2025 have decreased compared to 2024. Although the priority generation plan for distributed new energy is fully arranged, voluntary participation in electricity market trading is encouraged in the electricity trading scheme. Provincial regulatory authorities can directly participate in wholesale market trading, while others mainly participate in trading through aggregation.

10. Shandong

Before 2024, Shandong's wind and photovoltaic projects can participate in spot trading with a minimum of 10% of their on grid electricity. However, from 2025 to 2026, the minimum market entry ratio for new wind and photovoltaic projects will increase to 30% and 15%, respectively.

11. Inner Mongolia

(1) Mengxi

In 2025, the priority generation hours of conventional wind and photovoltaic projects in the western region of Mongolia will increase compared to 2024.

(2) Mong Dong

The number of priority power generation hours for wind and photovoltaic projects subsidized by Mengdong Belt in 2025 will decrease compared to 2024.

12. Heilongjiang Province

In 2025, only affordable wind and photovoltaic projects will have guaranteed hours, but compared to 2024, the guaranteed hours have significantly decreased by more than 60%. The surplus electricity beyond the guaranteed hours of the parity project and all the on grid electricity of other new energy projects will enter the market for trading.

13. Henan

The entry rules for centralized new energy stations in Henan in 2025 will remain consistent with those in 2024. In the spot market, Henan Province will conduct a trial operation of spot settlement from May 15 to June 14, 2024, during which 10% of the centralized new energy grid connected electricity will participate in spot market settlement. In 2025, according to the Notice on Carrying out Surplus New Energy Participation in Inter provincial Electricity Spot Trading issued by the Henan Regulatory Office of the National Energy Administration, in order to ensure the safe and reliable supply of electricity throughout the province, new energy enterprises will not be organized to participate in the inter provincial electricity spot market in principle when the power balance within the province is tight. In the initial stage, new energy stations will temporarily participate in inter provincial electricity spot trading with an upper limit of 80% of the predicted surplus power generation. After the trading rules are improved and the mechanism is clarified, the upper limit of declared electricity will gradually be lifted.

14、Fujian

Consistent with 2025 and 2024, only centralized wind power projects are required to participate in market-oriented transactions.

15、Qinghai

As a representative province with a high proportion of new energy entering the market, Qinghai will still only have guaranteed utilization hours for poverty alleviation, franchise projects, and photovoltaic application leader base projects by 2025, while other centralized grid connected photovoltaic and wind power projects will need to participate in electricity market trading. The annual transaction signing ratio shall generally not be less than 80% of the total market-oriented electricity in the province.

16、Hunan

By 2025, Hunan will continue to integrate all electricity from photovoltaic and wind power projects into the electricity market for trading. At the same time, Hunan Electric Power Trading Center released the "Implementation Rules for Hunan Industrial and Commercial Distributed Photovoltaic Participation in Market Trading (Trial)", which includes the participation of industrial and commercial distributed photovoltaic in the medium and long-term, auxiliary service markets, and spot markets. Among them, industrial and commercial distributed photovoltaics with voltage levels of 10kV and above should be registered as independent entities and included in the unified operation and management of the Hunan electricity market trading rules system; Industrial and commercial distributed photovoltaic operators with voltage levels below 10kV can participate in the Hunan electricity market through virtual power plant aggregation.

17、Sichuan

The rules for the entry of new energy into the market in Sichuan in 2025 have not changed significantly. Both wind power and photovoltaics (excluding poverty alleviation projects) that are directly regulated by the province should participate in market transactions. The portion other than priority electricity can participate in green electricity transactions, and the remaining electricity after green electricity transactions can participate in other transactions.

In terms of priority electricity generation, compared to 2024, the priority generation hours of wind and photovoltaic projects in Sichuan will significantly decrease by half in 2025. But an additional 150 hours of tilt support will be provided for wind and solar power stations that lease storage and power side storage projects.

18、Anhui

By 2025, all new energy generation enterprises participating in the market in Anhui Province will still participate in market transactions for their on grid electricity consumption. And considering the guarantee of power supply and limited consumption of new energy, a temporary midday trading limit for thermal power units will be set during the initial trial operation of the spot market.

In terms of green power trading, in addition to the centralized photovoltaic projects in 2024, distributed photovoltaic projects have been added this year. After January 1, 2025, distributed photovoltaic power generation enterprises registered as "fully connected to the grid" and "self owned, surplus connected to the grid" for commercial and non natural person households should participate in green power trading in principle. In addition, other affordable industrial and commercial, non natural person household distributed photovoltaic power generation enterprises are encouraged to participate in transactions, and natural person household distributed photovoltaics are temporarily not involved in transactions.

According to third-party platform statistics, in 2024, Anhui's green power settlement electricity reached 9.743 billion kilowatt hours, with an average settlement price of 434.64 yuan/megawatt hour, which is higher than the benchmark coal price.

19、Chongqing

In 2025, Chongqing Green Power Trading will allow voluntary participation in affordable wind and photovoltaic projects. In terms of settlement, Chongqing has clarified that when the deviation between the contracted green electricity volume and the actual grid connected electricity volume of new energy power generation enterprises is within a certain range K (tentatively ± 10%), the city will follow the principle of long-term deviation settlement; When exceeding this range, the excess power generation will be settled according to the coal-fired benchmark electricity price, and the insufficient power generation will be settled according to the corresponding period's green power contract price.

20、Guangxi

Compared to 2024, in 2025, centralized wind and photovoltaic projects in Guangxi will no longer have equivalent grid connected electricity, but will require full electricity to participate in market-oriented transactions. But according to the 2024 regulations, new energy projects participating in market transactions shall be subject to government authorized contract prices. In 2024, the price shall be 0.38 yuan/kWh, and in 2025, it shall be divided into green electricity contract prices of 0.375 yuan/kWh and conventional contract prices of 0.360 yuan/kWh.

It is worth noting that the settlement cost of new energy power generation enterprises is equal to the market-oriented settlement cost plus the government authorized contract price difference cost, and the calculation rules have changed compared to last year.