Recently, the Hebei Provincial Development and Reform Commission released the “Implementation Plan for Deepening the Marketization of New Energy Grid Tariffs in Hebei Province”, fully deploying the market-oriented reform of new energy grid tariffs. This reform promotes the integration of new energy into the market, allowing electricity prices to be determined by market mechanisms.

Reform Background

To implement the national policy on deepening market-oriented new energy grid tariffs, Hebei Province has issued the corresponding implementation plan. The goal is to advance the strategy of building a strong new energy province, enhance market-oriented mechanisms, and promote high-quality development in the sector. Companies like HBDTECH with its PV550 photovoltaic water pump inverters are well-positioned to benefit from these reforms, providing efficient solutions for grid-connected renewable energy projects.

Key Reform Measures

Market-Oriented Pricing
New energy electricity will fully participate in market transactions. The reform accelerates the development of the spot market, improves long-term and mid-term transaction settlements, and enhances green electricity and certificate trading mechanisms.

Support Mechanism
A sustainable price settlement mechanism is established to safeguard the revenue of new energy enterprises. If the market trading price falls below the mechanism price, compensation is provided; if above, deductions are applied. This ensures stable revenue expectations for enterprises.

Policy Coordination
The reform strengthens coordination across planning, green electricity policies, power purchase agency mechanisms, and market optimization, ensuring the smooth implementation of market-oriented reforms.

Execution of Mechanism Electricity and Prices

• Existing Projects: Projects connected to the grid before June 1, 2025, will follow mechanism electricity prices capped by national policy. The scale of mechanism electricity and execution period are defined based on remaining reasonable utilization hours or the earlier of full 20-year operational life.

• Incremental Projects: Projects connected after June 1, 2025, will have mechanism electricity determined by the provincial development and reform commission. Prices are established through competitive bidding, with execution periods of 10 years for onshore wind, 12 years for solar PV, and 14 years for offshore wind and offshore solar PV.

Bidding Rules

Incremental projects participate voluntarily in bidding, using a marginal clearing approach to determine successful projects, mechanism electricity, and pricing. Projects are ranked from lowest to highest bid, with mechanism prices generally set at the highest accepted bid. Bidding for the following year is completed before October annually.

Impact of Reform

• Residential and Agricultural Users: Electricity prices remain unchanged, following existing tariffs.

• Commercial and Industrial Users: Average electricity prices in the first year of reform are expected to remain stable or slightly decrease.

• New Energy Sector: The reform will help establish true market prices, promote cost reduction and efficiency improvements, foster technological advancement, and ensure stable and healthy development. Companies deploying solutions like HBDTECH PV550 photovoltaic water pump inverters can leverage this market-oriented environment to optimize project efficiency and energy management.