Event: On February 9, the National Development and Reform Commission and the National Energy Administration issued a notice on deepening the market-oriented reform of new energy feed-in tariffs to promote the high-quality development of new energy

　　　 The entry of new energy into the market has been steadily implemented, and the reform of the electricity market has been deepened. In accordance with the requirements of the formation of the price market, the fair assumption of responsibilities, the differentiation of stock increments, and the overall coordination of policies, we will deepen the market-oriented reform of new energy feed-in tariffs. The overall idea includes four "insistences", adhere to the direction of market-oriented reform, and promote the full entry of new energy on-grid electricity into the electricity market and the formation of prices through market transactions. Adhere to the fair assumption of responsibility, improve the market transaction and price mechanism that adapts to the development of new energy, and promote the fair participation of new energy in market transactions. Adhere to classified policies, distinguish between existing projects and incremental projects, establish a price settlement mechanism for the sustainable development of new energy, maintain the policy convergence of existing projects, and stabilize the income expectations of incremental projects. Adhere to overall planning and coordination, industry management, price mechanism, green energy consumption and other policies to make concerted efforts, improve the power market system, and better support the realization of new energy development planning goals.

Promote new energy to go online, and the electricity price is fully formed by the market. In principle, all on-grid electricity of new energy projects will enter the electricity market。 The feed-in tariff is formed through market transactions, and new energy projects can participate in the transaction by quoting the volume, and can also accept the price formed by the market. For the amount of new energy electricity involved in inter-provincial and inter-regional transactions, the feed-in tariff and trading mechanism shall be implemented in accordance with the relevant policies for inter-provincial and inter-regional power transmission。 Improve the spot market trading and price mechanism. Improve the trading rules of the spot market, promote the fair participation of new energy in the real-time market, and accelerate the realization of voluntary participation in the day-ahead market. The upper limit of the declared price in the spot market shall be determined by taking into account factors such as the current peak electricity price level of industrial and commercial users in various places, and the lower limit of the declared price shall be determined by considering other benefits that can be obtained by new energy outside the electricity market, and shall be formulated and adjusted in a timely manner by the provincial price authority in consultation with relevant departments。

Improve the medium and long-term market transaction and price mechanism. Continuously improve the medium and long-term market trading rules, shorten the trading cycle, increase the frequency of trading, and realize weekly, multi-day, and day-by-day market opening. The supply and demand sides are allowed to reasonably determine the volume, price, curve and other contents of the medium and long-term contracts in combination with the characteristics of new energy output, and flexibly adjust them according to the actual situation. Improve the green power trading policy, and the declaration and transaction price should respectively clarify the price of electric energy and the price of the corresponding green electricity certificate; Centralized bidding and rolling matching transactions are not separately organized in the province's green power trading。 Encourage new energy power generation enterprises to sign multi-year power purchase agreements with power users, manage market risks in advance, and form a stable supply and demand relationship。 Guide power trading institutions to explore and organize multi-year transactions under the premise of reasonable convergence and controllable risks。

Market-based electricity trading brings opportunities for the investment structure and application side of power equipment. With the gradual clarity of the context planning of market-oriented transactions, the investment in related power software and dispatching links is expected to accelerate, and it is recommended to pay attention to National Energy Rixin (301162, increase holdings), State Grid Information and Communications (600131, not rated), Dongfang Electronics (000682, not rated), etc.; In the process of steady implementation of electricity marketization, the attention of relevant power equipment investment is expected to be improved, and it is recommended to pay attention to the power grid construction and consumption optimization side of Guodian NARI (600406, not rated), Jinpan Technology (688676, buy), Mingyang Electric (301291, not rated), Samsung Medical (601567, not rated), Haixing Power (603556, not rated), etc. With the increase in the proportion of electricity market-oriented transactions, the value of electricity in the time dimension is expected to be concerned, which is good for the investment in related energy storage industries, and it is recommended to pay attention to the corresponding opportunities brought by the growth of energy storage linksDeye shares (605117, buy), Sungrow (300274, not rated), Sineng Electric (300827, not rated), GoodWe (688390, not rated), Xineng Technology (603105, buy), Jinko Power (601778, not rated), etc.

Risk Warning

: The process of new energy entering the market is less than expected, the demand for power equipment is less than expected, and the demand for energy storage