At a time when the new energy industry is developing rapidly, every policy adjustment may cause drastic fluctuations in the market. The "Notice on Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices to Promote the High-quality Development of New Energy" (Fagai Jiajia [2025] No. 136) issued by the National Development and Reform Commission and the National Energy Administration, which came into effect on January 27, 2025, and the "Notice on Comprehensively Accelerating the Construction of the Electricity Spot Market" (Fagaiban Tigai [2025] No. 394) which came into effect on April 16 of the same year, are like two stones thrown into a calm lake, stirring up thousands of waves. It is necessary for the industry to deeply analyze the impact of these policy changes on the acquisition, investment, financing and mergers and acquisitions of new energy projects, as well as how to prevent and control related risks.

The core of Document No. 136 is to promote the formation of new energy grid-connected electricity prices by the market, cancel the previous benchmark electricity prices and fixed subsidy mechanisms, and replace them with a trading model of "comprehensive market trading + mechanism electricity difference compensation". This change has made electricity price fluctuations a new normal, in sharp contrast to the previous stable subsidy era. The introduction of the policy not only changed the electricity price formation mechanism, but also triggered disputes over the attribution of green electricity transaction premiums and the transfer of deviation assessment costs. The photovoltaic industry index has fallen back to the previous low level after the current round of rebound on September 24, 2024. The state has put forward the latest requirements for energy consumption, water consumption, conversion efficiency, and minimum capital ratio in the photovoltaic manufacturing process, raising the entry threshold for new projects.

At the same time, the price of upstream photovoltaic products fell below the industry's cash cost, forcing existing companies to actively reduce their operating rates and reduce industry supply; in addition, some small photovoltaic component manufacturers with no technology and weak financial strength were eliminated by the market, and there were signs of market clearing. But on the other hand, banks and local governments continued to provide blood transfusions to projects, and there was still a possibility of resuming construction of suspended projects and maintenance projects. Therefore, the contraction of the supply side will not happen overnight, and the persistence of oversupply and weak demand expectations will be reflected in the secondary market as stock prices repeatedly bottoming out at low levels.

Document No. 136 accelerates the marketization process of power trading and increases the uncertainty of new energy electricity prices. In February 2025, the National Development and Reform Commission issued the "Notice on Deepening the Marketization Reform of New Energy Grid-connected Electricity Prices to Promote the High-quality Development of New Energy" (NDRC Price [2025] No. 136). The notice requires deepening the marketization reform of new energy grid-connected electricity prices, promoting the entry of all new energy grid-connected electricity such as wind power and solar power generation into the power market, and forming grid-connected electricity prices through market transactions; innovatively establishing a price settlement mechanism for the sustainable development of new energy, and for existing projects, the electricity and electricity prices included in the mechanism are properly connected with the current policies; for incremental projects, the scale of electricity included in the mechanism shall be reasonably determined by local governments in accordance with national requirements, and the mechanism electricity price shall be determined through market-based bidding. The policy distinguishes between new and old projects from June 1, 2025. Document No. 136 continues the style of coal-fired power capacity electricity prices and ancillary service market price policies, allowing local policies to "adapt to local conditions" and implement specific policy details supporting local new energy development. Document No. 136 mentioned that all regions must issue and implement specific plans by the end of 2025, and it is expected that there will be significant differences in policies among regions. Affected by multiple factors such as policies, loads, power structure, and new energy output characteristics, coupled with the pressure of consumption, there is uncertainty in the price of new energy electricity, and there is a risk of a decline in the settlement price. As marketization deepens, the rate of return of new energy projects will vary and the differentiation will gradually widen. Factors such as project resource volume, regional power supply and demand, power trading level and operation capacity, and cost control capacity affect the investment return of power station developers.

Document No. 136 clearly stipulates that in principle, all grid-connected electricity from new energy projects will enter the electricity market, and grid-connected electricity prices will be formed through market transactions. This means that new energy projects will no longer enjoy fixed benchmark electricity prices, but will have to participate in bidding based on market supply and demand. This market-based pricing mechanism makes project revenue expectations difficult to predict and increases investment risks. In green electricity transactions, whether the electricity seller enjoys green added value has become a focus of controversy. Green electricity transaction prices usually include electricity energy prices and green electricity certificate (green certificate) prices. At present, the policy boundaries are not clear, which may lead to disputes between the two parties during the contract signing and execution process. New energy power generation is characterized by intermittency and uncertainty, and the actual power generation may deviate from the predicted value. Under the market-based trading mechanism, power generation companies need to bear the risk of fines for power generation forecast errors. This transfer of deviation assessment costs increases the operating costs and risks of power generation companies, further affecting the project's expected revenue.

For us, Multifit, we need to seize this opportunity and take advantage of the continuous expansion of the photovoltaic market to introduce our photovoltaic equipment and photovoltaic cleaning equipment to our potential customers, so that they can familiarize themselves with the performance and quality of our products, and ultimately place successful orders. And actively participate in domestic and international exhibitions, for example, at this year's 136th Canton Fair, we sent a luxurious lineup to participate in the exhibition. At this Canton Fair, we fully demonstrate our latest products to these potential customers and seize these opportunities that allow our end customers to experience our products for the first time.