Views: 0 Author: Site Editor Publish Time: 2026-07-24 Origin: Site
After months of falling electricity prices, declining investment confidence, and financial pressure on renewable energy developers, China’s wind and solar industry is showing signs of adjustment and recovery.
As the country moves toward a fully market-oriented renewable energy system, the mechanism electricity price system is becoming a key tool to stabilize project returns. Recent bidding results from several provinces indicate that renewable energy prices are moving upward after a period of excessive low-price competition.
By July 2026, Gansu, Yunnan, Xinjiang, and Heilongjiang had released their 2027 first-half renewable energy mechanism electricity price results.
Gansu led the rebound. Its new wind and solar projects cleared at 0.2447 yuan/kWh, reaching the bidding ceiling and increasing by 25% compared with previous rounds. Meanwhile, the number of successful projects increased by 35%, showing renewed market participation.
Xinjiang recorded the most significant recovery. Solar mechanism prices jumped from the previous “floor price” of 0.15 yuan/kWh to 0.259 yuan/kWh, an increase of approximately 73%. Wind power prices also increased by around 10%.
Heilongjiang’s wind power price rose to 0.2845 yuan/kWh, about 25% higher than before, while Yunnan maintained a relatively stable level around 0.33 yuan/kWh.
The latest bidding results show that both electricity prices and project participation are recovering, suggesting that the market is moving away from extreme price competition.
Industry experts believe the main reason is a return to more rational bidding behavior.
After the implementation of China’s renewable energy market reform policies, developers gradually adapted to the new bidding rules. The previous strategy of aggressively cutting prices to secure projects has weakened as companies face declining profits and increasing operational pressure.
Several renewable energy companies have reported significant financial challenges.
China Three Gorges Renewables expects its first-half 2026 net profit to decline by 66%–73% year-on-year, mainly due to lower electricity prices and grid consumption issues.
Jinko Technology is expected to report a loss of up to 246 million yuan, affected by falling settlement prices, increased power restrictions, and declining solar revenue.
These challenges have forced developers to focus more on profitability rather than simply expanding capacity.
Government policy adjustments have also supported the recovery.
Gansu increased its guaranteed mechanism electricity volume for 2027 projects to 3 billion kWh, significantly higher than previous rounds. Heilongjiang also expanded its wind power mechanism electricity allocation and raised the minimum bidding price.
These measures aim to prevent destructive price competition and provide more stable investment expectations during the transition to market-based electricity trading.
However, higher mechanism prices do not necessarily mean higher profits. Developers must also consider the proportion of electricity covered by the guaranteed mechanism price. In some regions, such as Heilongjiang and Xinjiang, the guaranteed electricity ratio has been reduced, meaning more electricity will face market price fluctuations.
The rebound in renewable energy prices does not represent a return to the old subsidy-driven market. Instead, it signals a transition toward a more balanced and sustainable industry model.
For solar manufacturers, suppliers, and investors, a healthier market environment could reduce excessive price pressure and improve long-term development opportunities.
China’s renewable energy sector is moving from a phase focused on rapid expansion and low prices toward a new era focused on profitability, efficiency, and sustainable growth.
