Ningxia Issues new market-based tariff mechanism for renewables

Ningxia Hui Autonomous Region has released its Implementation Plan for Deepening Market-Based Reform of Renewable Power Tariffs. To be implemented effective October 1, 2025, the plan mandates full market participation for wind and solar power, with prices determined through trading. Distributed projects are encouraged to aggregate for market entry. In the spot market, bid caps are set at RMB 0.8/kWh ($0.11/kWh) and floors at RMB 0.04/kWh ($0.006/kWh), subject to adjustment. A settlement mechanism will balance deviations between market averages and the benchmark mechanism tariff, with the difference shared across industrial and commercial users.

The plan differentiates projects before and after June 1, 2025. Existing projects will apply fixed benchmark coal-fired tariffs (RMB 0.2595/kWh, $0.036/kWh), while new projects will determine tariffs via competitive bidding, capped at RMB 0.2595/kWh ($0.036)/kWh and floored at RMB 0.18/kWh ($0.025/kWh). The mechanism applies for 12 years.

Earlier this week, Heilongjiang Province released market-based pricing mechanism for renewables (see China Solar PV News Snippets).