Ndrc on promoting solar container

What does NDRC & Nea's energy reform mean for investors?

The reform aims to enhance competition but raises uncertainty over future returns for investors. China’s National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have issued a directive to accelerate market-based pricing for renewable energy, including wind and solar power.

What does NDRC stand for?

On February 9, 2025, China’s National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) jointly issued the Notice on Deepening the Market-Oriented Reform of New Energy On-Grid Electricity Prices to Promote High-Quality Development of New Energy (hereafter referred to as the Notice).

What is NDRC & Nea energy plan?

The plan clearly states that energy authorities of provinces (autonomous regions, and municipalities directly under the Central Government) must implement the requirements of this plan, compile regulatory capacity construction plans for their respective regions, and submit them to the NDRC and NEA before the end of June 2025.

Will the NDRC switch to a market-based bidding system?

The NDRC plans to shift to a market-based bidding system for electricity payments after June 2025. China now has 887GW of installed solar power, more than six times the capacity of the US. Credit: vvaldmann/Shutterstock.

Will China's new energy storage installations reach 112 Gwh in 2025?

Based on current energy storage market and the Notice, InfoLink expects China’s new energy storage installations to reach 112 GWh in 2025, up 9% YoY. But if local policies or incentives (e.g., capacity pricing or compensation for grid services) fall short, the industry may face some challenges in 2026–2027.

Will this notice impact energy storage demand in the short term?

This Notice may impact energy storage demand in the short term. Up until 2024, mandatory storage allocation policies were always the primary driver of China’s energy storage market. In 2024, for instance, energy storage installations tied to new energy projects accounted for nearly 40% of total capacity.