Jiangsu Document No. 136: Auction Launched—Electricity Price Ranges from RMB 0.25 to 0.391 per kWh, with a contracted capacity of 13 billion kWh and a single‑project cap of 90%.

On November 11, the Jiangsu Provincial Development and Reform Commission issued the “Notice on Matters Related to Conducting the Mechanism-Based Price Bidding for New Energy Incremental Projects for 2025–2026.”

 

The document stipulates that the bidding scope covers new‑energy generation projects that achieved full‑capacity grid connection between June 1, 2025 (inclusive) and December 31, 2026 (inclusive).

 

It is divided into two categories: offshore wind power projects (including offshore wind–solar co‑located projects, the same applies hereinafter), and other wind power projects and photovoltaic projects (including other offshore photovoltaic projects, the same applies hereinafter).

 

Bidding price limits: The bidding cap for the “Offshore Wind Power Projects” category is RMB 0.391 per kWh, with a floor price of RMB 0.30 per kWh; for the “Other Wind and Photovoltaic Projects” category, the bidding cap is RMB 0.391 per kWh, and the floor price is RMB 0.25 per kWh.

 

Mechanism electricity: The total capacity amounts to 13 billion kWh, with the “Offshore Wind Power Projects” category accounting for 1 billion kWh and the “Other Wind Power Projects and Photovoltaic Projects” category accounting for 12 billion kWh.

 

The scale of electricity volume submitted in the bidding shall be set at no less than 125% of the total mechanism‑based capacity. If the total bid volume across all participating projects falls short of 125% of the mechanism‑based capacity, the latter shall be proportionally reduced. Should fewer than five valid bids be received in a given category (excluding ties), no clearing will be conducted; instead, the mechanism‑based capacity for that category will be reallocated to other categories, and incremental‑project bidding will be initiated.

 

The maximum proportion of electricity volume that may be declared in a single-project auction shall not exceed 90% of its projected annual grid‑connected generation.

 

Term of Execution: The “Offshore Wind Power Projects” category has a 15-year term; the “Other Wind Power Projects and Photovoltaic Projects” category has a 10-year term.

 

 

 

The file is as follows:

 

 

State Grid Jiangsu Electric Power Co., Ltd., Jiangsu Electricity Trading Center, and all relevant market participants:

 

In accordance with the “Implementation Plan of Jiangsu Province on Deepening Market‑Based Reform of On‑Grid Tariffs for New Energy and Promoting High‑Quality Development of New Energy” (Document No. 5 [2025] of the Jiangsu Provincial Development and Reform Commission, hereinafter referred to as Document No. 5), the following matters concerning the conduct of the mechanism‑based tariff bidding for new‑energy incremental projects for the 2025–2026 period are hereby notified:

 

I. Bidding Scope

 

New energy generation projects that achieve full-capacity grid connection between June 1, 2025 (inclusive) and December 31, 2026 (inclusive).

 

II. Bidding Categories and Price Ranges

 

This auction is divided into two categories: offshore wind power projects (including offshore wind–solar co‑located projects, hereinafter the same), and other wind power projects and photovoltaic projects (including other offshore photovoltaic projects, hereinafter the same).

 

The price cap for the “Offshore Wind Power Projects” category is RMB 0.391 per kWh, with a floor price of RMB 0.30 per kWh; for the “Other Wind and Photovoltaic Projects” category, the price cap is RMB 0.391 per kWh, and the floor price is RMB 0.25 per kWh. New‑energy generation enterprises participating in the incremental project auctions are requested to submit their bids based on factual considerations, taking into account actual project costs, reasonable profit margins, and other relevant factors.

 

III. Mechanism-Based Electricity Cap

 

The total capacity under this auction mechanism is 13 billion kWh, allocated as follows: 1 billion kWh for “offshore wind power projects” and 12 billion kWh for “other wind and photovoltaic projects.” The aggregate bid volume shall be set at no less than 125% of the total mechanism‑allocated capacity. If the total bids submitted across all categories fall short of 125% of the mechanism‑allocated capacity, the overall mechanism‑allocated capacity will be reduced accordingly. Should fewer than five valid bids be received in any given category (excluding zero), no clearing will take place, and the mechanism‑allocated capacity for that category will be reallocated to other categories to support additional project auctions.

 

The maximum proportion of electricity volume that may be declared in a single project’s bidding shall not exceed 90% of its projected annual grid‑connected generation. The projected annual grid‑connected generation shall not exceed the grid‑connected output calculated by converting the average annual utilization hours of similar projects in the province over the past three years. Specifically: Project’s projected annual grid‑connected generation = Project installed capacity × Average annual utilization hours of similar power sources in the province over the past three years × The average ratio of grid‑connected generation to total generation over the past three years. The specific calculation formula is as follows:

 

1. The maximum申报 electricity output for a single offshore wind power project equals the project’s installed capacity (on the AC side) multiplied by 2,636 hours, 96.47%, and 90%.

 

2. The maximum申报 electricity volume for a single onshore centralized wind power project equals the project’s installed capacity (AC side) multiplied by 2,066 hours, 97.65%, and 90%.

 

3. The maximum申报 electricity output for a single onshore distributed wind power project is calculated as follows: the project’s installed capacity (on the AC side) × 2,002 hours × 29.18% × 90%.

 

4. The maximum申报电量 for a single centralized photovoltaic project (including fully grid‑connected distributed photovoltaic projects) is calculated as follows: the project’s installed capacity (AC side) × 1,280 hours × 96.52% × 90%.

 

5. The maximum申报 (application) capacity for a single distributed photovoltaic project (with surplus power fed into the grid) is calculated as follows: the project’s installed capacity (AC side) × 1,080 hours × 41.54% × 90%.

 

IV. Term of Implementation

 

The implementation period for this auction is 15 years for “offshore wind power projects” and 10 years for “other wind power projects and photovoltaic projects.”

 

V. Requirements for Issuing Performance Bonds

 

The guarantee amount shall be no less than 10% of the product of the project’s approved (or filed) installed capacity, the average annual utilization hours of similar power sources in our province over the past three years (as previously specified), and the average on-grid electricity price for such power sources in our province over the same period. Specifically, the average on-grid electricity price for similar power sources in our province over the past three years is the provincial benchmark coal-fired power price of RMB 0.391 per kilowatt-hour. The guarantee amount for each individual project shall be no less than RMB 10,000. The validity period of the guarantee shall extend at least nine months beyond the projected date of commercial operation.

 

VI. Other Matters

 

According to calculations, from January to May 2025, the volume of green electricity traded and settled in the province accounted for 9.37% of the province’s total new‑energy generation fed into the grid. Notably, the provincial statistics on new‑energy generation at the grid‑connection point encompass the full‑scale output of wind and photovoltaic projects, including those receiving subsidies.

 

VII. Relevant Requirements

 

Please instruct State Grid Jiangsu Electric Power Co., Ltd. to properly organize the mechanism‑based price bidding for incremental projects, promptly issue bidding announcements, and widely disseminate relevant information to eligible new‑energy generation enterprises via the “New Energy Cloud” website (https://sgnec.sgcc.com.cn, Mechanism‑Based Price Bidding Section) and the “State Grid Online” App (New Energy Bidding Section), ensuring that this round of bidding for incremental projects is completed on schedule. For any matters not covered herein, please follow the provisions set forth in Document No. 5 issued by our Commission. In the event of any significant developments, please report them to our Commission without delay.

 

Jiangsu Provincial Development and Reform Commission