The new energy sector has received a favorable policy boost. On November 10, the National Development and Reform Commission (NDRC) and the National Energy Administration jointly released the "Guidance on Promoting New Energy Consumption and Regulation" (hereinafter referred to as the "Guidance"), providing a systematic and clear implementation path for advancing high-quality development in China's new energy sector.

The Guidance outlines several key tasks, including categorizing and guiding new energy development and consumption, fostering innovative models and business formats for new energy utilization, enhancing the adaptability of new power systems to new energy sources, improving a unified national electricity market system to facilitate new energy consumption, and strengthening technological innovation to support new energy integration.

By 2030, the Guidance aims to establish a coordinated and efficient multi-level new energy consumption and regulation system, ensuring smooth grid connection, diversified utilization, and efficient operation of new energy. It also targets meeting the majority of new electricity demand through additional new energy generation, accommodating over 200 GW of annual new energy capacity, and supporting China's carbon peak goals. By 2035, a new power system adapted to high-penetration renewable energy is expected to be fully established, with further improvements in the new energy consumption framework.

Notably, major global firms like Microsoft and OpenAI have highlighted that the AI industry's current challenge is not an oversupply of computing power but insufficient electricity to support GPU operations. With policy support and surging power demand from computing, the power sector may undergo a revaluation.

The Guidance is expected to benefit offshore wind power, solar and hydropower, energy storage, and ultra-high voltage (UHV) transmission technologies. For offshore wind, the document emphasizes orderly development and consumption, promoting near-shore projects and piloting ultra-high-capacity deep-sea wind turbines.

Ping An Securities recently noted that China's marine economy has been elevated to strategic importance, with output exceeding RMB 10 trillion in 2024 (+5.9% YoY), highlighting opportunities in offshore wind, high-value ships, and marine engineering equipment.

Solar and hydropower, as mature green energy sources, are also prioritized. The Guidance calls for R&D in high-efficiency, low-cost solar and wind technologies, alongside optimizing hydropower-based renewable integration in southwestern regions.

For energy storage, the document stresses advancing safe and efficient technologies, exploring hybrid storage solutions, and accelerating breakthroughs in large-capacity, long-duration storage, including flow batteries, compressed air, and gravity storage.

This year, new energy consumption has been a recurring theme. On October 13, the NDRC proposed minimum renewable consumption targets and responsibility mechanisms to address growing integration challenges. Earlier, National Energy Administration head Wang Hongzhi highlighted that the sector's main bottleneck has shifted from "insufficient installed capacity" to "systemic consumption and market viability issues."

Analysts remain optimistic about China's rising electrification rate, which, alongside grid upgrades and energy storage systems, will accelerate the transition to a new power system. Rising peak demand underscores the need for grid modernization, creating incremental opportunities across generation, transmission, and equipment supply chains.

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