Guosheng Securities released a research report stating that recently, multiple renewable energy generation operators including Goldwind New Energy have collectively received renewable energy subsidy funds. In 2024, State Grid has continuously distributed 6 batches of renewable energy tariff surcharge subsidy funds, totaling over 100 billion yuan. The accelerated recovery of renewable energy subsidies is expected to ease cash flow for green power operators and buffer electricity price pressures following the comprehensive market entry driven by "Document 136", benefiting green power operators in their potential turnaround. The firm recommends prioritizing undervalued Hong Kong-listed green power and wind power operators.
Guosheng Securities' main viewpoints are as follows:
**Multiple Renewable Energy Generation Operators Recently Received Concentrated Renewable Energy Subsidy Funds**
Goldwind New Energy: As of August 31, the company received 1.214 billion yuan in renewable energy subsidy funds in 2025, representing a 341.67% increase compared to the same period last year and accounting for 190.12% of the total renewable energy subsidy funds received in 2024. Among these, national renewable energy subsidy funds amounted to 1.199 billion yuan, up 340.47% year-on-year, representing 188.78% of the total national renewable energy subsidy funds received in 2024.
GCL-Poly Energy: As of August 31, the company received 2.319 billion yuan in renewable energy subsidy funds in 2025, up 232.23% compared to the same period last year and accounting for 169.77% of the total renewable energy subsidy funds received in 2024. Among these, national renewable energy subsidy funds totaled 2.252 billion yuan, increasing 258.60% year-on-year and representing 182.64% of the total national renewable energy subsidy funds received in 2024.
JinkoSolar Technology: As of August 31, the company received 891 million yuan in renewable energy subsidy funds, up 248% compared to the same period last year and accounting for 166% of the total renewable energy subsidy funds received in 2024. Among these, national renewable energy subsidy funds amounted to 850 million yuan, up 272% year-on-year and representing 178% of the total national renewable energy subsidy funds received in 2024.
**Accelerated Subsidy Recovery Expected to Alleviate Cash Flow Pressure for Green Power Operators**
In 2012, the Ministry of Finance, National Development and Reform Commission, and National Energy Administration issued the first batch of renewable energy tariff surcharge fund subsidy catalog to promote early development of the renewable energy industry. However, as renewable energy project scales expanded rapidly, subsidy applications gradually lagged. According to China Electricity Council's "Renewable Energy Subsidy Arrears Issues and Policy Recommendations", by the end of 2019, State Grid, China Southern Power Grid, and Inner Mongolia Western Power Grid had accumulated subsidy arrears totaling 327.309 billion yuan.
In March 2022, three ministries jointly issued the "Notice on Conducting Self-Inspection of Renewable Energy Generation Subsidies" to address renewable energy subsidy arrears. In May, the State Council allocated an additional 50 billion yuan to central power generation enterprises to stabilize prices and ensure energy supply. In August, China Southern Power Grid established Guangzhou Renewable Energy Development Settlement Service Co., Ltd. to coordinate the resolution of renewable energy generation subsidy issues.
In 2023, State Grid and China Southern Power Grid published the "Announcement on the First Batch of Compliant Renewable Energy Generation Subsidy Project List". The first batch of compliant projects included 7,335 projects across both grids. To date, the second batch of compliant projects has not yet been released.
In 2024, State Grid continuously distributed 6 batches of renewable energy tariff surcharge subsidy funds, totaling over 100 billion yuan.
Guosheng Securities believes that "Document 136" (Notice on Deepening Market-oriented Reform of New Energy Grid-Connected Electricity Prices to Promote High-Quality Development of New Energy) promotes comprehensive market entry for new energy, intensifying competition in new energy generation. Against this backdrop, the accelerated recovery of national renewable energy subsidies is expected to significantly alleviate cash flow pressure for green power operators, benefiting operators in overcoming difficulties and achieving turnaround, which is conducive to long-term industry development.
**Investment Recommendations**
The firm recommends prioritizing undervalued Hong Kong-listed green power and wind power operators, suggesting attention to CHINA SUNTIEN (00956), Zhongmin Energy (600163.SH), and Fujian Energy (600483.SH).
It suggests focusing on thermal power sector with quarterly performance flexibility: HUANENG POWER (600011.SH, 00902), HUADIAN POWER (600027.SH, 01071), Baoxin Energy (000690.SH), Shenergy (600642.SH), Jiantou Energy (000600.SZ), Zhejiang Energy (600023.SH); as well as thermal power flexibility transformation leaders: Qingda Environmental Protection (688501.SH) and Huaguang Boiler (600475.SH).
The firm recommends focusing on green power operators with higher proportions of existing projects and better short-term earnings certainty, as well as those with greater cost reduction and efficiency improvement advantages in the medium to long term.
For defensive plays in hydro and nuclear power, it suggests attention to Yangtze Power (600900.SH), SDIC Power (600886.SH), Chuantou Energy (600674.SH), Huaneng Lancang River Hydropower (600025.SH); for nuclear power sector, it recommends China National Nuclear Power (601985.SH) and CGN POWER (003816.SZ, 01816).
**Risk Warnings**
Raw material price increases exceeding expectations; project construction progress falling short of expectations; power auxiliary service market and green certificate trading policies not meeting expectations.