Qinghai Province has officially launched its mechanism electricity price auction for new energy incremental projects for 2027, with wind power accounting for 1.451 billion kWh of the total auction volume and a bidding range of 0.18 to 0.24 yuan per kWh.
The Qinghai Provincial Development and Reform Commission published a notice on October 28 regarding matters related to organizing the 2027 mechanism electricity price auction for new energy incremental projects.
According to the notice, the scope of this auction covers new energy projects that achieve full-capacity grid connection between June 1, 2025 and December 31, 2027, and that have not previously been included in the mechanism electricity price execution scope. Wind power and photovoltaic power generation will be organized into separate auctions.
Regarding electricity volume scale, the total mechanism electricity volume for this auction is 2.859 billion kWh, of which wind power accounts for 1.451 billion kWh and photovoltaic power accounts for 1.408 billion kWh.
Regarding bidding price limits, the upper and lower limits for photovoltaic bidding are 0.2277 yuan/kWh and 0.15 yuan/kWh respectively. The upper and lower limits for wind power bidding are 0.24 yuan/kWh and 0.18 yuan/kWh respectively.
Regarding the execution period, the guarantee period is 12 years. Projects already in operation at the time of selection will begin execution from the first day of the month following the selection date, while projects not yet in operation at the time of selection will begin execution from the first day of the month following actual operation (with first-year electricity volume calculated on a monthly basis). For projects that begin operation later than the declared operation date, the mechanism electricity volume covered between the first day of the month following the committed operation date and the end of the month of actual operation (calculated on a monthly basis) will automatically become invalid.
Regarding the upper limit for declared electricity volume, the upper limit for centralized individual project mechanism electricity declaration equals installed capacity (AC side) multiplied by the annual power generation utilization hours for that power source type, multiplied by (1 minus auxiliary power consumption rate), multiplied by the upper limit ratio. The upper limit for distributed (decentralized) project mechanism electricity declaration equals installed capacity (AC side) multiplied by (1 minus the proportion of annual self-generated self-consumed electricity to power generation), multiplied by the annual power generation utilization hours for that power source type, multiplied by the upper limit ratio. Among these, the annual power generation utilization hours for wind power and photovoltaic are 1,462 and 1,186 respectively, the auxiliary power consumption rates are 0.79% and 0.63% respectively, and the upper limit ratios are 60% and 80% respectively. For distributed photovoltaic and decentralized wind power, the proportion of annual self-generated self-consumed electricity to power generation is 13.57%. The upper limit ratio is uniformly set at 100%.
Regarding performance bond requirements, projects not yet in operation should submit performance bonds as required. The minimum bond amount is calculated as project approved (filed) installed capacity (AC side) multiplied by the average power generation utilization hours over the past three years for electricity sold within the province for that power source type, multiplied by the average on-grid electricity price over the past three years for that power source type, multiplied by 5%. Among these, the average power generation utilization hours over the past three years for wind power and photovoltaic electricity sold within the province are 757 and 766 respectively, and the average on-grid electricity prices are 0.2206 yuan/kWh and 0.2280 yuan/kWh respectively.
Regarding the automatic adjustment mechanism for declaration adequacy ratio, the photovoltaic (wind power) declaration adequacy ratio equals the total actual effective declared electricity volume for photovoltaic (wind power) divided by the total mechanism electricity volume for photovoltaic (wind power) auction, multiplied by 100%. To ensure sufficient competition, the lower limit for the photovoltaic (wind power) declaration adequacy ratio for this auction is set at 130%. When the declaration adequacy ratio is less than or equal to 130%, the total mechanism electricity volume for photovoltaic (wind power) auction will be automatically adjusted to: total actual effective declared electricity volume for photovoltaic (wind power) divided by 130%.
Regarding the automatic adjustment mechanism for marginal clearing projects, to avoid the marginal clearing mechanism causing marginal projects to clear with low electricity volumes and thus affecting their revenues, when the marginal project clearing electricity ratio (cleared electricity volume divided by declared electricity volume) is less than or equal to the marginal lower limit ratio (25% multiplied by 1 divided by declaration adequacy ratio), the marginal project's auction result will be invalidated and deemed not selected, and it may participate in later auctions. Accordingly, the total mechanism electricity volume for the auction will be reduced by the marginal project's cleared electricity volume, and the overall auction clearing price will be adjusted to the second marginal project's declared price.
Regarding related requirements, first, new energy enterprises included in the mechanism through auction should report project construction and grid connection progress monthly through the auction platform to ensure projects are completed and put into operation on schedule and execute the mechanism electricity price. Second, for new energy projects included in the province's mechanism electricity price (including existing projects), when signing annual mechanism electricity price contracts with the provincial power company, monthly mechanism electricity volume decomposition should be supported as follows: monthly mechanism ratio equals monthly planned mechanism electricity volume divided by total annual contracted mechanism electricity volume, multiplied by 100%. Each monthly mechanism ratio is independently chosen by the project owner, and the sum of all monthly mechanism ratios within the year equals 100%. Third, the provincial power company should promptly publish auction announcements, optimize work processes, and must complete this auction by December 15, 2026, and report the auction results to the Provincial Development and Reform Commission and the Provincial Energy Bureau. Major matters encountered during the auction period should be reported promptly.
Qinghai Provincial Development and Reform Commission
October 27, 2026
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