Hunan has launched its 2026 mechanism electricity price bidding, with the bidding range set at 0.23-0.35 yuan per kilowatt-hour, a total electricity volume of 2.286 billion kilowatt-hours, and an adequacy ratio of 125%.
The Development and Reform Commission of Hunan Province issued a notice on matters related to the 2026 renewable energy mechanism electricity price bidding work.
According to the notice, the bidding entities for this round are wind power and photovoltaic projects that achieved full-capacity commissioning between June 1, 2025 and December 31, 2027 and have not previously been included in the mechanism electricity price, as well as distributed aggregators representing distributed photovoltaic projects that have not previously been included in the mechanism electricity price to participate in the bidding. Large-scale commercial and industrial distributed photovoltaic projects and renewable energy nearby consumption projects are not included in the scope of this bidding. Bidding and clearing are organized separately for two project groups: wind power and photovoltaic.
Electricity volume scale. The newly included electricity volume scale within the mechanism electricity price bidding scope is 2.286 billion kilowatt-hours (calculated on a full-year basis, the same below). Of this, wind power accounts for 1.19 billion kilowatt-hours and photovoltaic accounts for 1.096 billion kilowatt-hours.
Declared adequacy ratio. The lower limit for the declared adequacy ratio of both wind power and photovoltaic bidding is 125%. When the electricity volume scale of bidding entities participating in clearing falls short of the adequacy ratio requirement, the total scale of that type of mechanism electricity is automatically reduced until the minimum requirement is met.
Upper limit of mechanism electricity proportion. The upper limit of the mechanism electricity proportion for a single project is 60% for wind power and centralized photovoltaic, and 70% for distributed photovoltaic.
Bidding upper and lower limits. The bidding upper limit for both wind power and photovoltaic is 0.35 yuan per kilowatt-hour, and the bidding lower limit is 0.23 yuan per kilowatt-hour.
Implementation period. The implementation period of the mechanism electricity price for both wind power and photovoltaic is 10 years. For projects commissioned in 2026 or earlier and included in this mechanism, the mechanism electricity price takes effect from January 1, 2027. For projects commissioned in 2027 and included in this mechanism, the mechanism electricity price takes effect from the first day of the month following the declared commissioning date.
Minimum clearing proportion for marginal projects. If the mechanism electricity volume selected for a marginal project is less than 30% of its bidding electricity volume, the selection result of the marginal project is cancelled, and the mechanism electricity price takes the declared price of the preceding selected project.
The announcement is as follows:
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