Guangdong has launched its 2026 mechanism electricity price bidding for new energy projects, with the bidding scope limited exclusively to distributed solar projects.

According to the notice issued by the Guangdong Provincial Development and Reform Commission and the Guangdong Provincial Energy Bureau, the bidding covers distributed photovoltaic projects that are either commissioned or committed to be commissioned between June 1, 2025 and October 31, 2027, and that have not yet been included in the mechanism.

The initial bidding volume for mechanism electricity is set at 7.934 billion kilowatt-hours on a full-year basis.

To ensure the validity of bidding results, a competition validity check will be conducted before price clearing. The cleared volume for mechanism bidding transactions will be determined as the smaller of the initial mechanism electricity bidding volume and the declared electricity volume divided by the competition validity coefficient, which is 1.2 for this round.

For distributed solar projects below the 110 kV voltage level, the upper limit for the declared bidding electricity ratio is 80% (village-level solar assistance stations included in the provincial list shall follow relevant regulations), while for other distributed solar projects the upper limit is 70%.

The bidding ceiling for solar projects is 0.400 yuan per kilowatt-hour, and the floor is 0.200 yuan per kilowatt-hour. The basic unit for price declaration has been adjusted from 1% to 0.1%.

The mechanism electricity price for solar projects will be implemented over a period of 12 years.

Offshore solar projects listed as provincial development pilots will be subject to separate regulations.

The full text is as follows:

Notice from the Guangdong Provincial Development and Reform Commission and the Guangdong Provincial Energy Bureau on Matters Concerning the 2026 New Energy Project Mechanism Electricity Price Bidding

Yue Fa Gai Jia Ge Han [2026] No. 1805

To Guangdong Power Grid Co., Ltd., Shenzhen Power Supply Bureau Co., Ltd., and Guangdong Power Exchange Center:

In accordance with the Notice of the Guangdong Provincial Development and Reform Commission and the Guangdong Provincial Energy Bureau on Issuing the Implementation Plan for Deepening the Market-Oriented Reform of New Energy On-Grid Electricity Prices and Promoting High-Quality Development of New Energy (Yue Fa Gai Jia Ge [2025] No. 263) and supporting rules and other documents, it has been decided to carry out the 2026 new energy project mechanism electricity price bidding. The relevant matters are hereby notified as follows:

1. Bidding Project Scope

Distributed photovoltaic projects that are commissioned or committed to be commissioned between June 1, 2025 and October 31, 2027, and that have not been included in the mechanism.

2. Bidding Parameters

(1) Electricity Volume Scale. The initial bidding volume for mechanism electricity is 7.934 billion kilowatt-hours on a full-year basis. To ensure the validity of bidding results, a competition validity check will be conducted before price clearing. The cleared volume for mechanism bidding transactions will be determined as the smaller of the initial mechanism electricity bidding volume and the declared electricity volume divided by the competition validity coefficient, which is 1.2 for this round.

(2) Mechanism Electricity Ratio. For distributed solar projects below the 110 kV voltage level, the upper limit for the declared bidding electricity ratio is 80% (village-level solar assistance stations included in the provincial list shall follow relevant regulations), while for other distributed solar projects the upper limit is 70%.

(3) Bidding Ceiling and Floor. The bidding ceiling for solar projects is 0.400 yuan per kilowatt-hour, and the floor is 0.200 yuan per kilowatt-hour. The basic unit for price declaration has been adjusted from 1% to 0.1%.

(4) Implementation Period. The mechanism electricity price for solar projects will be implemented over a period of 12 years.

(5) Mechanism Electricity Calculation Formula for Individual Projects. The mechanism electricity for distributed solar projects shall not exceed installed capacity multiplied by the average annual generation hours for that type of power source multiplied by the upper limit of the declared ratio (including self-generated and self-consumed electricity). The specific settlement electricity volume shall be executed in accordance with the actual on-grid electricity volume of the project and the requirements of the difference settlement rules.

3. Other Matters

(1) Offshore solar projects listed as provincial development pilots will be subject to separate regulations.

(2) Guangdong Power Exchange Center is requested to issue bidding announcements as required, specifying the bidding process, timeline, and other specific matters. Guangdong Power Grid, Shenzhen Power Supply Bureau, and Guangdong Power Exchange Center are requested to carry out bidding-related work in accordance with their respective responsibilities. The final bidding results will be separately issued by the Provincial Development and Reform Commission and the Provincial Energy Bureau. Matters not covered herein shall be executed in accordance with the Bidding Rules for the Sustainable Development Price Settlement Mechanism of Guangdong New Energy Incremental Projects.

Guangdong Provincial Development and Reform Commission

Guangdong Provincial Energy Bureau

September 30, 2026