New Energy Policy and the “Power Shortage”: Insights on Pricing Trends and Market Dynamics
As of March 25, 2025, the new energy sector has been facing significant challenges under the current policy framework, which has been described as a “power shortage.” The surge in demand for various energy sources has led to a notable increase in pricing trends and market dynamics.
According to recent reports, industry analysts have noted that regardless of product type, there is a pressing need to manage the supply-demand imbalance, which is currently leading to a “difficult to obtain” status for many key items. Recently, the supply of green energy technologies has shown limited availability, which is causing fluctuations in market pricing.
From February 15, 2025, it has been projected that the prices of renewable energy components are on an upward trajectory. The forecast indicates that by the middle of March, prices are expected to rise from 0.69 yuan per watt to 0.73 yuan per watt, marking an increase of approximately 6% month-on-month. Over the past two years, this trend reflects a significant tightening of supply in response to demand, leading to a situation where prices are “not easily manageable.” Analysts from InfoLink Consulting have indicated that the prices for renewable energy components are likely to remain high, with recent data showing prices ranging between 0.74 and 0.75 yuan per watt.
In February, the national capacity for renewable energy production was approximately 41.9 GW, with projections for March reaching up to 52 GW, showing a 24% increase. In the context of battery energy storage, InfoLink Consulting suggests that the pricing for battery components is expected to increase due to ongoing supply demand pressures, further influencing market conditions.
In light of the new policies, manufacturers are grappling with limited supply and increased demand. Recent consultations have revealed that the primary drivers behind pricing are the adjustments in supply chains and the rising need for renewable energy sources. As we move towards 2025, the market dynamics are expected to shift, with manufacturers attempting to increase production to meet the growing demand.
The new policies, referred to as “531” and “430,” will be rolled out with specific deadlines for implementation. By January 2025, the national energy department plans to publish guidelines for the development and construction of renewable energy projects, with a focus on enhancing efficiency and reducing costs. These policies aim to facilitate a more sustainable energy market while addressing the pressing challenges of supply and pricing.
In conclusion, the current situation in the renewable energy sector requires careful attention to pricing strategies and supply chain efficiencies. The continued development of energy technologies and infrastructure will be vital for meeting future demands. As we approach 2025, stakeholders must adapt to the evolving landscape to ensure a balanced and effective energy market.
