[SMM News] Preliminary Draft of the Interim Implementation Plan for Hunan's "Document No. 136": Existing Mechanism Electricity Price at 0.45 yuan/kWh Recently, a notification document from Hunan Province regarding the issuance of the "Implementation Rules for Deepening the Market-Oriented Reform of New Energy On-Grid Tariffs in Hunan Province (Interim)" has been leaked, outlining relevant requirements for the market-oriented reform of new energy in Hunan Province. It is understood that this document is an internal discussion draft from relevant departments and is for reference only. The document states that for existing projects, the electricity generated from poverty alleviation projects will be fully included in the mechanism electricity volume. For conventional distributed and centralized new energy projects, the proportion of mechanism electricity volume is 80%, with a mechanism electricity price of 0.45 yuan/kWh. The implementation period will be determined by the earlier of the year corresponding to the reasonable utilization hours for the remaining full life cycle of the project or the year when the project has been in operation for 20 years.

[Li Qiang Holds Talks with Indonesian President Prabowo] On the morning of May 25 local time, Premier Li Qiang of the State Council held talks with Indonesian President Prabowo at the Presidential Palace in Indonesia. Li Qiang pointed out that China is willing to strengthen the alignment of development strategies with Indonesia, deepen high-quality cooperation in jointly building the Belt and Road Initiative, particularly by optimizing and strengthening landmark projects, further enhancing the "golden brand" of the Jakarta-Bandung High-Speed Railway, and advancing the construction of the "Regional Comprehensive Economic Corridor" and the "Two Countries, Twin Parks" initiative. Both sides should strengthen market connectivity and industrial collaboration, enhance the level of trade and investment facilitation, and expand cooperation in finance, new energy, the digital economy, artificial intelligence, aerospace, marine, and other fields. China is willing to expand people-to-people exchanges with Indonesia, promote the facilitation of personnel exchanges, and deepen cooperation in people's livelihood areas such as grain and agriculture, poverty alleviation, and health, to better benefit the people of both countries. Following the talks, the two sides jointly witnessed the signing of cooperation documents in areas such as economic development policies, industrial and supply chains, and finance.

The Political Bureau of the CPC Central Committee held a meeting on April 25 to analyze and study the current economic situation and economic work. Xi Jinping, General Secretary of the CPC Central Committee, presided over the meeting. Economic Situation Assessment Since the beginning of this year, the economy has shown a positive trend, social confidence has continued to be boosted, high-quality development has been steadily advanced, and the overall social situation has remained stable. The foundation for China's sustained economic recovery and improvement still needs to be further consolidated, and the impact of external shocks has increased. Work Requirements It is necessary to adhere to the general principle of seeking progress while maintaining stability, fully, accurately, and comprehensively implement the new development philosophy, accelerate the construction of a new development pattern, coordinate domestic economic work and international economic and trade struggles, unwaveringly handle our own affairs, unwaveringly expand high-level opening-up, focus on stabilizing employment, enterprises, markets, and expectations, and use the certainty of high-quality development to cope with the uncertainty of drastic changes in the external environment. Macro Policies Make good use of more proactive fiscal policies and moderately loose monetary policies. Accelerate the issuance and use of local government special bonds and ultra-long-term special treasury bonds. Timely implement RRR cuts and interest rate cuts, maintain ample liquidity, and increase support for the real economy. Create new structural monetary policy tools, establish new-type policy financial tools, and support technological innovation, consumption expansion, and stable foreign trade. Promoting Consumption Increase the income of middle- and low-income groups, vigorously develop service consumption, and enhance the role of consumption in boosting economic growth. Quickly clear restrictive measures in the consumption field, establish service consumption and pension re-lending. Increase financial support, expand and improve the implementation of the "program of large-scale equipment upgrades and consumer goods trade-ins," and strengthen the implementation of the "implementation of major national strategies and the development of security capabilities in key areas." Industrial Policies Accelerate the integration of domestic and foreign trade. Cultivate and strengthen new quality productive forces, and create a batch of emerging pillar industries. Continue to push forward the tackling of key core technologies, innovate the "tech board" in the bond market, and accelerate the implementation of the "AI+" initiative. Vigorously promote the quality upgrading of key industries, adhere to standard leadership, and regulate competition order. Reform and Opening-up Accelerate the construction of a unified national market, and solidly carry out special actions to standardize law enforcement involving enterprises. Increase the intensity of service industry opening pilot policies, and strengthen services for enterprises "going global." Work with the international community to actively uphold multilateralism and oppose unilateral bullying. Real Estate Market Strengthen the implementation of urban renewal actions, and effectively and orderly promote the renovation of urban villages and dilapidated houses. Accelerate the construction of a new model for real estate development, increase the supply of high-quality housing, optimize the policy for acquiring existing commercial housing, and continue to consolidate the stable situation in the real estate market. Capital Market Continue to stabilize and activate the capital market. Livelihood Security For enterprises significantly affected by tariffs, increase the proportion of unemployment insurance fund returns for job stabilization. Improve the hierarchical and classified social assistance system. Strengthen agricultural production and stabilize the prices of important agricultural products such as grain. Consolidate and expand the achievements of poverty alleviation and effectively connect them with rural revitalization. Continue to do a good job in production safety, disaster prevention, and mitigation.

The Political Bureau of the CPC Central Committee convened a meeting on April 25 to analyze and study the current economic situation and economic work. The meeting was chaired by General Secretary Xi Jinping. The meeting noted that since the beginning of this year, under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, comprehensive leadership over economic work has been strengthened. All regions and departments have focused their efforts on tackling challenges, and various macro policies have worked in concert. The economy has shown a positive trend, social confidence has continued to rise, high-quality development has been steadily advanced, and overall social stability has been maintained. At the same time, the foundation for the continuous recovery and improvement of China's economy still needs to be further consolidated, and the impact of external shocks has increased. It is necessary to strengthen bottom-line thinking, fully prepare contingency plans, and solidly carry out economic work. The meeting pointed out that it is essential to adhere to the general principle of seeking progress while maintaining stability, fully, accurately, and comprehensively implement the new development philosophy, accelerate the construction of a new development pattern, coordinate domestic economic work and international trade struggles, unswervingly handle our own affairs, and resolutely expand high-level opening up. Efforts should focus on stabilizing employment, enterprises, markets, and expectations, using the certainty of high-quality development to respond to the uncertainties brought about by drastic changes in the external environment. The meeting emphasized that more proactive and effective macro policies must be implemented promptly, making full use of more active fiscal policies and moderately loose monetary policies. The issuance and utilization of local government special bonds and ultra-long-term special treasury bonds should be accelerated. The "three guarantees" at the grassroots level must be firmly secured. Interest rate cuts and RRR cuts should be carried out as appropriate to maintain ample liquidity and provide stronger support to the real economy. New structural monetary policy tools and new-type policy financial instruments should be created to support scientific and technological innovation, boost consumption, and stabilize foreign trade. Policy consistency must be reinforced. The meeting pointed out that it is necessary to increase the income of low- and middle-income groups, vigorously develop service consumption, and enhance the role of consumption in driving economic growth. Restrictive measures in the consumption sector should be cleared as soon as possible, and re-lending for service consumption and elderly care should be established. Financial support should be increased, and the scope and quality of the program of large-scale equipment upgrades and consumer goods trade-ins should be expanded. Efforts to implement the implementation of major national strategies and the development of security capabilities in key areas should be intensified. The meeting emphasized that multiple measures should be taken to assist struggling enterprises, and financing support should be strengthened. Efforts to promote the integration of domestic and foreign trade should be accelerated. New quality productive forces should be fostered, and a number of emerging pillar industries should be developed. Continuous efforts should be made to tackle key core technologies, and a "technology board" in the bond market should be innovatively launched. The "AI+" initiative should be expedited, and the quality and upgrading of key industries should be vigorously promoted, adhering to standard leadership and regulating competitive order. The meeting emphasized that deepening reform and opening up should be used to address issues in development. The construction of a unified national market should be accelerated, and a special action to regulate law enforcement involving enterprises should be solidly carried out. The intensity of pilot policies for opening up the service sector should be increased, and services for enterprises going global should be enhanced. Together with the international community, multilateralism should be actively upheld, and unilateral bullying actions should be opposed. The meeting pointed out that continuous efforts should be made to prevent and resolve risks in key areas. The comprehensive debt resolution policy for local governments should continue to be implemented, and the problem of local governments' arrears to enterprises should be resolved as soon as possible. The urban renewal initiative should be intensified, and the renovation of urban villages and dilapidated houses should be orderly and effectively advanced. A new model for real estate development should be rapidly constructed, the supply of high-grade housing should be increased, and the policy for acquiring existing commercial properties should be optimized to continuously consolidate the stable trend of the real estate market. The capital market should be kept stable and active. The meeting emphasized that efforts should be made to ensure people's livelihoods. For enterprises significantly affected by tariffs, the proportion of unemployment insurance fund returns for job retention should be increased. A tiered and categorized social assistance system should be improved. Agricultural production should be strengthened, and the prices of important agricultural products such as grain should be stabilized. The achievements of poverty alleviation should be consolidated and effectively linked with rural revitalization. Continuous attention should be paid to safety production and disaster prevention and mitigation. The meeting pointed out that the policy toolkit for stabilizing employment and the economy should be continuously improved. Established policies should be introduced and take effect as early as possible, and incremental reserve policies should be timely rolled out according to changing circumstances. Extraordinary counter-cyclical adjustments should be strengthened to fully consolidate the fundamentals of economic development and social stability. The meeting emphasized that the Party's comprehensive leadership over economic work should be strengthened, and Party members and cadres should be encouraged to face challenges head-on and take the initiative. A correct view of political achievements should be established and practiced. In-depth learning and education on the spirit of the central eight-point regulations should be conducted, and new achievements in style building should create a new situation for high-quality development. The meeting also discussed other matters.

[SMM Analysis] On March 24, 2025, the Ministry of Finance released the “Report on the Implementation of China's Fiscal Policy in 2024”, which explicitly proposed that in 2025, fiscal policy will implement a more forceful “green shift.” Under the framework of the “dual carbon” goals, the development of renewable energy and the promotion of new energy vehicles will be used as strategic fulcrums. This policy orientation not only reflects the intrinsic needs of China's high-quality economic development but also provides a Chinese solution for the global energy transition.

【SMM Analysis】On March 24, 2025, the Ministry of Finance released the "2024 China Fiscal Policy Implementation Report," which explicitly stated that the fiscal policy in 2025 would implement a more robust "green shift." Under the framework of the "dual carbon" goals, the development of renewable energy and the promotion of NEVs would serve as strategic pivots. This policy direction not only reflects the intrinsic demand for high-quality economic development in China but also provides a Chinese solution for global energy transition.

[PV Electricity Price Turmoil: Sixteen Years of Reform Reaching a Critical Leap?] On February 9, the National Development and Reform Commission (NDRC) and the National Energy Administration jointly issued a document announcing that China’s new energy sector has ended the "fixed electricity price" era and fully entered a period of market-oriented electricity pricing. Since the launch of commercial power stations in 2008, China has undergone multiple phases, including fixed electricity prices, benchmark electricity prices, guiding electricity prices + competitive electricity prices, and then parity on-grid tariffs and full marketization. Over more than a decade, PV on-grid tariffs have dropped from 4 yuan/kWh to parity, low prices, and even being entirely market-driven. (Polaris Solar PV Network)

[Shaanxi: PV Guaranteed Purchase Reduced to 293 Hours, Full Purchase for Distributed Projects] On December 31, 2024, the Shaanxi Provincial National Development and Reform Commission (NDRC) issued the "Notice on the 2025 Priority Power Generation Plan for Power Grid Power Generation Enterprises in Shaanxi." According to the notice, distributed, pioneer, and poverty alleviation PV projects will be fully purchased, while conventional PV projects will be partially purchased, with all others entering the electricity market-based transactions. (Shaanxi Provincial NDRC)

The Development and Reform Bureau of Xi'an High-tech Industries Development Zone in Shaanxi Province has issued the "Notice on the Application for Distributed Photovoltaic Power Generation Subsidy Funding for 2023", which points out that the scope of this subsidy funding application covers projects that continue to apply for subsidies. Distributed photovoltaic power generation subsidy projects that have been completed, put into operation, and connected to the grid within the scope of the High-tech Zone during the period from January 1, 2018 to December 31, 2022; first-time subsidy application projects. Distributed photovoltaic power generation projects (including photovoltaic poverty alleviation projects) that have been completed, put into operation, and connected to the grid within the scope of the High-tech Zone for the first time during the period from January 1, 2023 to December 31, 2023.

A few days ago, the Regional Revitalization Department of the National Development and Reform Commission issued a special notice to deploy relevant provinces to vigorously implement work-for-relief in flood control, disaster relief, and post-disaster recovery and reconstruction.