Senior executives make a major statement! The demand and value of green electricity are expected to continue rising ( related stocks )

**　　Top-level guidance: “Continue to expand the supply of green electricity”**

According to Xinhua News Agency, from March 30 to April 1, State Council Premier Li Qiang conducted an investigation tour in Sichuan. He emphasized that we must implement the new energy security strategy, adhere to innovation-driven development, leverage our advantages in resource endowment, continue to expand the supply of green electricity, focus on advancing the construction of a new type of power grid, speed up the optimization and adjustment of the energy mix, and provide strong support for high-quality economic and social development.

At Tongwei’s global innovation and R&D center, Li Qiang listened to an introduction about breakthroughs in photovoltaic technology and then went into the workshop to inspect the development of battery modules. He said that in recent years, advances in photovoltaic technology have effectively improved the utilization rate of solar energy. We need to strongly support companies in exploring innovation, increase R&D investment, make efforts to break through key technological bottlenecks, connect various application scenarios, and speed up the large-scale application of new technologies.

At Sichuan-based Yalong River Hydropower Development Co., Ltd., Li Qiang learned about the development of integrated bases combining hydropower, wind power, and solar power, among other initiatives, and he listened to reports on Sichuan’s new-type power grid construction. He pointed out that the construction of a new type of power grid is of great significance for ensuring energy security and promoting green development. We should actively explore new architectures, new technologies, and new services, improve network construction, enhance system coordination and regulation capabilities, strengthen multi-source demand assurance, and build a new-type power grid that is safe and reliable, green and low-carbon, robust and resilient, and intelligent and flexible.

At Sinomach Heavy Equipment Group Co., Ltd. and Dongfang Electric’s Dongfang Electric Machinery Co., Ltd., Li Qiang learned about the companies’ latest R&D achievements and inspected nuclear power, hydropower and other equipment, as well as core components. He encouraged the companies to focus on the forefront of technology and market needs, promote the deep integration of advanced technologies such as artificial intelligence with manufacturing, and achieve new breakthroughs in areas such as clean-energy equipment manufacturing, so as to better serve the development of China’s new energy industries and the country’s energy transition.

**　　Green power industry continues to receive policy support**

Green electricity refers to electricity generated from renewable energy sources such as solar, wind, hydropower, and biomass energy. It has the characteristics of low-carbon cleanliness and sustainability.

Since this year began, the country has continued to increase policy support for the green power industry. From improving the capacity electricity pricing mechanism on the generation side at the end of January, to the government work report clarifying the proposal to “cultivate new growth points such as hydrogen energy and green fuels,” and to the “15th Five-Year and 6th Five-Year” planning outline proposing to strengthen support for computing power infrastructure and promote coordinated layout between green power and computing power.

Recently, the National Data Bureau said it will work with relevant departments to vigorously advance the computing-power-and-power coordination project, ensuring that the share of green power applications in newly built computing power facilities at hub nodes reaches over 80%, so as to maximize the supporting role of green electricity.

The National Energy Administration also pointed out that we should leverage the enabling role of artificial intelligence in the development of new energy, continuously enrich application scenarios in the new-energy sector, help new energy grow at large scale and enable high-level consumption; at the same time, promote integrated development and convergence of new energy, focusing on ensuring green energy use demand for intelligent computing power, so that new energy can better support the development of artificial intelligence.

In addition, geopolitical conflicts in the Middle East and the conflict-related spillovers are pushing the global energy system to be reassessed for its “security attributes,” driving the advance of investment cycles and accelerating construction timelines in relevant sectors, with the certainty and urgency of the energy transition rising in parallel.

**　　Demand and value for green electricity are expected to keep improving**

In the view of institutions, the accelerated implementation of detailed rules such as “direct connection of green electricity” and the requirement that data centers use green electricity at a proportion of 80% or more provides clear protection for green power absorption and earnings stability. Meanwhile, the green power sector has both defensive attributes (stable cash flow, state-owned enterprise background) and growth attributes (driven by AI electricity demand, accelerating energy transition). It is one of the preferred directions that combines offense and defense under the current market environment.

A research report from GF Securities stated that, under the backdrop of strong demand for computing power and the development trend toward integrating power and computing, power assets centered on green electricity are expected to see a “double uplift” of earnings stability that is outlookable + long-term growth that is foreseeable. Tianfeng Securities also believes that as a key energy support for the AI era, green electricity’s demand and value are expected to continue to improve.

“State Grid is encouraging the pre-construction of power infrastructure and advance allocation, including early planning of ultra-high-voltage transmission corridors, reserving substation capacity, and planning green electricity supporting construction schemes, to ensure that it can quickly take on incremental computing power demand.”

Hua Fu Securities said that from an investment perspective, the end point of AI is power. The market mainly focuses on gas-fired turbines, power storage with renewables, and the power grid; while the end point of power is AI. Therefore, the market mainly focuses on emerging technologies such as grid digitalization/intelligence and virtual power plants, and—together with green electricity’s market-based direct trading—realizes a closed-loop model of wind/solar-storage-grid integration.

**　　Multiple concept stocks receive packed institutional research**

An Eastmoney concept board shows that in the current A-share market, there are more than 150 stocks related to green electricity concepts, with a combined total market capitalization of over RMB 6.4 trillion. China National Offshore Oil Corporation, Yangtze Power, Huadian New Energy, and China General Nuclear Power are among the largest by scale. In addition, eight stocks including China Nuclear Power, Huadian Hydropower, China Three Gorges Energy, and State Power Investment all have total market caps exceeding RMB 100 billion.

Since this year began, the green electricity sector has produced 2 bull stocks. Yuenan Holdings and Huadian Liaoning Energy both surged more than 1.6 times, while Xiaocheng Technology’s gain was close to 1 time. Jinkai New Energy, GCL Technology, Zhonglan Environmental Protection, and China Southern Power Grid Energy all saw gains ranging between 67% and 77%.

From a funding perspective, although the sector has seen some pullback recently, over the past week there were still as many as 37 green electricity concept stocks that obtained net purchases of financing in the range of tens of millions (RMB). Among them, Goldwind Technology received an additional increase of RMB 247 million from leveraged funds. Huaneng International, Chuaneng Power, Xiaocheng Technology, and Shenzhen Energy all received financing-related net inflows that exceeded RMB 100 million, and the net financing purchases of three stocks such as Huadian International and China Guodian Power were also above RMB 90 million.

In terms of institutional attention, data from Eastmoney Choice shows that over the past month, 17 green electricity concept stocks received institutional research. Among them, Nanjing Power Storage received research from 116 institutions, while Jinko Technology and Green Power both had research counts exceeding 70, and Junxin Co., Ltd. also received attention from 48 institutions.

（Source: Eastmoney Research Center）