【Trend Report】 "Computing and Power Coordination" included in the government work report for the first time; the green energy sector is expected to have a valuation re-rating opportunity

The three major Chinese stock indices all rose slightly today. By the close, the Shanghai Composite increased by 0.38%, the Shenzhen Component rose by 0.59%, and the ChiNext Index gained 0.38%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets exceeded 2.2 trillion yuan, a decrease of nearly 200 billion compared to yesterday. Most industry sectors closed higher, with gains in agrochemical products, chemical raw materials, biopharmaceuticals, trade, chemical pharmaceuticals, housing construction, agriculture, forestry, animal husbandry, fishery, and healthcare services. The sectors with the largest declines were ground military equipment, industrial metals, and petroleum and petrochemicals. On individual stocks, over 4,200 stocks rose, with nearly 90 hitting the daily limit-up.

On March 5th, the “Government Work Report” proposed to “implement ultra-large-scale intelligent computing clusters, compute-electricity collaboration, and other new infrastructure projects, strengthen nationwide integrated computing power monitoring and dispatch, and support the development of public clouds.” The term “compute-electricity collaboration” was included in the government work report for the first time, explicitly listed as a new infrastructure project, marking its transition from local pilot projects and departmental policies to a national strategic deployment. As computing power continues to expand, driving increased electricity demand, connecting computing networks with power grids, and establishing integrated planning, dispatch, market, and technical systems have become key to the coordinated development of the digital economy and new power systems.

Additionally, the term “green fuels” was also included in the government work report for the first time. The report mentioned accelerating the promotion of comprehensive green transformation, establishing a national low-carbon transition fund, and cultivating new growth points such as hydrogen energy and green fuels. It emphasized effective control of high-energy-consuming and high-emission projects, speeding up the elimination of outdated capacities, and supporting innovation and application of green and low-carbon technologies and equipment. It also called for improving resource total management and comprehensive conservation systems, and strengthening recycling of renewable resources.

Huachuang Securities stated that new downstream demands and new tracks for green electricity are continuously emerging. Since the peak of the green electricity industry in 2021, current sector valuations are at a relatively low point in history, suggesting investment opportunities in the green electricity sector should be valued. Changjiang Securities pointed out that electricity consumption growth is expected to rebound to 5.04% by 2026, and with additional loads from AI data centers and industrial electrification, the supply-demand and profitability deterioration in green electricity may reach an inflection point.

Huachuang Securities: Recommend Focusing on Investment Opportunities in the Green Electricity Sector

New downstream demands and tracks for green electricity are emerging constantly. Since the industry peaked in 2021, current valuations are at historical lows, making it a good time to consider investment opportunities. 1) The explosion in demand for computing power and data centers will further boost green electricity demand, effectively alleviating current volume and price challenges in the sector. Deep integration of green electricity with computing power may also open up new business models for operators. 2) The development of energy storage and green alcohol also presents new growth opportunities for operators.

Changjiang Securities: Green Electricity Supply and Demand and Profitability May Reach an Inflection Point

By 2025, China’s power system will face a structural contradiction of “ample electricity supply and tight capacity”: thermal power generation will see negative growth for the first time in nearly a decade, but peak reliable capacity demand and regulation pressure will continue to rise, pushing for high levels of new thermal capacity. Meanwhile, electricity consumption growth is expected to rebound to 5.04% in 2026, and with additional loads from AI data centers and industrial electrification, the supply-demand and profitability decline in green electricity may reach an inflection point. On policy, the National Development and Reform Commission has proposed establishing a reliable capacity compensation mechanism. Once implemented, the nationwide average capacity electricity price in 2026 is expected to increase by 0.041–0.050 yuan per kWh, further strengthening the “dilemma reversal” logic for the green electricity sector.

Zhongtai Securities: The Power Sector’s Defensive Attributes and Reform Flexibility Are Worth Noting

The market-oriented pricing reform of utilities may accelerate. If the pricing mechanisms for power, gas, water, and heating sectors are streamlined and return expectations improve, valuation systems could be reshaped. Coupled with state-owned enterprise reforms and increased share of state capital returns, related sectors may become key “risk prevention” investment directions that combine stability with reform flexibility. Specifically, the power sector benefits from both the substantial demand increase driven by AI computing expansion and the reform expectations of pricing mechanisms. Its dual characteristics of defensiveness and reform flexibility are worth paying attention to as market styles tend to balance.

Yingda Securities: China’s Renewable Energy Achieved Multiple Historic Breakthroughs in 2025

In 2025, China’s renewable energy development saw several historic breakthroughs, with new energy becoming the main source of power supply. The country added 452 million kW of renewable energy capacity, a 21% year-on-year increase, accounting for 83% of new power capacity nationwide. Notably, wind and solar power installations surpassed coal-fired power for the first time. The construction of new power systems continued, and by the end of December 2025, cumulative installed capacity of energy storage projects reached a 54% year-on-year increase, with new energy storage capacity up 85%. A top-level design for a unified national electricity market was introduced, and market-oriented reforms entered a new phase of nationwide, systematic promotion, aiming to make the multi-dimensional value of electricity more explicit in the market.

Great Wall Securities: The Fundamentals of the Green Electricity Sector Are Expected to Stabilize After Bottoming Out This Year

In the short term, after the first bidding round under Document 136 concluded, policy negatives have been exhausted, industry expected returns have stabilized, and this is expected to improve existing capacity and increase operator concentration, leading to sector fundamentals stabilizing after hitting bottom this year. Long-term, the resource attributes, zero marginal costs, ongoing upstream cost reductions, and low LCOE of green electricity ensure the industry’s sustainable development and predictable profitability.

Zhongyuan Securities: Green Power’s Strategic Role in Energy Transition Is Increasingly Prominent

As the power consumption structure continues to become cleaner and the power source structure deepens its low-carbon transformation, green power’s strategic importance as the core carrier of energy transition is increasingly recognized. Its development has shifted from merely expanding installed capacity to high-quality growth through demand-supply coordination and integrated source-grid-load-storage development.

(This article does not constitute any investment advice. Investors operate at their own risk. All investments carry risks; please proceed cautiously.)

(Source: Dongfang Caifu Research Center)