On November 10, 2026, the Hubei Provincial Development and Reform Commission and the Provincial Energy Administration announced the results of the 2026 competitive bidding for the sustainable development price settlement mechanism for renewable energy projects. The bidding was conducted separately for wind power and photovoltaic projects, covering centralized and distributed solar and wind projects.

The bidding ceiling and floor were RMB 0.38 and RMB 0.28 per kWh for photovoltaic projects, respectively; for wind power projects, they were RMB 0.40 and RMB 0.25 per kWh. The two project categories had separate bidding ranges and were cleared separately, so the results should be understood in the context of each respective project group.

Bidding Ranges and Actual Settlement Prices for Projects Should Be Distinguished

The information released specifies the upper and lower limits for wind and photovoltaic projects participating in the bidding. For photovoltaic projects, RMB 0.28 and RMB 0.38 are the bidding floor and ceiling, respectively; this does not mean that all projects will settle at the same price within this range. The RMB 0.25–0.40 range for wind power projects should be understood in the same way.

The photovoltaic bidding range spans RMB 0.10 per kWh, while the wind power range spans RMB 0.15 per kWh. This difference reflects the distinct bidding boundaries for the two groups. The range widths alone do not indicate which specific projects were selected, nor can they be used to compare the actual returns of the two project categories.

Competitive bidding under the price settlement mechanism is directly related to projects’ future revenue expectations. When interpreting the results, participants need to distinguish among the bidding range, the specific bidding outcome for each project, and subsequent settlement arrangements. The upper and lower limits provide boundaries for assessing price competition, but these two figures alone are insufficient to determine a project’s final settlement.

Separate Clearing and Project Types Bring Different Considerations

The separate clearing of wind and photovoltaic projects is key to understanding the bidding results. Each category has its own price range, so the project group should first be identified before analyzing prices in light of that group’s clearing results. Directly comparing the upper and lower limits for wind and photovoltaic projects does not clarify the price conditions facing any specific project.

The bidding covered both centralized and distributed projects. For different project types, participants may first consider how the relevant bidding arrangements apply and how the specific results affect revenue estimates. Even projects in the same photovoltaic or wind category may have different conditions, and the range limits alone do not reflect the economics of each individual project.

For projects still at the estimation stage, the bidding price range is one factor to consider when assessing revenue expectations. For projects that have already participated in the bidding, the more immediate questions are their specific clearing results and how the relevant prices will apply to subsequent settlement. These questions need to be considered in light of each project’s circumstances and the applicable settlement arrangements.

In the short term, industry attention may focus on the specific clearing results and price distribution in each project group. Further assessment will also require attention to project implementation and settlement arrangements: how bidding results apply to specific projects and how the relevant prices are used for settlement will both affect market assessments of project returns. The bidding floors and ceilings announced so far alone are not enough to infer overall project returns or future changes in market prices.