How China’s 2025 Energy Policies Are Shaping Global Markets — Observations from China SNEC Exhibition
China’s 2025 Energy Reforms: Subsidy-Driven Growth to Market-Oriented Reform. A Turning Point for Storage, Solar — and Global Strategy
China’s energy landscape is undergoing a pivotal transformation in 2025, marked by a decisive shift from subsidy-driven growth to market-oriented reform — particularly in the energy storage and distributed photovoltaic (PV) sectors. With landmark policies like Notice 136, “430”, and “531”, the country is not only reshaping its domestic energy structure but also setting a precedent with global implications.
Session 1: Energy Storage — Unlocking Market Value with Notice 136
Released in February 2025, Notice 136 marks a move away from mandatory storage pairing and fixed electricity pricing. While this policy may dampen short-term demand, it opens the door for independent, economically viable storagesolutions. Market-based pricing is expected to better reflect the true value of storage — critical for balancing renewables and ensuring grid flexibility. This transition from “policy-pushed” to “market-pulled” signals a mature path forward — one that may influence how other markets design incentives and value flexibility assets.
Session 2: Distributed PV — “430” and “531”: Dual-Track Reform with Global Lessons
Two policy nodes are defining 2025 for distributed PV:
April 30 (“430”): A hard stop for legacy benefits. Projects grid-connected before this date retain access to higher subsidized tariffs and full on-grid sales. Afterward, they’re limited to self-consumption or partial exports — prompting a nationwide rush to qualify under the old rules.
May 31 (“531”): Full market entry. New PV projects must trade electricity on the market, with no national subsidies. Profitability now depends on self-consumption, real-time pricing, and technical upgrades like smart metering and storage integration. This shifts the industry from quantity to quality and efficiency.
Global Impact: What the World Can Learn
China’s reforms are fast-tracking a new energy economy — with ripple effects far beyond its borders:
Blueprint for Marketization: Other countries eyeing a post-subsidy energy future can watch China’s accelerated shift and its growing pains.
Tech-Driven Differentiation: With higher technical standards, especially around PV + storage + EMS, China may drive global innovation in smart energy systems.
New Business Models: Self-consumption models, user-owned assets, and bundled services like “PV + storage + EV charging” are becoming the new normal — and could scale internationally.
Supply Chain Influence: As China remains central to global solar and battery production, these policy shifts directly impact international pricing, project economics, and supply strategies.
Conclusion
These reforms aim not just for more renewable energy, but for better, smarter, and more sustainable deployment. While short-term volatility is inevitable, the long-term outcome is a more resilient and competitive clean energy sector — one with lessons, opportunities, and implications for the world!