Guangxi Zhuang autonomous region has launched a mechanism power price auction for 2027 incremental renewable energy projects, with a unified bidding range for wind and solar power.

The regional development and reform commission and the regional energy bureau issued a notice on the auction, setting the bidding price range at 0.15-0.36 yuan/kWh, tax included, with an execution period of 12 years.

The auction covers wind and solar projects that achieved full-capacity grid connection between June 1, 2025 and December 31, 2027 and have not previously been included in the mechanism power price scope, including distributed wind and residential distributed solar. Projects for local consumption of renewable energy and general and large-scale commercial and industrial distributed solar are excluded. The auction will be organized and cleared separately for wind and solar.

The bidding ceiling for both wind and solar is 0.36 yuan/kWh, with a floor of 0.15 yuan/kWh. Bids must be submitted with three decimal places. The total electricity volume is set at 40% of the forecast annual on-grid electricity of eligible incremental projects across the region. A single project may apply to include no more than 80% of its total on-grid electricity in the mechanism, with the application ratio in integer multiples of 1%. The minimum bid adequacy ratio for both wind and solar is 120%.

The mechanism power price is a transitional arrangement in the market-oriented reform of renewable energy on-grid tariffs. Electricity included in the mechanism is settled at the fixed price formed through bidding, while the remaining electricity fully participates in the spot power market and is settled at market prices. This means that even if a project wins mechanism electricity, at least 20% of its electricity remains exposed to spot price fluctuations.

In Guangxi's previously completed 2025-2026 mechanism power price auction, 90 wind projects were selected at a mechanism price of 0.355 yuan/kWh, close to the 0.36 yuan/kWh ceiling. A total of 7,467 solar projects were selected at 0.31 yuan/kWh. The bidding range for the 2027 auction is unchanged from the previous year, but the project scope has been adjusted, with commercial and industrial distributed solar excluded.