CITIC Securities pointed out that in 2026, we expect the contradiction between supply and demand in the electricity market caused by the release of supply will further intensify; according to our estimates, a new balance inflection point in the electricity market may occur in 2028; the power system capacity shortage problem is evident, and the system is nearing the point where insufficient capacity conflicts will accelerate, and energy storage development will usher in long-term key support; it is expected that in 2026, supply and demand easing and reforms will drive the downturn in electricity prices to increase. Among them, hydropower will be more resistant to the downward cycle.

CITIC Securities pointed out that in 2026, we expect the contradiction between supply and demand in the electricity market caused by the release of supply will further intensify; according to our estimates, a new balance inflection point in the electricity market may occur in 2028; the power system capacity shortage problem is evident, and the system is nearing the point where insufficient capacity conflicts will accelerate, and energy storage development will usher in long-term key support; it is expected that in 2026, supply and demand easing and reforms will drive the downturn in electricity prices to increase. Among them, hydropower will be more resistant to the downward cycle.