Calculating electricity collaboration to promote the revaluation of green energy value

A-share listed stocks’ long-dormant green power sector has seen an “early spring” rally. In recent times, green power concept stocks have surged strongly, with large amounts of capital flooding into the green power track. The share prices of multiple individual stocks have doubled, making the sector a major new storyline in the capital markets. Behind the strong performance of green power concepts, a surge in demand for artificial-intelligence computing power is profoundly reshaping the power industry landscape, driving a reappraisal of green power’s value.

Since last year, the green power industry has been mired in “growing pains.” On one side, installed capacity has been expanding rapidly, with renewable energy power generation equipment—such as wind and solar—reaching record highs. On the other side, there is a “generated but cannot be transmitted, and cannot be used up” curtailment and absorption dilemma, leading to a sharp decline in renewable energy utilization rates in some regions. At the same time, power market-oriented reforms have been pushed forward in depth. Green power has bid farewell to “ensuring quantity and keeping prices,” with market transaction prices continuing to fall. In many places, spot markets have repeatedly seen negative electricity prices, squeezing corporate profit margins significantly. The dual contradictions of curtailment and electricity pricing have kept the green power sector trapped in a long-term valuation trough.

The turning point began with the explosion in AI computing power demand. Data centers, as “electricity tycoons,” have 24/7 continuous, large-scale, and stable electricity consumption needs, providing green power with an entirely new absorption scenario. This year’s “Government Work Report” for the first time included “computing-and-power coordination” in the new infrastructure initiatives, promoting deep integration between the two major foundations—power and computing. The National Data Bureau has also clearly stated that the share of green power application for newly built computing facilities in hub nodes must reach 80% or more. After green power shifted from being an optional item to a “quasi-entry threshold” for computing implementation, the market has found that green power is no longer only an energy supply-side product; it has become a computing power infrastructure that supports the development of the digital economy. Its value logic has undergone fundamental change.

The reason computing power can unlock a reappraisal of green power value lies in the fact that it targets industry pain points directly from two levels: physical absorption and economic value.

From the perspective of physical absorption, AI computing power provides a stable “outlet” for green power. It is expected that by 2030, China’s data center electricity consumption will exceed 700 billion kilowatt-hours, accounting for more than 5% of total electricity consumption across society. With continuous iterations of AI technology, its demand for electricity seems to have no end. This massive, stable load is highly compatible with surplus electricity from large wind and solar bases in northwest China. Computing power is poised to become a super absorption engine for green power.

From the perspective of economic value, computing power enables green power to monetize environmental premiums. With the rollout of innovative power supply modes that directly connect to green power, data centers’ high requirements for power supply stability and low-carbon attributes can be met more effectively. This “point-to-point” supply model bypasses grid congestion and intermediary links, allowing green power enterprises to directly connect with higher-value customers and lock in higher project returns. As high-quality users, computing centers can further smooth out risks of electricity price fluctuations by signing long-term power purchase agreements. The environmental value of green power is no longer a paper concept—it is converted into tangible earnings.

Computing-and-power coordination is not just a matter of physical connection; its core is coordination rather than bundling. A real reappraisal of value is built on deep integration between computing power dispatch and power dispatch. Computing centers can increase loads during green power output peaks and reduce loads during troughs through flexible adjustments, achieving “more computing when there is more power, less computing when there is less power,” and improving green power absorption efficiency. Green power enterprises, in turn, can rely on integrated wind, solar, and storage configurations to provide computing centers with stable and reliable power supply. Meanwhile, by using virtual power plant technologies, they can participate in auxiliary services such as peak shaving and frequency regulation, expanding profit channels. Such intelligent coordination transforms green power from a single power generation entity into a comprehensive energy service provider.

It is necessary to emphasize that computing-and-power coordination must guard against the “pseudo-coordination” trap. Some projects currently claim to be computing-and-power coordination, but in reality they are traditional capacity expansions with high energy consumption and low efficiency. They neither achieve direct green power supply nor improve energy utilization efficiency. These projects will not only fail to resolve green power’s dilemmas, but also exacerbate resource waste. True computing-and-power coordination must focus on high efficiency and genuinely green outcomes, achieving deep integration of energy and digital technologies through technological innovation and model optimization.

In response to the industry changes brought by computing-and-power coordination, green power enterprises need to accelerate their transformation—from resource developers to energy service providers—and seize opportunities in the new round of value reappraisal. First, prioritize areas near computing power hubs and regions that have conditions for direct green power supply. At the same time, increase integrated wind, solar, and storage construction to improve power regulation capabilities. Actively participate in green power and green certificate trading, and sign long-term power purchase agreements with high-quality customers such as computing centers to offset risks from electricity price fluctuations and achieve stable growth in returns. Leverage advantages in electricity data to provide low-carbon computing power solutions to computing centers, shifting from selling electricity to selling services. Through technologies such as virtual power plants and intelligent dispatch, participate in the power auxiliary services market, tap into the diversified value of green power, and achieve a leap from single power generation to comprehensive energy services.

“Electricity is the end of computing power; green power is the end of electricity.” Under the push of computing-and-power coordination, the green power sector is now entering a late but crucial value reappraisal. Operators with geographic advantages, strong regulation capabilities, and deep involvement in computing-and-power coordination will stand out and gain market recognition and valuation increases. (Source: Economic Daily; Author: Wang Yichen)