---
title: "From Computing Power to Electric Power: A New Paradigm for China's Green Electricity Going Global"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281832721.md"
description: "On March 30th, the green power sector experienced significant adjustments, raising concerns among investors. Nevertheless, the core investment logic remains unchanged, with an upgrade in energy security strategy. The intensification of geopolitical risks in the Middle East, soaring oil and gas prices, and the vulnerabilities of traditional energy sources are driving a reassessment of the value of green power. China holds a leading position in the global power industry, with photovoltaics, wind power, and other green energy becoming the core of the energy security strategy. It is expected that by the end of 2025, China's installed capacity for photovoltaics and wind power will significantly increase, presenting an opportunity for value reassessment in the green power sector"
datetime: "2026-04-07T05:34:10.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281832721.md)
  - [en](https://longbridge.com/en/news/281832721.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281832721.md)
---

# From Computing Power to Electric Power: A New Paradigm for China's Green Electricity Going Global

On March 30th, the green power sector experienced a significant adjustment, raising doubts among many investors: is it still possible to continue allocating at this time? We believe that the current adjustment is not the end of the market, as the core investment logic of the green power sector has not changed.

**Upgrading Energy Security Strategy.** Since the end of February 2026, geopolitical risks in the Middle East have continued to escalate, with no clear signs of easing. The Strait of Hormuz, a global oil and gas transportation "throat" passage, is obstructed, and the risk of supply disruption remains high. Brent crude oil prices have soared from $70 per barrel to above $100, reaching a new high since 2022. This indicates that the geopolitical risks to energy supply are far from resolved, and high oil and gas prices may become the norm. Against this backdrop, the importance of energy security strategy has increased.

**The Vulnerability of Traditional Energy Accelerates the Revaluation of Green Power.** The daily oil transportation volume through the Strait of Hormuz accounts for about 20% of global oil trade, and 20% of liquefied natural gas trade is also transported through this route. For countries around the world, geopolitical conflicts have exposed the structural shortcomings of traditional energy supply. In this context, green power such as photovoltaics, wind power, and hydropower is no longer limited to environmental issues but has become a core component of energy security strategy.

**Energy security has become the main theme, and the investment logic of the green power sector has become clear.** From a strategic perspective, China's power industry leads the world in both power generation and installed capacity, with significant advantages in scale and systems. From the market space perspective, the explosive demand for AI computing power has opened up incremental space for green power. From the value perspective, the overseas expansion of computing power provides a new path for the monetization of electricity value. In terms of valuation, leading Chinese green power companies currently have a valuation of 15-20 times. **Therefore, against the backdrop of increasing uncertainty in traditional energy supply, the green power sector, which combines "strategic necessity + market space + valuation advantage," is standing at the starting point of value revaluation.**

**Which industries are China's advantageous industries in the theme of energy security? Select power assets: simultaneously meet scale leadership + system leadership.**

**China's green power industry has formed a globally leading scale advantage.** By the end of 2025, the national photovoltaic power generation installed capacity will reach 1.2 billion kilowatts, wind power installed capacity will reach 640 million kilowatts, and the total installed capacity of renewable energy will exceed 2.3 billion kilowatts, accounting for about 60% of the total installed capacity of the country's power. China has built the world's largest clean energy power generation system.

**China has a unique global power grid infrastructure.** Unlike the structural dilemma faced by the U.S. power grid, which is fragmented among numerous private companies and regional operators, with new transmission lines taking 5-10 years to build, China has a unified national-level power grid dispatch center that can achieve optimized allocation of power resources across regions and time periods. The dual advantages of "hardware + system" provide the foundation for China's green power to transition from scale expansion to value creation.

**Is the market space for green power large enough? In the wave of AI computing power, green power has become a new necessity, and the market space is accelerating to open up.** **The end of computing power is electricity.** The China Academy of Information and Communications Technology has conducted multiple scenario forecasts on the electricity demand for computing power in China. Based on the development trajectory of artificial intelligence technology, three differentiated development scenarios—high, medium, and low—have been constructed: In the high scenario, with explosive growth in artificial intelligence, the electricity consumption of computing power centers in China may exceed 700 billion kilowatt-hours by 2030, accounting for 5.3% of the total electricity consumption in society. Computing power centers are not only core facilities for AI but also major electricity consumers, so the end of AI is energy. This means that a rapidly expanding computing power economy requires an equally scaled electricity foundation to support it.

**The policy side has clearly supported the development of green electricity.** In 2026, "computing power and electricity synergy" was first included in the government work report. The National Bureau of Statistics has explicitly required that **the proportion of green electricity applications in newly built computing power facilities at national hub nodes reach over 80%.** The deep integration of green electricity and computing power is also expected to bring new business model explorations for green electricity operators. The continuous release of green electricity demand from domestic data centers is locking in long-term stable absorption space for green electricity operators.

**How can Chinese electricity go global? Through computing power synergy, exporting via Token, successfully monetizing electricity advantages.**

**Electricity is difficult to transport across borders, but computing power can.** For a long time, although China's clean energy is vast, it has been limited by the boundaries of physical power grids and has struggled to participate directly in global trade. With the explosive demand for AI large models, a new export path is taking shape—transforming green electricity into computing power and then transmitting it across borders in the form of Tokens through fiber optic networks, achieving "the value of electricity going abroad" while "electricity does not leave the country."

**Computing power exports are becoming a new growth pole.** According to OpenRouter data, in February 2026, Chinese models surpassed the United States for the first time in the core metric of Token usage. In the past year (from February 2025 to February 2026), the proportion of Token consumption by Chinese models increased by 421%. Chinese models such as MiniMax M2.5 and DeepSeek V3.2 rank among the top in global usage. The low-cost advantage of Chinese computing power exports is significant. For example, the input price for MiniMax's million Tokens is only $0.3, which is 1/20 of similar overseas models.

**Behind "computing power going abroad" is a significant increase in the value of electricity.** In renewable energy-rich areas such as Guizhou and Yunnan, the on-grid electricity price for wind and solar power is about 0.3 yuan per kilowatt-hour. Generating 1 million Tokens consumes about 15-20 kilowatt-hours, resulting in an electricity cost of only single-digit RMB. In the international market, the pricing for similar Token outputs is about $60-168 per million Tokens, achieving an order-of-magnitude increase in export value. In the "electricity-to-computing power" model, the digital value supported by one kilowatt-hour can reach several times to dozens of times that of traditional models.

As AI interactions evolve from "simple Q&A" to "autonomous agents," Token consumption is growing exponentially, and this demand-side expansion opens up new space for electricity absorption **Why Choose the CSI Green Power Index? — Low Valuation, Thematic Catalysis, Comprehensive Coverage**

**Low Valuation, Green Power Expected to Undergo Value Reassessment**

Chinese green power companies are currently still in a valuation trough, with valuations around the 50th percentile over the past five years, and there is logic for further increasing the valuation mean. Under the new paradigm of "computing power synergy," green power operators are deeply integrated into the AI industry chain. The valuation system of the green power sector is shifting from "public utilities" to "digital infrastructure."

**Green Power Operators Directly Benefit from Increased Demand for Computing Power**

As the three main lines of energy security, AI computing power, and overseas expansion converge, the value of green power is significantly increasing, and green power operators will directly benefit from the incremental demand for computing power. The demand for computing power locks in long-term growth space for green power, while overseas computing power opens up new paths for value realization in electricity.

**The Index Covers Power Generation Assets More Comprehensively**

From the perspective of constituent stocks, the CSI Green Power Index mainly focuses on green power fields such as hydropower, wind power, and nuclear power. The top ten constituent stocks include leading green power companies like China Yangtze Power and China National Nuclear Power, while also incorporating companies like Guodian Power that are transitioning from thermal power.

Currently, the main indices tracking green power in the market are the CSI Green Power Index and the National Green Power Index. Compared to comparable indices, the CSI Green Power Index covers the core themes of electricity more comprehensively. **The Green Power ETF E Fund (562960, Off-market Connect A/C: 019058/019059)** tracks the CSI Green Power Index. It allows for a one-click package of leading companies in wind, solar, hydropower, and thermal power transition, serving as a quality tool for capturing the beta of the new power system transformation.

**Table: Comparison of Two Green Power Indices**

**Table: Top Ten Constituent Stocks of the CSI Green Power Index**

Data Source: Wind, data as of February 27, 2026

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