Industry Report

In 2026, the Ministry of Industry and Trade sets a base-case demand growth of 8.5% yoy, which should broadly support dispatch prospects across power plants. We expect a recovery in thermal power generation, particularly during peak summer months, while hydropower dispatch is likely to decline from the high base in 2025. For renewable energy, priority dispatch remains intact, with the main risk stemming from potential curtailment should demand growth fall short of plan.

In the next development cycle of the power sector, new policy initiatives continue to prioritize renewable energy and gas-fired power, while emphasizing the critical role of grid infrastructure. We see a strong project pipeline for EPC and consulting firms such as PC1 and TV2 during this period. At the same time, leading renewable developers including REE, HDG, and GEG are actively advancing new projects. In gas-fired power, POW and PGV remain the most notable listed players committed to large-scale LNG-to-power projects.

Against the backdrop of ongoing FX and interest rate risks in 2026, we favor companies with sound financial structures, lower sensitivity to financing costs, and stable earnings growth, notably HDG and REE.