China Utilities & Renewables Blog: Widening European peak-trough power price gap into 4Q26; GCL Tech proposed to acquire LFP business; CLP's 9M26 update

This report is J.P. Morgan's China Utilities & Renewables Blog dated 21 October 2026. The European peak-trough power price gap widened further in September and October, with wider intraday spreads and more frequent negative-price hours as rising solar penetration depressed midday prices while tighter evening net-load supported peak prices. We believe value creation is shifting from generation to flexibility, supporting energy storage through arbitrage and ancillary services, and maintain OW on Sungrow (300274 CH) and Deye (605117 CH). GCL Tech signed a non-binding MOU to acquire an 81.9% stake in Sichuan GCL Lithium Battery Technology for a preliminary Rmb2.5bn (Rmb650mn cash plus Rmb1.85bn in new shares at no less than HK$1.30/share). The target has ~150kt effective LFP capacity and ~Rmb242mn 1H26 profit, with a Rmb620mn aggregate 2027-28 profit commitment;