Two departments: in areas with a high proportion of new energy installed capacity and large demand for reliable capacity, a reliable capacity compensation mechanism should be established quickly.

The National Development and Reform Commission and the National Energy Administration have issued a notice on improving the capacity electricity price mechanism on the generation side. It mentioned the overall requirements of the reliable capacity compensation mechanism. Reliable capacity refers to the capacity that a unit can continuously and stably supply power during the peak period of the system throughout the year. After the continuous operation of the electricity spot market, provincial price regulatory authorities, together with relevant departments, will establish a reliable capacity compensation mechanism in a timely manner, compensating for unit reliable capacity based on unified principles. The compensation standards are based on compensating for the fixed costs that marginal units in the electricity energy and ancillary services markets cannot recover, taking into account the overall consideration of the power supply-demand relationship, user affordability, progress in electricity market development, and adjusting as needed. Regions with a high proportion of new energy installed capacity and high demand for reliable capacity should accelerate the establishment of a reliable capacity compensation mechanism. Under the guidance of the national government, regions that meet the conditions can timely form capacity electricity prices through capacity markets and other means in conjunction with the electricity market development situation.