Qinghai power generation side capacity compensation landed: will be implemented at 165 yuan/kWyear in 2026.

In early 2026, the pricing mechanism for regulating power sources such as coal-fired power, gas-fired power, and pumped storage entered a new phase. The National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on Improving the Pricing Mechanism for Generation-side Capacity," clearly proposing to establish an orderly compensation mechanism for reliable capacity on the generation side, with compensation for unit reliable capacity based on peak capabilities according to a unified principle. After the national policy direction was clarified, local pricing mechanisms for generation-side capacity are gradually being implemented. On February 25, the Development and Reform Commission of Qinghai Province issued the "Notice on Establishing the Pricing Mechanism for Generation-side Capacity in Qinghai Province." According to the draft for soliciting opinions, all types of power sources will implement a unified capacity compensation standard. In the initial stage, the capacity compensation standard will refer to the "Notice on Establishing the Capacity Compensation Mechanism for Coal-fired Power," and the unified capacity compensation standard in Qinghai Province in 2026 will be 165 yuan per kilowatt. In the later stage, the capacity compensation standard will be determined based on the recovery of marginal units or a certain proportion of fixed costs, adjusted by the provincial price supervision department based on market conditions and unit construction costs.