Qinghai Power Generation Capacity Compensation Implementation: 2026 Execution at 165 Yuan/kW·Year

In early 2026, new regulations will be introduced for the electricity pricing mechanisms of adjustable power sources such as coal, gas, and pumped storage. The National Development and Reform Commission and the National Energy Administration jointly issued the “Notice on Improving the Capacity Electricity Price Mechanism on the Generation Side,” which clearly states the orderly establishment of a reliable capacity compensation mechanism for power generation, with reliable capacity of units being compensated based on peak capacity according to a unified principle. Following the clear policy direction at the national level, local capacity electricity price mechanisms are also gradually being implemented. On February 25, the Qinghai Provincial Development and Reform Commission released the “Notice on Establishing the Capacity Electricity Price Mechanism for Power Generation in Qinghai Province (Draft for Comments).” According to the draft, all types of power sources will implement a unified capacity compensation standard. Initially, the capacity compensation standard will refer to the “Notice on Establishing a Coal Power Capacity Compensation Mechanism,” with Qinghai Province setting a unified capacity compensation standard of 165 yuan/(kW·year) in 2026. In later stages, the capacity compensation standard will be calculated based on the fixed costs of fully recovered or partially recovered marginal units, with provincial price authorities adjusting it according to market operation conditions, unit construction costs, and other factors. (21st Century Business Herald)