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The state establishes a coal-fired power capacity pricing mechanism

Recently, the National Development and Reform Commission and the National Energy Administration jointly issued a notice on establishing a coal based capacity electricity pricing mechanism, deciding to establish a coal based capacity electricity pricing mechanism from January 1, 2024, and implement a two part electricity pricing policy for coal based electricity.

The Notice proposes that in order to adapt to the new situation of the transformation of coal-fired power towards both basic and system regulated power sources, it is decided to adjust the current single system electricity price for coal-fired power to a two-part system electricity price. Among them, the electricity price is formed through marketization, and the capacity price level is gradually adjusted according to the actual situation of coal power transformation progress, fully reflecting the support and adjustment value of coal power to the power system, better ensuring the safe operation of the power system, and laying a solid foundation for carrying out larger scale new energy development.

The Notice clarifies that a coal based capacity electricity price policy will be implemented for compliant public coal-fired power units in operation, and the capacity electricity price will be determined based on a fixed cost of recovering a certain proportion of coal-fired power units. Among them, the fixed cost of coal-fired power units used for calculating capacity electricity prices follows a unified national standard of 330 yuan per kilowatt per year; From 2024 to 2025, the proportion of fixed costs recovered through capacity electricity prices in most places will be around 30%, with some areas experiencing rapid transformation of coal-fired power functions being appropriately higher; Starting from 2026, the proportion of fixed cost recovery through capacity electricity prices in various regions will be increased to no less than 50%. The coal-fired capacity electricity fee is included in the system operation cost, and is shared monthly by industrial and commercial users according to the proportion of electricity consumption for the current month.

The Notice emphasizes the simultaneous strengthening of coal price regulation and supervision, strengthening guidance on signing and fulfilling medium - and long-term contracts for coal-fired power, promoting the formation of electricity prices that fully compete and reasonably reflect fuel costs, and guiding coal and coal-fired power prices to maintain basic stability.

The Notice requires all regions to strengthen policy coordination, accelerate the construction and development of the electricity market, improve market trading rules, promote the effective formation of electricity prices through market-oriented methods, and work together with the coal based capacity pricing mechanism to better ensure the safe and stable supply of electricity and promote the green and low-carbon transformation of energy.



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