On May 22nd, the Development and Reform Commission of the Xinjiang Uygur Autonomous Region issued the "Notice on Improving the Power Generation Side Capacity Pricing Mechanism in Our Region," which classifies and refines the existing capacity pricing policies for coal power, gas power, pumped storage, and independent new-type energy storage. The new policy is set to take effect officially on June 1st, 2026. This marks Xinjiang's first establishment of a capacity pricing mechanism for grid-side independent new-type energy storage projects, with projects included in the autonomous region's list management eligible for capacity electricity fee compensation. Among these, the capacity pricing standard for independent new-type energy storage is based on the coal power capacity price (165 yuan per kilowatt-year), adjusted according to the ratio of its full-power continuous discharge duration to the system's annual longest net load peak duration (tentatively set at 6 hours), with the conversion ratio capped at a maximum of 1. The charging and discharging electricity prices for pumped storage and grid-side independent new-type energy storage will be implemented according to the real-time prices and rules of the electricity spot market. During charging, they are treated as users and pay relevant fees, while the discharged electricity correspondingly reduces transmission and distribution costs. The document also proposes accelerating research to establish a reliable capacity compensation mechanism on the power generation side, which will compensate the reliable peak capacity of various units according to unified principles in the future.

To guide the steady and orderly construction of adjustable power sources in the region and ensure the safe and stable operation of the power system, the "Notice of the National Development and Reform Commission and the National Energy Administration on Improving the Power Generation Side Capacity Pricing Mechanism" (Document No. 114, 2026) is hereby forwarded, and matters related to improving the power generation side capacity pricing mechanism in our region are notified as follows for joint compliance.

I. Classify and Improve Capacity Pricing Policies (1) Capacity Pricing for Coal Power and Natural Gas Power. Starting in 2026, the proportion of fixed costs recovered by coal power units through capacity pricing will be increased to 50%, with the capacity pricing standard set at 165 yuan per kilowatt-year. A capacity pricing mechanism for natural gas power generation will be established, with the standard determined based on cost supervision (investigation) and other factors. (2) Capacity Pricing for Pumped Storage. For power stations constructed before the issuance of the "Opinions of the National Development and Reform Commission on Further Improving the Price Formation Mechanism for Pumped Storage" (Document No. 633, 2021), the price authorities of the autonomous region will verify (check) according to Document No. 633. For power stations constructed after the issuance of Document No. 633 and before Document No. 114, the price authorities of the autonomous region will formulate a unified capacity price every five years based on the principle of covering average costs over the operating period, according to the cost parameter rules specified in Document No. 633 (with corresponding reductions for full-power generation durations of less than 6 hours). (3) Capacity Pricing for Grid-Side Independent New-Type Energy Storage and Solar Thermal Power Generation. For grid-side independent new-type energy storage included in the autonomous region's list management, the capacity pricing standard = coal power capacity pricing standard × (full-power continuous discharge duration ÷ annual longest net load peak duration), with the conversion ratio capped at a maximum of 1. The annual longest net load peak duration is tentatively set at 6 hours. For solar thermal projects not included in the new energy sustainable development price settlement mechanism or national renewable energy electricity price subsidies, the capacity pricing standard will be calculated with reference to the rules for independent new-type energy storage.

II. Improve Supporting Mechanisms (1) Improve Market Trading and Price Mechanisms. Pumped storage power stations constructed before the issuance of Document No. 633 will operate according to dispatch instructions based on power system needs, while those constructed after Document No. 633 will independently participate in markets such as electric energy and auxiliary services. Revenue obtained by pumped storage power stations from market participation will be shared between pumped storage and industrial/commercial users temporarily at a ratio of 2:8 as stipulated in Document No. 633, settled uniformly on a monthly basis and cleared annually. The charging and discharging electricity prices for pumped storage and grid-side independent new-type energy storage will be implemented according to spot real-time prices and market rules. During pumping (charging), they are treated as users, paying grid connection loss fees and system operation fees, temporarily subject to a single electricity price system for transmission and distribution pricing, with discharged electricity correspondingly reducing transmission and distribution fees. Solar thermal power stations enjoying capacity pricing will follow this reference. Medium- and long-term prices will be linked to spot prices, encouraging market entities to independently agree on a certain proportion of electricity in provincial medium- and long-term contracts to execute the unified settlement point price of the real-time market, which will be implemented temporarily in monthly medium- and long-term transactions in 2026. (2) Accelerate the Establishment of a Reliable Capacity Compensation Mechanism. Considering factors such as the operation of the electricity spot market, power supply-demand relations, and user affordability, research on establishing a reliable capacity compensation mechanism on the power generation side will be accelerated to compensate the reliable capacity of units according to unified principles. Pumped storage power stations constructed after the issuance of Document No. 114 will implement the reliable capacity compensation mechanism. Capacity receiving other guarantees will not be compensated repeatedly; units with government-set prices will not be compensated.

III. Relevant Work Requirements (1) Complete the Identification of Relevant Units and Other Tasks. The energy authorities of the autonomous region will continue to identify eligible coal power units; provide grid enterprises with a list of eligible grid-side independent new-type energy storage projects, as well as lists of pumped storage, solar thermal power generation, and natural gas power generation projects; and dynamically adjust the lists and rosters. The price and energy authorities of the autonomous region will guide grid enterprises to complete the annual calculation and determination of the longest net load peak duration each year. (2) Implement Capacity Electricity Fee Settlement and Assessment. The price authorities of the autonomous region will guide grid enterprises to implement relevant electricity fee settlement policies. Grid enterprises will organize the declaration and identification of the maximum output of power generation units, conduct classified assessment and settlement of capacity electricity fees with reference to coal power capacity electricity fee assessment rules, and regularly report relevant situations to the price and energy authorities of the autonomous region.

This notice will take effect on June 1st, 2026. If national policies are adjusted during this period, they will be implemented according to national regulations.