According to "Energy Storage and Power Market," the Liaoning Development and Reform Commission issued a notice on November 9 regarding the establishment of a reliable capacity compensation mechanism on the power generation side.
The notice makes systematic arrangements covering implementation scope, reliable capacity verification, compensation standards, electricity fee settlement, electricity fee allocation, supporting measures, and organizational implementation. Some key contents are as follows: the 2027 reliable capacity compensation standard will be implemented at 370 yuan/kW·year (tax included).
After the reliable capacity compensation mechanism on the power generation side is established, the lower limit for mid-to-long-term transaction prices will be adjusted to the lower limit of spot market clearing prices.
Before the end of 2027, the assessment requirements related to the mandatory mid-to-long-term contracting ratio will be abolished.
Coal-fired power units within the province may voluntarily choose to adopt flexible pricing mechanisms, such as linking a certain proportion of electricity in each time period of annual to monthly mid-to-long-term transaction contracts with spot market prices, and this must be clearly specified in the mid-to-long-term transaction contracts.
Reliable capacity compensation electricity fees will be shared among the electricity consumption of all industrial and commercial users, the charging electricity of grid-side independent new energy storage stations, the pumping electricity and outgoing electricity of pumped storage power stations within the provincial jurisdiction.
The maximum duration of the annual system peak period refers to the largest number of continuous hours in the annual system peak period. In the initial stage, considering policy support for grid-side independent new energy storage stations, the maximum duration of the annual system peak period will temporarily be implemented as 8 hours.
For units with limited power generation duration, such as grid-side independent new energy storage stations, their reliable capacity is the maximum AC-side discharge power multiplied by the reliable capacity coefficient. The maximum AC-side discharge power is the smaller value of the measured discharge power under the higher and lower annual temperature levels. The reliable capacity coefficient is determined by dividing the duration at maximum AC-side discharge power by the highest value of the maximum duration of the annual system peak period over the past 3 years, and when it is greater than 1, it is taken as 1.
The details are as follows: taking into overall consideration factors such as the power supply-demand relationship, user affordability, and progress in power market construction, and based on compensating the fixed costs that marginal units in the market cannot recover in the energy and ancillary services markets, the reliable capacity compensation standard is determined on an annual basis.
The 2027 reliable capacity compensation standard will be implemented at 370 yuan/kW·year (tax included). Subsequently, it will be adjusted in due course based on the operation of the province's power market and changes in unit costs.
The reliable capacity compensation electricity fee that a power source can obtain in the current year is determined by calculating the product of the verified reliable capacity, the reliable capacity compensation standard, and the capacity supply-demand coefficient for the current year, minus the product of the previous year's differential capacity, the reliable capacity compensation standard, and the capacity supply-demand coefficient.
Reliable capacity compensation electricity fees will be settled monthly and cleared annually by the provincial power company. Monthly settlement will be carried out according to the verified reliable capacity, the reliable capacity compensation standard, and the capacity supply-demand coefficient for the current year; annual clearing will deduct according to the previous year's differential capacity, the reliable capacity compensation standard, and the capacity supply-demand coefficient, and from February of the following year, the amount will be evenly allocated to each month of the current year.
Reliable capacity compensation electricity fees will be shared among the electricity consumption of all industrial and commercial users, the charging electricity of grid-side independent new energy storage stations, the pumping electricity and outgoing electricity of pumped storage power stations within the provincial jurisdiction.
After the reliable capacity compensation mechanism on the power generation side is established, the lower limit for mid-to-long-term transaction prices will be adjusted to the lower limit of spot market clearing prices. The clause in the "Liaoning Province Electricity Market Settlement Implementation Rules" (Trial Version 4.0) stating that "the weighted average price limit of the unified settlement point in the power spot market throughout the day shall not be higher than 1.5 times the coal-fired benchmark electricity price" will no longer be implemented.
Before the end of 2027, the assessment requirements related to the mandatory mid-to-long-term contracting ratio will be abolished. Coal-fired power units within the province may voluntarily choose to adopt flexible pricing mechanisms, such as linking a certain proportion of electricity in each time period of annual to monthly mid-to-long-term transaction contracts with spot market prices, and this must be clearly specified in the mid-to-long-term transaction contracts. For those choosing price linking, the reliable capacity compensation mechanism will be implemented at the standard of 370 yuan/kW·year, along with a supporting operating cost compensation mechanism; for those choosing not to link, all electricity in mid-to-long-term transactions may be signed under fixed-price contracts, and the reliable capacity compensation mechanism will be implemented at the standard of 165 yuan/kW·year, with the operating cost compensation temporarily not implemented.
According to the province's power market construction situation, the distinction of whether to sign linked mid-to-long-term contracts will gradually be eliminated, and the reliable capacity compensation mechanism and operating cost compensation mechanism will be implemented simultaneously.
Optimize the price formation mechanism for inter-provincial purchased electricity, encourage 90% of contract electricity to be executed at the province's annual mid-to-long-term transaction average price, and the remaining 10% of contract electricity to be executed at the province's spot market price, so as to promote market transaction prices to truly reflect the fundamentals of power supply and demand.
Improve the retail package price formation mechanism, enrich the variety of retail packages, reasonably optimize the frequency of package adjustments, expand the trading freedom of retail users, strengthen information disclosure in the retail market, and promote the full transmission of the benefits of power market reform to end users.
Supporting the implementation of the "Liaoning Province Power Generation Side Reliable Capacity Compensation Electricity Fee Deduction Measures," with the goal of incentivizing power sources to enhance peak-shaving capability, deductions will be made based on the differential capacity by which units actually fail to meet dispatch instructions or the annually verified reliable capacity, implementing "payment according to performance and annual clearing."
This notice will be piloted starting from January 1, 2027. The original text is as follows:
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