Circular of the National Development and Reform Commission and the National Energy Administration on the Establishment of a Coal-fired Power Capacity Electricity Price Mechanism
Development and Reform Price [2023] No. 1501
To all provinces, autonomous regions, municipalities directly under the Central Government, the Development and Reform Commission and the Energy Administration of the Xinjiang Production and Construction Corps, the dispatched agencies of the National Energy Administration, China Huaneng Group Co., Ltd., China Datang Group Co., Ltd., China Huadian Group Co., Ltd., State Power Investment Group Co., Ltd., China Energy Investment Group Co., Ltd., State Development and Investment Group Co., Ltd., China Resources (Group) Co., Ltd., State Grid Co., Ltd., China Southern Power Grid Co., Ltd., Inner Mongolia Electric Power (Group) Co., Ltd.:
In order to implement the decisions and arrangements of the CPC Central Committee and the State Council on accelerating the construction of a new power system, adapt to the new situation of the transformation of coal-fired power to both basic guarantee and system-regulated power sources, promote the transformation of coal-fired power to its business development model, give full play to the role of support and regulation, better ensure the safe and stable supply of electricity, and promote the accelerated development of new energy and the green and low-carbon transformation of energy, the following notice is hereby given on matters related to the establishment of a coal-fired capacity electricity price mechanism。
First, the general idea
Adhere to the direction of market-oriented reform, accelerate the construction of an efficient and coordinated power market system such as the electric energy market, capacity market, and auxiliary service market, and gradually build a two-part electricity price mechanism that effectively reflects the value of electricity and capacity of various power sources. At the current stage, to meet the needs of accelerating the transformation of coal-fired power functions, the current single-system electricity price of coal-fired power will be adjusted to a two-part electricity price, of which the electricity price will be formed through market-oriented methods, which will sensitively reflect the changes in supply and demand and fuel costs in the electricity market. The capacity electricity price level is reasonably determined and gradually adjusted according to the actual situation such as the progress of transformation, which fully reflects the support and regulation value of coal power to the power system and ensures the sustainable and healthy operation of the coal power industry.
II. Policy Details
(1) Scope of implementation. The coal-fired capacity tariff mechanism is applicable to public coal-fired power units in operation in accordance with regulations。 Coal-fired captive power plants, coal-fired power units that do not meet the national plan, and coal-fired power units that do not meet the national requirements for energy consumption, environmental protection and flexible adjustment capacity shall not implement the capacity electricity price mechanism, which shall be specified separately by the National Energy Administration。
(2) Determination of the capacity electricity price level。 The electricity price for coal-fired power capacity is determined in accordance with the method of recovering a certain percentage of the fixed cost of coal-fired power units。 Among them, the fixed cost of coal-fired power units used to calculate the capacity electricity price is subject to a unified national standard of 330 yuan per kilowatt per year; According to the proportion of fixed costs recovered by capacity electricity prices, and comprehensively considering the needs of local power systems, the transformation of coal-fired power functions and other factors, it will be about 30% in most places in 2024~2025, and about 50% in some places where the transformation of coal-fired power functions is faster (see the annex for details on the price level of coal-fired power capacity in provincial-level power grids). From 2026, the proportion of fixed costs recovered through capacity electricity prices will be increased to no less than 50%.
(3) Capacity electricity fee apportionment. The capacity electricity fee that coal-fired power units can obtain shall be determined according to the local coal-fired power capacity price and the maximum output declared by the unit, and the coal-fired power units shall be declared on a monthly basis, and the power grid enterprises shall settle on a monthly basis。 The price mechanism for coal-fired power capacity will be implemented from the month following the commissioning of new coal-fired power units。 The electricity charges for coal-fired power capacity in various regions shall be included in the operating costs of the system, which shall be shared by industrial and commercial users according to the proportion of electricity consumption in the current month every month, and shall be released and liquidated by the power grid enterprises on a monthly basis。
For coal-fired power units that are included in the power balance of the receiving provinces, the sending and receiving parties shall sign medium- and long-term contracts of one year or more, clarifying the proportion of electricity charges for coal-fired power capacity and the responsibility for performance。 Among them: (1) Supporting coal-fired power units, in principle, the capacity electricity price of the receiving province shall be implemented, and the capacity electricity fee shall be borne by the receiving province。 If power is transmitted to multiple provinces, the capacity electricity fee can be temporarily apportioned according to the proportion of the power distribution of the receiving province, and the exploration of apportionment according to the proportion of transmission capacity is encouraged. (2) For other coal-fired power units, in principle, the capacity electricity price of the transmitting province shall be implemented, and the capacity electricity fee shall be reasonably shared by the sending and receiving parties, and the apportionment ratio shall be determined through negotiation taking into account the proportion of electricity delivered by the sending province and the electricity consumption of the receiving province during peak hours。
For inter-provincial and inter-regional coal-fired power units that are not included in the power balance of the receiving provinces, the sending provinces shall bear their capacity electricity charges。
(4) Assessment of capacity electricity charges. Under normal operating conditions, if the coal-fired power unit is unable to provide the maximum output of the declared power in accordance with the dispatching instructions (inter-provincial and inter-regional power transmission shall be agreed in the contract, the same below), 10% of the capacity electricity fee of the current month will be deducted twice in the month, 50% will be deducted three times, and 100% will be deducted four times or more. The rules for the declaration, identification and assessment of the maximum output of coal-fired power units shall be clarified by the National Energy Administration in conjunction with the detailed rules for the management of grid-connected power operation。 If the maximum output does not meet the standard, the power grid enterprise shall count it on a monthly basis, and the capacity electricity fee shall be deducted accordingly。 Coal-fired power units that have been deducted from their monthly capacity electricity charges for three times in a calendar year will be disqualified from obtaining capacity electricity charges。
The capacity electricity price of emergency standby coal-fired power units shall be formulated by the provincial-level price department in conjunction with the energy department in accordance with the principle of recovering routine maintenance costs, and shall be determined by means of competitive bidding and other means。 The electricity price of the emergency standby coal-fired power unit during the call period shall be determined according to the trading price level of the shortest period electricity market in the same period。 The specific scope and management measures for emergency standby coal-fired power units shall be separately clarified by the National Energy Administration。
3. Safeguard measures
(1) Careful organization and implementation. The provincial-level price authorities should take the lead in implementing the coal-fired capacity electricity price mechanism, make careful arrangements and arrangements, and carefully organize and implement them。 Inter-provincial and inter-regional power transmission and receivers should strengthen communication and cohesion, and refine and determine the electricity fee sharing method for the capacity of coal-fired power units as soon as possible, and make it clear in the medium and long-term transaction contracts。 Power grid enterprises should actively cooperate with the calculation, settlement, information statistics and reporting of coal-fired power capacity and electricity charges. Power generation enterprises shall declare the maximum output of the unit in a timely manner according to the regulations, as the basis for the calculation, settlement and assessment of capacity electricity charges。 The National Development and Reform Commission (NDRC) has strengthened the regulation and supervision of coal prices, strengthened guidance on the signing and performance of medium- and long-term contracts for coal-fired power, promoted the formation of electricity prices that are fully competitive and reasonably reflect fuel costs, and guided coal and coal-fired power prices to remain basically stable to ensure the smooth implementation of the mechanism。
(2) Strengthen policy coordination. All localities should accelerate the construction and development of the electricity market, improve the market trading rules, promote the effective formation of electricity prices through marketization, and play a synergistic role with the coal-fired capacity electricity price mechanism; Where a peak regulation compensation mechanism has been established, it is necessary to carefully assess the system peak regulation demand and the operating conditions of coal-fired power enterprises after the implementation of the capacity electricity price mechanism, and adjust the compensation standards for paid peak regulation services accordingly。 Where the electricity spot market operates continuously, it may refer to the coal-fired power capacity price mechanism specified in this notice to study and establish a power generation side capacity price mechanism that adapts to the operation of the local electricity market; After the establishment of the capacity price mechanism on the power generation side, the coal-fired power units in the province will no longer implement the capacity price mechanism specified in this notice。
(3) Close follow-up and monitoring. The provincial-level price authorities shall, in conjunction with relevant local departments, actively track the implementation of the coal-fired power capacity price mechanism, closely monitor the dynamics and price changes of the coal and electricity markets, and reflect problems in a timely manner。 Power grid enterprises shall separately collect and reflect the electricity charges for coal-fired power capacity, and report to the provincial-level price authorities and relevant competent departments on a quarterly basis the settlement and deduction of local coal-fired power unit capacity electricity charges, the calculation and implementation of the level of electricity apportionment of industrial and commercial users, and the settlement of electricity and electricity charges。
(4) Strengthen publicity and guidance. All localities should strengthen policy interpretation and publicity and guidance, guide power grid enterprises and power generation enterprises to fully explain to users the importance of establishing a coal-fired capacity electricity price mechanism to play a role in supporting and regulating coal power, better ensuring the safe and stable supply of electricity, and promoting the green and low-carbon transformation of energy, actively respond to social concerns, and enhance understanding and support from all parties.
This notice will come into force on January 1, 2024. In the process of policy implementation, if there are major changes in the market situation, the National Development and Reform Commission and the National Energy Administration will evaluate and adjust them in a timely manner.
Attachment: Provincial power grid coal power capacity electricity price list
National Development and Reform Commission
National Energy Administration
November 8, 2023
