On January 30, 2026, the National Development and Reform Commission and the National Energy Administration jointly issued the “Notice on Improving the Generation-Side Capacity Tariff Mechanism.”
The notice specifies the establishment of a capacity tariff mechanism for independent, grid-side new energy storage systems. Grid-side independent new energy storage power stations that serve the secure operation of the power system and do not participate in distributed storage configurations may be eligible for capacity tariffs in various regions.
The capacity tariff level will be based on the local coal-fired power capacity tariff standard, adjusted by a certain ratio according to peak-shaving capability. This ratio is calculated by dividing the system’s full-power continuous discharge duration by the annual longest net load peak duration (with a maximum ratio of 1). This implies that a 2-hour storage system, in most provinces, can only obtain 30% to 50% of the full capacity tariff. A 4-hour storage system is required to approach the “full amount.”
The level of the capacity tariff depends on how long the storage station can sustain full-power discharge during the system’s net load peak periods when power support is most needed. Longer discharge durations result in a higher adjustment ratio and, consequently, greater capacity tariff revenue.
