Research on capacity cost compensation mechanism on power generation companies

With the implementation of the goal of “carbon peaking and carbon neutrality” and the continuous deepening of the construction of new power systems, the problem of tight supply and demand caused by the intermittent and uncertainty of renewable energy output has become increasingly prominent. In order to ensure the safe and reliable operation of the power system, this paper proposed a new capacity guarantee mechanism to compensate the power plants who provide capacity value for the power system, and the effects of unit output uncertainty and depreciation are also considered. This method can guarantee the construction of new units and the orderly exit of old units. Finally, the balance of power supply and demand in the long term can be reached, and the smooth and orderly progress of energy transformation will be accelerated.