The International practice and enlightenment of capacity compensation mechanism

With the large-scale development of renewable energy and its integration into the power system, as well as the withdrawal of fossil energy units under the carbon neutral target, the issue of generating capacity adequacy has once again been widely concerned by the power market design. Based on the practice of electric power capacity adequacy mechanism in various countries, this paper compares the scarce electricity price mechanism, capacity subsidy mechanism and capacity market mechanism from the aspects of mechanism triggering, demand generation, trading products, trading volume, trading price, procurement responsibility subject, price stability, investment guidance, implementation difficulty, impact on the electric energy market and applicable scenarios. Finally, according to the current electricity market reform environment, the corresponding policy suggestions are put forward for the construction of power capacity compensation mechanism in China.