Core Viewpoint - The article discusses the recent notification issued by the National Development and Reform Commission and the National Energy Administration regarding the improvement of the capacity pricing mechanism for hydropower storage, which is expected to enhance the development of the energy storage industry and facilitate the construction of a new power system in China [2]. Group 1: Improvement of Pumped Storage Pricing Mechanism - The notification aims to establish a scientific pricing mechanism for the sustainable development of the pumped storage industry, addressing issues such as investment guidance and market price signals [3]. - The principle of "stability for existing projects and activation for new projects" is emphasized, with differentiated policies for existing and new pumped storage plants to ensure stable operations and reasonable returns [4][6]. - For existing projects, the notification allows provincial pricing authorities to continue using previous pricing methods to avoid significant operational fluctuations due to policy changes [4]. Group 2: New Pricing Mechanism for New Projects - For new projects initiated after the previous guidelines, a pricing mechanism combining "unified capacity price + market revenue sharing" is introduced, which aims to optimize resource allocation and encourage investment [6]. - The unified capacity price will be determined every 3-5 years based on average costs, while market revenue sharing will increase the proportion of market income in the revenue structure of pumped storage plants [6][8]. - This transition from policy-driven to market-driven mechanisms is expected to enhance the efficiency of new projects and support the construction of a new power system [6]. Group 3: Independent Capacity Pricing for New Energy Storage - The notification establishes an independent capacity pricing mechanism for grid-side new energy storage, allowing these facilities to have the same capacity status as coal power plants [7]. - The new pricing structure includes "capacity price + energy revenue + ancillary services," which will provide stable income and promote the rapid development of the new energy storage industry [8]. - Different energy storage technologies will compete under unified rules, shifting the focus from cost competition to a comprehensive evaluation of functional value [8]. Group 4: Assessment and Regulation - The policy includes a user price burden assessment system to ensure that the pricing mechanism is sustainable and beneficial for the economy [9][10]. - Strengthened capacity fee assessments will guide the operational performance of power plants, ensuring that revenue flows to projects that effectively provide regulatory functions [10]. - This dual approach aims to balance user price burdens with regulatory oversight, maximizing the effectiveness of the pricing reforms [10]. Conclusion - The comprehensive improvement of the energy storage pricing mechanism establishes a policy framework that balances stability for existing projects with market-driven transformation for new projects, filling the gap in independent capacity pricing for grid-side energy storage [11]. - The notification is expected to attract social capital into efficient energy storage sectors, enhancing the power system's regulatory capabilities and supporting the transition to a green and low-carbon energy structure [11].