Core Insights - The report from GF Securities highlights the improvement in the economics of new energy storage, the stability of thermal power profitability, and the quality enhancement of pumped storage [1][3]. Historical Context - The national capacity pricing policy was initially explored through pumped storage and coal power, followed by the expansion to natural gas and new energy storage due to electricity shortages [1]. - Various provinces are actively exploring diverse capacity mechanisms for new energy storage, with some regions implementing capacity compensation policies for independent storage starting in 2023, although the specifics vary [1]. Development Trends - The Chinese government is reinforcing the construction of capacity pricing mechanisms as part of the electricity market reform, with a new policy set to be released on January 30, 2026, to optimize the market mechanism and promote fair competition among various power sources [2]. - Several provinces have begun to implement localized policies, such as Inner Mongolia and Xinjiang providing compensation for storage discharge, while others like Hebei have not established clear standards for capacity compensation [2]. Impact Analysis - The implementation of the national capacity pricing policy is expected to lead to a gradual rollout of provincial policies, enhancing the certainty and economic viability of energy storage [3]. - The revenue model for coal power is shifting towards asset-based, with an anticipated marginal increase of 1.3 cents in thermal power capacity income, which will lower expected energy prices and facilitate market clearing [3]. - The new mechanisms for pumped storage are expected to ensure revenue for existing units while pressuring new units to control operational costs [3].