Energy Storage Capacity Compensation Policies Across Chinese Provinces

As of March 13, 2026, nine provinces in China—Hubei, Gansu, Ningxia, Hebei, Inner Mongolia, Guangdong, Zhejiang, Shandong, and Xinjiang—have established independent energy storage capacity compensation or capacity electricity price policies. These policies fall into three main mechanisms: capacity electricity price (yuan/kW·year), discharge compensation (yuan/kWh), and composite models. The national framework, outlined in Development and Reform Price [2026] No. 114, sets a unified formula where the capacity electricity price equals the local coal power capacity price multiplied by a conversion ratio based on discharge duration relative to peak load time. Provincial implementations vary: Gansu offers 330 yuan/kW·year matching coal power, while Hubei and Ningxia provide 165 yuan/kW·year. Zhejiang offers 170 yuan/kW·year, Hebei 150 yuan/kW·year, and Guangdong differentiates by duration (e.g., 165 yuan/kW·year for 2h). Inner Mongolia and Xinjiang use discharge compensation, and Shandong employs a composite model. A 10MW/4h storage example illustrates calculations for each model. The document includes policy comparisons, site selection advice, and compliance points such as availability assessments and no double compensation rules.